European semiconductor industry
Transcription
European semiconductor industry
DataQuest a company of Dun & Bradstreet Corporation MThe 7th April Dear Client, NEW FORMAT—MARKET SHARE DATA Dataquest's Eviropean Components Group completed preliminary 1988 European semiconductor market share estimates, which are enclosed herein. In the past, clients of the European Semiconductor Industry Service (ESIS) have received this data as a loose-leaf service section to be filed in their binder set. For your convenience we are now publishing this data in the form of a booklet. This booklet can still be filed as before, but offers much greater ease of use "on the move". We have also presented the market share estimates in a ranked format, rather than in alphabetical format, for your ease in comparing of vendors' market positions in different products and technologies. The previous year's rank is also shown for reference. Extra analysis is given, such as percentage market share for each vendor, for further ease in interpreting the estimates. We hope this helps make our estimates more usefuL to you. We would be interested in your comments regarding this new format. Yours sincerely %Y^^ • Bypon Harding Research Analyst European Components Group. 1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292 European Semiconductor Industry Service Volume III—Companies E)ataQuest n n acompanyof I I S I TheDun&Biadstreetcorporation 12^ Ridder Park Drive San Jose, California 95131-2398 (408) 437-8000 Telex: 171973 I ^ : (408) 437-0292 Sales/Service Offices: UNITED KINGDOM Dataquest Europe Limited Roussel House, Broadwater Park Denham, Uxbridge, Middx UB9 5HP England 0895-835050 Telex: 266195 Fax: 0895 835260-1-2 FRANCE Dataquest Europe SA Tour Gallieni 2 36, avenue Gallieni 93175 Bagnolet Cedex France (1)48 97 31 00 Telex: 233 263 Fax: (1)48 97 34 00 EASTERN U.S. Dataquest Boston 1740 Massachusetts Ave. Boxborough, MA 01719-2209 (508) 264-4373 Telex: 171973 Fax: (508) 635-0183 GERMANY Dataquest Europe GmbH Rosenkavalierplatz 17 D-8000 Munich 81 West Germany (089)91 10 64 Telex: 5218070 Fax: (089)91 21 89 JAPAN Dataquest Japan, Ltd. Taiyo Ginza Building/2nd Floor 7-14-16 Ginza, Chuo-ku Tokyo 104 Japan (03)546-3191 Telex: 32768 Fax: (03)546-3198 KOREA Dataquest Korea Daeheung Bldg. 505 648-23 Yeoksam-dong Kangnam-gu, Seoul 135 Korea 011-82-2-552-2332 Fax: 011-82-2-552-2661 The content of this report represents our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients. This information is not fiimished in connection with a sale or offer to sell securities, or in connection with the solicitation of an offer to buy securities. This firm and its parent and/or their officers, stockholders, or mdinbers of their families may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. Printed in the United States of America. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—without the prior written permission of the publisher. © 1990 Dataquest Incorporated Introduction to the Service EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE Dataquest's European Semiconductor Industry Service (ESIS) is a comprehensive information service covering the European semiconductor industry. It is a product-oriented, executive-level perspective intended to assist with strategic decisions of key executives and product managers of semiconductor manufacturing companies, suppliers to the semiconductor industry, semiconductor users, and other businesses or institutions interested in the semiconductor industry. The service consists of the following: • Data-base reference notebooks containing sections that are continually revised and updated as developments occur or additional information becomes available Research newsletters and bulletins on current industry issues and events An inquiry service providing access to Dataquest's European Components Group Client Inquiry Center and access to the European Components Group Research Staff The IC Europe monthly report, providing timely information on European high-technology industries and 1992 An annual conference in Europe, with industry experts discussing developments of current interest and importance Access to Dataquest's semiconductor on-line information service and The PQ Monday Report, providing pricing and lead-time updates Access to Dataquest's European semiconductor library resources SERVICE STRUCTURE The service analyzes and reports on the products, markets, and major companies in the semiconductor industry in Europe as a whole and in individual countries. The service does the following: • Provides semiconductor consumption forecasts in the following ways: By product technology By product function By application market—includes data processing, communications, industrial, military, consumer, and transportation ESIS Volume III 0003069 © 1989 Dataquest Incorporated February Introduction to the Service • Analyzes European semiconductor markets for the following regions: Benelux—includes Belgium, Luxembourg, and the Netherlands France Italy Scandinavia—includes Denmark, Finland, Norway, and Sweden United Kingdom and Ireland West Germany Rest of Europe—includes Austria, Portugal, Spain, and Switzerland • Identifies services and suppliers to the European semiconductor industry • Analyzes the forces affecting the European semiconductor market, such as: Supply and demand Technological developments - Economic issues Government policies Distribution SERVICE ORGANIZATION Volume I Volume I contains separate sections for each of the European geographical regions covered by the service, and each regional section covers the following topics: % • Overview—discussion of the economic environment • Semiconductor Device Markets—analysis of the local markets by technology and function © 1989 Dataquest Incorporated February ESIS Volume IE 0003069 Introduction to the Service • Application Markets—analysis of local application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors • Plant Locations—manufacturing locations by company within the region • Design Center Locations—semiconductor design center locations by company for the region Volume n Volume n, which discusses Europe as a whole, is divided into the following topics: European Overview—covers analysis of trends in capital and research and development expenditures, venture capital, and government and private investment; discusses the European economic environment and channels of distribution Semiconductor Device Markets—analyzes the European market for integrated circuits, discrete devices, and optoelectronics, by technology and function Semiconductor Application Markets—analyzes the European application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors Major Users—analyzes the major semiconductor users in Europe Services and Suppliers to the Semiconductor Industry—identifies the key services and suppliers to the European semiconductor industry: assembly services, capital equipment suppliers, design services, materials suppliers, testing services, and wafer fabrication services Memory—analyzes the European memory semiconductor markets Microcomponents—analyzes the European microcontroller, microprocessor, and microperipheral markets Volume m Volume ni, which contains the company-related data, is divided into the following topics: • European Plant Locations—lists semiconductor manufacturers ESIS Volume III 0003069 the plant locations © 1989 Dataquest Incorporated February for all major Introduction to the Service • European Design Center Locations—lists the design center locations for worldwide semiconductor companies in Europe • European Semiconductor Production—analyzes wafer fabrication in Europe • Company Profiles—profiles selected companies active in Europe Also included in Volume III are Dataquest's Market Share Estimates, which consist of the following: • Worldwide market shares of European companies • European market shares of: European companies U.S. companies Japanese companies Rest of World companies Other Components The ASIC binder contains quantitative and qualitative analyses of the European gate array, cell-based IC, programmable logic, and full-custom businesses. IC Europe is a monthly report on European high-technology industry. It covers a monthly update to the status of the industry, industry highlights, research update, semiconductor pricing and analysis, a thought for the month, and a monthly update on events leading up to 1992. The Newsletters 1988-89 binder contains industry newsletters and bulletins devoted to current topics of specific European interest. In addition, Volumes I, II, and III contain yearly exchange rate tables. The quarterly exchange rate newsletter may be found in the newsletter volume. SERVICE FEATURES AND PROCEDURES Service Sections The document preparation date is shown at the bottom of each page. Sections are updated on a regular basis, and filing instructions are sent with the new updates. © 1989 Dataquest Incorporated February ESIS Volume ID 0003069 Introduction to the Service Newsletters Newsletters are published regularly throughout the year and should be filed in the latest newsletter volume. The newsletters provide executive summaries of key industry events and serve to underscore significant changes in the reference material presented in the data-base notebooks. In addition, newsletters of an analytical nature are published periodically on a variety of topics not regularly covered in the service. Inquiry Privilege There are two forms of inquiry available to the client: access to Dataquest's European Semiconductor Inquiry Center and access to the ESIS semiconductor staff. The registered binderholder has the privilege of direct access to the Inquiry Center, where the staff provides assistance in finding and interpreting material in the data notebooks or other Dataquest-published material. In addition, binderholders have access to the European Semiconductor Industry Service research staff; this privilege allows the client to seek additional commentary on or clarification of the published material, although it is not intended to provide individualized custom research. Using this feature of the service, clients may interact with industry experts on a one-to-one basis to discuss attitudes and opinions about topics covered in the service. Annual Conference Each year Dataquest's European Semiconductor Industry Service hosts a two-day conference. In this forum, leading experts and decision makers throughout the industry share their views on the future and on critical external issues affecting the growth of the European semiconductor business. The conference allows executive-to-executive communication about important topics through formal presentations, workshops, and informal discussion periods. Dataquest's Library Services Dataquest's library services offer comprehensive secondary research materials covering the full spectrum of high-technology companies, markets, and industries tracked by Dataquest. Semiconductor On-Line Information All our clients receive ESIS On-line and the DO Mondav Report as part of the service. The ESIS On-line service holds the ESIS data base, enabling clients receive immediate updates to the data base. The DO Mondav Report gives updates of prices and lead times for 25 selected semiconductor devices. Prices are reported for the United States, Europe, Japan, Taiwan, Hong Kong, and Korea for IK, lOK, and contract quantities. ESIS Volume III 0003069 © 1989 Dataquest Incorporated February Introduction to the Service PRODUCT TECHNOLOGY DEFINITIONS Dataquest divides the total semiconductor market into integrated circuits, discrete devices, and optoelectronic devices. These categories are further segmented as shown on the following pages. Integrated Circuits (ICs) ICs include bipolar devices, MOS devices, and analog devices, broken down as follows: • Bipolar—bipolar memory, bipolar logic Bipolar Memory—ECL RAM, ROM, PROM, flip-flops, latches, register files, shift registers Bipolar Logic—bipolar ASIC, bipolar standard logic, bipolar other logic Bipolar ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs) and full-custom Bipolar standard logic—includes TTL, ECL, and other family logic, as well as TTL-compatible SSI, MSI, LSI; CML, ECL. I2L, ISL, STL with TTL levels; standard, AS, FAST, LS, ALS lines; ECL-compatible SSI, MSI, LSI; RTL and DTL Bipolar other logic—includes ASSPs (application-specific standard products), bipolar bit-slice (e.g., 2900, 29300 families), ALU, control unit, multiplier, floating point, digital filters; also includes bipolar support chips and chip sets for MPUs • MOS—MOS memory, MOS microcomponents, MOS logic MOS Memory—DRAM, SRAM, ROM/other DRAM—Dynamic RAM SRAM—Static RAM ROM/other—includes ROM, PROM, EPROM, EEPROM, flip-flops, latches, register files, shift registers MOS Microcomponents—MOS microprocessor, MOS microcontroller, MOS microperipheral, DSP © 1989 Dataquest Incorporated February ESIS Volume HI 0003069 Introduction to the Service Microprocessor (MPU)—includes all microprocessors such as Intel X86 family, Motorola 68XXX family, RISC Microcontroller (MCU)—includes single-chip controllers such as Intel 8051 and Motorola 68HC05 Microperipheral (MPR)—includes MPU support chips used in system support (e.g., timer, intemipt control, DMA, MMU), peripheral controllers (e.g., disk, graphics display, CRT, keyboard), communications controllers (e.g., UART); also includes MOS chip sets for MPU support, LAN coprocessors, accelerator coprocessors (e.g., floating-point unit, graphics coprocessor, image processor) Digital signal processor (DSP)—includes single-chip DSPs, MOS bit-slice, ALC, mulipliers, accumulators, and digital filters MOS Logic—MOS ASIC, MOS standard logic, MOS other logic MOS ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs), and full-custom MOS standard logic—includes MOS family logic such as HC, HCT, and FACT lines MOS other logic—includes application-specific standard products (ASSPs) (e.g., motor control ICs); also MOS ALC, MAC, digital filters, and other building blocks Analog (linear)—monolithic, general-purpose, specialty-purpose, analog ASIC, hybrid Monolithic—includes bipolar and MOS monolithic linear ICs with more than 50 percent analog circuits by area on the die General-purpose—includes input/ouput and power applications Specialty-purpose—includes applications telecommimications and consumer Analog ASIC—includes linear arrays, linear CBIC, and linear full-custom Hybrid—includes hybrid packages sold by semiconductor vendors, used mostly in linear applications ESIS Volume III 0003069 © 1989 Dataquest Incorporated February Introduction to the Service Discrete Devices Discrete devices include transistor, diode, thyristor, and other discrete devices, as follows: • Transistor—includes small signal and power transistors, and field effect transistors (FET) • Diode—includes small signal and power diodes, Zener diodes, and rectifiers • Thyristors—includes all unidirectional and bidirectional thyristors • Other discrete—includes tunnel and varactor diodes, microwave diodes, and other polycrystalline devices optoelectronic Devices Optoelectronic devices include light-emitting diodes (LEDs), infrared lamps, LED displays, laser devices, optoelectronic couplers, and sensors (photo diodes, selenium rectifiers, solar cells). They exclude LCD displays and incandescent and fluorescent lamps and displays. APPLICATION MARKET DEFINTTIONS Dataquest segments and defines the semiconductor application markets as follows: • Data Processing—This includes all equipment whose main function is flexible information processing. Included in this segment are all personal computers, regardless of price, distribution, or use in the office, education, or home environment. • Communications—Within the communications market, Dataquest classifies telecommunications as a subsegment that consists of customer premises and public telecommunications equipment. The other communications categories include radio, studio, and broadcast equipment. • Industrial—The industrial segment includes all manufacturing-related equipment, including scientific, medical, and dedicated systems. • Consumer—This is equipment that is designed primarily for home or personal use, the primary function of which is not flexible information processing. Audio and video equipment and appliances are typical examples of equipment that is classified in the consumer application market. © 1989 Dataquest Incorporated February ESIS Volume in 0003069 Introduction to the Service • Military—Military electronic equipment is primarily defense-oriented electronic equipment and is classified by major budget area. It does not include all electronic equipment procured by the government because such a breakout would double-count equipment that logically belongs in other market segments. • Transportation—This segment consists mainly of automotive and light truck electronics. This designation leaves room to analyze other markets, such as off-highway equipment, that are potentially large users of semiconductors. Further definitions of these segments are included in the European Semiconductor Applications Market (ESAM) binder. ABOUT DATAQUEST Dataquest's research covers an entire generation of high-technology industries, with a primary focus on the following six broad areas: Semiconductors Information systems Peripherals Office equipment Industrial automation Telecommunications Within these primary areas, Dataquest tracks and serves more than 25 separate industries. Dataquest provides a comprehensive line of products and services designed to meet the varying research and analysis needs of corporate decision makers. The products include the following: • Industry services similar in nature to the European Semiconductor Industry Service • Executive and Financial Programs—A series of business opportunity and technology advisory programs specifically designed for senior executives involved in high technology • Focus Reports—Highly detailed landmark publications on specific issues of topical interest ESIS Volume III 0003069 © 1989 Dataquest Incorporated February Introduction to the Service Newsletters—General overviews and analyses of specific industries or markets Product Specification Guides Who's Who Industry Guides Consultancy DATAQUEST LOCATIONS The European Components Group (ECG) has its headquarters in our London office, and clients in Europe should address their inquiries to that office. ECG also maintains staff in our San Jose office, and inquiries from subscribers in the United States can be addressed there. Dataquest Incorporated 1290 Ridder Park Drive San Jose, California 95131-2398 USA Telephone: (408) 437-8000 Telex: 171973 Fax: (408)437-0292 Dataquest UK Ltd. 103 New Oxford Street 13th Floor, Centrepoint London WCl AIDD United Kingdom Telephone: (01)379 6257 Telex: 266195 Fax: (01)240 3653 Dataquest GmbH Roseiikavalierplatz D-8000 Munich 81 West Germany Telephone: (089) 91 1064 Telex: 5218070 Fax: (089) 91 2189 10 Dataquest Japan, Ltd. Taiyo Ginza Building/2nd Fir 7-14-16 Ginza, Chou-ku Tokyo 104 Japan Telephone: (03)546 3191 Telex: J32768 Fax: (03)546 3198 Dataquest SARL Dataquest Intelligent Electronics Tour Gallieni 36, Avenue Gallieni 93175 Bagnolet Cedex Y'TSXIOG Telephone: (1) 48 97 31 00 Telex: 233263 Fax: (1)48 97 34 00 © 1989 Dataquest Incorporated February ESIS Volume III 0003069 Table of Contents Volume I Tide Page INTRODUCTION' Introduction to the Service TABLE OF CONTENTS Table of Contents Newsletter Index 1. BENELUX 1.1 1.2 1.5 1.6 Benelux Benelux Benelux Benelux Overview Semiconductor Device Markets Plant Locations Design Center Locations 2. FRANCE 2.1 2.2 2.5 2.6 France French French French Overview Semiconductor Device Markets Plant Locations Design Center Locations 3. ITALY 3.1 3.2 3.5 3.6 Italy Overview Italian Semiconductor Device Markets Italian Plant Locations Italian Design Center Locations 4. SCANDINAVIA 4.1 4.2 4.5 4.6 Scandinavia Overview Scandinavian Semiconductor Device Markets Scandinavian Plant Locations Scandinavian Design Center Locations 'Titles in capital letters signify tabs. ESIS Volume III 0006448 ©1990 Dataquest Incoiporated February Table of Contents Volume I (Continued) 5. UNITED KINGDOM AND IRELAND' 5.1 5.2 5.5 5.6 U.K. U.K. U.K. U.K. and and and and Ireland Overview Irish Semiconductor Device Markets Irish Plant Locations Irish Design Center Locations 6. WEST GERMANY 6.1 6.2 6.5 6.6 West West West West Germany Overview German Semiconductor Device Markets German Plant Locations German Design Center Locations 7. REST OF EUROPE 7.1 7.2 7.5 7.6 Rest Rest Rest Rest of of of of Europe Europe Europe Europe Overview Semiconductor Device Markets Plant Locations Design Center Locations EXCHANGE RATE TABLES Exchange Rate Tables Volume II Title Page INTRODUCTION Introduction to the Service TABLE OF CONTENTS Table of Contents Newsletter Index 'Titles in u^tal letten rigniiy tabs. ©1990 Dataquest Incorporated February ESIS Volume HI 0006448 Table of Contents Volume II (Continued) 1. EUROPEAN OVERVIEW 1.0 1.1 1.2 1.3 1.4 1.5 Capital Investment R&D Investment Venture Capital Government and Private Investment The European Economic Environment Channel of Distribution 2. SEMICONDUCTOR DEVICE MARKETS European Semiconductor Consumption Estimates 1984-1994 by Product and Technology^ - Benelux - France - Italy - Scandinavia - U.K. and Ireland - West Germany - Rest of Europe 3. SEMICONDUCTOR END-USER MARKETS 3.0 Semiconductor End-User Markets 4. MAJOR USERS 4 Major Users 4.1 Electronic Equipment Company Revenue 4.2 User Company Profiles 5. SERVICES AND SUPPLIERS 5.0 Services and Suppliers to the Semiconductor Industry -Air Products and Chemicals, Inc. -Balzers -The BOC Group PLC -Compugraphic International -General Signal -LTX Corporation -MEMC Electronic Materials S.p.A. -Merck Group 'Titles in capital letten signify tabs. In bocddet format ESIS Volume in 000644S ©1990 DaUquest Incorporated February •' Table of Contents Volume II (Continued) 5. SERVICES AND SUPPLIERS' (Continued) -Micro-Image Technology Ltd. -Monsanto Company -Olin Corporation -The Perkin-Elmer Corporation -Plasma Technology Ltd. -Teradyne Inc. -VG Instruments PLC -Wacker-Chemitronic GmbH 6.' 1.' 8.' 9. MEMORY European MOS Memory Market— Consumption Forecast 1988-1994, Market Share Rankings 1988' 10. MICROPROCESSOR 10.1 Microcomponent Device Market 10.2 Microcomponent Device Supply ECONOMIC DATA AND OUTLOOK Economic Outlook Update 1988-1990' Economic Data and Outlook 1988-1989' EXCHANGE RATE TABLES Exchange Rate Tables 'Titles in ciqntal letters sigmiy tabs. lo booklet fonuat I n bSDSltlOQ ©1990 Dataquest Incorporated February ESIS Volume m 0006448 Table of Contents Volume III Title Page INTRODUCTION' Introduction to the Service TABLE OF CONTENTS Table of Contents Newsletter Index 1. EUROPEAN PLANT LOCATIONS 1. European Plant Locations 2. EUROPEAN DESIGN CENTER LOCATIONS 2. European Design Service Locations 3. EUROPEAN SEMICONDUCTOR PRODUCTION 3. European Semiconductor Production 3.1 Wafer Fabrication 4. COMPANY PROFILES 4. Company Profiles A-B Advanced Micro Devices, Inc. Analog Devices, Inc. ASEA Brown Boveri • Austria Mikro Systeme International GmbH C-D E-F Ericsson Components AB European Silicon Structures Eurosil Electronic GmbH Fujitsu Limited Titles in cs^ntal letteis sigmfy tabs. ESIS Volume m 0006448 ©1990 Dataquest Incoiporated February Table of Contents Volume III (Continued) 4. COMPANY PROFILES' (Continued) G-H General Instrument Corporation Harris Corporation Hewlett-Packard Company Hitachi ltd. I-J Intel Corporation ITT Corporation K-L LSI Logic Corporation M-N Marconi Electronic Devices Ltd. Matra-Harris Semiconducteurs Mitsubishi Electric Corporation Motorola, Inc. National Semiconductor Corporation NEC Corporation O-P N.V. Philips Gloeilampenfabrieken The Plessey Company PLC Q-R S-T Semikron International SGS-Thomson Microelectronics Siemens AG Telefunken Electronic GmbH Texas Instruments, Inc. Toshiba Corporation TRW, Inc. U-V w-x Y-Z Zilog, Inc. 'Titles in c^tal letters signify tabs. ©1990 Dataquest Incorporated February ESIS Volume III 0006448 Table of Contents Volume n i (Continued) MARKET SHARE DATA' European Semiconductor Market Share Estimates—^Final 1988* Worldwide Semiconductor Market Shares by Vendor Base European Semiconductor Market Shares by Vendor Base Worldwide Semiconductor Market Share Rankings European Semiconductor Market Share Rankings EXCHANGE RATE TABLES Exchange Rate Tables 'Htles in c^rital letters signify tabs. ID booklet formal ESIS Volume m 0006448 ©1990 Dataquest Incoiporated February Table of Contents ASIC Title Page INTRODUCTION' Introduction to the Binder TABLE OF CONTENTS Table of Contents ASIC OVERVIEW ASIC—Executive Summary ASIC—^Family Tree and Definitions ASIC—^Forecast Summary ASIC—Market ASIC—^Historical Shipment Data GATE ARRAYS Gate Gate Gate Gate Gate Gate Arrays—Executive Summary Arrays—Forecast Arrays—Product Analysis Arrays—Competitive Analysis Arrays—Emerging Technologies and Trends Arrays—Historical Shipment Data PROGRAMMABLE LOGIC DEVICES PLD—^Executive Summary PLD—^Forecast PLD—^Product Analysis PLD—Competitive Analysis PLD—^Emerging Technology and Trends PLD—^Application and User Issues PLD—^Historical Shipment Data ^Uties in c ^ t a l letters signiiy tabs. ©1990 Dataquest Incorporated February ESIS Volume III 0006448 Table of Contents ASIC (Continued) CELL-BASED ICs' CBICs—^Executive Summary CBICs—Forecast CBICs—^Product Analysis CBICs—^Emerging Technologies and Trends CBICs—^Historical Shipment Data FULL-CUSTOM DEVICES Full-Custom Devices—^Executive Summary Full-Custom Devices—^Forecast Full-Custom Devices—^Historical Shipment Data EUROPEAN DESIGN CENTERS European European European European European Design Service Locations—^Executive Sunrmiary Design Service Locations Full-Custom IC Design Service Locations CBIC Design Service Locations Gate Array Design Service Locations EXCHANGE RATE TABLES European Cvurency Exchange Rates 'Htles in ci^nlal letteis signify tabs. ESIS Volume III 0006448 ©1990 Dataquest Incorporated February Table of Contents Volume IV Newsletters 1988-1989 1989-29 European MOS Gate Array and CBIC Design Starts Analysis 1989-28 European Semiconductor Procurement Survey 1989-27 European Quarterly Industry Forecast Third Quarter Update 1989-26 GaAs PLDs Attack the Silicon TTL PLD Market 1989-25 Exchange Rate Quarterly Newsletter 1989-24 Closing the Gap: Will Japan Become the World's Largest Producer of Fab Equipment? 1989-23 Less Buoyancy Expected in the U.K Economy; More Confidence in the Irish Economy 1989-22 Mixed Analog/Digital ASIC—An Embryonic Market 1989-21 The PLD Evolution 1989-20 Dataquest European Semiconductor Industry Conference: "The European Renaissance" 1989-19 The ASIC Package Proliferation 1989-18 International Semiconductor Trade Issues—Dominance, Dependence, and Future Strategies 1989-17 The Shape of Post-1992 Distribution in Europe 1989-16 Exchange Rate Quarterly Newsletter 1989-15 Final 1988 Market Share Estimates—^European Semiconductor Market 1989-14 European DRAM Market Update 1989-13 European Quarterly Forecast Update 1989-12 Unexpected Buoyancy of the French Economy 1989-11 European Personal Computer Production and Its Impact on the Semiconductor Market 1989-10 Preliminary European MOS Gate Array and CBIC Market Share Rankings 1989-09 Regional Review 1989—A Year of Consolidation 1989-08 EISA—Will It Be an Alternative to MCA? 1989-07 Understanding the NEC/Intel Decision 1989-06 Europe—A Healthy Marketplace for UNIX 1989-05 ASICs Surpass $7.4 BUlion in 1988 1989-04 Exchange Rate Quarteriy Newsletter 1989-03 Hitachi and TI Share the Risk: The 16Mb DRAM Agreement 1989-02 The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed 1989-01 Preliminary 1988 Market Share Estimates—^European Semiconductor Marketplace 1988-29 Europe Refreshes Its Stagnant White Goods Market 1988-28 The Semiconductor Chip Protection Act Is Finalized 10 ©1990 Dataquest Incorporated Febraary November October October September September September August September July July July July June June June May April April March March March March March March March March March March January November November ESIS Volume III 0006448 Table of Contents Volume IV (Continued) Newsletters 1988-1989 1988-27 GEC-Siemens' Joint Bid for Plessey 1988-26 European Quarterly Forecast Update 1988-25 Exchange Rate Quarterly Newsletter 1988-24 Straw Poll of 1992: Regional Attitudes 1988-23 DRAM Alliance: The United States Talks, The British Act 1988-22 West Germany: Facing Up to the Economic Challenge 1988-21 Component Distribution in 1992 1988-20 Can CaUfomia Micro Devices Inject New Life into AMI? 1988-19 Harris Corporation to Acquire GE Solid State 1988-18 ASIC Midyear Update 1988-17 European Quarterly Forecast Update 1988-16 Exchange Rate Quarterly Newsletter 1988-15 Standard Logic Is at Life's Crossroads 1988-14 Dataquest European Semiconductor Industry Conference: "Planning and Positioning for the '90s" 1988-13 1992—What's in a Number? 1988-11 Semiconductor Recovery Gathers Momentum 1988-10 U.K. Semiconductor Distributors' 1987 Revenue 1988-9 "Intelligent" ICs Power Their Way mto $1.1 Million Semiconductor Application Market 1988-8 Semicon Europa: A Slow Show for a Year of Slow European Equipment Sales 1988-7 An Introduction to 1992 1988-6 DRAM Deja Vu 1988-5 1988 European Regional Semiconductor Outlook 1988-4 Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-3 Exchange Rate Quarterly Newsletter 1988-2 Exchange Rate Quarterly Newsletter 1988-1 1987 Preliminary Market Share Broad-Based Recovery in Semiconductors November October November October October October September September September September August September August July July June May May March March March March February February January January I.C. EUROPE Monthly reports containing: State of the Industry Industry Highlights Research Update Semiconductor Pricing and Analysis Thought for the Month 1992 ESIS Volume ID 0006448 ©1990 Dataquest Incorporated February 11 Newsletter Index BY SUBJECT Subject Newsletter 1992 Introduction to 1992 1922—What's in a Number? Component Distribution in 1992 I.e. Europe Thought for the Month— Japanese Perception of Europe The Shape of Post-1992 Distribution in Europe The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed I.e. Europe Thought for the Month— European Semiconductor Supply Note: Also see 1992 Section in I.C. Europe each month. Acquisitions AMI Analog Application Markets ESIS Newsletter 0006459 Date 1988-07 1988-13 1988-22 September 1988 1989-17 1989-02 July 1989 Ericsson Gets Leaner while Nokia Continues Acquisitions Harris Corporation to Acquire GE Solid State Can CaUfomia Micro Devices Inject New Life into AMI? 1988-20 Can California Micro Devices Inject New Life into AMI? 1988-20 I.e. Europe Research Update—Analog Market Analysis March 1989 I.e. Europe Research Update— Quarterly Electronics Industry Update European Personal Computer Production and Its Impact on the Semiconductor Market EISA—^Will It Be an Alternative to MCA? Europe—A Healthy Marketplace for UNIX ©1990 Dataquest Incorporated February 1988-04 1988-19 August 1988 1989-11 1989-08 1989-06 Newsletter Index Subject Application Markets (Continued) Newsletter Europe Refreshes Its Stagnant White Goods Market I.e. Europe Thought for the Month— Workstation Market Opportunities I.e. Europe Thought for the Month— Cordless Telephones I.e. Europe Research Update— European Military Market I.e. Europe Thought for the Month— ISDN: Aging before Birth? I.e. Europe Research Update— European Laptop Market Analysis I.e. Europe Research Update— CT2: A Rising Star in Europe I.e. Europe Research Update—U.K. V32 Modem Race I.e. Europe Research Update—^The Next Graphics Standard I.e. Europe Research Update—Dynamic European CAD/CAM Market I.e. Europe Research Update—^Military/ Aerospace Semiconductor Demand I.e. Europe Thought for the Month— EC's Green Paper on Telecommunications Asia I.e. Europe Research Update—^The Tigers Prepare for Graduation ASICs ASIC Midyear Update European MOS Gate Array and CBIC Design Starts Analysis Mixed Analog/Digital ASIC—An Embryonic Market The ASIC Package Proliferation Preliminary European MOS Gate Array and CBIC Market Share Rankings ASICs Surpass $7.4 BiUion in 1988 ©1990 Dataquest Incorporated Febniaiy Date 1988-29 February 1989 October 1988 November 1988 December 1988/ January 1989 April 1989 June 1989 July 1989 August 1989 September 1989 November 1989 November 1989 March 1988 1988-18 1989-29 1989-22 1989-19 1989-10 1989-05 ESIS Newsletter 0006459 Newsletter Index Subject ASICs (Continued) CAD/CAM California Micro Devices Capital Spending Cellular Radio Chip Protection Act Communications Newsletter I.e. Europe Research Update—Gate Array Design Start Forecast Slashed December 1989 I.e. Europe Research Update—^Dynamic European CAD/CAM Market September 1989 Can California Micro Devices Inject New Life into AMI? 1988-20 I.e. Europe Research Update— Quarterly Electronics Industry Update August 1988 I.e. Europe Research Update— European Cellular Market September 1988 The Semicoductor Chip Protection Act is Finalized 1988-28 I.e. Europe Research Update—^The Final Frontier in Voiceband Modems I.e. Europe Thought for the Month— Satellites I.e. Europe Research Update— European Cellular Market I.e. Europe Thought for the Month— Cordless Telephones I.e. Europe Thought for the Month— ISDN: Aging before Birth? I.e. Europe Research Update— CT2: A Rising Star in Europe I.e. Europe Research Update—^U.K. V32 Modem Race I.C. Europe Thought for the M o n t h EC's Green Paper on Telecommmunications Companies ESIS Newsletter 0006459 Date I.e. Europe Thought for the M o n t h Company Results I.e. Europe Research Update—South Korean Companies I.e. Europe Thought for the Month— Cordless Telephones ©1990 Dataquest Incoiporated February July 1988 August 1988 September 1988 October 1988 Dec/Jan 1989 June 1989 July 1989 November 1989 January 1988 October 1988 October 1988 Newsletter Index Subject Computers Conferences Consumer Consumption Data Newsletter European Personal Computer Production and Its Impact on the Semiconductor Market Europe—^A Healthy Marketplace for UNIX I.e. Europe Thought for the Month— Workstation Market Opportunities I.e. Europe Research Update— European Laptop Market Analysis I.e. Europe Research Update—^The Next Graphics Standard Semicon Europa: A Slow Show for a Year of Slow European Equipment Sales Dataquest's 1988 European Semiconductor Industry Conference: Planning and Positioning for the '908 1992—What's in a Number? Dataquest's 1989 European Semiconductor Industry Conference: "The European Renaissance" Europe Refreshes Its Stagnant White Goods Market 1988 European Regional Semiconductor Outlook Semiconductor Recovery Gathers Momentum European Quarterly Forecast Update European Quarterly Industry Forecast— Third Quarter Update European Quarterly Forecast Update Regional Review 1989—A Year of ConsoUdation ASICs Surpass $7.4 Billion in 1988 I.e. Europe Research Update— Worldwide Semiconductor Forecast Low ©1990 Dataquest Incoiporated February Date 1989-11 1989-06 February 1989 April 1989 August 1989 1988-08 1988-14 1988-13 1988-29 1988-05 1988-11 1988-17 1989-27 1989-13 1989-09 1989-05 October 1989 ESIS Newsletter 0006459 Newsletter Index Subject Newsletter Date Consumption Data (Continued) I.e. Europe Research Update—Gate Array Design Start Forecast Slashed Deregulation I.e. Europe Thought for the Month— Government Policies I.e. Europe Research Update—^EC's Green Paper on Telecommunications November 1989 European MOS Gate Array and CBIC Design Starts Analysis 1989-29 Design Starts Distribution EC Economy Equipment and Materials Ericsson ESIS Newsletter 0006459 December 1989 May 1988 U.K. Semiconductor Distributors' 1987 Revenue Component Distribution in 1992 The Shape of Post-1992 Distribution in Europe I.e. Europe Thought for the Month— Distribution in Europe November 1988 I.e. Europe Thought for the Month— European Community Not a Technological Backwater June 1989 I.e. Europe Thought for the Month— Business Prospects I.e. Europe Thought for the Month— Government PoUcies Less Buoyancy Expected in the U.K. Economy; More Confidence in the Irish Economy Unexpected Buoyancy of the French Economy 1988-10 1988-21 1989-17 February 1988 May 1988 1989-23 1989-12 Semicon Europa: A Slow Show for a Year of Slow European Equipment Sales I.e. Europe Research Update—General Signal Acquires GCA May 1988 Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-04 ©1990 Dataquest Incorporated February 1988-08 Newsletter Index Subject Newsletter Date Exchange Rates Exchange Exchange Exchange Exchange Exchange Newsletter Newsletter Newsletter Newsletter Newsletter 1988-16 1988-02 1989-25 1989-16 1989-04 GaAs GaAs PLDs Attack the Silicon TTL PLD Market 1989-26 I.e. Europe Research Update—General Signal Acquires GCA May 1988 GEC GEC-Siemens' Joint Bid for Plessey 1988-27 General Signal I.e. Europe Research Update—General Signal Acquires GCA May 1988 Harris Corporation to Acquire GE Sohd State 1988-19 GCA Harris Hitachi Industry Trends 1 Rate Rate Rate Rate Rate Quarterly Quarterly Quarterly Quarterly Quarterly Hitachi and Tl Share the Risk: The 16Mb DRAM Agreement I.e. Europe Research Update—Hitachi/ TI DRAM Deal 1988 European Regional Semiconductor Outlook DRAM D6ja Vu Semiconductor Recovery Gathers Momentum Standard Logic Is at Life's Crossroads ASIC Midyear European Quarterly Forecast Update European Quarterly Forecast Update I.e. Europe Research Update—^RISC Architecture I.e. Europe Thought for the Month— DRAMs I.e. Europe Research Update— Quarterly Electronics Industry Update ©1990 Dataquest Incorporated Febraary 1989-03 February 1989 1988-05 1988-06 1988-11 1988-15 1988-18 1988-17 April 1988 July 1988 August 1988 ESIS Newsletter 0006459 Newsletter Index Subject Industry Trends (Continued) Intel Investment Japan Market Shares Memory . ESIS Newsletter 0006459 Newsletter Date European DRAM Market Update 1989-14 European Quarterly Forecast Update Regional Review 1989—A Year of Consolidation I.e. Europe Research UpdateWorldwide Semiconductor Forecast Low European Quarterly Industry Forecast— Third Quarter Update 1989-13 1989-09 October 1989 1989-27 Intel Turns Twenty: Is There Life after DOS? Understanding the NEC/Intel Decision 1988-12 1989-07 I.e. Europe Thought for the Month— European Community not a Technological Backwater June 1989 I.e. Europe Thought for the Month— Japanese Perception of Europe September 1988 . PreUminary 1987 Market Share Estimates Final 1988 Market Share Estimates— European Semiconductor Market Preliminary European MOS Gate Array and CBIC Market Share Rankings Preliminary 1988 Market Share Estimates—^European Semiconductor Marketplace I.e. Europe Research Update— Worldwide Market Share Analysis I.e. Europe Research Update—Analog Market Analysis DRAM D6}h Vu European DRAM Market Update Hitachi and TI Share the Risk: The 16Mb DRAM Agreement ©1990 Dataquest Incorporated February 1988-01 1989-15 1989-10 1989-01 Dec/Jan 1989 February 1989 1988-06 1989-14 1989-03 Newsletter Index Subject Newsletter Memory (Continued) I.e. Europe Thought for the Month— Business Prospects I.e. Europe Thought for the Month— DRAMs I.e. Europe Research Update—^Hitachi/ TI DRAM Deal I.e. Europe Thought for the Month— Users Erupt Against DRAM Proposals Mergers I.e. Europe Research Update— Managing the Mergers Microcomponents Microelectronic Tube Military February 1988 July 1988 February 1989 September 1989 June 1988 Intel Turns Twenty: Is There Life after DOS? Understanding the NEC/Intel Decision I.e. Europe Research Update—A RISe-less Approach April 1989 I.e. Europe Thought for the Month— Return of the Tube December 1989 I.e. Europe Research Update— European MiUtary Market I.e. Europe Research Update—Military/ Aerospace Semiconductor Demand Modems Date 1988-12 1989-07 November 1988 November 1989 I.e. Europe Research Update—^The Final Frontier in Voiceband Modems July 1988 NEC Understanding the NEC Intel Decision 1988-07 Nokia Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-04 I.e. Europe Thought for the Month— Japanese Printer Manufacturers June 1988 Plessey GEC-Siemens' Joint Bid for Plessey 1988-27 PLDs GaAs PLDs Attack the Silicon TTL PLD Market The PLD Evolution 1989-26 1989-21 Offshore Manufacturing ©1990 Dataquest Incorporated February ESIS Newsletter 00064S9 Newsletter Index Subject Power ICs Printers Procvuement Quality RISC SateUites Newsletter Date Intelligent ICs Power Their Way into $1.1 Billion Semiconductor Application Market 1988-09 I.e. Europe Thought for the Month— Japanese Printer Manufacturers June 1988 European Semicoductor Procurement Survey 1989-28 I.e. Europe Thought for the Month— Perception versus Measurement March 1988 I.e. Europe Research Update—^RISC Architecture I.e. Europe Research Update—^A RISC-less Approach April 1988 April 1989 I.e. Europe Thought for the Month— Satellites August 1988 I.e. Europe Research Update— Managing the Mergers June 1988 Siemens GEC-Siemens' Joint Bid for Plessey 1988-27 South Korea I.e. Europe Research Update—South Korean Companies I.e. Europe Thought for the Month— Cordless Telephones October 1988 Standard Logic Standard Logic Is at Life's Crossroads 1988-15 Takeovers GEC-Siemens' Joint Bid for Plessey 1988-27 Tariffs I.e. Europe Research Update—^The Tigers Prepare for Graduation The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed I.e. Europe Thought for the Month— Regional Aid Policy SOS-Thomson ESIS Newsletter 0006459 ©1990 Dataquest Incorporated Februaiy October 1989 March 1988 1989-02 April 1989 . Newsletter Index Subject Tariffs (Continued) TI Trade Issues Newsletter I.e. Europe Thought for the Month— European Semiconductor Supply Hitachi and TI Share the Risk: The 16Mb DRAM Agreement I.e. Europe Research Update—Hitachi/ TI DRAM Deal International Semiconductor Trade Issues—^Dominance, Dependence, and Future Issues The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed Date July 1989 1989-03 February 1989 1989-18 1989-02 U.K. Markets U.K. Semiconductor Distributors' 1987 Revenue 1988-10 UNIX Europe—A Healthy Marketplace for UNIX 1989-06 I.e. Europe Thought for the Month— Users Erupt against DRAM Proposals September 1989 I.e. Europe Thought for the Month— An Era of Glasnost and Perestroika March 1989 I.e. Europe Thought for the Month— Changing Role of Equity in Europe October 1989 I.e. Europe Thought for the Month— Forward Vertical Integration August 1989 Closing the Gap: Will Japan Become the World's Largest Producer of Fab Equipment? 1989-24 Users USSR Venture Capital Vertical Integration Wafer Fabrication 10 ©1990 Dataquest Incoiporated February ESIS Newsletter 0006459 j l . European Pt Locations luropean Fab Database November 1991 Dataquest DataQuest Semiconductors Europe European Fab Database November 1991 Source: Dataquest Dataquest Semiconductors Europe i Published by Dataquest Incorporated The content of this report represents our interpretation and analysis of information generally available to the public or released by knowledgeable individuals in the subjea industry, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients. Printed in the United States of America. Allrightsreserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—widiout the prior permission of the publisher. © 1991 Dataquest Incorporated November 1991 m ^ European Fab Database Background The material in this booklet applies to the European portions of Dataquest's Semiconductors Europe service Wafer Fab Database. The Wafer Fab Database is updated on an ongoing basis, employing both primary and secondary research methodologies. The tables included in this booklet highlight both production and pilot line wafer fabs. General Definitions A fab line is a processing line in a clean room that is equipped to do all front-end wafer processing. Occasionally there are two separate product-specific fab lines or two different wafer sizes in a clean room. In this situation, a clean room will be documented as two fab lines if the equipment is dedicated to each wafer size or product line. There can be many fab lines at one location. Front-end wafer processing is defined as all steps involved with semiconductor processing, beginning with initial oxide and ending at wjifer probe. A production fab is defined as a wafer fab capable of front-end processing more than 1,250 wafers per week (type = F). A pilot fab is defined as a wafer fab capable of front-end processing 1,250 wafers or less per week (type = P). Definitions of Table Columns The Products Produced column contains product information for seven p r o d u a categories. The information in this column can be very detailed, depending o n the information's availability. The nomenclature used within the seven product groups of the fab database is as follows, with definitions where warranted: • Analog - UN—^Linear/analog devices - A/D D/A—Analog-to-digital, digital-toanalog converters - AUTOMOTIVE—^Dedicated to automobile applications - CODEC—Coder/decoder - DSriERFACE—Interface IC - MESFET (GaAs)—Metal Schottky fieldeffect transistor - MODFET (GaAs) - MDIODE (GaAs)—Microwave diode - MFET (GaAs)—Microwave field-effect transistor - MODEM—Modulator/demodulator - MMIC—^Monolithic microwave IC - OP AMP—Operational amplifier - PWR IC—^Power IC - REG—Voltage regulator - SMART PWR—Smart power - SWITCHES—Switching device - TELECOM—^Telecommunications chips Memory - MEM—Memory - RAM—Random-access memory - DRAM—Dynamic RAM - SRAM 4 TR.—Static RAM uses a 4-transistor cell design - SRAM 6 TR.—Static RAM uses a 6-transistor cell design - VRAM—Video RAM - ROM—^Read-only memory - PROM—^Programmable ROM - EPROM—^Ultraviolet erasable PROM - EEPROM or E2—^Electrically erasable PROM - FERRAM—^Ferroelectric RAM - NVMEM—^Nonvolatile memory (ROM, PROM, EPROM, EEPROM, FEREIAM) - FIFO—^First-in, first-out memory - SPMEM—Other specialty memory (dual port, shift-register, color look-up, etc.) Micrologic - ASSP—Application-specific standard product - BIT—^Bit slice (subset of MPU functions) - DSP—^Digital signal processor - MCU—Microcontroller unit European Fab Database - MPR—^Microperipheral - MPRCOM—MPR digital communications (ISDN, LAN, UART, modem) - MPU—Microprocessor unit - LISP—^32-bit list instruction set processor for AI applications - RISC—^Reduced-instruction-set computation 32-bit MPU • Standard logic - PTRAN—^Photo transistor - SAW—Surface acoustic wave device - Srr IMAGE SENSOR—Static induction transistor image sensor The Process Technology column lists four major types of technologies. This column also lists a few uncommon technologies along with information on levels of m e t ^ type of well, and logic structure, when available. Definitions of the nomenclature used in the Process Technology column are as foUows: - LOG—Standard logic • MOS (silicon-based) • ASIC logic - ASIC—^Application-specific IC ARRAYS—Gate arrays CBIC—Cell-based IC CUSTOM—Full-custom IC (single user) PLD—^Programmable logic device • Discrete - DIS—Discrete DIODE PET—^Field-effect transistor GTO—Gate turn-off thyristor HEMT (GaAs)—^High-electron-mobility transistor MOSFET—MOS-based field-effect transistor PWR TRAN—Power transistor RECTIFIER RF—^Radio frequency SCR—Schottky rectifier SENSORS SST—^SmaU-signal transistor THYRISTOR TRAN—^Transistor ZENER DIODE • Optoelectronic - OPTO—Optoelectronic CCD—Charge-coupled device (imaging) COUPLERS—^Photocouplers lED—^Infrared-emitting diode IMAGE SENSOR LASER (GaP)—Semiconductor laser or laser IC - LED—Light-emitting diode - PDIODE—Photo diode - CMOS—Complementary metal-oxide semiconductor - MOS—^n-channel metal-oxide semiconductor (NMOS) and p-channel metal-oxide semiconductor (PMOS) (More than 90 percent of the MOS fabs use n-channel MOS.) - Ml—Single-level metal - M2—^Double-level metal - M3—Triple-level metal - N-WELL - P-WELL - POLYl—Single-level polysilicon - POLY2—Double-level polysilicon - POLY3—Triple-level polysilicon • BiCMOS (silicon-based) - BICMOS—Bipolar and CMOS combined o n a chip - BIMOS—^Bipolar and MOS combined on a chip - ECL I/O—^ECL input/output - TTL I / O — ^ m input/output • Bipolar (silicon-based) - BIP—Bipolar - ECL—Emitter-coupled logic - TTL—^Transistor-transistor logic - STTL—Schottky TTL • Gallium arsenide and other compound semiconductor materials - GaAs—Gallium arsenide - GaAlAs—Gallium aluminum arsenide - GaAs on Si—Gallium arsenide on silicon - GaP—Gallium phosphide ©1991 Dataquest Incorporated November—Reproduction Prohibited European Fab Database - HgCdTe—Mercuric cadmium telluride - InAs—^Indium arsenide - InP—^Indium phosphide - InSb—Indium antimony - LiNb03—^Lithium niobate - SOS—Silicon on sapphire The number in the Minimum lAnewidth column represents the minimum linewidth at the critical mask layers as drawn. This number is stated in microns and is defined in Dataquest's fab survey as being available in production volumes. The Wafer Size column represents the wafer diameter expressed colloquially in inches. However, for wafers greater than 3 inches in diameter, the colloquial expression is inaccurate. When calculating square inches, the following approximations are used: Wafer-Start Capacity is defined in the fab survey as the equipment-limited wafer-start capacity per four-week period. Start capacity is not limited by current staffing or the number of shifts operating; it is limited only by the installed equipment in the fab and the complexity of the process it runs. Start capacity in square inches is calculated using the approximate diameter and the wafer-start capacity. The Clean Room Class column represents the level of cleanliness in the cleanest part of the clean room. This area represents the true environment to which the wafer is exposed. The Origin of Oumer column represents the country where the parent company is headquartered. The Merchant or Captive column categorizes each fab line on the tables as one of these two types. Definitions of the various categories are as follows: • A Merchant fab line is a fab line that produces devices that end up available on the merchant market • A Captive fab line does not sell any of its devices on the merchant market. All production is consumed by the owner of the fab line. ©1991 Dataquest Incorporated November-Reproduction Prohibited Table 1 European Existing Pilot and Production Fab Llne» (Including Fabs Going into Productloti During 1992) Company City Country Fab Name Products Produced ABB-BAFO AB JABTALLA SHEDEH K/A DIS OBIO H/A PHR DIS LIN LAHPERTHEIM A£Q AS (DAIMLER BENZ) Proceaa Technology BIF CMOS SOS 1.50 Waf. Size Max. W/Start Capacity (4 wks.) In. Clean Start Room Capacity (square feet) <4 wks.) S<i* 5,000 60,850 16,000 113,120 0.00 3D ICs mn-HAVE OPTO 4SW Mln. Linewidth 6,000 0 AHALOO DEVICES mx- LIN AD/DA TELECOM CMOS BICMOS 1.00 15,000 182,550 10,000 ANALOe DEVICES K/X LIN AD/DA TELECOM BIP BICMOS 1.20 20,000 547,600 0 6,000 73,020 1,000 12,170 ANSALDO IRASPORTI ASCOM FAVAS CKNOA II9UiX.; SWITZEBUNC N/A ARRAYS CUSTOM 3.00 Table 1 (Continued) European Existing Pilot and Production Fab Lines (Including Fabs Going into Production During 1992) Company City ATtT HICROELECTBONICS I Country SPAIN #/A AOSTRIA HIKROSXSIEME GMBH I i I Fab Name Products Produced H/A CBIC CUSTOM SM EPROM EEPROM ARRAYS ifft ABRnys Process Technology CMOS M2 NHOS CMOS BICMOS Max. Mln. n/Start Line- naf. Capacity width Size (4 vks.) 1.25 6 O.ni •' Sq. In. Clean Start Room Capacity (square (4 »ks.) feet) 14,000 383,320 5,000 243,350 1.00 .:f 25,000 304,250 10,0 28,0 DIGITAL EQUIPMENT SOUTH QUEENSFERRY SCOTLAND mA HPD FPU LOO CMOS 0.70 e. 3,000 62,140 EUK>S GMBH DORTMUND GERMANY H/A L I N CUSTOM CMOS 1.50 4 4,166 50,700 N/A H/A l.GO 9 CMOS M2 CBIC ARRAYS CUSTOM MIL 0.80 1,000 19,020 I ES2 EUROPEAN SILICON STRUCTURES ROUSSET CEDEX 25,00 :& Table 1 (Continued) European Existing PUot and Production Fab lines (Including Fabs Galas Into Production During 1992) Proceaa Technology Min. Line- ffaf. width Size Kax. n/Start Capacity (4 wks.) Sq. In, Clean Start Room Capacity (square (4 wks.) feet) Company City Country fab Name Products Produced rpjiwo NEWIOH AYCLIFFE BNeUUn} PHASE 1 4Mb DRAM ASIC 1.00 6 25,000 684,500 SEC PLESSEY S/C LINCOLN j«G£»tt' n/& LIN HPD ABBAYS SBAH COST 1.50 4. 13,000 158,210 •^ifm^ Mm KM '3^(K^ 15,000 182,550 6,000 164,280 1», 906 29,000 •s O i fi 12,000 a I esc PLESSEX S/C n O, GEC PLESSEY S/C N/A ASIC DSP TELECOM H/A. DIODES DIS LIN CMOS MHOS H3 0.70 § 3' I S. GEC PLESSEY S/C GEC PLESSEY S/C SWINDON flK^^Sp: V/K VXf' S;M 5 12,000 228,240 3.00 4 14,000 170,380 Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Fabs Going Into Pfoducdon During 1992) Fab Name Company city Country HHT BRDGG SniTZERIAND N/A HDGHES HICROELECT. GLENROTHES SCOTLAND BOEBLIHCEN Products Produced Process Technology Max. Min. N/Start Line- Waf. Capacity width Size <4 vks.) Sq. In. Clean Start Room Capacity (square (4 vks.) feet) CONSUMER ICs 0.00 3 15,000 106,050 15,00 ilflfh ARRAYS CMOS HOS CBIC EPROH COSIOM 3;0II < «,400 77,688 28,00 GEBHANX J|^ PHR DIS BYBRID 0.00 ^ 20,000 243,400 COBBEIL-ESSONNES FBUICE N/A ARRAYS LIN BIP CUSTOM 2.00 )»> 40,000 760,600 50,00 COBBEIL-ESSOHHES FRANCE K/A 25eK DRAM 64K SRAM CMOS MOS Xim 9 25,000 475,500 25,00 ifr/* IHb DRAM CMOS 7,000 340,690 20,000 243,400 « I m- I I I H/A IKf gi^p; t Table 1 (Continued) European Existing Pilot anij Ptoducdon Fab IJne<j (tncludli^ Fabs Going Into Fix>diictlon Dutlng 1992) Company city Country Fab Name ProductB Produced SimiELFINQEN GEBHAinC SM ARRAYS N/A Proceas Technology Min. Line- ffaf. width Size Max. n/Start Capacity (4 vtks.) Sq. In. Clean Start Room Capacity (square (4 wks.) feet) 2.00 5 15,000 285,300 20,000 1Mb DEUU4 4Mb DRAM O.SO 8 20,000 973,400 45,000 tl/fk, 25eK DRAM SBAH DSP HPD 1.50 i 25,000 475,500 20,000 SIHDELFINGEN V/k-: CDSTCM Bit 1.50 S 15,000 285,300 20,000 SINDELFINGEN vm 4Hb DRAM CHOS 0.80 B 30,000 1,460,100 45,000 N/A 1«K DRAM, 64K DRAM 0.00 ff 0.00 4 BIP © l-J mi I SINDELflNGEN SIHDELFINGEN GEBMANX g a I a O IBM I VA INST. SCIENCE i TECB. B0I,GARIA J^X 10,000 121,700 Table 1 [Continued) European Existing PUot and Production Fab lines (Including Fabs Going Into Production During 1991) Conrpany City Country Fab Name Products Produced INTL. BECTIFIER IDKIN IIAilt BORGARO BECTIFIER N/A TBIRISIOR N/A Procesa Technology Sq. In. Clean Room Start Capacity (square feet) (4 Hks.) Waf. Size Max. W/Start Capacity (4 vks.) 0.00 4 15,000 182,550 0.00 4 10,000 121,700 5,000 35,350 Hln. Linewidth 1 ttlTL. RECTIFIER BECTIFIER THYRISTOR •§ YUGOSLAVIA N/A 9,49 -A ENGLAND H/A 0.00 0 0.00 0 I BARTLEPOOL I I ^ N/A H/A IXALTEL •8 II GERHANX mfit. PtlR TRAN DIS BIP HOS ^^t^S < 42,000 511,140 GEEJOlWf H/A DSP NVHEH CDSTOH CMOS HOS 1.20 5 21,500 408,930 13,00 Table 1 (Continued) European Existing Pilot and Production Fab Lines (Indudii^ Fabs Going into Production During 1992) Company City Country Fab Name Products Produced IVT FREIBDKG GEBHANY N/A DIS CUSTOM BIP SDTTON COLDFIELD ENGLAND H/A PHR DIS SaAi N/A 256K SRAM MCO ASIC LIN CMOS BICHOS H2 TRAMCB H/A S/A H/A SniTZERLAND H/A CDSKW (QCROELECT. -MARIN SWIIZERUmD N/A HICRONAS, INC. FINLAND K/A MATRA HHS/CYPRESS HICOBELECT. -MARIN t/* ..ptKW Process Technology Mln. Linewidth 5.00 Haf. Size Max. W/Start Capacity (4 wka.) 4 16,500 Sq. In. Clean Start Room Capacity (square (4 wka.) feet) 200,805 0 0 54,000 21,500 0.70 :» 10,000 190,200 H/A 0.00 4 10,000 121,700 ARRAYS LIN COSIOH CMOS 3.00 i 10,000 121,700 LIN CBIC COSTOM CMOS M2 2.00 4,000 48,680 12,912 Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Pabs Going Into Production During 1992) Company City Country HtETEC ALCATEL OODENAARDE BELOIOM MOTOROLA EAST KILBRIDE SCOTLAND BAST KILBRIDE SCOTLAND EAST KILBRIDE SCOTLAND Max. Sq. In. Clean Min. N/Start Start Room Line- Waf. Capacity Capacity (square width Size (4 vks.) (4 vks.) feet) Products Produced Process Technology CUSTOM CBIC ANA MOS CMOS BICMOS 1.00 4 15,000 182,550 21,5 HCt; MEM LOG CMOS MOS Ml 3,00 4 20,000 243,400 25,6 WH"^ '^^ ''^ LOG '^'^'^ ^ ^ t: 45,000 855,900 35,0 XKlS-tf SRAM 1Mb CMOS TOSHIBA 1 . 0 0 DRAM 6 8 0 4 0 MPO 6 25,000 684,500 34,0 BIP PHR PHR TRAH Fab Name »-* D HOS-1 C I I 2-M: I 1 ^ MOTOROLA BIP 10.00 9 12,000 228,240 8,7 TELECOM OP BIP AMP RES AOTO 2.00 4 25,000 304,250 22,0 UES 0.00 4 14,000 170,380 5,8 I 'i^llJii« v/x Table 1 (Continued) Suropean Existing Pilot tnt^ ncpdocOsa Fab lines (InchifUng Fabs Going Ini^ Stojilte^otl I>uring 1992) Process Technology Mln. Linewidth Waf. Sise Max, H/Stai± Capacity (4 wka.) Sq. In. Clean Start Room Capacity {square (4 wks.) feet) Company Country Fab Name Products Produced NATIONAL 5/C SCOTLAND BIP 4 LOG BIP 5.00 4 40,000 486,800 10,000 NATIONAI. S/C SCOTLAND tmxe VM 'SI* 0.00 5 15,000 285,300 15,000 SCOTLAND OK 6" LOG COSIOM ARRAYS BIP a.50 « 7,000 191,660 10,000 LIVINGSTON, WEST LOTHIAN SCOTLAND PBASE 1 IHb DRAM 4Mb DRAM CMOS M2 H3 0.70 $ 9,000 171,180 19,500 LIVINGSTON, REST LOTHIAN SCOTIiAND 4Hb DRAM 2S6K SRAM MPn CMOS 0.00 6 9,000 246,420 19,500 0.00 4 10,000 121,700 3.00 3 15,000 106,050 @ i-» D i (b I 3 NATIONAL S/C I I I w&m NEmOSKET MICBOSYS. NDOVA HISTRAL S . P . A . SEBHONETA il^ :W^ R/A ZENER DIODE DIODES N/A 10,76 Table 1 (Continued) European Existing iHlgl ^0A IPnilliinctla^ (Including Fabs Goii^ J^tHk ^^^llUi^ia^ tkHitis 1992) Company § PHILIPS City Country HAMBURG Fab Name Products Produced Process Technology K/A CONSUMER ICS BIPOLAR H2 M3 CONSDHER CON DISCBEIS DIS %^ 8-BIT HCD CMOS HOS HI 16-BIT HCD H2 EEPROM ASIC Mln. Linewidth Waf. Size Max. W/Start Capacity {4 wks,} Sq. In. Clean Start Room Capacity <aquare (4 wks.) feet) 1.50 £ 18,000 342,360 1.20 5 18,000 342,360 22,000 267,740 16,14 •2 BAZELGROVE, ENGLAND STOCKPORT CHESHIRE Kt^Cfep: '^MEJUili' BAZELGROVE, ENGLAND STOCKPORT CHESHIRE W * 1ft IRAN DIODE BIP RECTIFIER 1.00 5 12,500 237,750 32,28 10.00 t 45,000 547,650 19,36 POnERHOS DIODE SMART PWR HOS IM 3.00 4. 10,000 121,700 11,83 »/A S/A iii»M 3.00 1 26,000 316,420 23,45 Table 1 (ContlQued) European Existing PJIot and Production Fab lines (Inchidlng Fabs Going Into Production During 1992) Company City @ Country Fab Hame Products Produced NETREKLANDS H/A SRAM COD NETHEBLAHDS H/A NEIHERLANDS K/A NEISEBLANDS iliat^^ Proceaa Technology Max. Sq. In. Clean Hin. W/Start Start Room Line- Naf. Capacity Capacity (square width Size (4 wka.) (4 wks.) feet) CMOS NHOS H2 0.80 6 8,400 229,992 20,000 380,400 O I I PHILIPS MOS BICMOS BIS 1.50 jl: Pmt DIS DIODES R/lk 0.70 4 N/A KECTIFIER BIP H3 0.00 3 ;;K^. intig «.«0 CMOS IH s^ t ^ 39,338 Q 12,912 70,000 494,900 0 S 12,000 228,240 12,58 2.00 f 12,000 146,040 21,52 Q.OO 3 10,000 70,700 13,00 f I STAOSKANAAL PBILIPS BTC I '^euir SniTZEBLAND PBILIPS/FASELEC ?ml»: OBANOLLEKS N/A M/*. 1 ^ J»3$;Kiii Table 1 (Contiiiiied) European Existing Pilot and Production Fab lines (Including Fabs Going Into Production During 19?2) Cc»npany City Country Fab Name ProductB Produced EHCXAND H/A N/A StlEDEH H/A WR DJS n/t,. $/ji,. Proceaa Technology Waf. Size Max, n/Start Capacity (4 wks.) 0.00 3 10,000 70,700 0.00 4 25,000 304,250 0.00 ^ 10,000 121,700 Min. Linewidth Sq. In. Clean Start Room Capacity (square <4 wks.) feet) « S RIFA AB I :'W(stK BIS :iB5Kji!iesr 92,00 a 5" !3 I SEAGATE KECROELBCI. BEDILINGEN GEBHAm RtW/FAK LIN DIS CDSTOM BIP BICHOS 3^'lSfa 4 20,000 243,400 LIVIMGSrON SCOTLAND »/& LIN MP H2 3.00 4 5,000 60,850 GLENROTHES SCOTLAND N/A LIN DIS OPTO BIP CMOS MOS 4.00 -4' 2,000 24,340 ttfk vti 0.00 4 10,000 121,700 CRICKLADE «i» 16,1 Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Fabs Going Into Production During 1992) Company City Country SEHITRON g SGS-THOMSON 35041 SENNES Fab Name Products Produced Process Technology S/A »IS JtlB N/A ^ Waf. Size Max. W/Start Capacity (4 HICS.) 0.00 4 10,000 121,700 5.00 S ie,000 304,320 4.00 S 16,000 304,320 22,000 0.70 S 28,000 766,640 22,000 $.99: 5 34,000 646,680 3.00 4: 21,000 255,570 Hin, Linewidth Sq. In. Clean Start Room Capacity (square (4 wka.) feet) m I I SGS-TBOMSON SGS-THOMSON AGR&TE (MILAN) I LIN ARRAYS LOGIC :XMtS 64K 2S6K 1Mb EPROH PLD LIN ARRAYS W^ '0 a Wfft' SGS-THOMSON i^ aw LOO LIN COSTOM BIP BICHOS H/A I& SGS-IHOHSON '^ifXjfjiifi]^ n/k SSS-IHOHSON COSTALEITO H/A O.OO T^le 1 (Continued) European Existing Pilot and Production Fab IJnes (Including Fabs Going Into Production Duiing 1992) Conp&Ay City SQS-IHOHSON Max. W/Start Capacity (4 wks.) Sq. In. Clean Start Room Capacity (square (4 wks.) feet) Process Technology Mln. Linewidth LIN PHR IC CDSTOM BIP CMOS 1.50 4 20,000 243,400 MODDLE 4 MPD LIB CMOS MOS 2.00 * 22,000 267,740 NVHEH HPO CMOS MOS 1.50 S 16,000 304,320 K/A 5.00 3 70,000 494,900 ^^fib ill 20,000 243,400 2.00 S 15,000 285,300 t>:W ;S. 15,000 285,300 Country Fab Name Products Produced FSUICE N/A Waf. Size « •g SGS-THOMSON 8! I SSS-THOHSOH XRANCE MODOLE 5 SQS-TBOHSON rSAHCK tIESA S6S-TH0HS0N ^idA^' ^lii^si" IHT^ I I tfDNICH • » * ; BALANSTRAS ASIC BIP CDSIOH LIN BALANSTRAS ASIC COSTOH CMOS MOS 14,00 Table 1 fContinucd) European Existing Pilot and Production Fab Lines (Including Fabs Going into Production During 1992) CoK^any City Country Fab Name Products Produced BEGENSBDHG e&RHAinr MEGA 1 IHb DRAM 4Mb DRAH MEGA 2 4Hb DRAM ^ g -§ 8 SIEMENS f KEOENSBDRG BEGENSBOBG GEBHMiy R^ i^i|^ippk' p» i, Process Technology CMOS •ixm- WHi- 6 4 K DRAM Max. Sq. In. Clean Min. W/Start Start Room Line- ffaf. Capacity Capacity (square width Size (4 wks.) (4 vks.) feet) 0.80 e 20,800 569,504 0.80 « 16,000 438,080 d;,;Oq; 4. 10,000 121,700 2.00 4 40,000 486,800 1,20 5 40,000 760,800 0.00 A 10,000 121,700 :3.«ll j^ 24,000 292,080 LOG I g' AOSTRIA SIEMENS FAB 2 25 6K DRAH MOS g. SHIIZEBLAND N/A TELEFDNKEH SCBIHG GEBMAHX N/A - LOG HPD HCU ARRAYS • « * 3,000 Table 1 CCoatlnued.) European Existing Pilot and Producdon Pab lines (Including Fabs Going Into Production During 1992) Company City Country Tab Name Products Produced Froceaa Technology Min. Linewidth Waf. Size Max. W/Start Capacity (4 wka.) Sq. In. Clean Start Room Capacity (square (4 wks.) feet) COST ^ TELEFDNKEN ELECT. amwMre H/A CDSTOM L I N B I P MOS CMOS DIS HCV i.oo A 20,000 243,400 lELEFUNKEN ELECT. GESHANY 'll/A OPTO HIGH FBEQOEHCY 1.00 ia 5,000 35,350 1.00 :ti 3,000 9,420 I B •g I Z N/A BEILBRONN 8. BIP lELEFDHKEN ELECT. raiwcE n/A DI» M/X 0.00 4 10,000 121,700 25,00 txiait- PHASE 1 4Hb DRAM CHOS ASSP CBIC 0.80 S 23,740 650,001 46,00 ENStAHD PHR FAB PWR DIS BIP 0.00 il 14,379 174,992 9,0 GEBHKHy H/A LIH ASSP BIP CMOS BICMOS 0.80 i 9,463 179,986 10,0 I I I Table 1 (Continued) European Existing Pilot and Production Fab Lines (Includli^ FatM Going into Production During 1992) Company City VAISAUV Waf. Size Max. W/Start Capacity (4 wks.) Products Produced N/A CBIC LIN ASSP CMOS BICMOS 0,80 5 10,515 199,995 FINLAND |(/JL njt £H^: 5.00 3 290; 1,414 I f I I VEB GLEICBRICHTERDERK STABNSDORF GERHMHy H/A FHR DIS N/A 0.00 0' VEB HALBLEIIERHERK FBAHKFORT (ODER) GERHANX It/K li^ fM 0.00 0 GERHMn- ,iJEA:: D/A c^K>s MOS O.OO O RHW WM 0.00 «( SENSOR CCD N/A 0.00 0 VEB KOMBINAT HIKROELEKTRONIK Sq. In. Clean Start Room Capacity (square (4 wks.) feet) Fab Name Country Frocesa Technology Min, Linewidth VEB ROEHRENDERK NEOBADS AH RENtmEG GERMANY VEB NERK FDER FEBNSEEELEKTRONIK BERLIN-OBERSCBOENE 6ERHANX WEIDE MM 11/K. 17,000 Table 1 (Continued) European Existing Wlot and Production Fab lines (Inctudins Fabs Going into Prodiictlon During 1992) Company City NESTCODE S/C CRIPPEH8AH Cmmtry Fab Name H/A Products Produced ProceSB Technology H/A Hin. Linewidth Max. W/Start Haf. Capacity Size (4 vks.) Sq. In. Clean Start Room Capacity (square (4 wks.) feet) 0.00 4 10,000 121,700 l.SO 5 10,000 190,200 H' I B •§ 9! Wh I I I MA - Not Available Source: Dataquest (November 1991) 26,000 Table 2 Buropean Future Pilot and Production Fab lines (Planned Facilities Going Into Production by Yeaf) Fab Type Target Date Prod. Begins N/A » 01/01/92 0.80 e 16,000 778,720 4Hb DRAM HPU IHb DRAH CMOS FAT 03/01/92 0.80 6 22,000 602,360 25,0 16Hb DRAH CMOS T 02/01/92 0.60 8 20,000 973,400 30,0 0.80 6 45,000 1,232,100 Country Fab Name Production Begins; 1992 HITACHI LANOSHDT GEttMAHY N/A 4Hb DRAH 25eK IHb SRAM s- HITSOBISHI KLSDOBF GERMANY N/A 5" TI AVEZZANO ITAIiY PHASE 2 Company City Products Process Technology I / 9 „ Production Begins: 1993 FOJITSn NEWTON AYCLIFFE f INTEIi HIETEC ALCATEL ENGLAND PHASE 2 4Mb DBAM ASIC CMOS LEIXLIP, KILDARE IRELAND FAB 10 386 486 586 MPU LOG CMOS OODENAARDE BELGIDM FAB 2 ASIC ENGLAND PHASE 3 16Mb DRAM CMOS M2 P0Ly2 / Wafer Mln. Start Line- Waf. Capacity width Size (4 wka.) Sq. In. Clean Start Room Capacity (Square (4 wks.) Feet) F 06/01/93 0.80 S 18,000 876,060 30,0 FAT 07/01/93 0.50 6 5,000 136,900 12,9 0.60 a I g S Production Begins! 1994 FtJJITSD NEWTON AYCLIFFE g- I Dataquest (October 1990 CMOS / / 30,000 1,460,100 DataQuest Dataquest Research and Sales Offices: Dataquest Incorporated 1290 Rldder Park Drive San Jose, California 95131-2398 Phone: 01 (408) 437-8000 Telex: 171973 Fax: 01 (408) 437-0292 Technology Products Group Phone: (800) 624-3280 Dataquest Incorporated Ledgeway/Dataquest The Corporate Center 550 Cochituate Road Framingham, MA 01701 Phone: 01 (508) 370-5555 Fax: 01 (508) 370-6262 Dataquest Incorporated Invitational Computer Conferences Division 3151 Airway Avenue, C-2 Costa Mesa, California 92626 Phone: 01 (714) 957-0171 Fax: 01 (714) 957-0903 Dataquest Australia Suite 1, Century Plaza 80 Berry Street North Sydney, NSW 2060 Australia Phone: 61 (2) 959-4544 Fax: 61 (2) 929-0635 Dataquest Germany In der Schneithohl 17 6242 Kronbeig 2 Germany Phone: 49 6l73/6l685 Fax: 49 6173/67901 Dataquest Hong Kong Km. 401. Connaught Comm. Bldg. 185 Wanchai Rd. Wanchai, Hong Kong Phone: (852) 8387336 Fax: (852) 5722375 Dataquest Japan Limited Shinkawa Sanko Building 1-3-17 Shinkawa, Chuo-ku Tokyo, 104 Japan Phone: 81 (3) 5566-0411 Fax: 81 (3) 5566-0425 Dataquest Korea Daeheung Bldg. 1105 648-23 Yeoksam-dong Kangnam-gu Seoul, Korea 135 Phone: 82 (2) 556-4166 Fax: 82 (2) 552-2661 Dataquest Europe Limited Roussel House, Broadwater Park Denham, Uxbridge, Middx UB9 5HP England Phone: 44 (895) 835050 Fax: 44 (895) 835260/1 Dataquest Singapore 4012 Ang Mo Kio Industrial Park 1 Ave 10, #03-10 to #03-12 Singapore 2056 Phone: 65 4597181 Telex: 38257 Fax: 65 4563129 Dataquest Europe SA Tour Gallieni 2 36, avenue du General-de-Gaulle 93175 Bagnolet Cedex France Phone: 33 (D 48 97 31 00 Telex: 233 263 Fax: 33 (1) 48 97 34 00 Dataquest Taiwan Room 801/8th Floor Ever Spring Building 147, Sec. 2, Chien Kuo N. Rd. Taipei, Taiwan R.O.C. 104 Phone: 886 (2) 501-7960 886 (2) 501-5592 Fax: 886 (2) 505-4265 ( 1 European Plant Locations The following list gives plant locations for all major semiconductor manufacturing operations in Western Europe. For each company entry, data are provided listing the primary manufacturing activities conducted at each site by major product category. Not all manufacturing steps are performed at every site for every product category shown, but applicable combinations of design, wafer fabrication, assembly, and test are shown for each product category and location. No design activity appears on the matrix unless another manufacturing step also occurs. ESIS Volume III 0003512 © 1989 Dataquest Incorporated March 1-1 1 European Plant Locations (Page intentionally left blank) 1-2 © 1988 Dataquest Incorporated March ESIS Volume m 0003512 1 European Plant Locations t « 11 4i «««« « « « « « « «« « * * « * * NH LI +> « «««« ««« * ««* C. 1 * ««« « ««« « |. I 35 M °9 o ft A E Z M g^ g Q « S3 is A J S' U 0 ] £ ^ tc Lj a> 01 ^ , U3 (A CA 41 n ftt . , (A U - - 10 Dl kt -I rH O C a tg tn g I 0^ ^ (Ji +J 1-4 4J ^ - 1 u -O 0 (J - I C^ CU kM Qd L I ' a C u L I £ T^ ^ £ VJ -rt «i 01 531 c u c C> U Ajiqrp^dj f t k O J > * C t f l q j M n s j QinLJ K C J M u ^ E 0 a m 33 ^S 0 a J S ?3 u 0 « CI *-t . >-> s £ .3*^ *J ^ CJ ^ a (4 i 13 _ t& a » I u - a u] u A u] D -n ci a O O Z X U X •w^ Cu fih a IS n So ^ Ll T ] I t-l I f^ 'U U "^ fii C 61 ^ ililijslsl u i? H «] i3q B» t *J ? E Ei &(& a f l J H C j u i c n ^ >3 « C B « - U C « i 9 [ J - C C i i B ) L • H r ^ C 4 J a i V i V l 3 Q j ^ r H tj'<^ S > T O V ' ^ U C4-4 x S C O i ^ a ^ ( f l p Q E H 5> S. -o A C J OH r^ « n ] a ^ D ^ o C T i O O U v 11 0003512 ±J E O r. „ . J m ^ r c ^ J tu a U < c/3 2 tA 0 V B >, Of ^ -ii u O C ESIS Volume ffl '*^ *** • 5-^3 3.2" m m I i3 M « Q O tn u J c «>. ' Vi D Ul O L 33 • ai >i = *f J ^ P ^ Q ^ M Q m M 3 ^ C H M C U ^ A IJ M -M 'LJ S h a S0 3 X if 8C c e 3U W 1 -=•• P1! jJ 8 o i-i 3 a JJ a S a m O S c U) u •It WW M M t f c . S s i i i - i ' - " M H M M © 1989 Dataquest Incorporated March 1-3 I ® VO 00 00 a 03 <-f 0) .Q c n v> 3 O O I 01 n o. cu o 3* tn t/i D; < o^ c: w S o o o w (V H M 5 'J^iaw»>M» iimoQ InnoB Intel Intecnationai Rectifier International Rectifier Iskra LSI Logic LSI Logic HEDL HEDL MatiTB-RarriB Micro Circuit Bng^jLMWTing Microelectronic ft-^l^n Micronas Inc. Hietec Mistral Mitel Motorola ftatorola Motorola NEC NBC National Semiconductor National Semicoriductor National Senicotiductar Newmarket Hiccoayatefis Phillpa Philipa Phillpa Phillpa IFaaelac) Philip* (Valvo) Phillpa Co^>onanta Phillpa HlcrOHBVe Town Coed Rheydn Hewpoct Tel Avlw Ox ted Turin Trbovlje Braunschweig Sldcup Lincoln Wembley Nantes Tewtteebury Marin Bapoo Oudenaarde Sermoneta Newport Toulouse Schatibogen East KUbrldtt Livln9Ston Ballivor Furstenfeldbruck Greenock Midgnl Haemek Kewmacliet Eindhos^en NiJRHigan Stadskanaal Zurich Hamburg Stockport Caen Covmtgift Wales wales Israel England Italy Jugoslavia West Germany England England England France England Switlecland Finland Belgium Italy Wales France VTest Gernsiq; Scotland Scotland Ireland Heat Germany Scotland Israel England Netherlands Netherlanda Netherlands Switzerland West Germany Qigland France ProgiiB^fc «0S LSI, Micro MOS ISl, Micro MOS LSI Discretes Discretes BPD, D i s c r e t e s MOS LSI, Custom, SeaicuEtorn BiOIOS, Custom, Seinicustorn D i s c r e t e s , MOS LSI, Microwave D i s c r e t e s , MOS LSI MOS LSI, L i n e a r , RPO MOS LSI Custom I^I Custom MOS LSI Custom MOS, BiCMOS Discretes Custom LSI BPD, D i s c r e t e s , L i n e a r Standard L o g i c , Semiciffitpn MOS LSI H05 LSI HOE LSI BPD, L i n e a r , MOS LSI BPD, L i n e a r . MOS LSI MOS LSI Gate \ r r a y BPD, D i s , L i n e a r , HOS LSI, Opto 8P0, D i s , L i n e a r , MOS LSI D i s c r e t e s , Opto MOS LSI, L i n e a r , Custom BPD, D i s c r e t e s , O p t o , MOS LSI Discretes BPD, D i s , L i n , MOS LSI, Opto, GaAs Maoitfjtcturln Fab Teat A 1 European Plant Locations « «« « * «««««* «««««« « * * « « * « «« «« « « « « o o & ij *J 11 I - r! w € K 0 ij j j m m If 3 -^ c: t-* E '0 ^ «] r 4f BJ '-J C >i ^ -^ 6 \-t ^ H3 Id 41 IQ 0] EA 4? - 5 t> Q u Q m m Q a a z iimi!.!-" lis 0) U H ^4 Ci OJ 0) Ul ^1 s E^ S Vi «2 kj o U j j i j E ft ttt * (N ^ a; u n * w m ^-^ tt u ^ U Ju u -^ J U +J 1 ^ U '^ or CII U k. ^ c ou a H c -^ 4J U a % E U n -p n V 3 ' U ^ Q; V I ; 4t CI *• 41 ^ t - j j j J J J U - H M J J U kjft] O l A ^ t P O t a O l ^ q i ^ b L j t j J l b ^ ttlOlWOOU^ O C; C V 4 1 I I ] D B C t G d - 4 - ^ . r ^ ^ ^ i ^ ( i , n - n ^^ tA a a Ci a mx a rr ^lllili y o o e H r H U . ^ U ' H U ' H ' H l l U ' H U iisillislislllllllHiliilli c nt O' 1 B i^S r H ^ ? • H k . 5 3 j n a]fl) 4> .0 tj t ^ ( - s jlllh u a^ 4f Q J ^ Q I L J O F H I ] n n a c C i t S - K - S * ^ Q O ^ V O u O ^ - H - k J C U C V C _ ^ _ 91 n ; n i J 41 l i LJ i L >5 j > ! C 3 3 ' 0 - l & - i J l ' - - l l J E B i Q i jI - 'HHI Dla 5 3 0 0 - H I D - ^ 5 7 ! ^ ^ S S « -U fD e c o 0 I o O g u « tn V] c 0 4r n 0 A -^ (J « in n Q n Pk P. O . C^ D. c e c c E : ~ ~ -C O O O Q O O O O E E E g e g E E E 0 0 O O O O O O 0 KCms^ce-p ff-l-t't^F-Hf'Hfi »l £ E Q n ^ J3 R tM a ^ D n B 14 o d J£ J f 55 3 3 3 S 3 3 a 3 S y ii S ! g ^^ w •e -; (0 m lln tool ta 01 ESIS Volume III 0003512 © 1989 Dataquest Incorporated March 1-5 I ® v<0 oo 00 o 0) r+ D) c n> CA 3 O 0> <-• s. s; to 1 o ar Company Silieoniit Standard E l e c t r i c s TAG Teiefunltan Electronic Teiefunken Electronic Telefunken Electronic Texas Instrumenta Texas Inatrumanta Texas Inatruntents Tftxas Inatrunenta Texas Instrunenta Texas Instrunents Texat Toahib* <M)H Unitrode Vaiaala Heatcode Wolf son N i c r o a l « Q t | c b n i c a Tow Swanaea Cascala Zurich Braunau Heilbronn Vbcklabruqh Bedford Fraislnq Hoceira Rlstl VilleneuvB-Loubet Avezzano Nice BraunSctiwAl9 Ennia Httlalnkl Qilppenham Edinburgh Country Wales Portugal Switzerland Austria West Germany Austria England West Germany Portugal Italy France Italy Prance West Germany Ireland Finland England Scotland Produeta-: Wwiutaotwrtw) Act JNife -Ti&it A s a ' y Discretes, m s LSI Discretes Discretes Discretes, Opto BPD, Dis, Linear, »03 U I , Opto Discretes, Opto Discretes, MOS I£I, Senicuatom BPD, Linear, HOS LSI BPD, Linear Discretes, HOS LSI Custom LSI, HOS LSI Production starts 1992 Discretes HOS LSI Discretes HOS LSI, CMOS Standard Circuits Discretes Semicuatom Source: Da Ma cs ^ o 2. o c o 5 CJ en n H B European Semiconductor Design Locations Dataquest Semiconductors Europe > European Semiconductor Design Locations I Source: Dataquest I Semiconductors Europe i Published by Dataquest Eurcpe Limited The content of this report represents our interpretation and analysis of information generally available to the public or released by knowledgeable individuals in the subject industry, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients. Printed in the United Kingdom. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or ~ — © 1991 Dataquest Europe Limited OctobCT 1991 0009926 — ^ - > List of Tables Table of Contents Page INTRODUCTION DEFINITIONS Design Center Design Service Independent Design Service Locations Standard Products Custom ASIC CeU-Based ASIC Gate Array ASIC Discrete or Optoelearonic Produas 2 2 2 2 2 Table Pi^ 1 European Semiconductor Design Locations ... 3 2 European Standard Product Design Locations 10 3 European Custom ASIC Design Locations.... 12 4 European Cell-Based ASIC Design Locations 15 5 European Gate Array ASIC Design Locations 21 6 European Discrete and Optoelectronic Design Locations 26 I I ill European Semiconductor Design Locations i i ©1991 Dataqnest Europe Limited October—Reproduction Profaibited European Locations Semiconductor Introduction Currendy 258 semiconductor design locations are established or under development in Western Europe. This is a small decrease over the number of locations in 1990, when there were 264 design locations. This booklet lists the semiconductor design locations in Tables 1 to 6, and identifies the locations on the basis of the products designed there. Definitions The design locations are divided into merchant or captive locations. Merchant locations are those which design semiconductors for sale to any company. Captive locations are those which design semiconductors for use by the parent company only, and will not be re-sold as semiconductor products to another company. The design services offered by these locations are categorized as: Design development of design tools is such that some design centers are not located with the semiconductor manufacturer, and may be with the larger user of semiconductor products. Design centers will have schematic capture, simulation and layout software, and normally have the software for checking the manufacturability of the product in the design center. D e s i g n Service A design service location has the hardware and software required to take a design from the initial concept to functional simulation. This site normally designs ASICs only, and is usually a workstation and applications engineer providing design support. The final layout of the device is performed by the semiconductor manufacmrer at his main design center. The semiconductor manufacturer usually performs the post-layout simulation, but he can often provide the postlayout data to allow the engineer to perform postlayout simulation at his own site. • Category C: Independent Many design service locations are owned by the semiconductor vendors, and they rent w^orkstation time to their customers. However, some of the larger OEMs have invested in their own facilities for internal design groups. The products designed by these locations are categorized as: I n d e p e n d e n t D e s i g n Service Locations • Category A: Design Center • Category B: Design Service • Category 1: Standard Products • Category 2: Custom ASIC • Category 3: Cell-Based ASIC • Category 4: Gate Array ASIC • Category 5: Discrete or Optoelectronic D e s i g n Center A design center has all the hardware and software design tools required, in addition to the engineering resources needed to design standard products and ASICs, Design centers are normally the domain of semiconductor manufacturers, but tJie An independent design service location is equipped with all the hardware and software required to take a design from the initial concept to functional simulation. The final layout of the device is normally performed by the semiconductor manufacturer, but often the independent centers will have the layout and manufacturability software themselves. The independent locations normally design ASIC products only. These centers are third-party locations, and are not tied to a single semiconductor vendor. Independent centers usually have similar facilities to design service locations, but can provide additional system expertise in product and circuit board design, which may not be available at the semiconductor vendor's site. European Semiconductor Design Locations Standard Products Gate Array ASIC Standard products are those which are sold to more than one customer by the semiconductor manufacturer. Standard products are normally only designed in major design centers, and these centers are owned by the semiconductor manufacturer. Gate array ASICs are devices which are customized using the final layers of interconnect. Base wafers with embedded functions such as static random access memory are included in this category. Gate array ASICs are sold to a single user only. Products sold to more than one user are standard products. i Custom ASIC Custom ASICs are products which are manufactured using a full set of masks, and require manual placement and routing of the cells during design. Custom ASICs are sold to a single user only. Products sold to more than one user are standard products. Discrete o r Optoelectronic Products Discrete products are devices which are unit building blocks and perform a fundamental semiconductor function. Optoelectronic products are semiconductor products in which photons induce the flow of electrons, or vice versa. CeU-Based ASIC Cell-based ASICs are devices which are manufactured using a single set of masks, and use automatic cell placement and automatic cell routing. Cell-based ASICs are sold to a single user only. Products sold to more than one user are standard products. I i ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations Table 1 European Semiconductor Design Locations—All Center? Company ABB ABB ABB ABB Alcatel Norkrets Analog Devices Analog Devices Analog Devices Ansaldo Anzac Ascom—Favag ATAC Diffusion AT&T AT&T AT&T Auris Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme Britcomp Sales British Aerospace British Telecom Bull SA Burr-Brown Bytech California Devices Cetehor Compugraph Dectrosuisse Dectrosuisse Denyer Walmley Micro Dialog Dolphin Integration DSP Group Electronique Lyonnaise Elgaplex Elgaplex EM Microelectronics Enatechnic Ericsson Components Euridice European Silicon Structures European Silicon Structures European Silicon Structures Location Baden Guildford Paris Stockholm Oslo Cork Limerick Newbury Genoa Slough Bevais Sevres Bracknell Madrid Munich Grenoble Camberley Dresden Graz Leatherhead Bristol Martlesham Clayes-sous-Bois Livingstone Slough Paris Besanfon Trappes Neuchatel Zurich Loanhead Swindon Grenoble Givat Shmuel Lyon Waldshut Wettringen Marin Hamburg Kista NA Bracknell 's-Hertogenbosh Milan Country Code* Germany M England M France M Sweden M Norway M Eire M Eire M England M Italy M M England Switzerland M M France England M Spain M Germany M M France M England Germany M Austria M M England England C England C France C Scotland C M England M France M France M France Switzerland M Switzerland M M Scotland M England France M Israel M M France Germany M Switzerland M Switzerland M Germany M Sweden M Belgium M M England Netherlands M M Italy 1 4 / / • • / 5 • • • • / • • • • / / / • / / • • / • / • • • • / / / • • • • / / / • • • • / • • • • • / / / • / / • • / • / • • • • • • / / / • • • / • • • / • • • • • / • • / • • • • • • • / • • • • • • / / • • • • • • • • • • • • • / / / • • • (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations Table 1 (Continued) European Semiconductor Design Locations—All Centers Company European Silicon Structures Europ>ean Silicon Structures Eurosil Fujitsu Fujitsu Fujitsu Fujitsu GEC Marconi GEC Plessey Semiconduaors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors Giltspur Micro Goldstar Gothic Crellon Harris Semiconduaor Harris Semiconductor Harris Semiconduaor Harris Semiconduaor Harris Semiconduaor Harris Semiconduaor Hitachi HMT Honeywell Hughes Inmos Inmos Intel Intel International Rectifier ITT Intermetall ITT (BTM) ITT (FACE) ITT (ITTA) ITT (SESA) ITT (SRT) i r r (SRT) Logical Integration LSI Logic LSI Logic Location Munich Paris Eching Frankfurt Maidenhead Paris West Gorton Chelmsford Brussels Lincoln Milan Munich Oldham Paris Swindon Wembley Newbury Dublin Reading Brussels Camberley Hamburg Milan Munich Paris Maidenhead Brugg Bracknell Glenrothes Bristol Newport Haifa Paris Borgaro Torinese Freiburg Antwerp Solamo Vienna Madrid Oslo Zurich Thame Agrate Biel Country Code' Germany M France M Germany M Germany M England M France M England M England M Belgium M England M M Italy Germany M M England France M England M M England England M Eire M England M Belgium M England M Germany M Italy M Germany M France M England M Switzerland M M England M Scodand England C Wales M M Israel France M Italy M Germany M Belgium C Italy c Austria c Spain c Norway c Switzerland c M England M Italy M Switzerland 2 1 • • / • • • • • 3 • / • • • • • • • • • • / / • • • • • • • 4 / / / / 5 C • • • / • / • • / • • • • • • • • • • • / • • • • / / / / / / / • B A • • • • • • • • • / / • • • • • • • • • • • • • • • • • • • • • • • • • / / • / • • • • • • • • / / • • • • • / • • • • • • • • • • (Continued) ©1991 Dataquest Europe Limited October—Repnxluction Prohibited European Semiconductor Design Locations Table 1 (Continued) ; European Semiconductor Design Ijocations—All Centers Company LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic Lucas Macro Marketing Mastair Location Boulogne Bracknell Dflsseldorf Livingstone Munich Oslo Oss Stuttgart Tel Aviv Sutton Coldfield Slough NA Matra-MHS Matra-MHS Matra-MHS Matra-MHS Matra-MHS Matra-MHS MBB MCE Merlin Gerin Micronas Mietec Migration Technology Mikron Missil Mistral Mitel Mitsubishi Morari Bracknell Milan Munich Nantes Paris Stockholm Stuttgart Tewksbury Grenoble Espoo Brussels Pincheim Munich Paris Sermoneta Caldicot Ratingen Montpelier Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola National Semiconduaor National Semiconductor National Semiconductor National Semiconduaor Aylesbury East Kilbride Geneva Haifa Milan Munich Paris Stockholm Toulouse Eindhoven Greenock Milan Munich Paris Cotmtry Code* 1 M France M England Germany M M Scodand Germany M M Norway Netherlands M Germany M M Israel C England M England France M M England M Italy Germany M M France • M France Sweden M Germany C • M England • France C M • Finland M Belgium Germany M M Germany M France Italy M Wales C Germany M • M France M England M Scodand • Switzerland M • M Israel / M Italy M Germany France M M Sweden M France • Netherlands M M • Scotland M Italy M Germany M France B • • • • • • • • / / • • • • • • • • / • • • • / / • • / / • / • • / / / / • / / • • • • • • • • / • • • • • • • • • • • • • / • • • • • • • • • / / / • • • • • • • • • • • • • • • • • • / / • • / • • • • • • • • • • • / • • • • • • • (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations Table 1 (Continued) European Semiconductor Design Locations—All Centers Company National Semiconductor National Semiconduaor National Semiconduaor NCR NEC NEC NEC NEC NEC NEC NEC NEC Newmarket Micro Newtek Nordic VLSI Norsk Data Oki Olivetti Panasonic (Matsushita) Panasonic (Matsushita) PDT-Pynenburg Philips Philips Philips Philips—Fasalec Philips (Mullard) Philips (RTC) PhUips (RTC) Philips (Valvo) Quarndorn Qudos Racal Microelectronics Racal Redac Racal Redac Rapid Silicon Robert Bosch S2PI SAAB Sagem SDM Seiko-Epson Seiko-Epson Semiconductores Semikron Location Stockholm Swindon Tel Aviv Maidenhead Diisseldorf Eindhoven Milan Milton Keynes Munich Paris Stockholm Stuttgan Newmarket Bordeaux Trondheim Oslo Neuss Ivrea Bracknell Grassbrunn Vught Eindhoven Milan Stockholm Zurich Mitcham Caen Paris Hamburg Derby Cambridge Reading Munich Tewksbury Reading Reutlingen Palaiseau Trollattan Paris NA Munich Milton Keynes NA Niimbuig Coiuitry Sweden England Israel England Germany Germany Germany England Germany France Germany Germany England France Norway Norway Germany Italy England Germany Netherlands Netherlands Italy Sweden Switzerland England France France Germany England England England Germany England England Germany France Sweden France Belgium Germany England Spain Germany Code* M M M M M M M M M M M M M M M C M C M C M M M M M M M M M M M M M M M C M M M M M C M M 1 2 • • • / • • • • • • • • • • / / • • • • 3 • • • • • • • • • • / / / / • / • / • / • / • • • • • • • • • • • • • • • • • • • 4 / 5 A B C • • • / • / / • • / • • / / • • • / / • / • • • • • • • • / • • • / • • • • • • • • • • • • • • • • • • • • • • • • • • • • • / • / • • • • • • • • • / • • • • • / • (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations Table 1 (Continued) European Semiconductor Design Locations-^All Centers Company Semitron SES SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST Sharp SiCon Siemens Siemens Siemens Siemens Siemens Siemens Siemens Sierra Semiconductor Sierra Semiconductor Sierra Semiconductor Sigrid Silicon and Software Systems Silicon Microsystems Siliconix Smartech Oy Sorep Sorep Sorep STC (Stantel) STC (STL) Swindon Silicon Systems Symbionics Sysraic System Electronic Vertriebs Systems Sud Tadiran Tektronix Telefunken Telic Alcatel Location Cricklade Nordlingen Agrate Castelleto Catania Grenoble Marlow Rennes Agrate Grafing Madrid Paris Stockholm Hamburg Linkoping DOsseldorf Hannover Milan Munich Stuttgart Villach Zurich 's-Hertogenbosh Milan Munich Toulon Dublin Malmesbury Swansea Tamjjere Grenoble Les Ulis Rennes Sidcup Harlow Swindon Cambridge Aix-en^Provence Braunschweig Toulouse NA Marlow Eching Strasbourg Country (Code* M England M Germany M Italy Italy M M Italy France M M England M France Italy M Germany M Spain M France M Sweden M Germany M Sweden M Germany M M Germany M Italy Germany M Germany M M Austria Switzerland M Netherlands M M Italy Germany M M France M Eire M England M Wales M Finland M France M France M France England M England C England M England M M France M Germany M France M Israel England M M Germany France C 1 2 3 4 5 A B • / / / / • • / / • • • • • • • • / / / / • • • • • • • • • • • / / / / / / / / • / / / / / / / / / • • • / / • / / / / • • / / • / / • • • / / • • • • / / • / / / / / / / • • • / • • • / / / / / • • • • • / / / / / / • • • • • • • • • • • • / / ^ • • • / / / / / / / • / / / / • • / • • • / C • / • • / ©1991 Dataquest Europe Limited October—^Reproduction Prohibited / / (Continued) European Semiconductor Design Locations Table 1 (Continued) European Semiconductor Design Locations—All Centers Company Teimos Texas Instmmenis Texas Instruments Texas Instruments Texas Instruments Texas Instruments Texet Thomson CSF Thomson CSF Thomson CSF Thomson CSF Thomson CSF Thomson CSF Thomson CSF Thomson CSF—-Cetia Thomson Electronic Components TMS TMS Toshiba Toshiba Toshiba Toshiba Toshiba Toshiba Toshiba TRW Ua-Alcatel Vaisala VDI-Zentrum VLSI Technology VLSI Technology VLSI Technology VLSI Technology Wolfeon Microelectronics Zeltron Zymos Zymos Zymos Location Munich Bedford Freisiag Hannover Milan Villeneuve-Loubet Nice Aix-en-Provence Grenoble Milan Munich Rousset Tours Velizy Toulon Basingstoke Corbevoie Saint-Egrdve Camberley DOsseldorf Milan Munich Paris Stockholm Stuttgart Bordeaux-Lac Les Ulis Helsinki Berlin Milan Milton Keynes Munich Paris Edinburgh Campformido Offenbach Stockholm Welwyn Garden City Country Germany England Germany Germany Italy France France France France Italy Germany France France France France England France France England Germany Italy Germany France Sweden Germany France France Finland Germany Italy England Germany France Scotland Italy Germany Sweden England Code* M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M 1 • • • / • 2 • • • • 3 • • • • 4 • • • • • / • • / / • • • • / • / • • • • • • • • • • • • • • • • C • • • • • / • B • • • A 5 • • • / • • • • • • • • • • • • / • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Merchant (M) or Captive ( O NA - Not Available Source: Oataquest (October 1991) ©1991 Dataquest Europe Limited October—Reproduction Prohibited •^•. • • • • i • • • • t • • • • • • • • • • • • European Semiconductor D e s i ^ Locations Table 2 Eiu-opean Standard Product Design Location Code* Design Center Company Location Country Analog Devices Cork Eire M AT&T Bracknell England M Austria Mikro Systeme Graz Austria M Dolphin Integration Grenoble France M DSP Group Givat Shmuel Israel M • EM Microelectronics Marin Switzerland M / Ericsson Components Kista Sweden M Eurosil Eching Germany M GEC Plessey Semiconductors Lincoln England M • • • GEC Plessey Semiconduaors Oldham England M / GEC Plessey Semiconduaors Swindon England M Goldstar Dublin Eire M • • HMT Brugg Switzerland M Inmos Bristol England C / • • • • Inmos Newp)ort Wales M Intel Paris France M Intel Haifa Israel M IVIatra-MHS Nantes France M MBB Stuttgart Germany C MCE Tewksbury England M Micronas Espoo Finland M Mitsubishi Ratingen Germany M Motorola Toulouse France M Motorola Haifa Israel M Motorola East Kilbride Scotland M Motorola Geneva Switzerland M National Semiconductor Greenock Scotiand M Nordic VLSI Trondheim Norway M Panasonic (Matsushita) Grassbrunn Germany C Philips Eindhoven Netherlands M Philips—^Fasalec Zurich Switzerland M PhUips (RTC) Caen France M Philips CValvo) Hamburg Germany M Robert Bosch Reutlingen Germany C SGS-Thomson Marlow M M M Siemens Villach England Austria Siemens DOsseldorf Germany Design Service Independent Center • • • • • • • • • • • • • • • • • Siemens Munich Germany M • Sierra Semiconductor 's-Hertogenbosh Netherlands M / Silicon and Software Systems Dublin Eire M / (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations 10 Table 2 (Continued) i European Standard Product Design Location Design Center Company Location Country Siliconix Swansea Wales M Telefunken Eching Germany M Texas Instruments Bedford England M • • • Texas Instruments Villeneu ve-Lou bet France M / Thomson CSF Aix-en-Provence France M Thomson CSF Grenoble France M Thomson CSF Rousset France M Thomson CSF—Cetia Toulon France M TMS Saint Egrdve France M Vaisala Helsinki Finland M Code* VLSI Technology Milton Keynes England M Wolfson Microelearonics Edinburgh Scotland M Design Service Independent Center / • • / • / • / Merchant (M) or Captive (C) Source: Dauquest (October 1991) i ©1991 Dataquest Europe limited October—Reproduction Prohibited European Semiconductor Design Locations 11 Table 3 European Ciistom ASIC Design Locations Company Location Country Code* ABB Baden Germany M ABB Guildford England M ABB Paris France M ABB Stockholm Sweden M Analog Devices Cork Eire M Analog Devices Limerick Eire M Analog Devices Newbury England M Ascom—^Favag Bevais Switzerland M AT&T Bracknell England M AT&T Madrid Spain M AT&T Munich Germany M Auris Grenoble France M Austria Mikro Systeme Camberley England M Austria Mikro Systeme Dresden Germany M Austria Mikro Systeme Graz Austria M British Telecom Martlesham England C Bull SA Clayes-sous-Bois France C Compugraph Trapf)es France M Dectrosuisse NeuchStel Switzerland M Dectrosuisse Zurich Switzerland M Denyer Walmley Micro Loanhead Scotland M Dialog Swindon England M Dolphin Integration Grenoble France M EM Microelectronics Marin Switzerland M Ericsson Components Kista Sweden M Eurosil Eching Germany M Fujitsu Maidenhead England M Fujitsu Paris France M Fujitsu West Gorton England M GEO Plessey Semiconductors Brussels Belgium M GEC Plessey Semiconduaors Lincoln England M GEC Plessey Semiconductors Oldham England M Design Center • • • • • • • • • • • • • • • • GEC Plessey Semiconductors Paris France M Swindon England M • HMT Brugg Glenrothes Switzerland Hughes Scotland M M • ITT Intermetall Freiburg Germany M ITT CBTM) Antwerp Belgium C Solamo Italy C ITT aTTA) Vienna Austria c Independent Center • • GEC Plessey Semiconductors m * (FACE) I>esign Service • • • ©1991 Dataquest Europe Limited October—^Reproduction Prohibited (Continued) European Semiconductor Design Locations 12 Table 3 (Continued) I European Custom ASIC Design Locations Location Coimtry ITT (SESA) Madrid Spain C ITT (SRT) Oslo Norway C ITT (SRT) Logical Integration Zurich Switzerland C Thame England M Lucas Sutton Coldfield England C Macro Marketing Slough England M Matra-MHS Bracknell England M Matra-iVIHS Nantes France M MBB Stuttgart Germany C MCE Tewksbury England M Company Code* Micronas Espoo Finland M Mietec Brussels Belgium M Missil Paris France M Mitel Caldicot Wales C Morari Montpelier France M Motorola East Kilbride Scotland M Motorola Geneva Switzerland M Motorola Toulouse France M National Semiconductor Greenock Scotland M National SemiconduCTor Munich Germany M National Semiconduaor Swindon England M Newmarket Micro Newmarket England M Olivetti Ivrea Italy C Panasonic (Matsushita) Bracknell England M Panasonic (Matsushita) Grassbrunn Germany C PDT-Pynenburg Vught Netherlands M Philips Eindhoven Netherlands M Philips—^Fasalec Zurich Switzerland M Philips (RTC) Caen France M Philips (Valvo) Hamburg Germany M Robert Bosch Reutlingen Germany C SAAB TroUattan Sweden M SDM NA Belgium M SGS-Thomson Agrate Italy M SGS-Thomson Italy M SGS-Thomson Castelleto Catania Italy M SGS-Thomson Grenoble France M SGS-Thomson Marlow England M SGS-Thomson Rennes France M SGS-Thomson-IST Madrid Spain M Design Center Design Service Independent Center • • • • • • / / • • • • • • / • • • • I • / • • • • • • • • • • • • • • • • • • • (Continued) ©1991 Dataquest Europe limited October—Reproduction Prohibited i European Semiconductor Design Locations 13 Table 3 (Continued) European Custom ASIC Design Locations Company Location Country Code' Siemens Dasseldorf Germany M Siemens Munich Germany M Siemens Villach Austria M Sierra Semiconduaor 's-Hertogenbosh Netherlands M Sierra Semiconduaor Milan Italy M Sierra Semiconductor Munich Germany M Sigrid Toulon France M Silicon and Software Systems Dublin Eire M Silicon Microsystems Malmesbury England M Siliconix Swansea Wales M Sorep Grenoble France M Sorep Les Ulis France M Sorep Rennes France M STC (Stantel) Sidcup England M STC (STL) Harlow England C Swindon Silicon Systems Swindon England M Symbionics Cambridge England M System Electronic Vertriebs Braunschweig Germany M Telefunken Eching Germany M Telic Alcatel Strasbourg France C Telmos Munich Germany M Texas Instruments Bedford England M Texas Instruments Freising Germany M Texas Instruments Hannover Germany M Texas Instruments Villeneuve-Loubet France M Thomson CSF Grenoble France M Thomson CSF Rousset France M Thomson CSF—Cetia Toulon France M TMS Saint Egrdve France M Toshiba Diisseldorf Germany M UCI-Alcatel Les Ulis France M VLSI Technology Milton Keynes England M VLSI Technology Munich Germany M VLSI Technology Paris France M Wolfson Microelectronics Edinburgh Scotland M Zeltron Campformido Italy M Design Center Design Service Independent Center / • • / • • • • • • • • • / • • • • • • • • / • / / / • / • • / Merchaiu OD or CapUve (C) NA - Not Available Source: E>aCaquest (October 1991) ©1991 Dataquest Europe Limited October—Reproduction Prohibited • • y • European Semiconductor Design Locations 14 Table 4 European Cell-Based ASIC Design Locations Company ABB ABB Alcatel Norkrets Analog Devices Analog Devices Analog Devices Anzac ATAC Diffusion AT&T AT&T AT&T Auris Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme Britcomp Sales British Aerospace British Telecom Bull SA Bytech California Devices Cetehor Compugraph Dectrosuisse Dectrosuisse Denyer Walmley Micro Dialog Dolphin Integration Electronique Lyonnaise Elgaplex Sgaplex EM Microelectronics Enatechnic Ericsson Components Euridice European Silicon Structures European Silicon Structures European Silicon Structures Eurojjean Silicon Structures Eurofjean Silicon Structures Fujitsu Fujitsu Fujitsu Location Guildford Paris Oslo Cork Limerick Newbury Slough Sevres Bracknell Madrid Munich Grenoble Camberley Dresden Graz Leatherhead Bristol Martlesham Clayes-sous-Bois Slough Paris Besanfon Trapfjes Neuchatel Zurich Loanhead Swindon Grenoble Lyon Waldshut Wettringen Marin Hamburg Kista NA Bracknell 's-Hertogenbosh Milan Munich Paris Frankfurt Maidenhead Paris Country England France Norway Eire Eire England England France England Spain Germany France England Germany Austria England England England France England France France France Switzerland Switzerland Scotland England France France Germany Switzerland Switzerland Germany Sweden Belgium England Netherlands Italy Germany France Germany England France Code* M M M M M M M M M M M M M M M M C C C M M M M M M M M M M M M M M M M M M M M M M M M Design Center Design Service Independent Center • • • • • • • • • • • • • • / / / • • • • / / • • • • • (Continued) ©1991 Dataquest Europe Liinited Octolser—Reproduction Prohibited European Semiconductor Design Locations 15 Table 4 (Continued) European Cell-Based ASIC Design Locations Company Fujitsu GEC Marconi GEO Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconductors GEC Plessey Semiconduaors GEC Plessey Semiconduaors Giltspur Micro Gothic Crellon Harris Semiconductor Harris Semiconductor Harris Semiconduaor Harris Semiconduaor Harris Semiconduaor Harris Semiconduaor Hitachi Honeywell Hughes Intel Intel Logical Integration LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic Lucas Macro Marketing Mastair Matra-MHS MBB MCE Meriin Gerin Microtias Location West Gorton Chelmsford Brussels Lincoln MUan Munich Oldham Paris Swindon Wembley Newbury Reading Brussels Camberley Hamburg Milan Munich Paris Maidenhead Bracknell Glenrothes Haifa Paris Thame Agrate Biel Boulogne Bracknell DOsseldorf Livingstone Munich Oslo Oss Stuttgart Tel Aviv Sutton Coldfield Slough NA Bracknell Stuttgart Tewksbury Grenoble Espoo Country England England Belgium England Italy Germany England France England England England England Belgium England Germany Italy Germany France England England Scotland Israel France England Italy Switzerland France England Germany Scotland Germany Norway Netherlands Germany Israel England England France England Germany England France Finland Code* M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M C M M M C M C M Design Center Design Service Independent Center • • • / • / / / / / • • • • / • • • • • • • • • / • • • • • • • • • • • • • • • • • / (Continued) ©1991 Dataquest Europe Limited October—^Reproduction Prohibited 16 European Semiconductor Design Locations Table 4 (Continued) European Cell-Based ASIC Design Locations Company Mietec Migration Technology Mikron Missil Mitsubishi Morari Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola Motorola National Semiconductor National Semiconductor National Semiconductor National Semiconductor National Semiconductor National Semiconductor National Semiconductor NCR NEC NEC NEC NEC NEC NEC NEC NEC Newmarket Micro Newtek Nordic VLSI Norsk Data Olivetti Panasonic (Matsushita) Panasonic (Matsushita) PDT-Pynenburg Philips Philips Philips Location Brussels Pincheim Munich Paris Ratingen Montpelier Aylesbury East Kilbride Geneva Haifa Milan Munich Paris Stockholm Toulouse Eindhoven Greenock Milan Munich Paris Stockholm Swindon Tel Aviv Maidenhead DOsseldorf Eindhoven Milan Milton Keynes Munich Paris Stockholm Stuttgart Newmarket Bordeaux Trondheim Oslo Ivrea Bracknell Grassbrunn Vught Eindhoven Milan Stockholm Country Belgium Germany Germany France Germany France England Scotland Switzerland Israel Italy Germany France Sweden France Netherlands Scotland Italy Germany France Sweden England Israel England Germany Germany Germany England Germany France Germany Germany England France Norway Norway Italy England Germany Netherlands Netherlands Italy Sweden Code* M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M C C M C M M M M Design Center Design Service Independent Center • • • • • • • • • • • / / • I • • • • • • • • • • • • • • • • (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited i European Semiconductor Design Locations 17 Table 4 (Continued) European Cell-Based ASIC Design Locations Company Philips—^Fasalec Philips (MuUard) Philips (RTC) Philips (RTC) Philips (Valvo) Quarndom Qudos Racal Microelectronics Racal Redac Racal Redac Rapid Silicon Robert Bosch SAAB Sagem SDM Seiko-Epson Seiko-Epson Semiconduaores SES SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST SGS-Thomson-IST SiCon Siemens Siemens Siemens Siemens Siemens Siemens Siemens Sierra Semiconduaor Sierra Semiconduaor Sierra Semiconductor Silicon and Software Systems Silicon Microsystems Location Zurich Mitcham Caen Paris Hamburg Derby Cambridge Reading Munich Tewksbury Reading Reutlingen TroUattan Paris NA Munich Milton Keynes NA Nordlingen Agrate Castelleto Catania Grenoble Marlow Rennes Agrate Grafing Madrid Paris Stockholm Linkoping Dusseldorf Hannover Milan Munich Stuttgart Villach Zurich 's-Hertogenbosh Milan Munich Dublin Malmesbury Country Switzerland England France France Germany England England England Germany England England Germany Sweden France Belgium Germany England Spain Germany Italy Italy Italy France England France Italy Germany Spain France Sweden Sweden Germany Germany Italy Germany Germany Austria Switzerland Netherlands Italy Germany Eire England Code' M M M M M M M M M M M C M M M M C M M M M M M M M M M M M M M M M M M M M M M M M M M Design Center Design Service Independent Center • • • • • / • • • / / / / • • / • • • • / • • • • • • • • / ^ • • • / / • • / • / • / (Continued) ©1991 Dataquest Europe Limited Oaober—^Reproduction Prohibited European Semiconductor Design Locations 18 Table 4 (Continued) European Cell-Based ASIC Design Locations Company Smartech Oy Sorep Sorep Sorep STC (Stantel) STC (STL) Swindon Silicon Systems Symbionics Sysmic System Electronic Vertriebs Systems Sud Tadiran Telic Alcatel Texas Instruments Texas Instruments Texas Instruments Texas Instruments Thomson CSF Thomson CSF Thomson CSF Thomson CSF—Cetia TMS TMS Toshiba Toshiba Toshiba Toshiba Toshiba Toshiba Toshiba Ua-Alcatel A'DI-Zentrum VLSI Technology VLSI Technology VLSI Technology VLSI Technology Wolfson Microelectronics Zeltron Zymos Zymos Zymos Location Tampere Grenoble Les Ulis Rennes Sidcup Harlow Swindon Cambridge Aix-en-Provence Braunschweig Toulouse NA Strasbourg Bedford Freising Hannover Milan Grenoble Milan Velizy Toulon Corbevoie Saint Egrdve Camberley Dusseldorf Milan Munich Paris Stockholm Stuttgart Les Ulis Berlin Milan Milton Keynes Munich Paris Edinburgh Campformido Offenbach Stockholm Welwyn Garden City Country Finland France France France England England England England France Germany France Israel France England Germany Germany Italy France Italy France France France France England Germany Italy Germany France Sweden Germany France Germany Italy England Germany France Scotland Italy Germany Sweden England Code* M M M M M C M M M M M Design Center Design Service • • / • • • • • / / • • M • c M M M M M M M M M M M M M M M M M M M M M M M M M M M M Independent Center / • • • • • • • • • • • • / • • • • • • • • Merchant (M) or Captive (O NA - Not Available Source: Dataquest (October 1991) ©1991 Dataquest Europe Limited October—Reproduction Prohibited • / • • • / • European Semiconductor Design Locations 19 Table 5 European Gate Array ASIC Design Locations Company Location Country Code* Anzac Slough England M ATAC Diffusion Sevres France M AT&T Bracknell England M Auris Grenoble France M Austria Mikro Systeme Dresden Germany M Austria Mikro Systeme Graz Austria M Britcomp Sales Leatherhead England M British Aerospace Bristol Martiesham England C British Telecom England C Design Center Design Service Independent Center • • • • • • • • • • Bull SA Clayes-sous-Bois France C Bytech Slough England M California Devices Paris France M Compugraph Trapp>es France M Dectrosuisse Neuchatel Switzerland M • • Dectrosuisse Zurich Switzerland M / Denyer Walmley Micro Loanhead Scotland M • • • • • Dolphin Integration Grenoble France M Electronique Lyonnaise Lyon France M Elgaplex Waldshut Germany M Elgaplex "Wettringen Switzerland M EM Microelectronics Marin Switzerland M Enatechnic Hamburg Germany M Ericsson Components Kista Sweden M Euridice NA Belgium M European Silicon Structures Bracknell England M European Silicon Structures 's-Hertogenbosh Netherlands M Europ)ean Silicon Structures Milan Italy M European Silicon Structures Munich Germany M European Silicon Structures Paris France M Eurosil Eching Germany M Fujitsu Frankfurt Germany M GEC Plessey Semiconduaors Lincoln England M GEC Plessey Semiconductors Milan Italy M GEC Plessey Semiconduaors Munich Germany M GEC Plessey Semiconductors England England M GEC Plessey Semiconduaors Oldham Swindon Giltspur Micro Newbury England M Gothic Crellon Reading England M Harris Semiconduaor Brussels Belgium M Harris Semiconduaor Camberley England M M • • • • • • • • • • • • • • • • • • / / • / (Continued) ©1991 Dataquest Europe Limited October—Reproduction Prohibited European Semiconductor Design Locations 20 i Table 5 (Continued) European Gate Array ASIC Design Locations Company Coimtry Code* Harris Semiconductor Location Hamburg Germany M Harris Semiconductor Milan Italy M Harris Semiconductor Munich Germany M Harris Semiconductor Paris France M Hitachi Maidenhead England M HMT Brugg Switzerland M Honeywell Bracknell England M Logical Integration Thame England M LSI Logic Agrate Italy M LSI Logic Biel Switzerland M LSI Logic Boulogne France M LSI Logic Bracknell England M LSI Logic Dusseldorf Germany M LSI Logic Livingstone Scotland M LSI Logic Munich Germany M LSI Logic Oslo Norway M LSI Logic Oss Netherlands M LSI Logic Stuttgart Germany M LSI Logic Tel Aviv Israel M Lucas Sutton Coldfield England C Macro Marketing Slough England M Mastair NA France M Matra-MHS Bracknell England M Matra-MHS Milan Italy M Matra-MHS Munich Germany M Matra-MHS Paris France M Matra-MHS Stockholm Sweden M MBB Stuttgart Germany C MCE Tewksbury England M Microtias Espoo Finland M Mietec Brussels Belgium M Migration Technology Pincheim Germany M Mikron Munich Germany M Missil Paris France M Mitsubishi Ratingen Germany M Morari Montpelier France M Motorola Aylesbury England M Motorola East Kilbride Scotland M Motoitjla Geneva Switzerland M Motorola Haifa Israel M Design Center Des^n Service Independent Center • • • • • • • • • • • • • • • • I • • • • • • • • • • • • • • • • • • • (Continued) ©1991 Dataquest Europe Liinited October—Reproduction Prohibited € European Semiconductor Design Locations 21 Table 5 (Continued) European Gate Array ASIC Design Locations Design Center Design Service Company Location Country Motorola Milan Italy M • Motorola Code* Munich Germany M / Motorola Paris France M Motorola Stockholm Sweden M • • Motorola Toulouse France M Motorola Eindhoven Netherlands M National Semiconductor Greenock Scotland M National Semiconductor Milan Italy M / National Semiconduaor Munich Germany M / National Semiconductor Paris France M / National Semiconductor Stockholm Sweden M National Semiconduaor Tel Aviv Israel M • NEC Diisseldorf Germany M / NEC Eindhoven Germany M • NEC Milan Germany M / NEC Milton Keynes England M NEC Munich Germany M NEC Paris France M NEC • • • • • Stockholm Germany M NEC Stuttgart Germany M Newmarket Micro Newmarket England M Newtek Bordeaux France M Norsk Data Oslo Norway C Oki Neuss Germany M Olivetti Ivrea Italy C PDT-Pynenburg Vught Netherlands M Philips Eindhoven Netherlands M / / • / • / • • • • • • • Philips Milan Italy M Philips Stockholm Sweden M Philips (MuUard) Mitcham England M Philips (RTC) Caen France M Philips (RTC) Paris France M Philips (Valvo) Hamburg Germany M Quamdom Derby England M Qudos Cambridge England M Racal Microelectronics Reading England M Racal Redac Munich Germany M • • Racal Redac Tewksbury England M / Rapid Silicon Reading England M Robert Bosch Reutlingen Germany C Independent Center • • • • • • / • (Continued) ©1991 Dataquest Eurojje Limited October—^Reproduction Prohibited European Semiconductor Design Locations •£l Table 5 (Continued) European Gate Array ASIC Design Locations Location Country S2PI Palaiseau France M SAAB TroUattan Sweden M Sagem Paris France M SDM NA Belgium M Company Code* Seiko-Epson Munich Germany M Seiko-Epson Milton Keynes England C SGS-Thomson Agrate Italy M SGS-Thomson Castelleto Italy M SGS-Thomson Catania Italy M SGS-Thomson Grenoble France M SGS-Thomson Marlow England M SGS-Thomson Rennes France M SGS-Thomson-IST Agrate Italy M SGS-Thomson-IST Grafing Germany M SGS-Thomson-IST Madrid Spain M SGS-Thomson-IST Paris France M SGS-Thomson-IST Stockholm Sweden M Sharp Hamburg Germany M SiCon Linkoping Sweden M Siemens Diisseldorf Germany M Siemens Hannover Germany M Siemens Milan Italy M Siemens Munich Germany M Siemens Stuttgart Germany M Siemens Villach Austria M Siemens Zurich Switzerland M Silicon Microsystems Malmesbury England M Smartech Oy Tamjjere Finland M Sorep Grenoble France M Sorep Les Ulis France M Sorep Rennes France M STC (Stantel) Sidcup England M STC (STL) Harlow England C Swindon Silicon Systems Swindon England M Sysmic Aix-en-Provence France M System Electronic Vertriebs Braunschweig Germany M Systems Sud Toulouse France M Tadiran NA Israel M Tekoronix Marlow England M Telic Alcatel Strasbourg France C Design Center Design Service Independent Center • • / • / • • • • • • • • • • • • • • • • / • • • • • • • • • • • • • • • • / • (Continued) ©1991 Dataquest Europe Umited October—Reproduction Prohibited European Semiconductor Design Locations 23 Table 5 (Continued) European Gate Array ASIC Design Locations Design Center Design Service Company Location Country Code* Telmos Munich Germany M Texas Instalments Bedford England M Texas Instruments Freising Germany M Texas Instruments Hannover Germany M Texas Instruments Milan Italy M Thomson CSF Grenoble France M Thomson CSF Milan Italy M • / • • • • • Thomson CSF Munich Germany M / Thomson CSF Velizy France M / Thomson CSF—Cetia Toulon France M Thomson Electronic Components Basingstoke England M TMS Saint Egrdve France M Independent Center • • • Toshiba Camberley England M / Toshiba Dtisseldorf Germany M Toshiba Milan Italy M • • Toshiba Munich Germany M / Toshiba Paris France M • Toshiba Stockholm Sweden M / Toshiba Stuttgan Germany M / ua-Alcatel Les Ulis France M • • VDI-Zentrum Berlin Germany M VLSI Technology Milan Italy M VLSI Technology Milton Keynes England M VLSI Technology Munich Germany M / • • • VLSI Technology Paris France M Wolfson Microelectronics Edinburgh Scotland M / Zeltron Campformido Italy M / Meidiani or Captive ( O NA - Not Available Source: Dataquest (October 1991) ©1991 Dataquest Europe Limited October—Reproduction Prohibited 24 European Semiconductor Design Locations I Table 6 European Discrete and Optoelectronic Design Locations Company ABB Location Baden Country Germany Code' M ABB Stockholm Sweden M Ansaldo Genoa Italy M British Telecom Martlesham England C Burr-Brown Livingstone Scotland C GEC Plessey Semiconductors Lincoln England M GEC Plessey Semiconductors Swindon England M Harris Semiconductor Brussels Belgium M International Rectifier Borgaro Torinese Italy M ITT Intermetall Freiburg Germany M Mistral Sermoneta Italy M Motorola Toulouse France M Philips Eindhoven Netherlands M Philips (RTC) Caen France M Robert Bosch Reutlingen Germany C Semikron NOmburg Germany M Semitron Cricklade England M Siemens Munich Germany M Texet Nice France M Thomson CSF Aix-en-Provence France M Thomson CSF Grenoble France M Thomson CSF Tours France M TRW Bordeaux-Lac France M VDI-Zentrum Berlin Germany M Design Center Design Service Independent Center • / • / • • / • / • • / • • • / • i • • • Merchant (M) or Captive (C) Source: Dataquest (October 1991) i ©1991 Dataquest Europe Limited October—Reproduction Prohibited Dataquest n n ^onipan;M>f The Dun & Bradstreet Corporation Dataquest Research and Sales Offices: Dataquest Incorporated 1290 Ridder Park Drive San Jose, California 95131-2398 Phone: 01 (408) 437-8000 Telex: 171973 Fax: 01 (408) 437-0292 Dataquest Germany In der Schneithohl 17 6242 Kronberg 2 Germany Phone: 49 6173/61685 Fax: 49 6173/67901 Technology Products Group Phone: (800) 624-3280 Dataquest Hong Kong Rm. 401, Cbnnaught Comm. 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Wanchai, Hong Kong Phone: (852) 8387336 Fax: (852) 5722375 Dataquest Incorporated Ledgeway/Dataquest The Corporate Center 550 Cochituate Road Framingham, MA 01701 Phone: 01 (508) 370 5555 Fax: 01 (508) 370 6262 Dataquest Incorporated Invitational Computer Conferences Division 3151 Airway Avenue, C-2 Costa Mesa, California 92626 Phone: 01 (714) 957-0171 Fax: 01 (714) 957-0903 Dataquest Australia Suite 1, Century Plaza 80 Berry Street North Sydney, NSW 2060 Australia Phone: 61 (2) 959 4544 Fax: 61 (2) 929 0635 Dataquest Europe Limited Roussel House, Broadwater Parle Denham, Uxbndge, Middx UB9 5HP England Phone: 44 (895) 835050 Fax: 44 (895) 835260/1 Dataquest Europe SA Tour Galli6ni 2 36, avenue du G6niral-de-Gaulle 93175 BagnoletCedex France Phone: 33 (1)48 97 31 00 Telex: 233 263 Fax: 33 (1)48 97 34 00 Dataquest Japan Limited Shinlcawa Sanico Building 1-3-17 Shinkawa, Chuo-ku Tokyo 104 Japan Phone: 81 (3)5566-0411 Fax: 81 (3) 5566-0425 Dataquest Korea Daeheung Bldg. 1105 648-23 Yeoksam-dong Kangnam-gu Seoul, Korea 135 Phone: 82 (2) 556-4166 Fax: 82 (2) 552-2661 Dataquest Singapore 4012 Ang Mo Kio Industrial Park 1 Ave. 10, #03-10 to #03-12 Singapore 2056 Phone: 65 4597181 Telex: 38257 Fax: 65 4563129 Dataquest Taiwan Room 801/8th Floor Ever Spring Building 147, Sec. 2, Chien Kuo N. Rd. Taipei, Taiwan R.O.C. 104 Phone: 886 (2) 501-7960 886 (2) 501-5592 Fax: 886 (2) 505-4265 Dataquest GmbH Kronstadter Strasse 9 8000 Munich 80 Germany Phone: 49 (89) 93 09 09 0 Fax: 49 (89) 930 3277 i (WC»»26 2 European Design Service Locations Currently, 264 semiconductor design service locations are established or under development in Western Europe; of these locations, 22 are captive and 242 are merchant The locations can be divided into three categories, which Dataquest identifies as follows: • Category A: Design Center A full design center has all the hardware and software design tools, in addition to engineering resources, necessary to design standard products as well as ASICs. Design centers are the domain of semiconductor manufacturers, although the semiconductors produced may be for merchant or captive consumption. There are 78 design centers in Europe. • Category B: Design Service Locations A design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device. By far the majority of design service locations are used for designing ASIC gate arrays for cell-based ICs (CBICs). Most design service locations are owned by semiconductor vendors that rent workstation time to customers for a fee; however, some of the larger OEMs have invested in their own facilities for internal design groups (e.g.. Bull, Lucas, MBB, and Olivetti). Essentially, these are captive design service locations. There are 147 design service locations in Europe. • Category C: Independent Design Service Locations An independent design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device. However, the location is owned by a third party independent of semiconductor vendors and is not dedicated to a specific OEM. Third-party design services provide training and rent workstation time for ASIC gate array and cell-based IC (CBIC) design. They tend to support several vendors' ASIC products. There are 39 independent design service locations in Europe. Table 2-1 lists European design service locations for worldwide semiconductor companies. Each company listing shows the major products designed and type of design performed at each site for both merchant and captive manufacturers. ESIS Volume III ©1990 Dataquest Incorporated June 0007242 Reference material—will not be republished 2-1 2 European Design Service Locations Table 2-1 European Semiconductor Design Service Locations Type of Design Product Company ABB ABB AMCC AMCC AMCC AMCC AMCC AMCC Analog Devices Analog Devices Ansaldo ATAC Diffusion AT&T AT&T AT&T Auris Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme Austria Mikro Systeme British Telecom Bull SA Burr-Brown Califoniia Devices Cetehor Cetia Compugraph Cotec Dectrosuisse Denyer Walmsley Micro Dolphin Integration Electr(»uque Lycsmaise Ericsson Components European Silicon Structures European Silicon Structures European Silicon Structures European Silicon Structures European Silicon Structures European Silicon Structures Eurosil Location Baden Stockholm Basingstoke Milan Munich Orsay Stockholm Tel Aviv Limerick Newbury Goioa Sevres Bracknell Madrid Munich Grenoble Graz Milan Munich Paris Stockholm Swindon Martlesham Clayes-Sous-Bois Livingstone Paris Besancon Les-Ullis Toulon Trappes Bordeaux Neuchatel Loanhead Grenoble Lyon Kista Amsterdam Bracknell Gothenbeig Milan Munich Paris Eching Country Code* West Germany Sweden England Italy West Germany France Sweden Israel Ireland England Italy France England Spain West Germany France Austria Italy West Germany France Sweden England England France Scotland France France France France France Switzerland Scotland France France Sweden Netherlands England Sweden Italy West Germany France West Germany M R! M M M M M M M M M M M M M M M M M M M M C C C M M M M M M M M M M M M M M M M M 1 Category 2 3 4 ' X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 5 Service A B C X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X (Continued) 1-2 ©1990 Dataquest Incorporated June ESIS Volume Ifl Reference material—will not be republished 0007242 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Product. Company Faselec Favag Fujitsu Fujitsu Fujitsu Fujitsu Giltspur Micro Hands Semiconductor Hairis Semiconductor Hanis Semiccmductor Harris Semiconductor Harris Semiconductor Harris Semiconductor Hitachi Hitachi HMT Honeywell HonejrweU Hughes Hu^es IBM roM IMI Bvn IMI IMI IMI IMP IMP Inmos Inmos Intel Intel Intel International Rectifier International Rectifier m Semiconductors n r (BTM) ITT (FACE) n r (ITTA) rrr (SESA) m (SRT) Country Location Zurich Bevaix Frankfurt Maidenhead Paris West Gorton Newbury Brussels Camberley Hamburg Milan Munich Paris Munich Watford Brugg Bracknell Newh(»ise Glenrothes Weybridge Bordeaux Stuttgart Basingstoke Munich Paris Tel Aviv Trieste Munich Swindon Bristol Newport Haifa Paris Swindon Boigaro Torinese Oxted Freiberg Antwerp Solamo Vienna Madrid Oslo Switzerland Switzerland West Germany England France ^ England England Belgium England West Germany Italy West Germsmy France West Germany England Switzerland England Scodand Scotland England France West Germany England West Germany France Israel Italy West Germany England &igland Wales Israel France England Italy England West Germany Belgium Italy Austria Spain Norway Code' 1 M M • M M M M M M M M M M M M M X M M M M M C X C X M M M M M M M M M M X M M M M M X C C C C C Category 2 3 4 5 :t. X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Type of Design Service A B C X X X X X X X X X X X (CoQtmued) ESIS Volume IE ©1990 Dataquest Incorporated June 0007242 Reference material—will not be republished 2-3 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Company n r (SRT) LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LSI Logic LTC Lucas Marco Marketing Mastair Matra-MHS Matra-MHS Matra-MHS Matra-MHS Matra-MHS Matra-MHS MBB MCE MEDL MEDL MEM Mexlin Gerin Micronas Mietec Mietec Mietec Mietec Mikron MUU Mistral Mitel Mitsubishi Morari Motorola Motorola Location Country Zurich Switzerland Agrate Italy Biel Switzerland Boulogne France Bracknell England Dusseldorf West Gemiany - Scotland Livingstone Munich West Germany Oslo Norway Oss Netherlands Sidcup England Stuttgart West Germany Tel Aviv Israel Paris France Sutton Coldfield England Slough England To Be Announced France Bracknell England Milan Italy Munich West Germany Nantes France Paris France Stockholm Sweden Smttgart West Germany Tewkesbury England Lincoln England Wembley England Marin Switzerland Grenoble France Helsinki Finland Bracknell England Brussels Belgium Munich West Germany Paris France Mimich West Germany Rungis France Sermoneta Italy Caldicot Wales Ratingen West Germany Montpellier France Aylesbury England East Kilbride Scotland Code* C M M M M M M M M M M M M C C M M M M M M M M C M M M M M M/C M M M M M M M M M M M M Product Category* 2 3 4 1 5 Type of Design Service A B C X X X X X ' X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X (Contiaued) 2A ©1990 Dataquest Incorporated June ESIS Volume III Reference mateiial—will not be republished 0007242 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Company Motorola Motorola Motorola Motorola Motorola Motorola Mc^rola National Semiconductor National SemiconductOT N ^ o n a l SemiconductcH' N ^ o n a l SoniconductOT National S^niconductor Natiimal Semiconductor National Semiconductor NCR NEC NEC NEC NEC NEC NEC NEC NEC Neohm Newmarket Micro Newtek Norsk Data Olivetti Panasonic (Matsushita) Philips Hulips Philips Philips (Mullard) Philips (RTQ Philips (RTQ Philips (Volvo) Plessey Plessey Plessey Plessey Plessey Plessey/Ferranti Location Geneva Haifa Milan Munich Paris Stocldiolm Toulouse Greenock Milan Munich Paris Stockholm Swindon Tel Aviv Maidenhead Dusseldoif Eindhoven Milan Milton Keynes Munich Paris Stockholm Stuttgart Turin Newmarket Bordeaux Oslo Ivrea Bracknell Eindhoven Milan Stockholm Mitcham Caen Cedex Paris Hamburg Brussels Caswell Leini Munich Swindon Oldham Country Switzerland Israel Italy Wea Germany France Sweden France Scotland Italy West Germany France Sweden England Israel &igland West Germany Netherlands Italy England West Germany France Sweden West G^many Italy England France Norway Italy Bigland Netherlands Italy Sweden England France France West Germany Belgium England Italy West Gnmany England England Code* 1 X M M '* X M M M M M X M/C X M M M M M M M M M M M M M M M M M M C C M M X M M M X M M X M M X M M M X M X M Product Category 2 3 4 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 5 Type of Design Service A B C X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X (Cootmued) ESIS Volume IH ©1990 Dataquest Incorporated June 0007242 Reference material—will not be republished 2-5 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Company Plessey/Fetranti Precisi.'-n Monolithics PDT-Pynenburg PYE TMC Quamdon Qudos Racal Microelectronics Racal Redac Racal Redac Rapid Silicon Robot Bosch S2PI SAAB Sagem SDMF Semikron Semikron SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson SGS-Thomson—1ST SGS-Thomson—1ST SGS-Thomsoit—1ST SGS-Thomson—1ST SGS ThomscMi—1ST Seiko-EpscHi Siemens Si^nens Siemens Siemens Siem<ms Siemens Siemens Siemens Sieira Senr onductor Sieira Semiccmductor Sieira Semiconductor Sigrid Silicon Microsystems Location Country Code* Paris Cork To Be Announced Malmesbury Derby Cambridge Reading Munich Tewkesbury High 'SN^ccMnbe Reutlingen Palaiseau Trollattan Paris Rungis Cricklade Nuremburg Agrate Castelletto Catania Grenoble Marlow Rennes Agrate Grafing Paris Madrid Stockholm Milt<»i Keynes Dusseldorf Hannover Milan Munich Paris Stuttgart Villach Zurich Milan S-Hertogenbosch Munich Les Ullis Malmesbuiy France Ireland Netherlands England England England England West Germany England England West Germany France Sweden France France England West Germany Italy Italy Italy France England France Italy West Germany France Spain Sweden &igland West Germany West Germany Italy West Germany France West Germany Austria Switzerland Italy Netherlands West Germany France &igland M M M M M M M M M M C M M M M M M M M M M M M M M M M M C M M M M M M M M M M M M M 1 Product Category 2 3 4 5 Type of Design Service A B C X X X X: X X . X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X JC: X (CoQtiinied) 2-6 ©1990 Dataquest Incorporated June Reference material—will not be republished ESIS Volume HI 0007242 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Type of Design Product Company Siliconix S(H^ Sorep Sorep STC (Stantel) STC (STL) Swindon Siliccm Systems Sysmic Systons Sud Tadiran TAG Tektronix TddCunken Telefuiyeoi Telle Alcatel Telmos Texas Instruments Texas Instruments Texas Instiuments Texas Instniments Texas Instruments Texas Instrumraits Texas Instruments Texas bistruments Texas Instruments Texet TTiomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Thomson-CSF Toshiba Toshiba Toshiba Toshiba Toshiba Toshiba TRW Location Country Swansea Grenotde Les mils Rennes Sidcup Hariow Swindon Aix-En-Provence Toulouse To Be Announced Zurich Marlow Elching Heilbroim Strasbourg Munich Bedford Rieti Franldurt Freising Hannover Milan Stockholm Velizy Villeneuve-Loubet Nice Aix-En-Provence Basingstoke Grenoble Milan Munich Rousset Saint Egreve Toure Velizy Camberley Dusseldorf Milan Munich Paris Stockholm Bordeaux-Lac Wales France France France Sweden England England France France Israel Switzerland England West Germany West Gomany France West Germany England Italy West Germany West Gramaiy West Germany Italy Swedoi France France France France &igland France Italy West Germany Frsmce France France France England West Germany Italy West Germany France Sweden France Code* 1 X M M ' M M M C M M M M M M M X M X C M X M M X M M X M M M -M M X M X M M M X M M M X M X M M M M M M M M M Category 2 3 4 X X X X X X X X X X X X X X X 5 Service A B X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X c X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X (Cootinued) ESIS Volume ffl 0007242 ©1990 Dataquest Incorporated June Kcference mucnal—:wiil not be icpublisbed 2-7 2 European Design Service Locations Table 2-1 (Continued) European Semiconductor Design Service Locations Product Category Company Ua-Alcatel Vaisala VDI Zentrum VLSI Technology VLSI Tecbnology VLSI Technology VLSI Technology Westcode Wolfson Microelectronics Zeltron ZyMOS ZyMOS ZyMOS Location Country Code* Les Ullis Helsinki Berlin Milan Milton Keynes Munich Paris Chippenham Edinbuigh Campformido Offenbach StocJdiolm Welwyn Gdn. City France Finland West Germany Italy England West Germany France England Scotland Italy West Gennany Sweden England M M M M M M M M M M M M M 'Code ^Product Category M = Merchant C = Captive 1 2 3 4 5 = s = = 3s Standard integrated circuits Custom circuits Standard cells Gate arrays Discretes and optoelectronics 1 2 3 4 5 Type of Design Service A B C X X X X XX X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X *iype of Design Service ••B Design center B =B Design service C ••= Independoit: design service locations A Soiuce: Dataquest (June 1990) 2-8 ©1990 Dataquest Incorporated June ESIS Volume IE Reference material—will oot be republished 0007242 4 Company Profiles This section provides an overview of major semiconductor suppliers' activities in Europe. Profiles of European suppliers provide an in-depth analysis of corporate and semiconductor operations in Europe and worldwide. Briefs on U.S. and Japanese suppliers comprise introductory corporate data and in-depth discussions of their European semiconductor operations. In most cases, European company profiles include information under the following headings: • Background Discusses the company's background and the nature of its business activities. • Operations Discusses the major industry segments of the company. Significant changes or trends are noted. • International Operations Detailed discussions of the European and worldwide operations of the company. Significant international manufacturing operations, subsidiaries, and distributors are noted. • Research and Development Discussion of the research and development activities in the company with emphasis on semiconductor development work. • Company Structure Discussion of any structural changes, number of employees, and marketing, sales, and distribution organization. • Facilities Brief discussion of the major semiconductor-related facilities of the company, year established, capacity, products, and processes. • Prior Year Highlights Brief discussion of the developments and critical events for the company during the past year. ESIS Volume III © 1988 Dataquest Incorporated April 4 Company Profiles • Outlook Comments on the near-term future for the company—markets, strategy, and financial prospects—with emphasis on semiconductor products. • Major Activities A brief discussion of each major group's or division's activities. • Semiconductor Activities Discusses the company's European semiconductor operations, activities, products, and business strategies and includes worldwide and European semiconductor revenue tables by product line, by region, and by end use. • Corporate Financial and Market Data Financial data (except for semiconductor revenue tables) are derived from publicly available corporate sources. Since Company Law may differ in various countries, the information Dataquest requires for general corporate financial reporting may not always be available. In most cases, the Japanese and U.S. company profiles include information under the following headings: • Overview Discusses the company's background and European operations including origin, key milestones, size, number of employees, main business lines, and profitability. • European Semiconductor Facilities Briefly discusses the major European semiconductor-related facilities of the company, year established, capacity, products, and processes. • European Semiconductor Activities and Market Data Discusses the company's European semiconductor operations, activities, products, and business strategies and includes European semiconductor revenue tables by product line, by region, and by end use. © 1988 Dataquest Incorporated April ESIS Volume III 4 Company Profiles The European, Japanese, and U.S. company briefs include information under the following headings: • Background and Overview Discusses the company's background and European operations, including origin and key milestones, and includes European semiconductor revenue tables by product line. For European companies only, also included are worldwide semiconductor revenue tables by product line. • Products and Markets Served Discusses the company's semiconductor products and business strategies. • Outlook Discusses the near-term outlook for the company. ESIS Volume III © 1988 Dataquest Incorporated April 4 Company Profiles (Page intentionally left blank) © 1988 Dataquest Incorporated April ESIS Volume III tD Advanced Micro Devices Inc. 901 Thompson Place Sunnyvale, California 94086 Telephone: (408) 732-2400 Fax: (408) 982-6161 Dun's Number: 04-863-4059 Date Founded: May 1, 1969 CORPORATE STRATEGIC DIRECTION Advanced Micro Devices Inc. (AMD) was founded in 1969 by former Fairchild Semiconductor employees with a new business idea—to build a semiconductor company that produced pin-compatible devices with high-performance upgrades of existing products. Thus, initially, AMD's reputation was built not as a second source but as an alternate sotu°ce. In recent years, the company has vigorously forged ahead with development of new proprietaiy products, which in 1990 accounted for over half of total sales. AMD designs, manufactures, and markets microprocessors and related peripherals, memories, and programmable logic devices (PLDs) for telcommunications, office automation, and netwoiking appUcadons. The company's products are based on CMOS, NMOS, and bipolar process technologies. According to Dataquest, AMD held a 1.8 percent market share of the 1990 worldwide semiconductor market, ranking the company nineteenth. These figures are similar to AMD's numbers of 1989, when the company held a 1.9 percent market share and ranked eighteenth. Dataquest also estimates that AMD is the eighth largest Nordi American manufacturer of semiconductors with $516.0 milhon* in factory revenue in 1990. The company is currendy focused around three core businesses: memory devices such as programmable logic devices (PLDs), erasable programmable readonly memories (EPROMs), and microcomponents. AMD also classifies two emerging areas of business—^network products and communication. Dataquest estimates that AMD ranks first in the PLD worldwide market, garnering a 35.1 percent market *A11 dollar amounts are in U.S. dollars. 0011Q20 share with $291.0 miUion in 1990. AMD also ranks second in 16-bit microprocessors with a 23.8 percent market share in 1990. Nineteen-ninety was a year of important transformations for AMD. Over ^ e last four years, AMD has gradually been making the transition from bipolar to CMOS technology. In the fourth quarter of 1990, sales of CMOS products surpassed sales of bipolar products for the first time, bringing in $113 million in quarterly revenue and representing 43 percent of sales. For 1990 as a vi)xA&, CMOS sales increased 47 percent. The company will continue to emphasize CMOS technology in the coming years, eventually phasing bipolar products into a minor role. The primary goal of AMD today is to supply submicron CMOS solutions to the manufacturers of equipment for personal and network computation and communications. In the fourth quarter of 1990, AMD started operations in the new Submicron Development Center (SDC) in Sunnjrvale, California. AMD's management views the SDC as instrumental to the company's success throughout the 1990s, as they believe that the ability to manufacture ICs at the submicron level wiU represent the difference between successful and unsuccessfiil IC companies. AMD expects the process technology developed at the SDC to lead to 0.5-micron feature devices by 1992 and 0.35-micron devices by 1994. If successful, these technologies will provide a substantial growth opportunity for AMD to be on the leading edge of submicron technology. The SDC represents a substantial $200 million investment for AMD. At the time of initial wafer production at the SDC, the facility boasted the world's cleanest facUity, with the clean room possessing only one particle per cubic foot no larger than 0.1 micron, substantially under the Class 1 standard level of one particle per cubic foot no larger than 0.5 micron. ©1991 Dataquest Incorporated October—Reproduction Prohibited Advanced Micro Devices Inc. The transformations of 1990 were also quite evident in changes in AMD's manufacturing facilities. Recognizing die shift toward submicron CMOS technology, AMD has closed 10 aged wafer fabrication areas in the past four years. AMD also sold its Manila assembly plant in January 1989 and subsequendy commenced assembly operations in a new automated facility in Bangkok in 1989. These manufacturing changes further reflect AMD's shift toward CMOS products, which the company expects to compose the bulk of sales by die end of 1991. AMD markets and distributes its products through company headquarters in Sunnjrvale, California, and through a network of U.S. field sales offices, independent representatives and distributors, and foreign subsidiaries. The overseas sales subsidiaries have offices in Belgium, Canada, France, Italy, Japan, Sweden, the United Kingdom, and Germany. A marketing and distribution agreement with Siemens AG also provides for worldwide distribution of AMD's products, with primary efforts in the West European, South African, and South American markets. AMD has been involved in one of the most bitter litigation batties in semiconductor history with Intel Corporation. The integrated circuit in question was Intel's 80386 32-bit microprocessor, the microprocessor behind a generation of IBM-compatible computers. Intel and AMD had signed a technology exchange agreement in 1982. When Intel introduced its 80386 in 1985, AMD expected Intel to transfer the technology as part of the 1982 agreement Intel did not transfer the technology, and AMD took the matter to arbitration in 1987. In October 1990, after tiiree years of exhaustive litigation, an arbitrator ruled that Intel had breached the terms of the 1982 contract and owed AMD damages. The amount has not been setded, but AMD is seeking over $500 million in monetary damages, as well as equitable relief for other damages, which would include the technology and manufacturing rights to Intel's 386 microprocessor. The matter is scheduled to be resolved in mid-1991. AMD reported consolidated revenue for fiscal 1990 of $1.1 billion, a 4.1 percent decrease from fiscal 1989. AMD's net income decreased 216.3 percent to a net loss of $53.6 million, down from a net gain of $46.0 mUlion in 1989. Numerous factors contributed to this loss, including a $28 million adverse decision in litigation with Brooktree Corporation, a $10 million one-time charge associated with work force reductions, and a substantial increase in investments in capital equipment. The decision with Brooktree Corporation is currentiy under appeal, and a ruling in ANflD's favor could significantiy affect net income in fiscal 1991. R&D expenditure was $203.7 million in fiscal 1990, or 19.2 percent of revenue. AMD reported capital expenditure of $313.4 million in fiscal 1990, representing 29.6 percent of total revenue. This figure for capital expenditure nearly doubled the 1989 figure of $158 million, primarily as a result of investment in the SDC facility. Intemational sales represented 51.2 percent of total revenue for AMD in 1990, totaling $538 million. North American revenue represented 48.8 percent, European revenue 26.1 percent, Japanese revenue 13.2 percent, and revenue from the rest of the world 11.9 percent of total revenue. At the end of 1990, AMD employed 11,997 people worldwide. More detailed iofonnation is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgrounder provide comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION Progranunable Logic Products As previously mentioned, AMD is die industry leader in high-speed, field-programmable integrated circuits known as PLDs. These PLDs are used in PC-based systems to connect microprocessors widi other circuitry, with applications including digital switches, phone systems, and test and medical equipment The conq>any's HJDs combine the off-lhe-shelf availability, ease of use, and low cost of standard products, while adding the capability for semicustom design. The initial design time and cost in customizing a PLD is less than designing a traditional custom IC or gate array. AMD began shipping its MACH family of mid-density PLDs in 1990, offering an alternative to low-density gate arrays. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 00U020 Advanced Micro Devices Inc. With $291 million in total PLD factory revenue, AMD has more than double the factory revenue of its nearest competitor, Texas Instruments. AMD has held a soUd leadership position in the bipolar PLD market and continued to do so in 1990, owning a leading 58.9 percent share of the market The company has pledged to strengdien its market ^laie in the emeiging field of CMOS PLDs. CMOS PLDs represent the fastest-growing segment of the market, and AMD increased its factory revenue by 56 percent to $42.0 million in 1990, ranking the company fourth in the market. High-Performance Memories A significant portion of AMD's revenue is generated from the sale of EPROMs. EPROMs are used to store data when a system's power is off and are used in personal computers, laser printers, automobile engine controllers, video games, and other eqtiipment where programmed data storage is needed. AMD offers a family of CMOS EPROM devices that range from 64K to 4Mb in density. The company has completed its transition from NMOS to CMOS technology in its EPROMs, with all EPROMs now using CMOS technology. The company also offers a family of specialty memory devices consisting of first in/first out (FIFO) buffer memories, dual-port memories, content addressable memories (CAMs), and static randomaccess memories (SRAMs). AMD estimates that it is the second-largest supplier of EPROMs in the worldwide market. Microprocessors and Related Peripherals Through a 1982 technology exchange agreement with Intel Corporation, AMD manufactures certain iAPX products, including the 8051 single-chip microcontroller and the 8086, 8088, 80186, and 80286 microprocessors. Dataquest estimates that, on the strength of its 80286 microprocessor, AMD holds 23.8 percent of the 1990 worldwide 16-bit microprocessor market, second only to Intel. In 1990, AMD finally completed "Project Longhom," the company's venture to develop a 32-bit 80386 microprocessor. The result was the 32-bit Am386 microprocessor, designed to enter the 386-driven IBM PC market The first shipments of the Am386 commenced in the first quarter of 1991 and were immediately profitable, bringing in more than $10 million in quarterly factory revenue. The Am386 provides the 0011020 first alternative to Intel's 386 microprocessor, which has been an industty standaid since its introduction in 1985. AMD also has targeted the vast embedded processor market with the Am29000 processor. The Am29000 is a 32-bit reduced-instruction-set computing (RISC) device, whose applications include laser printers, high-performance graphics and network controllers, and accelerator cards. Hewlett-Packard Company recendy introduced the LaserJet nisi, a 17 pages-perminute laser-beam printer based on the Am29000. The HP LaserJet joins a list of more than 300 designs based on the Ajn29000, which continues to gain acceptance as the leader in the RISC microprocessor market for embedded control applications. Networks and Communications Systems AMD supplies a wide range of solutions for a broad spectrum of connectivity problems. These include applications in central office switches, PBX equipment voice/data terminals, and different performance classes of LANs used in connecting workstations and personal computers. The company not only offers the integrated circuits for these applications but also provides a number of hardware evaluation tools, development software, and interface software. AMD is one of the leading suppliers of subscriber line interface circuit (SLIC) and subscriber line audio-processing ciiruit (SLAC) devices that are a fundamental part of digital telephone switching equipment The SLIC connects the user's telephone wire to the telephone company's digital switching equipment the SLAC is a coder/decoder that converts analog voice signals to a digital format and back. AMD's agreement with Siemens calls for alternative sourcing of existing devices and joint development of future products for the Integrated Services Digital Network (ISDN), an emerging network that is digitally linking telephones and computers internationally. The network is unique in that it was formed out of a set of standards developed by the Consultative Committee for International Telegraph and Telephone (CCTTT), a branch of the United Nations. ISDN allows a user to commurucate digitally on three separate charmels simultaneously over a single analog telephone line. This gives the user the capability of simultaneously communicating by telephone, computer, and video equipment ISDN is especially powerful in that it requires no modification to the ©1991 Dataquest Incorporated October—^Reproduction Prohibited Advanced Micro Devices Inc. wiring and cabling of the telephone systems in effect today. ISDN is functional with only the purchase of a new phone-line interface and management software. Apphcations currently include mail order services, stock brokerages, computer services, and medicine, with significant potential for future expansion. ISDN has signed on such customers as AMD, Bally Inc., Hayes Microcomputer Products Inc., Massachusetts Institute of Technology, McDonald's Corporation, Sandia Laboratories, Shell Oil, 3M Company, and Tenneco. AMD is also active in the fiber-distributed data interface (FDDI) information exchange network. AMD provides the SUPERNET integrated chip set for the FDDI system, which uses LANs to connect computers, workstations, data storage imits and other systems that need to exchange information rapidly. FDDI uses fiber-optic cables as the conduit thix>ugh which information passes, instead of the traditional metal coaxial or twisted-pair cables. This use of fiber optics allows larger blocks of information to be 4 moved at faster speeds and for longer distances than had been possible in the past Office Automation AMD, having identified specific high-volume apphcations in office automation equipment, developed proprietary circuits that add functionality, improved performance, and reduced cost to the equipment These apphcations include graphics, compression/ expansion processing for storing images, dedicated devices for laser printers, and magnetic and optical disk control. Further Information For further information about the company's business segments, please contact the appropriate Dataquest industry service. ©1991 Dataquest Incorporated October—Reproduction Prohibited 00U020 Advanced Micro Devices Inc. Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) Kve-Year Revenue Percent Change 1990 1986 1987 1988 1989 576.1 (38.13) 997.1 73.08 1,125.9 12.92 1,104.6 (1.89) 1.059.2 (4.11) Capital Expenditure Percent of Revenue 136.9 23.76 137.9 ' 13.83 133.1 11.82 158.8 14.38 313.4 29.59 R&D Expenditure Percent of Revenue 183.9 31.92 247.8 24.85 208.3 18.50 201.8 18.27 203.7 19.23 13,689 42.08 18,015 55.35 14,817 75.99 13,072 84.50 11,997 88.29 (36.6) (127.03) (64.0) (74.86) 19.3 130.16 46.1 138.86 (53.6) (216.27) Number of Employees Revenue ($K)/Employee Net Income Percent Change 1989 Calendar Year Quarterly Revenue Quarterly Profit Qi Q2 Q3 Q4 271.4 13.2 267.7 (5.9) 254.2 (:17.8) 265.9 (43.0) Sonice:: Advanced Micro Devices Inc. Annual Repoits Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America Europe Asia/Pacific 76.00 21.00 3.00 73.00 19.00 8.00 69.00 19.00 12.00 67.20 20.20 12.60 64.35 21.20 14.45 Source: Advanced Micro Devices Inc. Annual Reports Dataquest (October 1991) 0011Q20 ©1991 Dataquest Incorporated October—Reproduction Prohibited Advanced Micro Devices Inc. 1990 SALES OFFICE LOCATIONS North America—40 Europe—10 Japan—1 ROW—3 Advanced Micro Devices Export Corp. (United States) Advanced Micro Devices Overseas Corp. (United States) Advanced Micro Devices Overseas (Delaware Corp.) (United States) Advanced Micro Ltd. (United States) AMD Corp. (United States) AMD Far East Inc. (United States) AMD International Sales and Service Ltd. (United States) AMD Properties (United States) MANUFACTURING LOCATIONS Europe North America Austin, Texas (3) MOS, MPUs, PLDs, communications ICs, SRAMs, CMOS/MOS, EPROMs, BiCMOS, logic, RISC MPUs Santa Clara, California (2) Bipolar, PROMs, PLDs, CMOS Sunnyvale, California (2) CMOS/BiCMOS, RISC MPUs, EPROMs, bipolar, interface logic Europe Basingstoke, England Test and assembly Advanced Micro Devices AB (Sweden) Advanced Micro Devices Belgium S.A.N.V. (Belgium) Advanced Micro Devices GmbH (Germany) Advanced Micro Devices Overseas Corp. (Belgium) Advanced Micro Devices S.A. (France) Advanced Micro Devices S.A. (Switzerland) Advanced Micro Devices S.p.A. (Italy) Advanced Micro Devices (U.K.) Ltd. (United Kingdom) Monolithic Memories (France) S.A.R.L. (France) Monolithic Memories GmbH (Germany) Monolithic Memories Inc. Ltd. (United Kingdom) Monolithic Memories Ltd. (United Kingdom) Japan AsialPacific Atsugi, Japan Product testing Bangkok, Thailand Test and assembly Penang, Malaysia Test and assembly Singapore Test and assembly SUBSIDIARIES North America Advanced Micro Computers Export Corporation Inc. (United States) Advanced Micro Devices (Canada) Ltd. (Canada) Advanced Micro Devices K.K. (Japan) MMI-Japan K.K. (Japan) ROW Advanced Micro Devices Export Sdn. Bhd (Malaysia) Advanced Micro Devices (Philippines) Inc. Advanced Micro Devices Sdn. Bhd. (Malaysia) Advanced Micro Devices Products Sdn. Bhd. (Malaysia) Advanced Micro Devices (Singapore) Pte. Ltd. Advanced Micro Devices Technology Sdn. Bhd. (Malaysia) AMD Atlantic Ltd. AMD Foreign Sales Corp. AMD (International) Ltd. (Bermuda) AMD Overseas Financial Ltd. AMD (Overseas Financial) Ltd. (Bermuda) AMD (Thailand) Ltd. MMI Integrated Circuits (Singapore) Pte Ltd. Monolithic Memories Foreign Sales Corp. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011020 Advanced Micro Devices Inc. ALLIANCES, JOINT VENTURES, AND LICENSING A G R E E M E N T S M E R G E R S AND ACQUISITIONS Information is not available. 1991 Sony Corporation AMD and Sony agreed to a broad patent and copyright cross-licensing agreement covering wafer processes, design, and architecture for integrated circuits. The agreement is designed to facilitate the development of 0.5-micron CMOS process technology. Taiwan Semiconductor Manufacturing Corp. (TSMC) AMD and TSMC signed an agreement under which TSMC will act as a foundry for some of AMD's EPROMs. KEY OFFICERS W. J. Sanders i n Chief executive officer, chairman of the board Anthony B. Holbrook Vice chairman and chief technical officer Richard Previte President and chief operating officer Marvin Burkett Senior vice president and chief financial officer 1990 Stephen Zelencik Senior vice president and chief marketing executive Oak Technology Corp. AMD granted manufacturing and marketing rights to Oak Technology for AMD's Am95C71 Video Compression and Expansion Processor. Gene Conner Senior vice president. Memory Manufacturing and Technology 1989 Scorpion Technologies Scorpion purchased the proprietary rights to the P-Channel silicon gate MOS technology from AMD. Thomas W. Armstrong \^ce president and general counsel W. Curtis Francis Vvx president. Corporate Operations Plaiming Stanley Winvick Vice president. Human Resources 1988 Communication Machinery Corp. (CMC) The two companies agreed to jointly develop and market intelligent FDDI VMEbus processors. CMC will integrate its TCP/IP and ISO software and CMC's expertise in building high-performance Ethernet processors with AMD's SUPERNET chip set. Siemens AG The two companies announced a technology agreement under which they will jointly develop, manufacture, and market chips for data communications and telecommunications with emphasis on ISDN. Both companies will manufacture and market the chip sets and jointly develop future ISDN products. 0011020 PRINCIPAL INVESTORS Information is not available. FOUNDERS W. J. Sanders m Jack Gifford Larry Stenger James Giles Frank Botte John Carey Sven Simsonsen Ed Tumey ©1991 Dataquest Incorporated October—^Reproduction Prohibited Advanced Micro Devices Inc. Table 3 Comprehensive Financial Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data) Balance Sheet 1986* 1987' 1988* 1989 1990 Cash Receivables Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets 15.4 109.0 42.5 76.2 243.1 486.5 1.9 731.5 235.2 176.5 81.9 21.3 514.9 524.3 17.9 1,057.1 286.8 167.4 90.5 27.7 572.4 495.5 13.5 1,081.4 278.8 183.6 90.5 40.8 593.7 505.9 22.9 1,122.5 115.1 153.5 90.0 37.9 396.5 647.0 68.2 1,111.7 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equi^ 142.5 151.6 48.2 342.3 0 0.6 119.4 269.2 389.2 254.6 135.9 43.1 433.6 0.1 0.8 459.8 162.8 623.5 266.2 130.4 40.0 436.6 0.1 0.8 472.3 171.7 644.9 275.8 126.4 29.3 431.8 0.1 0.8 482.6 207.5 691.0 317.5 131.3 26.6 475.4 0.1 0.8 491.9 143.5 636.3 731.5 1,057.1 1.081.5 1,122.5 1,111.7 Fiscal years ending March 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Memories as detailed in the 1988 Annual Report Additionally, in 1987, AMD changed its fiscal year to end the last Suiday in December. 1987 and 1988 are restated to sliow these changes. Source: Advanced Micro Devices Inc. Annual Reports and FWms 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011020 Advanced Micro Devices Inc. Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data) Income Statement Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value 1986* 576.1 438.6 137.5 347.8 183.9 122.3 136.9 (84.7) (14.70) (46.00) (36.6) 56.3 1987' 1988* 1989 1990 997.1 725.4 271.7 562.3 247.8 203.2 137.9 (45.6) (4.57) 40.00 (64.0) 77.8 1,125.9 777.6 348.3 661.9 208.3 224.2 133.1 19.3 1.71 34.00 19.3 80.8 1,104.6 742.2 362.4 643.4 201.8 221.0 158.8 49.9 4.52 34.00 46.1 82.0 1,059.2 681.6 377.6 678.5 203.7 228.4 313.4 (53.6) (5.06) (34.00) (53.6) 81.9 (0.65) NA 6.91 (0.92) NA 8.01 0.11 NA 7.98 0.44 NA 8.43 (0.78) NA 7.77 Fiscal yeais ending March 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Memories as detailed in the 1988 Ammal Report Additionally, in 1987, AMD changed its fiscal year to end the last Sunday in December. 1987 and 1988 are restated to show these changes. NA = Not available 0011020 Somce: Advanced Micro Devices Inc. Annual Reports and Fbrms 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited Advanced Micro Devices Inc. Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets 1986' 1987' 1988' 1989 1990 1.71 187.95 36.61 87.95 2.02 169.54 40.83 69.54 2.15 167.68 41.28 67.68 2.15 162.45 39.91 62.45 1.25 174.71 49.90 74.71 (5.00) (9.40) (6.35) (6.05) (10.26) (6.42) 1.78 2.99 1.71 4.11 6.67 4.17 (4.82) (8.42) (5.06) 31.92 23.76 13,689 42.08 18.71 24.85 13.83 18,015 55.35 13.05 18.50 11.82 14,817 75.99 12.31 18.27 14.38 13,072 84.50 14.15 19.23 29,.59 11,997 88.29 27.36 Fiscal years endiiig March 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Memories as detailed in the 1988 Annual Repent Additionally, in 1987, AMD cfaan^ its fiscal year to end die last Sunday in December. 1987 and 1988 are restated to show these changes. 10 Source: Advanced Micro Devices Inc. Ar.r'ri! Reports r est (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011020 Company Backgrounder by Dataquest Analog Devices Inc. One Technology Way Norwood, Massachusetts 02062 Telephone: (617) 329-4700 Fax: (617) 326-8703 Dun's Number: 00-141-8417 Date Founded: 1965 CORPORATE STRATEGIC DIRECTION Analog Devices Inc. is a leading manufacturer of precision linear, digital, and mixed-signal integrated circuits used in analog and digital signal-processing appUcations, as well as modular and board-level products used in data acquisition and measurement and control systems and subsystems. Analog Devices also manufactures a broad range of products that employ assembled product technology, including modules and board-level systems and subsystems. The company's products are used primarily in computerized equipment and systems that involve processing information obtained from real-world sensors measuring such phenomena as temperature, pressure, and light intensity. The major application markets for Analog Devices' products are instrumentation (engineering, scientific, and medical), mihtary/ aerospace, industrial automation, telecommunications, computer equipment, and the consumer market. Fiscal year 1990 was filled with major transformations for Analog. The event of the year occurred in August, when Analog officially announced the purchase of a competitor. Precision Monolithics Inc. (PMI). Analog purchased PMI from Bourns Inc. for $60.5 million* in cash plus $12.5 million in stock warrants. The acquisition of Santa Clara, Californiabased PMI strengthened Analog's akeady soUd niche in the high-performance analog IC arena. According to Analog, the move makes the company the second largest nonconsumer linear IC supplier, trailing only National Semiconductor Corporation. Analog Devices' sales increased 7.0 percent in fiscal 1990 to $485.2 million. Net income in fiscal 1990 was a net loss of $12.9 million, representing a decrease of 146.3 percent fi-om the 1989 profit of $27.9 miUion. The main reason for this net loss was a restructuring charge of $21.5 million covering costs '''All dollar amounts are in U.S. dollars. 0010846 associated with organizational changes in the company as well as costs associated with the integration of PMI. Analog Devices also took a $12 miUion reserve against the Analog Devices Enterprises (ADE) portfolio. Research and development expenditure for fiscal 1990 totaled $80.3 million, or 16.6 percent of revenue. Capital expenditure totaled $39.0 million, or 8.0 percent of revenue, for the same period. Analog Devices has a fairly even mix of domestic and intemational sales. In 1990, 53.2 percent of sales came from domestic operations and 46.8 percent frani intemational operations, with a further breakdown of 31.5 percent coming from Europe and 15.3 percent from Asia. The company employed 5,700 people at the end of fiscal year 1990. Accompanying its major acquisition during fiscal year 1990, Analog also began a major organizational transformation. Traditionally, Analog has had a largely decentralized organizational structure, with product divisions differentiated by manufacturing technology. Traditional divisions had corresponded to the respective technologies, such as hybrids, bipolar ICs, and CMOS ICs. With the recent advances in technology, many of these previously distinct technologies can be combined, resulting in blurred divisions between the product lines. As a result. Analog has decided to shift toward a more centralized organizational structure that is more responsive to applicationspecific and market-specific demands. The company consolidated six of the existing product divisions into two new divisions, the Systems IC Products Division (SPD) and the Industrial Electronics Division (lED). The SPD combines the Digital Signal Processing (DSP) and Mixed-Signal ASIC Divisions. The SPD plans to focus on application-specific devices that can be sold to customers who require varying applications ©1991 Dataquest Incorporated September—^Reproduction Prohibited Analog Devices Inc. iuvolving digital and mixed-signal system-level VLSI ICs. These applications include such product lines as image processing, digital mobile radio, high-speed modems, and facsimile machines. its 1989 position of 29th. Widi die acquisition of Precision MonoUthics, Analog Devices' overall market share increases to 0.9 percent, ranking the company 24th. The newly formed lED combines the previous divisions of Indiistrial Products, Microelectronics, Memory Devices, and Computer Labs. The lED will focus on industrial automation, automatic test equipment, industrial control, and motion control systems. Analog Devices has developed a series of proprietary semiconductor processes for use in designing state-ofthe-art products. These include a fine-line CMOS process for use in DSP products; a combined bipolar/ MOS process called ABCMOS (Advanced Bipolar CMOS) for use in mixed-signal devices, including analog-to-digital (ADC) and digital-to-analog (DAC) converters and VLSI application-specific devices; and a complementary bipolar (CB) process for use in such devices as high-speed, high-performance amplifiers. The company believes that the continued development of its process technology is an important factor in maintaining a competitive advantage in the marketplace. However, it also expects to develop an alliance with a larger company that would give Analog access to state-of-the-art submicron CMOS processes. Three divisions in Analog's structure wiU remain unaltered. The Bipolar IC Division, the CMOS IC Division, and the Precision Monolithics Division will remain intact These divisions are being asked to increase their already solidly established leadership positions in the general-purpose IC market. Products under the auspices of these divisions include data converters, precision amplifiers, and voltage references. Traditionally, Analog Devices' strategy for entering new markets and acquiring new technologies was investment in start-up companies. In 1980, Analog Devices Enterprises (ADE) was foimded. ADE is an internal venture capital group that provides start-up funding to companies that have technologies aligned with Analog Devices' strategic interests. Its first investment was Signal Processing Circuits Inc. of Salt Lake City, Utah. This small start-up was engaged in the design of digital signal processing devices, which Analog had identified as one of its major strategic interests. Since the inception of ADE, the company has invested in 12 companies. Analog Devices has begun to downplay this strategy in the last five years, culminating in the fourth quarter of 1990 when the company took a $12.0 miUion writedown of ADE, reducing ADE to its near-term Uquidation value. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highUghts and revenue by regioa Information on revenue by distribution channel is not available. Table 3, a comprehensive financial statement, is at the end of this backgroimder. Systems IC Products Division The SPD, which combines the DSP and the MixedSignal ASIC Divisions, is fociising on digital and mixed-signal system-level VLSI ICs. DSP Analog Devices has become a significant player in the DSP IC market by focusing on processors whose architecture is optimized for real-world signal processing applications. The ADSP-2100 was the first DSP processor in this family, which has since been followed by the ADSP-2101, ADSP-2102, and ADSP-2105 DSP processors. The company has also introduced the ADSP-21msp50 processor, which includes on-board A/D and D/A capabifity, and recendy announced the ADSP-21020 Floating Point DSP processor, which is the highest-performance floating point device currentiy on the market The company expects many of its future mixed-signal VLSI products to include an embedded DSP function. ASSP and ASICs BUSINESS SEGMENT STRATEGIC DIRECTION Semiconductors According to Dataquest, Analog Devices held 0.7 percent of the 1990 world semiconductor market, ranking the company 27th, a slight increase fix>m Analog Devices expects a significant portion of its future growth to come from mixed-signal VLSI ICs, with the company's primary focus being on application specific standard products (ASSPs) targeted at high-volume opportunities in computer peripherals, telecommunications, and consumer products. Appfications in these markets include hard disk drives, high-resolution graphics displays, digital cellular phones, high-speed modems, facsimile machines, ©1991 Dataquest Incorporated September—Reproduction Prohibited 001C»46 Analog Devices Inc. HDTV, DAT, and Surround Sound decoders. It is the company's intention that the products developed for these applications wiU essentially be standard products sold with litde or no individual modifications. In addition, the company is establishing design centers in a few key geographic areas that wiU focus on working with a limited number of customers to develop mixed-signal VLSI ICs to meet their specific needs. These products will be developed using the company's proprietary CAD tools and cell library. Industrial Electronics Division The lED, which combines Analog Devices' traditional divisions of Industrial Products, Microelectronics, Memory Devices, and Computer Labs, wDl target the fields of automatic test equipment (ATE), industrial automation, industrial controls, and motion control systems, with an emphasis on ATE. Analog Devices has targeted ATE as one of the fastest growing applications of Unear and mixedsignal technology. TTie company's strategy io the ATE market is to become the leading merchant supplier of linear and mixed-signal ICs used for pin electronics in ATE. Analog currently manufactures ICs for both the computer mainframe and pin electronics portions of large mainframe testers. As the pin count for logic and memory testers increases from 512 pins to 1,024 pins, the indiistry is facing an urgent need to reduce the cost per pin. The challenge facing Analog is to convince customers to buy Analog's ICs instead of making their own. Bipolar IC, CMOS IC, and Precision Monolithics Divisions The bipolar and CMOS IC divisions remain intact under Analog's new central reorganization and with the newly acquired Precision MonoUthics Division will target general-purpose IC applications such as data converters, precision amplifiers, and voltage references. Analog looks to these divisions to increase the market and leadership positions previously held in the aforementioned applications. The company also hopes that these divisions will begin to expand into the consimier, transportation, and computer peripherals markets. Data Conversion ICs The world market for data conversion products is $875.0 million. Analog Devices is the market leader in all segments of this market, with a 24.9 percent market share. The applications for the digital-toanalog (DAC) or analog-to-digital converters (ADC) are widespread, with the most growth potential in the computer peripherals and consumer markets. 0010346 Computer Peripherals ICs Analog has become increasingly involved in supplying linear and mixed-signal ICs for use in computer peripherals such as hard disk drives and highresolution graphics displays. Among its products for hard disk drives is the AD890/AD891 IC pair, which processes the signal from a hard disk read head at rates of up to 50 Mbps. More recently, the company introduced the AD897, a single IC that performs the same function at up to 40 Mbps. The company also has a number of ICs used in head positioning server applications, including the recently introduced AD7774, a complete analog input/output port that includes a 4-chamiel, 8-bit A/D converter and two 8-bit D/A converters. Analog has become the leading supplier of RAM digital analog converters (DACs) used in plug-in VGA display cards for standard PCs. More recendy, it has moved toward greater participation in this market with the AD7146 Continuous Edge Graphics (CEG) DAC, which makes it possible to display photographic-quality images on a standard VGA PC screen. The company has also begun sampling its AD7150 true color video DAC, which Analog feels is the key to the next major advance in large-screen workstation graphics. Consumer Products ICs The company's initial entries into consumer products markets were D/A converters used in CD players. Future products will be primarily aimed at high-end products, including DAT recorders, audio/visual receivers, and projection television receivers. One of the company's most recent ICs in this category is its fully mtegrated SSM-2125 Dolby Surround Sound decoder. Analog is also pursuing opportunities in the automotive market, with a particular focus on "smart sensors," which are sensors that include on-board conditioning. Analog's Hall effect and current sensors are designed into passenger cars in the United States and Europe. The company has also begun sampling its proprietary micromachined accelerometer, which is potentially suitable for such applications as sensing deceleration to trigger airbag deployment in the event of a car accident Further Information For further information about Analog Devices' business segments, please contact Dataquest's Semiconductors Worldwide service. ©1991 Dataquest Incorporated September—Reproduction Prohibited Analog Devices Inc. Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change 334.4 3.72 370.4 10.77 439.2 18.57 453.4 3.23 485.2 7.01 Capital Expenditure Percent of Revenue 36.7 10.97 43.0 11.61 49.2 11.20 51.0 11.25 39.0 8.04 R&D Expenditure Percent of Revenue 45.3 13.55 56.0 15.12 60.5 13.78 68.9 15.20 80.3 16.55 Number of Employees Revenue ($K)/Employee 4,959 67.43 5,219 70.97 5,347 82.14 5,213 86.97 5,700 85.13 Net Income Percent Change 23.4 •21.21 18.7 -20.09 38.0 103.21 27.9 -26.58 -12.9 -146.24 1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 109.7 0.8 116.4 4.7 120.7 5.2 138.5 -23.6 Source: Analog Devices Inc. Annual Reports and Fbnns 10-K Dataquest (September 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America Europe Asia 56.00 31.00 13.00 57.00 29.00 14.00 55.74 27.98 16.28 55.60 29.20 15.20 53.20 31.47 15.33 Source: Analog Devices Inc. Annual Reports and Forms 10-K Dataquest (September 1991) ©1991 Dataquest Incorporated September—Reproduction Prohibited 0010846 Analog Devices Inc. 1990 SALES OFFICE LOCATIONS North America—^25 Europe—^25 Japan—^3 ROW—3 All Others—3 MANUFACTURING LOCATIONS Analog Devices Ltd. (United Kingdom) Analog Devices Marketing Ltd. (United Kingdom) Analog Devices Nederland B.V (Netherlands) Analog Devices S.A. (France) Analog Devices S.A. (Switzerland) Analog Devices S.r.l. (Italy) Memory Devices Ltd. (United Kingdom) ROW Analog Analog Analog Analog Devices Finance Bermuda Ltd. (Bermuda) Devices Finance N.V. (Netherlands Antilles) Devices Inc. (Philippines) Devices Israel Inc. (Israel) North America Norwood, Massachusetts Assembly of technology products Santa Qara, California Precision Monolithics division; bipolar and CMOS ICs Wilmington, Massachusetts Bipolar, mixed-signal, and CMOS ICs Japan Tokyo, Japan Assembly and testing for electronic components Europe ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1990 Edsun Laboratories Analog Devices and Edsun signed an agreement forming an alliance for the development, manufacturing, and marketing of a new line of PC graphics ICs. The alliance will blend Analog's mixed-signal and DSP knowledge with Edsun's continuous edge graphics (CEG) architecture. Sipex Corporation Analog agreed to exchange technology and second-source products with Sipex Corporation. Sipex will acquire Analog's mixed-signal BiCMOS technology, and Sipex will make line drivers and receivers in return. Limerick, Ireland CMOS ICs ROW Manila, PhOippiaes Assembly of electronic components 1988 SUBSIDIARIES Brooktree Corporation Brooktree signed Analog Devices as a second source of die Bt471 and Bt478 video DACs, which are designed for the PSy2 and VGA add-in boards. North America Analog Devices International Inc. (Massachusetts) Analog Devices International Sales Corp. (Delaware) Europe Analog Devices Analog Devices Analog Devices Analog Devices (Netiierlands) Analog Devices Analog Devices Analog Devices Analog Devices 0010846 A.B. (Sweden) A.S. (Denmark) B.V. (Netherlands) Foreign Sales Corp. B.V. GmbH (Germany) Hardelsgesellschaft mbH (Austria) Holdings B.V. (Netherlands) Ltd. (Scotland) MERGERS AND ACQUISITIONS 1990 Precision Monolithics Inc. Analog purchased Precision Monolithics Inc. (PMI) from Bourns for $60.5 million in cash in addition to warrants for 1 miUion shares of Analog Devices' stock valued at $12 per share. The purchase allows Analog to move into Silicon Valley for the first time, as well as acquire PMI's primary product lines of precision op amps, data conversion circuits, and voltage references. ©1991 Dataquest Incorporated September—Reproduction Prohibited Analog Devices Inc. KEY OFFICERS PRINCIPAL INVESTORS Ray Stata Chairman of the board, president Ray Stata Matthew Lorber Jerald G. Fishman Executive vice president Joseph M. Hinchey Senior vice president. Finance FOUNDERS Melvin J. Sallen Senior vice president Ray Stata Matthew Lorber Arnold F. Kanarick Vice president. Human Resources Joseph E. McDonough "V^ce president and treasurer ©1991 Dataquest Incorporated September—Reproduction Prohibited 0010846 Analog Devices Inc. Table 3 Comprehensive Financial Statement Fiscal Year Ending October 29 (Millions of U.S. Dollars, except Per Share Data) Balance Sheet 1986 1987 1988 1989 1990 Total Current Assets Cash Receivables Inventory Other Assets Net Property, Plants Other Assets 161.8 6.3 65.6 79.1 10.8 173.2 34.1 176.4 5.8 76.3 83.8 10.5 186.2 34.7 221.3 22.7 87.9 97.4 13.3 200.7 27.4 223.0 30.2 81.7 97.5 13.8 208.7 20.8 232.4 8.3 97.6 107.6 18.9 223.9 30.9 Total Assets 369.1 397.3 449.4 452.5 487.2 Total Current Liabilities Long-Term Debt Other Liabilities 59.9 20.2 18.5 57.7 23.4 18.7 72.8 18.5 16.9 63.2 10.3 15.7 98.6 99.7 108.2 89.2 106.4 22.8 15.3 144.5 270.5 0.1 7.4 114.5 148.5 297.5 0.1 7.6 122.6 167.2 341.2 0.1 7.8 128.2 205.1 363.3 0.1 8.1 122.1 233.0 342.7 0 8.2 114.4 220.1 369.1 397.3 449.4 452.5 487.2 Income Statement 1986 1987 1988 1989 1990 Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions 334.4 188.8 145.6 151.4 45.3 97.4 36.7 32.1 9.60 27.00 23.4 46.0 370.4 212.3 158.1 171.7 56.0 108.2 43.0 25.6 6.91 27.00 18.7 46.6 439.2 244.8 194.4 200.8 60.5 122.5 49.2 51.6 11.75 26.00 38.0 47.7 453.4 252.1 201.3 215.1 68.9 125.5 51.0 36.4 8.03 23.00 27.9 48.3 485.2 258.1 227.1 244.3 80.3 135.9 39.0 -13.6 -2.80 5.00 -12.9 46.9 0.51 5.88 0.40 6.39 0.80 7.15 0.58 7.52 -0.28 7.31 Total Liabilities Total Shareholders' Equity Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Liabilities and Shareholders' Equity Per Share Data Earnings Dividend Book Value 0010846 ©1991 Dataquest Incorporated September—Reproduction Prohibited Analog Devices Inc. Table 3 (Continued) Comprehensive Financial Statement Fiscal Year Ending October 29 (Millions of U.S. Dollars, except Per Share Data) Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets 1986 1987 1988 1989 1990 2.70 136.45 22.14 36.45 3.06 133.55 19.38 33.52 3.04 131.71 21.34 31.71 3.53 124.45 17.40 24.55 2.18 142.17 31.05 42.17 6.34 8.65 7.00 4.71 6.28 5.05 8.46 11.14 8.65 6.17 7.68 6.15 -2.65 -3.76 -2.66 13.55 10.97 4,959 67.43 9.94 15.12 11.61 5,219 70.97 10.82 13.78 11.20 5,347 82.14 10.95 15.20 11.25 5,213 86.97 11.27 16.55 8.04 5,700 85.13 8.00 Source: Analog Devices Inc. Annual Report and Forms 10-K Dataquest (September 1991) a ©1991 Dataquest Incorporated September—Reproduction Prohibited 00108^ ASEA Brown Boveri BACKGROUND AND OVERVIEW In November 1987, ASEA of Sweden merged with Brown Boveri of Switzerland to form the world's biggest electrical engineering concern, called ASEA Brown Boveri, with estimated sales of $14 billion a year. The new group started trading on January 1, 1988. Substantial restructuring is expected at both companies; these changes eventually will mean that greater pressure will be placed on some of ASEA Brown Boveri's weaker competitors in electrical engineering. ASEA Brown Boveri is to be organized into the following four main business areas: • Power plants—Covering steam and gas turbines, hydropower, nuclear power, thermal power plants for utilities and industry, and power plant control • Power transmission—Including high-voltage switch gear, power transmission systems, power network control, transformers and components, relays, and cable and wire • Power distribution—Including low-voltage systems and control equipment, electrical installation, medium-voltage apparatus and systems, and industrial switch gear • Industrial equipment—Including electric drives, industrial plants, metallurgy, automation, and oil and gas ASEA Brown Boveri, which will be the world's biggest electrical engineering concern, will have about 30 separate business areas, falling both within and outside the 4 main business areas. Those outside the 4 main business areas include Flaekt, ASEA's gas and air treatment subsidiary; SAE, Brown Boveri's line-building group in Italy; and instrumentation companies in the Kent group. Tables 1 and 2 show ASEA-Hafo's European and worldwide semiconductor revenue from 1983 through 1986. Tables 3 and 4 show Brown Boveri European and worldwide semiconductor revenue from 1983 through 1986. As shown in Table 5, Dataquest estimates that ASEA Brown Boveri's Eun^sean semiconductor revenue was $72 million in 1987. Table 6 shows Dataquest's estimates of the Company's worldwide semiconductor revenue. ESIS Volume III 0000542 © 1988 Dataquest Incorporated June ASEA Brown Boveri Table 1 ASEA-Hafo AB Estimated European Semiconductcx* Revenue by Product Line (Millions of U.S. Dollars) 1993 1994 1995 1995 :al Semiconductor $14 $21 $25 $32 Total Integrated Circuit Bipolar Digital MOS Linear $ 7 0 7 0 $12 0 12 0 $15 0 15 0 $19 0 19 0 Total Discrete Transistor Diode Thyristor Other $ 4 0 0 2 2 $ 5 0 0 2 3 $ 5 0 0 2 3 $ 7 0 0 4 3 Total Optoelectronic $ 3 $ 4 $ 5 $ 6 Table 2 ASEA-Hafo AB Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1993 1984 1995 1986 al Semiconductor $14 $22 $28 $35 Total Integrated Circuit Bipolar Digital MOS Linear $ 7 0 7 0 $13 0 13 0 $18 0 18 0 $22 0 22 0 Total Discrete Transistor Diode Thyristor Other $ 4 0 0 2 2 $ 5 0 0 2 3 $ 5 0 0 2 3 $ 7 0 0 4 3 Total Optoelectronic $ 3 $ 4 $ 5 $ 6 Source : © 1988 Dataquest Incorporated June Dataquest June 1988 ESIS Volume m 0000542 ASEA Brown Boveri Table 3 Brown Boveri Estimated Eur(^>ean SemioHiductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other ISM ISM 2M5. ISM $18 $22 $24 $26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $18 6 7 3 2 $22 7 8 4 3 $24 8 8 5 3 $26 0 9 16 1 Total Optoelectronic Table 4 Brown Boveri Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) al Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other Total Optoelectronic 1983 12M 1985 1986 $20 $25 $29 $29 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $20 6 7 5 2 $25 7 8 7 3 $29 8 9 9 3 $32 0 12 18 2 0 0 0 0 Source : ESIS Volume HI 0000542 Dataquest June 1988 © 1988 Dataquest Incorporated June ASEA Brown Boveri Table 5 ASEA Brown Boveri Estimated Eur(q>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1987 $72 Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear $23 0 23 0 Total Discrete Transistor Diode Thyristor Other $44 1 13 22 8 Total Optoelectronic $ 5 Table 6 ASEA Brown Boveri Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1987 $84 Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear $26 0 26 0 Total Discrete Transistor Diode Thyristor Other $50 1 15 24 10 Total Optoelectronic $ 8 Source: © 1988 Dataquest Incorporated June Dataquest June 1988 ESIS Volume III 0000542 ASEA Brown Boveri PRODUCTS AND MARKETS SERVED ASEA Brown Boveri's expanded markets include Scandinavia (ASEA's strongest market). West Germany, Switzerland, Austria, and Italy (Brown Boveri's strongest market). About two-thirds of the new group's sales will be derived from Europe. The main products include power generation, transmission, and distribution; railway electrification; industrial process control; automation systems; robots; pollution control equipment; standard products and semifinished goods; and electronics. OUTLOOK Through the merger, ASEA Brown Boveri hopes to lower production costs; achieve a stronger position in Europe, North America, and Asia; and make better use of resoiirces for research and development. ESIS Volume III 0000542 © 1988 Dataquest Incorporated June Austria Mikro Systeme International GmbH BACKGROUND AND OVERVIEW Austria Mikro Systeme International GmbH (AMS), formerly Austria Microsystems International (AMI), was set up in 1981 as a joint venture between the company that was then called Gould-American Microsystems, Inc., (51 percent ownership) and VoestAlpine, the Austrian industrial conglomerate (49 percent ownership). A $60 million 11,700-square-meter facility was built near Graz, Austria, to manufacture integrated circuits. It comprises design engineering, maskmaking, wafer fabrication, assembly, and test areas. Lead times offered are competitive—4 weeks for gate arrays, 8 weeks for standard cells, 20 weeks for full custom circuits, and 4 weeks for ROMs, from specification or code approval until delivery of first samples. In autumn 1986, the name Gould-American Microsystems was changed to Gould Semiconductor Division (supplier of AMI products). Gould Semiconductor Division does not operate in Europe. In 1982, AMS pioneered SCEPTRE (Standard Cell Placement and Routing Environment) at its Swindon, United Kingdom, design center. SCEPTRE is a system intended to offer small to medium-size electronic equipment manufacturers a chip design capability at low cost. At present, this system supports designs using AMS's CMOS and NMOS 3 - , 4-, and 5-micron standard cell families. In 1985, AMS completed a major investment program and increased its production by 40 percent over 1984. However, because of the depressed market condition, a loss in revenue was reported in 1985. The joint owners, Gould-American Microsystems and Voest Alpine, then injected a further $33 million into the company to enable it to finance future investments with equity. In 1986, AMS launched Super Sceptre, a standalone PC-based semicustom IC design workstation for gate array and standard cell. The product provides a full range of semicustom IC design software capabilities running on the IBM PC AT. It is the culmination of four years of user experience with the Sceptre and its enhanced version, Sceptre II. Also in 1986, AMS launched a commercial MOS multiproduct wafer service through which customers can cut their development costs. To accomplish this, customers can share a batch of wafers with other clients or can place several of their chip designs on a fast turnaround, dedicated wafer batch. In February 1987, AMS announced expansion of its mask processing capability. At the same time, the Company announced the S2570 combined loop disconnect/multifrequency (LD/MF) dialer IC for push-button telephones. In March 1987, AMS announced the S2573, a new pulse dialer IC in €MOS for push-button telephones. In April 1987, AMS announced the S2571 pulse dialer device in CMOS for push-button telephones. At the same time, the Company added high-performance analog, digital, and peripheral cells to its IC design library. ESIS Volume III © 1988 Dataquest Incorporated April Austria Mikro Systeme International GmbH As shown in Table 1, Dataquest estimates that AMS's European revenue in 1986 was US$21 million. Table 1 Austria Mikro Systeme International GmbH Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other Total 1982 1983 1984 1985 1986 $26 $13 $20 $18 $21 $26 $13 $20 $18 $21 0 26 0 0 13 0 0 20 0 0 18 0 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Optoelectronic Source: Dataquest A p r i l 1988 PRODUCTS AND MARKETS SERVED AMS offers a complete range of custom and semicustom MOS/VLSI capabilities, including gate arrays, standard cell, and full custom circuits, as well as silicon foundry facilities for customer-designed circuits. CAD/CAE tools and IC design training are also available. AMS's telecommunications and data communications circuits, ROMs, microcomputers, and peripheral devices provide standard solutions for specific applications. AMS serves the telecommunications, automotive, industrial, instrumentation, EDP, and consumer markets. © 1988 Dataquest Incorporated April ESIS Volume III Austria Mikro Systeme International GmbH In addition to the Graz facility, AMS has design centers in Swindon (United Kingdom), Stockholm (Sweden), Munich and Hamburg (West Germany), Paris (France), and Milan (Italy). The Company has a network of representatives in Denmark, Israel, Spain, Switzerland, and Yugoslavia. OUTLOOK In July 1987, Gould sold its 51 percent stake in AMI to Voest-Alpine. The takeover means that AMS, now called Austria Mikro Systeme, is now entirely Austrian owned. Gould stated that it will return to the European marketplace with custom and semicustom chip sets from its U.S. base. ESIS Volume III © 1988 Dataquest Incorporated April Ericsson Components AB INTRODUCTION On March 1, 1988, Ericsson sold its capacitor business and the RIFA name to Finvest AB of Finland. All operations, excluding the capacitor business, were transferred to a new company called Ericsson Components AB. Bert Jeppsson is the new Senior Vice President. BACKGROUND AND OVERVIEW Radiolndustrins Fabriks Aktiebolag, known as RIFA, was founded in 1942 to secure the supply of components to Swedish radio companies during the war. Four years later, the company was acquired by LM Ericsson and Asea. Asea turned its shares over to Ericsson after a few years. In the beginning, RIFA's main product was capacitors for Ericsson's telephone exchanges. Export operations were begun on a modest scale during the mid-1960's. Naturally, capacitors dominated. In 1968, Svenska Elektronr5r (SER) merged with RIFA, thus providing know-how covering semiconductors, transistors and diodes. At the beginning of the 1970s, Ericsson began producing hybrid circuits in thick film to be used in its transmission systems. Integrated circuit (IC) production also began the same year. The first integrated circuits were exported in 1974. As a complement to bipolar methods developed by the company, NMOS technology was added in 1982. The CMOS process soon followed. In 1984 a production line for components made of gallium arsenide (GaAs) was started up. The following year, the production of Subscriber Line Interface Circuit (SLIC) was begun for Automated Exchange Equipment (AXE) exchanges. In 1981 development work was started on power products at RIFA. Two years later, the first products, DC/DC converter modules for telephone exchanges, were introduced on the world market. The same year, Ericsson's power division, with a history dating back to 1878 and with extensive know-how of telecom power, was merged with RIFA. In March 1988, capacitor production, which accounted for 20 percent of the company's operations, was sold to the Finnish group Finvest AB. This included the name RIFA, which is intimately joined with capacitors. As a result, activities could be further concentrated on the strategic areas of microelectronics and power supply equipment. In 1983, the Ericsson Group was reorganized into eight business areas (BAs) listed below, all reporting to the Group executive committee. • Public telecommunications • Information systems ESIS Volume III 0000770 © 1988 Dataquest Incorporated September Ericsson Components AB Cable Defense systems Radio communication Network engineering and construction Components (Ericsson Components AB is part of this BA) Other operations Table 1 lists statistics for the components business area, and Table 2 lists the turnover figures for the components group external sales. Ericsson Components has the following three product areas: • Microcircuits: accounts for approximately 40 percent of total sales. • Power Systems and Units: accounts for approximately 30 percent of total sales. • Capacitors and Standard Components: accounts for approximately 30 percent of total sales. Table 3 shows Dataquest's estimates of Ericsson European semiconductor revenue by product line. For 1987, Dataquest estimates Components European revenue to be U.S. $34 million. Table 1 Components Business Area Statistics (Millions of Swedish Krona) 1984 Net Sales, External Net Sales, Internal Total Sales Operating Income Employees SKr 799 426 1985 SKr 1986 SKr 852 609 1987 788 721 SKr 763 1.047 SKrl,225 SKrl,461 SKrl,509 SKrl,810 SKr SKr SKr SKr 34 4,231 22 31 3,919 4,343 Source: © 1988 Dataquest Incorporated September 88 3,578 Dataquest September 1988 ESIS Volume III 0000770 Ericsson Components AB Table 2 Geographic Distribution of External Sales (Percent) Europe, Excluding Sweden Sweden Asia Australia United States and Canada Latin America Africa Total 1986 1987 41% 21 10 9 4 12 3 48% 24 10 7 6 3 2 100% 100% Table 3 Ericsson Components* Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1984 1985 1986 1987 :al Semiconductor $11 $11 $14 $41 Total Integrated Circuit Bipolar Digital MOS Linear $11 9 2 0 $11 9 2 0 $12 5 4 3 $39 12 11 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 2 $ 2 Total Discrete Transistor Diode Thyristor Other Total Optoelectronic *Prior to March, 1988, Ericsson Components traded under the name of RIFA Source: ESIS Volume III 0000770 Dataquest September 1988 © 1988 Dataquest Incorporated September Ericsson Components AB (Page intentionally left blank) © 1988 Dataquest Incorporated September ESIS Volume III 0000770 European Silicon Structures BACKGROUND AND OVERVIEW European Silicon Structures GmbH was established in September of 1985 and had 250 employees in May 1988. The following is a corporate profile for European Silicon Structures GmbH. Business Centers France ES2 (Business Centre) 72-78 Grande Rue 92310 Sevres France Tel. No. 33 146 26 44 95 Telex: 631439 Fax: 01 33 45071423 Germany (Headg[uarters) I n d u s t r i e s t r a s s e 17 D-8034 Germering West Germany T e l . No. 49 84 84 93 90 Fax. 49 89 84 93 920 Telex: 17897453 United Kingdom GS2 (Business Centre) Mount Lane Bracknell, Berkshire United Kingdom Tel. No. 0344 54 54 54 Telex: 847724 Fax: 847724 Fax: 034 59412 Sweden ES2 (Business Centre) Chalmers Teknikpark S-912 88 Gothenburg Tel No: 46 31 724 215 Fax: 46 10 724 216 United States US2 (Business Centre) 1971 Concourse Drive San Jose, CA 95131 U.S.A. Tel No: 408 435 1355 Fax: 408 435 0504 The Netherlands ES2 (Business Centre) Beekvlietstraat 5 P 0 Box 84 5270 KB Sint-Michielsgestel Tel No: 31 41 05 3299 Fax No: 31 41 05 4500 Telex: 50760 France Silicon Manufacturing Centre Zone Industrielle 13106 Rousset France Tel No: 33 42 33 4000 Fax: 33 42 33 4001 Telex: 403147 ESIS Volume III 0001307 © 1988 Dataquest Incorporated September European Silicon Structures Company Executives Position Co-Chairman Co-Chairman CEO/Managing Director Vice President Finance/ Administration Vice President Manufacturing Vice President Software Technology Vice President Operations Vice President Northern Europe Vice President Central Europe Vice President Southern Europe Vice President Technology Prior Company Name Prior Position Robert Heikes Robert W. Wilmot NSC ICL Corporate VP Chairman J.L. Grand-Clement Motorola VP Europe Group Pierre Lesieur Motorola Director Finance Bernard Pruniauz Thomson CSF Director Operations Colin Adams Digital Equipment Software Manager Rod Attwooll Texas Instruments Managing Director Robin Saxby Motorola Sales Manager H.P. Friedrich Je rmyn-Ge rmany General Manager J.P. Demange NSC VP Strategic Marketing John Gray Lattice Logic Founder Financing P»te Round Initial 1985 December 1985 Sources Amount Advent, London; Techno-Venture Management Corp., Munich $ 5M Brown Boveri and Cie. (Switzerland); Ing. C. Olivetti & Co. (Italy); Saab-Scania, AB (Sweden); N.V. Philips (Netherlands); Telefonica (Spain) $40M* January 1986 British Aerospace Honeywell Bull October 1987 Department of Trade and Industry £328K •Includes financing from British Aerospace and Honeywell Bull © 1988 Dataquest Incorporated September ESIS Volume HI 0001307 European Silicon Structures Services • Foxondry • Design • Silicon compiler tools • Manufacturing • Packaging • Test • Education/training Process Technology • 2.0-micron double-metal CMOS • E-beam on 5-inch wafers • 1.5-micron double-metal (1988) • 1.25-micron double-metal (1989) Products • SOLO 1000 • SOLO 1200 • First SOLO • 2000 ASIC Design Software European Silicon Structures (ES2) was formed to supply quick-turnaround full-custom application-specific integrated circuits (ASICs) for European electronic equipment manufacturers. ES2 is dedicated to servicing the ASIC requirements of companies looking for all-layer custom devices. To this end, it is focusing on educating small and medium-size companies on the potential advantages to be gained by using customized chips in their products. Agreements made with Texas Instruments and Philips offer ES2's customers a pathway into high-volume production. ES2 uses a combination of silicon compilers technology for design and direct-write-on-wafer E-beam lithography for wafer production. This technology permits chips to be produced by direct writing on a wafer, thus eliminating the costly and time-consuming process of producing a mask for etching the silicon. ESIS Volume III 0001307 © 1988 Dataquest Incorporated September 3 European Silicon Structures ES2 is incorporated in Luxembourg and headquartered in Munich, West Germany. Software development is centered in Edinburgh, Scotland, and Bracknell, England. Originally, Silicon production was carried out in the United States, but it has been transferred to a totally new production plant near Aix-en-Provence in southern France. ES2 has opened local business centers in Bracknell, England; Sevres, France; Germering, West Germany; Gothenburg, Sweden; Holland; and San Jose, California (US2). In addition to the ES2 Business Centers, a wide network of greater than 20 Franchise Technology Centers (FTCs) have been set up over Europe. ES2'S PRODUCTS—ASIC DESIGN SOFTWARE ES2's SOLO family of silicon compiler products is based on Lattice Logic's products. The software places in the hands of electronic engineers ASIC design software capable of back-annotated simulation and layout within the bounds of a desktop system, similar in nature to an MPU development system. A design engineer can re-layout a chip as many times as he needs prior to shipping a tape to ES2 for manufacture. The software is capable of incorporating random logic, a range of digital blocks, and a range of analog I/O pads into a mixed ASIC. The analog library contains such devices as an ADC, a DAC, operational amplifiers, a voltage reference, and digital oscillators. The SOLO family includes: • SOLO 1000, which runs on a variety of workstations such as Sun, Apollo, and Digital and can integrate up to 10,000 gates • The SOLO 1200 system, which includes blocks and a comprehensive analog library • First SOLO, which runs on a PC with the addition of a coprocessor card In addition to the SOLO family, ES2 also distributes in Europe SDA's set of full-custom design tools, which are designed to support the requirements of even the most experienced IC designers. Silicon Manufacturing Services With ES2's Standard Prototyping Service, customers receive ten fully tested prototypes in any gate count or package. No commitment to volume production is required before prototyping is performed. © 1988 Dataquest Incorporated September ESIS Volume ni 0001307 European Silicon Structures Volume Production Once prototyped, ES2 can support volume production. If the quantity is low (10 to 5,000), it will be produced via E-beam technology; but if the volume is sufficiently high, it is cheaper to use conventional mask production. ES2 can handle the transparent transfer of a design to one of its foundry partners. To help companies understand ASIC technology and IC design software and to minimize the trauma of a first design, ES2 has put in place education and design consultancy groups. These operate from all the local ES2 Business Centers. ALLIANCES Lattice Logic 1985 ES2 signed an agreement with Lattice Logic to market Lattice's logic compiler in Europe. British Aerospace January 1986 British Aerospace invested $5 million in ES2. SDA Systems January 1986 ES2 signed a key marketing agreement with Solomon Design Associates (SDA) Systems. Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number o£ planned design centers. SDA's Designer Edge series of EDA systems will be installed in all ES2 design center locations. Texas Instruments Philips December 1986 ES2 signed an agreement to ensure that Texas Instruments and ES2 adopt a common approach in their design methods for semicustom chips. Texas Instruments has a similar agreement with Philips, allowing the three companies to offer a wide range of choice, with ES2 concentrating on very low-voliune products and TI and Philips on larger volume. Tektronix March 1987 Tektronix and ES2 collaborated to make ES2's ASIC library available on Tek's CAE2000 systems, with an interface called CADLINK-T. ESIS Volume ffl 0001307 © 1988 Dataquest Incorporated September European Silicon Structures Philips March 1988 Philips has agreed to adopt the proprietary E-beam direct-write technology of ES2 for high-voliune production of ASICs. Conversely/ ES2 has agreed to apply to the manufacture of its own ASIC prototypes. Philips' 1.5-micron dual-layer metal CMOS process, which together with Philips, it will take down to 1.2 microns by the end of 1988. COMPANY HIGHLIGHTS December 1985 Six European companies invested $25 million, representing 39 percent of ES2. January 1986 British Aerospace invested $5 million in ES2. ES2 signed a key marketing agreement with Solomon Design Associates (SDA) Systems. Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number of planned design centers. SDA's Designer Edge series will be installed in all ES2 design center locations. April 1986 ES2 announced its first contract—a $60,000 deal with a Belgian design center to supply two SOLO Electronic CAE systems based on the Vlhitecbapel workstation and the Lattice Logic compilation software tools. June 1986 Two unique services offered by ES2 were announced. These are the ability to design circuits at transistor level using SDA software tools, and a standard cell optimized array service that can take a customer all the way through the design process, including route and place, to software simulation for less than £20,000. First Quarter 1986 ES2 received its first orders and made its first shipment, with the shipments coming from the sale of software and design services. The Company plans to have an ES2 proprietary software product that will represent the first step toward the behavioral compiler by the second half of 1987. A complete behavioral compiler will be introduced one year later. Expected worldwide sales for The Company are $5 million in the first 12 months of operation. February 1987 Gothic Crellon became an ASIC design broker for ES2. Gothic Crellon will do introductory design work and will sell the ES2 range of chip design tools. © 1988 Dataquest Incorpwrated September ESIS Volume m 0001307 European Silicon Structures March 1987 As a result of ES2's agreement with TI and Philips, the three companies will offer accelerated prototyping services to their European customers. ES2 has implemented System Cell into the range of prototyping services that it offers. April 1987 ES2 paid £1 million for Lattice Logic, a design software company based in Edinburgh. Lattice will retain its headquarters in Edinburgh but its operations will be absorbed into ES2's silicon technology division. July 1987 United Silicon Structures US2, a wholly owned subsidiary of ES2, was launched at the Design Automation Show in Miami, Florida. US2 has its headquarters in San Jose and offers the full range of ES2 products to the U.S. market. October 1987 ES2 opened for foundry business at Rousset, France. ES2 unveiled an enhanced set of ASIC design tools, its SOLO 1200, to coincide with the opening of the Rousset plant. March 1988 ES2 announced that it is looking by increasing the number of its from seven to ten. It plans to of the newcomers, which it will Business Centers in Europe. ESIS Volume HI 0001307 for a large cash injection major corporate shareholders raise $5 million from each use to set up further © 1988 Dataquest Incorporated September Eurosil Electronic GmbH BACKGROUND AND OVERVIEW Eurosil Electronic GmbH (Eurosil) was formed in 1967 by Jean Hoemi, one of the founders of Fairchild Semiconductor Corporation. Mr. Hoemi previously founded Intersil, although apart from this link, the two companies remained independent. The Company was taken over by the Diehl Groi^, the West German industrial and commercial products company, in 1972. Eurosil originally supplied integrated circuits for the watch, clock, and telecommionications industries. Subsequently, the Company e}q)anded into other consumer areas including integrated circuits for hand-held, flat screen pocket games. Early in 1982, United Technologies Corporation GJTC), the U.S. conglomerate, through its Mostek subsidiary, and Telefunken Electronic GmbH, the West German semiconductor company, bought the majority of the Eurosil equity from Diehl. Together with the Diehl Group, they formed a new joint-venture company. The Diehl Group retained 13 percent of the shares, with Mostek and Telefunken Electronic GmbH splitting the remainder equally. The agreement was for the new company to take over the activities and assets of Diehl's Eurosil GmbH. The new joint venture would concentrate its activities in the development, production, and marketing of customized integrated circuits and CAD software services. In mid-1986, UTC sold off its 49 percent stake in Eurosil Electronic, although it still holds a 49 percent share in Telefunken Electronics GmbH. Telefunken Electronics GmbH has raised its stake in Eurosil from 49 percent through UTC's disposal. Telefunken Electronic GmbH now has obtained total management responsibility for the former joint venture. PRODUCTS AND MARKETS SERVED Dataquest believes that Eurosil plans to concentrate its future product strategies on the design, development, and production of VLSI components, particularly gate arrays. OUTLOOK Although Eurosil is now part of Telefunken Electronic GmbH, the Company continues to make its presence felt in the merchant semiconductor market, as shown in Tables 1 and 2. ESIS Volume III 0002204 © 1989 Dataquest Incorporated January Eurosil Electronic GmbH Table 1 Eurosil Electronic GmbH Estimated EunY>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other 1983 1M4 1985 199^ 1997 $8 $10 $10 $14 $11 $8 0 8 0 $10 0 10 0 0 0 0 0 0 $10 0 10 0 0 0 0 0 0 $14 0 14 0 0 0 0 0 0 $11 0 11 0 0 0 0 0 0 0 0 0 0 0 Total Optoelectronic Source: Dataguest January 1989 Table 2 Eurosil Electnmic GmbH Estimated Worldwide Semioxiductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other 2M1 1994 1995 2M& 1997 $15 $20 $21 $32 $25 $15 0 15 0 $20 0 20 0 21 0 21 0 $32 0 32 0 $25 0 25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Optoelectronic Source: © 1989 Dataquest Incorporated January Dataguest January 1989 ESIS Volume HI 0002204 Ferranti pic BACKGROUND AND OVERVIEW Ferranti pic, which was incorporated in 1905, has its origins In the business formed by Sebastian Ziani de Ferranti in 1882 to manufacture the alternator invented independently by himself and Sir William Thomson. Mr. de Ferranti's interest in the electrical field led to subsequent inventions and the expansion of his business to include the manufacture of alternators, meters, transformers, fuses, and switch gear. The Company ran into financial difficulties in 1974, but was rescued by the U.K. government through the National Enterprise Board (NEB) with a £15 million investment. This investment gave the NEB 62.5 percent of the Company's equity. The NEB holding subsequently was reduced to 50 percent in 1978 and was reduced again in July 1980 when the majority of the NEB's holdings were placed with various financial institutions in London and in Scotland. It was a condition of this placement that the shares would not be traded for two years. The equity is held widely by financial institutions and the public, with Ferranti family interests retaining a minority holding. In 1977, Ferranti acquired Interdesign Inc., a Sunnyvale, California, compariy founded in 1970 to provide application-specific integrated circuits (ASICs). This complemented the ASIC gate array—uncommitted logic array (ULA)—activity already firmly established by Ferranti in the United Kingdom since the 1970s. Interdesign is now one of the leading U.S. manufacturers of integrated circuits. In 1982, Ferranti joined forces with the Wheelock Marden Group of Hong Kong to form a new company for the design and manufacture of ASICs for the Far East electronics industry. The new company is called Ferranti Wheelock Microelectronics Limited and is the first company in Hong Kong to offer such design and manufacturing facilities. In January 1984, as a result of its continuing success in ASICs, Ferranti completed and opened a new wafer fabrication and assembly facility for integrated circuits in Oldham. Manchester, the United Kingdom. This facility consists of 85,000 square feet of production area and is capable of producing 7,000 4-inch wafers per week in the class 10 clean-room area. Also in early 1984, Ferranti bought TRW Control Corp. of Texas, to broaden its market base in the United States. In September 1987, Ferranti and International Signal and Control GSC) announced that they were to merge. In November 1987, Ferranti sold its semiconductor division to Plessey for $49 million. Ferranti Semiconductor had assets valued at $64 million and worldwide semiconductor revenue of $102 million for 1987. Ferranti employs 2,000 people in its semiconductor operation. ESIS Volume III 0000830 © 1988 Dataquest Incorporated September Ferranti pic Ferranti pic is currently divided into six main business areas: • Ferranti Defense Systems • Ferranti Industrial Electronics • Ferranti Computer Systems • Ferranti Electronics • Ferranti Instrumentation • Ferranti Other Activities - Ferranti GTE - Ferranti Engineering Ferranti Venus Scientific As shown in Table 1, Dataquest estimates that Ferranti's European semiconductor revenue in 1987 was $67 million; worldwide revenue was an estimated $102 million, as shown in Table 2. © 1988 Dataquest Incorporated September ESIS Volume m 0000830 Ferranti pic Table 1 Ferranti pic Estimated £ur(^>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1994 199? 1986 1-997 $67 $65 $66 $67 Total Integrated Circuit Bipolar Digital MOS Linear $52 26 8 18 $50 28 4 18 $52 29 4 19 $51 26 4 21 Total Discrete Transistor Diode Thyristor Other $15 8 7 0 0 $15 8 7 0 0 $14 5 9 0 0 $16 6 10 0 Total Semiconductor Total Optoelectronic Source: ESIS Volume HI 0000830 Dataquest September 1988 © 1988 Dataquest Incorporated September Ferranti pic Table 2 Ferranti pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1994 1995 199^ 1987 $105 $98 $95 $102 Total Integrated Circuit Bipolar Digital MOS Linear $ 85 46 12 27 $78 49 6 23 $78 43 11 24 $ 80 37 12 31 Total Discrete Transistor Diode Thyristor Other $ 20 11 9 0 0 $20 11 9 0 0 $17 8 9 0 0 $22 9 13 0 0 Total Semiconductor Total Optoelectronic Source: Dataquest September 1988 OUTLOOK Dataquest believes that acquiring Ferranti clearly is a step in the right direction for Plessey. The purchase of Ferranti will help Plessey considerably in its efforts to penetrate European and North American markets. Ferranti has a markedly higher marketing profile in North America than Plessey. The increased revenue will help support Plessey's R&D activities in the ASIC product range. Plessey will also benefit from Ferranti's technology and existing customer base. The emerging company looks decidedly ASIC in nature. But a closer inspection shows that the useful technology that Ferranti brings to Plessey is its mixed analog/digital expertise. The resulting ASIC capability would be enhanced with a core CPU and high-density memory cells. This may well lead Plessey to look for other acquisitions, and with $389 million in cash in the bank, there may be more expansion in the pipeline. Tables 3 and 4 show Dataquest's estimate of Plessey and Ferranti's 1987 European and worldwide semiconductor revenue. © 1988 Dataquest Incorporated September ESIS Volume HI 0000830 Ferranti pic Table 3 Plessey and Ferranti Estimated 1987 Eur<Y>ean Semiconductor Revenue (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar MOS Linear Total Discrete Transistor Diode Thyristor Other Total Optoelectronic Plessey Ferranti Pleissey/Ferranti $84 $67 $151 $69 15 31 23 $51 26 4 21 $120 0 0 0 0 0 $16 6 10 0 0 $ 16 41 35 44 6 10 0 0 $15 $ 15 Source: ESIS Volume UI 0000830 © 1988 Dataquest Incorporated September Dataquest September 1988 Ferranti pic Table 4 Plessey and Ferranti Estimated 1987 Worldwide Semiconductor Revenue (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar MOS Linear Total Discrete Transistor Diode Thyristor Other Total Optoelectronic Plessey Ferranti Pl9$isey/Ferranti $120 $102 $222 $103 31 39 33 $ 80 37 12 31 $183 68 51 64 0 $ 22 9 13 0 0 $ 22 9 13 0 0 0 0 0 $ 17 $ 17 Source: © 1988 Dataquest Incorporated September Dataquest September 1988 ESIS Volume HI 0000830 Company Backgrounder by Dataquest Fujitsu Limited 6-1, Marunouchi 1-chome Chiyoda-ku, Tokyo 100, Japan Telephone: 03-3216-3211 Fax: 03-3216-9365 Dun's Number: 08-292-1644 Date Founded: 1935 CORPORATE STRATEGIC DIRECTION Fujitsu Limited, founded in 1935 as a spin-off of the Communications Division of Fuji Electric Company Ltd., is a multinational Japanese firm. Fujitsu designs, manufactures, and markets computers and information processing systems, telecommunications equipment, and electronic devices. To organize and unify such a diverse product offering, Fujitsu has segmented its corporate structure into the abovementioned main divisions, as well as a category called "Other Operations," which includes electronic products such as car stereos, CD players, and digital audiotape players. Although worldwide economic growth was slower than expected because of the Gulf War and a slowdown in U.S. and European economies, Fujitsu experienced a significant growth in btisiness. The company had an increase of almost 18 percent in total revenue fi-om $17.8 billion* in fiscal year 1990 to $21.0 billion in fiscal 1991. To achieve this growth, Fujitsu, as a total systems suppUer, endeavored to offer a wide range of products from largescale systems to personal equipment Almost 70 percent of Fujitsu's revenue was derived fi-om the Computers and Infonnation Processing Systems Division. The greatest focus in this division was on M Series general-purpose computers, UNIX open systems, and advanced value-added software services. Also showing considerable growth was the demand for office machines and personal equipment In the telecommunications field, Fujitsu supplied synchronous digital hierarchy (SDH) equipment to Nippon Telegraph and Telephone Corporation ( N i l ) in Japan and pioneered synchronous optical transmission (SONET) systems in the United States. In addition, the optical submarine cable system between the *A11 dollar amounts are in U.S. dollars. 0012369 United Kingdom and Germany came nearer to completion, while the system between Japan and the United States went into operation. Since the 1Mb DRAM market remained depressed in the world marke^lace, business in electronic devices was difficult Fujitsu, however, expanded the sales of its products in ASICs, microprocessors, and compoimd semiconductors. According to Fujitsu, significant changes are occurring in the industry in downsizing, networks, and open systems. The company believes that these changes will define the technology that will be developed in the 1990s. Although downsizing has reduced their size and weight, products are being created with greater power and performance. Fujitsu has continued to develop products that directly support Intematioiud Service Digital Network (ISDN) and to offer Corporate Information Network System (COINS), which can be tailored to meet individual company needs. In addition, Fujitsu announced Multi-environment Information Systems Solution by Domain Concept (MISSION/DC), a domain-based mainframe concept diat gives users the flexibility necessary to structure the systems they need. Fujitsu also announced a new approach to netwodc system construction tliat offers a user-friendly connection to Fujitsu mainframes from workstations and PCs. This product is called MESSAGE 90s. In the field of open systems, Fujitsu is promoting worldwide standardization of the UNIX operating system across industries, offering a full lineup of UNIX products from workstations to supercomputers. The company also developed the first operating system for mainframes and supercomputers to use UNIX System V Release 4. Other computers across the ©1991 Dataquest Incorporated December—^Reproduction Prohibited Fujitsu Limited Fujitsu product line will be developed to run under this operating system. In 1990, Fujitsu took a major step toward increasing its global presence by acquiring an 80 percent share in ICL pic, a computer unit of STC pic In January 1991, as the first joiM project between the two companies, Fujitsu began the marketing of DS/90 UNIX server systems, developed by ICL and distributed through Fujitsu's overseas marketing network. Research and development costs were 11,1 percent of revenue in fiscal 1991. Hiis increase represents $2.3 billion as compared to $2.1 billion for 1990. R&D continues to be an important part of Fujitsu's future strategy. During fiscal 1991, the R&D fiinds were used to maintain the company's position as a pioneer in the competitive field of electronics. Future R&D products produced by Fujitsu will be more powerfiil and targeted at customer networks, especially at the low end such as hand-held PCs and cellular telephones. More detailed infoimation is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highfights and revenue by region. Tnfnrmatinn on revenue by distribution channel is not available. Tables 3 through 7, at the end of this backgrounder, present comprehensive financial infomiadoiL BUSINESS SEGMENT STRATEGIC DIRECTION Computers and Data Processing The Computers and Information Processing Systems Division's net sales increased approximately 23.1 percent to $14.6 billion in fiscal 1991, accounting for 69 percent of the company's total net sales. This increase was mainly due to weU-received mainframe systems, including the new M-1800 group of verylarge-scale general-purpose computers, and to the strong performance of office machines and personal equipment in the domestic market, as well as the contribution of ICL. Computer Systems Within the computer systems product line, Fujitsu offers products from supercomputers to generalpurpose computers. In August 1991, Fujitsu 'introduced two new models of the VP2000 Series supercomputers. The new systems, the VP2400/40 and VP2200/40, feature a four-scalar processor, twovector processor configuration, which enables enhanced high-speed program processing, In September 1990, Fujitsu annoimced the M-1800 Model Group of large-scale computers, which consists of five models. This was the first product introduction within the framework of MISSION/DC. Fujitsu plans to have the MISSION/DC be a major influence on its future product introductions. According to Dataquest, in the worldwide business supercomputer market, Fujitsu ranks first with a 56.03 percent market share for 1990; in the worldwide technical supercomputer market, it ranks fourth with a 9.39 percent market share. In the worldwide business mainfiame market, Fujitsu ranks fourth, with a 5.01 percent market share. In the worldwide technical mainframe market, it also ranks fourth with a 7.44 percent market share. Finally, in the worldwide business midrange market, Fujitsu ranks fifth with 5.56 percent of the market share. Office Automation Within the ofi&ce automation product line, Fujitsu ofifers small business computers, workstations, word processors, and personal computers, including business, hyperaiedia, desktop, portable, and laptop. In the worldwide personal computer market, including desktop, portable, laptop, and notebooks, Fujitsu had less than 1 percent of the market share in each of these categories. VAN Services ^ t h i n the VAN services product line, Fujitsu offers industry VANs, local VANs, corporate VANs, and personal communications services. During fiscal 1991, Fujitsu expanded the FENICS VAN service network, enhanced database services, and started FENICS-INS packet-switehed services. To respond to the expansion of international VAN services in Asia, Fujitsu started a data switehing service between Japan and Singapore. In addition, the NUTY-Serve personal computer commimications service was expanded to include English-to-Japanese machine translation, electronic niail, facsimile, and other services. As of March 31, 1991, this service has more than 260,000 subscribers. Computer Storage Fujitsu built its reputation in the rigid disk drive market with solutions for high-end computers. The ©1991 Dataquest Incorporated December—^Reproduction Prohibited 0012369 Fujitsu Limited company produces rigid dislc drives in a variety of sizes from 2.5-inch to 14-inch. According to Dataquest, during 1990 Fujitsu ranked eighth in the worldwide overall total rigid disk drive market with a 2.9 percent market share. In the 8- to 14-inch worldwide rigid disk drive maiket, it ranked fourth with a 13.8 percent market share. and the C-NAP n/CASE technical support tool for analyzing system requirements. Also, to expand the computer-integrated manufacturing business, the company started consulting and basic planning services to support system structuring in the fields of production and product distribution. In September 1990, Fujitsu announced the M2671P, an 8-inch disk drive that provides 2.6GB of storage and o&as a data transfer rate of 4.78 MB/sec. and a seek time of less than 12ms. Telecommunications ID September 1991, Fujitsu introduced a line of h i ^ capacity, low-profile, 2.5-inch rigid disk drives. This product line consists of three disk drives all backed by a 150,000 hour mean time between failures rating, a comprehensive warranty program, and capacities of 45MB, 67MB, and 90MB. All four drives feahne an average seek time of 18ms, burst data transfer rates of up to 6 MB/sec, and an average latency of 8.3ins. Fujitsu also produces tape drives in 1/2-inch reelto-reel, start-stop, and streaming. During calendar 1990, according to Dataquest, Fujitsu ranked fourth in the 1/2-inch worldwide tape drive market with a 9.0 percent market share. It also ranked fifth in the 1/2-inch worldwide reel-to-reel worldwide t^)e drive market with a 7.3 percent market share. Electronic Printers The company manufactures and markets lineimpacted, fully formed printers, serial impact dot matrix printers, baud printers, and laser printers. According to Dataquest, during 1990 the company had less than 1 percent of the total worldwide printer market. The Telecommunications Division's product line is ISDN systems, COINS, mobUe communication, switching systems, and transmission systems. In fiscal 1991, the division recorded net sales of $3.1 billion, an increase of approximately 13 percent over fiscal 1990. Net sales of the division accounted for 15 percent of total net sales. ISDN NTT's new ISDN service INS net 64/1500 is achieving acceptance, and many users are applying the network to fit their applications. In fiscal 1991, the packet communications mode in INS net was approved and the new INS-P service was started. In addition, demand increased for the ISDN-compatible systems, which support the entire scope of these ISDN services. COINS COINS is a corporate information network system that is receiving significant interest from companies as a multimedia network with excellent economy and extendability. It integrates data, voice, and images. By die end of March 1991, Fujitsu had strengthened COINS to implement ISDN communications forms by adding 1.5Mb line-switcMng and packet-switching functions to conventional private ISDN functions. Mobile Software Within the software product line, Fujitsu offers operating system software, application software, translation support systems, and architectures. In May 1991, MESSAGE 90s was introduced as a new approach to system construcdotL Its function is to help organizations process infoimation effectively and set up systems quickly through linked software products, l i i s product line allows the use of hardware and software from other vendors to be used in Fujitsu systems. For example, NEC or IBM PCs can run LOTUS 1-2-3 seamlessly in a Fujitsu-based network. During fiscal 1991, Fujitsu strengthened System Development Architecture and Support ^cilities, with the SDEM90 standard method of system development 0012369 Communication Demand increased sharply for small, lightweight cellular telephones in the field of mobile communication. NTT is promoting development of very small and lightweight cellular telephones, Fujitsu is participating in this development under contract with NTT. In the U.S. cellular telephone handset mariiiet, Fujitsu ranked sixdi with a 7.2 percent market share. Switching Systems Within the switching systems product line, Fujitsu offers central office switching systems and digital PBX switching systems. During fiscal 1991, Fujitsu developed and delivered a prototype of the nextgeneration node system for the D-70. For digital PBXs, the company added appUcation packages to ©1991 Dataquest Incorporated December—Reproduction Prohibited Fujitsu Limited the series. Fujitsu also released the cost-effective E-lOO Series of information switching systems. In the U.S. PBX systems market, with 1,000 plus lines (new), Fujitsu ranked sixth with a 2.5 percent maiket share. In die 101 to 400 lines (new) segment, the company ranked eighth with a market share of 2.5 percent. a gate delay of 0.5ns and contain up to 14,000 gates. The remaining eight feature a gate delay of 0.35ns and contain up to 102,0(X) gates. In the worldwide total ASIC market, Fujitsu ranked number one with a market share of 13.0 percent Compound Transmission Systems Within the transmission systems product line, Fujitsu offers digital commtmications equipment and earth station systems for satellite communication. The company implemented SDH, an international standard that will open conununicadons environments and enable ISDN and other new services to be used more ef&dently. In Japan, NTT is actively promoting the conversion to SDH, while Fujitsu is delivering many transmission systems and radio equipment that comply with SDH. Semiconductors During fiscal 1991, the compotmd semiconductor market developed a strong demand for low-noise high electron mobility transistors (HEMTs) for satellite broadcasting receivers. Fujitsu developed and released a super HEMT that can capture very weak signals because of dramatic improvements in gain and signal-to-noise ratio. Fujitsu also developed and released a GaAs gate array that features high-speed, large-scale integration and low power consimiption. To respond to future increases in demand for HEMTs, GaAs FETs, and GaAs ICs, Fujitsu constructed a plant targeted for GaAs products. Electronic Devices The Electronic Devices Division includes IC memories, ASICs, compotmd semiconductors, and other electronic devices. Dataquest estimates ^ t Fujitsu ranked sixth in the worldwide semiconductor market, with 4.9 percent of the market share and revenue totaling $2.9 billion during calendar year 1990. This includes captive sales, which are excluded from the Electronic Devices Division's sales, as reported in the annual report Net sales within this division decreased by 1.0 percent from $2.49 billion to $2.47 billion. llie division accounted for 12.0 percent of total net sales. The semiconductor product line can be segmented into IC memories (MOS and bipolar technology), ASICs (MOS and bipolar technology), largescale integrations (LSIs), and electronic components. Other Electronic Devices In fiscal 1991, in response to rising use in home electrical appliances, telephones, and office machines, Fujitsu added apphcation specific microcontrollers to its market offerings. Fujitsu also developed a 16-bit microcontroller that performs fuU 16-bit processing with an instruction cycle of 100ns. In addition, significant releases included a 16-inch plasma display with a resolution of 1280 x 1024 pixels and a membrane keyboard with a small foo^nint and low profile. Other Operations IC Memories In fiscal 1991, Fujitsu increased its production of 4Mb DRAMs. The company also started delivering samples of 16Mb DRAMs, which will be the next generation of computer memory. In February 1991, Fujitsu announced a prototype of a 64Mb DRAM that uses new photo lithography expostire technology. This new technology will make mass production possible. Also, in February 1991, Fujitsu annotmced the 4Mb BiCMOS ECL SRAM, with an access time of 7ns. Other operations range from products such as car stereos to automatic vehicle monitors. Although in fiscal 1991, this division accounted for only 4 percent of total net sales, it increased approximately 16 percent to $885. Further Information For further information pertaining to the company's business segments, please contact the appropriate Dataquest industry service. ASICs In fiscal 1991, demand rose for faster and larger-scale CMOS gate arrays. To meet this demand, Fujitsu released 15 new products, 7 of which feature ©1991 Dataquest Incorporated December—Reproduction Prohibited 0012369 Fujitsu Limited Table 1 Five-Year Corporate Highlights (MiUions of U.S. Dollars) 1987 1988 1989 1990 1991 11,218 46.71 14,830 32.19 18,616 25.53 17,839 (4.17) 21,043 17.96 Capital Expenditure Percent of Revenue 814 7.25 1,209 8.16 1,825 9.81 2,105 11.80 2,231 10.60 R&D Expenditure Percent of Revenue 1,043 9.30 1,378 9.29 1,925 10.34 2,093 11.73 2,336 11.10 Number of Employees Revenue ($K)/Employee 89,293 126 94,825 156 104,503 178 115,000 155 145,000 145 Net Income Percent Change 135 (23.00) 305 125.24 545 78.74 607 11.29 585 (3.55) Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21 Five-Year Revenue Percent Change 1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit NA NA NA NA NA NA NA NA Source: Fujitsu Uonited Ammal Reports Dataquest (December 1991) NA = Not available Table 2 Revenue by Geographic Region (Percent) Region Japan International 1987 78.06 21.94 1988 77.89 22.11 1989 77.87 22.13 1990 76.13 23.87 1991 75.17 24.83 Somce: Fujitsu T imUlvt Ammal Reports Dataquest (December 1991) 0012369 ©1991 Dataquest Incorporated December—Reproduction Prohibited Fujitsu Limited 1991 SALES OFFICE LOCATIONS North America—^3 Europe—4 Asia^'acific—90 Japan—82 ROW—3 MANUFACTURING LOCATIONS North America Fujitsu America Communications and information processing equipment, development of software Fujitsu Business Communications Systems Communications equipment Fujitsu Microelectronics Semiconductor devices InteUistor Inc. Development of information processing equipment Europe Fujitsu Espana (Spain) Communications and information processing equipment Fujitsu Microelectronics (Ireland) Semiconductor devices Fujitsu Microelectronics (United Kingdom) Development of ASICs Asia/Pacific FKL-Dongwa (South Korea) Magnetic floppy disk drive heads Fuji Electrochemical (Japan) Ferrites, electronic equipment, dry batteries Fuji Facom (Japan) Development of computer systems for control Fujitsu (Singapore) Electronic parts (digital switching systems) Fujitsu Australia (Australia) Digital key telephones, digital PBXs Fujitsu Automation (Japan) Automation equipment Fujitsu Buhin (Japan) Electronic parts « Fujitsu Component (Malaysia) Electronic parts (relays, keyboards, connectors) Fujitsu Computer Technology (Japan) Development of LSIs, software for infonnation processing equipment Fujitsu Denso (Japan) Communications/electronic equipment Fujitsu General (Japan) Home electric appliances, communications equipment, data processing equipment Fujitsu Isotec (Japan) Printers Fujitsu Kasei (Japan) Plastic products for communications equipment Fujitsu Kiden (Japan) Data processing equipment, indicators, molds Fujitsu Microelectronics Asia (Singapore) Semiconductor devices Fujitsu Microelectronics (Malaysia) Semiconductor devices Fujitsu Miyagi Electronics (Japan) Semiconductor devices Fujitsu Peripherals (Japan) Peripherids Fujitsu TEN (Japan) Car radios, stereos Fujitsu Thailand (Thailand) Magnetic disk drive heads, magnetic heads for printers Fujitsu Tohoku Electronics (Japan) Semiconductor devices Fujitsu VLSI (Japan) Development of semiconductor devices Fujitsu Yamanashi Electronics (Japan) Semiconductor devices Hasegawa Electric (Japan) Communications equipment Kjrushu Fujitsu Electronics (Japan) Semiconductor devices Nihon Dengyon (Japan) Radio and digital communications equipment PFU Ltd. (Japan) Microcomputers, peripherals Shinano Fujitsu (Japan) Electronic parts Shinko Electric Industries (Japan) Semiconductor parts Takamisawa Electric (Japan) Switching systems, parts Towa Electron (Japan) Capacitors, hybrid ICs Yamagata Fujitsu (Japan) Magnetic disk drives ©1991 Dataquest Incorporated December—^Reproduction Prohibited 0012369 Fujitsu Limited SUBSIDIARIES North America Fujitsu America Inc. (United States) Fujitsu Business Communications Systems Inc. (United States) Fujitsu Canada Inc. (Canada) Fujitsu Component of America Inc. (United States) Fujitsu Computer Packaging Technologies Inc. (United States) Fujitsu Computer Products of America Inc. (United States) Fujitsu Customer Service of America Inc. (United States) Fujitsu Imaging Systems of America Inc. (United States) Fujitsu Microelectronics Inc. (United States) Fujitsu Network Switching of America Inc. (United States) Fujitsu Network Transmission Systems Inc. (United States) Fujitsu Systems of America Inc. (United States) Fujitsu Systems Business of America Inc. (United States) Intellistor Inc. (United States) Poqet Computer Corp. (United States) Europe Fujitsu Deutschland GmbH (Germany) Fujitsu Espana S.A. (Spain) Fujitsu Europe Ltd. (England) Fujitsu Europe Telecom R&D Centre Limited (United Kingdom) Fujitsu Finance (U.K.) pic (United Kingdom) Fujitsu International Finance (Netherlands) B.V. (Netherlands) Fujitsu Italia S.p.A. (Italy) Fujitsu Microelectronics Ireland Ltd. (Ireland) Fujitsu Microelectronics Italia Sxl. (Italy) Fujitsu Microelectronics Ltd. (England) Fujitsu Mikroelektronik GmbH (Germany) Fujitsu Nordic AB (Sweden) Fulcrum Communications Limited (United Kingdom) AsialPacific Beijing Fujitsu Systems Ltd. (China) Fuji Electrochemical Co. Ltd. (Japan) Fujitsu Advanced Printing and Publishing Co. Ltd. (Japan) 0012369 Fujitsu Aichi Engineering Limited (Japan) Fujitsu Australia Ltd. (Australia) Fujitsu Australia Software Technology Pty. Ltd. (Australia) Fujitsu Australia Wholesale Pty. Ltd. (Australia) Fujitsu Automation Limited (Japan) Fujitsu Basic Software Corporation (Japan) Rijitsu Business Systems (Japan) Ltd. (Japan) Fujitsu Communications Systems (Japan) Fujitsu Component (Malaysia) Sdn. Bhd. (Malaysia) Fujitsu Computer Technologies (Japan) Fujitsu Dai-ichi Commimication Software Limited (Japan) Fujitsu Dai-ichi System Engineering Limited (Japan) Fujitsu Denso Ltd. (Japan) Fujitsu Devices Inc. (Japan) Fujitsu Digital Technology Limited (Japan) Fujitsu Distribution Systems Engineering Limited (Japan) Fujitsu Documents Service Limited (Japan) Fujitsu Electronics (Singapore) Pte. Ltd. (Singapore) Fujitsu FACOM Infonnation Processing Coiporation (Japan) Fujitsu Financial Information Systems Limited (Japan) Fujitsu Fudosan Ltd. (Japan) Fujitsu Hong Kong Lfal. (Hong Kong) Fujitsu Isotec Limited (Japan) Fujitsu Kansai Communication Systems Limited (Japan) Fujitsu Kansai System Engineering Limited (Japan) Fujitsu Kasei Ltd. (Japan) Fujitsu Keihin Systems Engineering Limited (Japan) Fujitsu Kiden Ltd. (Japan) Fujitsu Korea Ltd, (Korea) Fujitsu Kosan Limited (Japan) Fujitsu Kyushu Communication Systems Limited (Japan) Fujitsu Kyushu Systems Engineering Ltd. (Japan) Fujitsu Laboratories Ltd. (Japan) Fujitsu Lease (Japan) Fujitsu Logistics Limited (Japan) Fujitsu Microelectronics Asia Pte. Ltd. (Singapore) Fujitsu Microelectronics (Malaysia) Sdn. Bhd. (Malaysia) Fujitsu Microelectronics PacijBc Asia Ltd. (Hong Kong) Fujitsu Minami-Kyushu Systems Engineering Limited (Japan) Fujitsu Miyagi Electronics Ltd. (Japan) Fujitsu Nagano Systems Engineering Limited (Japan) Fujitsu Network Engineering Limited (Japan) Fujitsu New Zealand Holdings Ltd. (New Zealand) Fujitsu New Zealand Ltd. (New Zealand) Fujitsu OA Limited (Japan) Fujitsu Office Machines Limited (Japan) ©1991 Dataquest Incorporated December—Reproduction Prohibited Fujitsu Limited Fujitsu Oita Software Laboratories Limited (Japan) Fujitsu Peripherals Limited (Japan) Fujitsu Program Laboratories Limited (Japan) Fujitsu Shikoku Infortcc Limited (Japan) Fujitsu Sbizuoka Engineering Limited (Japan) Fujitsu (Singapore) Pte. Ltd. (Singapore) Fujitsu Simer Limited (Japan) Fujitsu Social Science Laboratory Limited (Japan) Fujitsu Social Systems Engineering Limited (Japan) Fujitsu Supplies Limited (Japan) Fujitsu System Integration Laboratories Ltd. (Japan) Fujitsu Systems Constructiou (Japan) Fujitsu Systems Consulting (Japan) Fujitsu Technosystems Limited (Japan) Fujitsu TEN Limited (Japan) Fujitsu (Thailand) Co. Ltd (Thailand) Fujitsu Tohoku Electronics Ltd. (Japan) Fujitsu Tohoku Systems Engineering Limited (Japan) Fujitsu Tokia Systems Engineering Limited (Japan) Fujitsu Trading Ltd. (Japan) Fujitsu "VLSI Limited (Japan) Fujitsu Quantum Devices Ltd. (Japan) Gunma Fujitsu limited (Japan) Hasegawa Electric Co. Ltd. (Japan) Ishikawa Fujitsu Software Limited (Japan) Iwaka Densi Ltd. (Japan) Kyushu Fujitsu Electronics Ltd. (Japan) Nihon Dengyo Limited (Japan) Okinawa Fujitsu Systems Engineering Limited (Japan) PFU Limited (Japan) SMmane Fujitsu (Japan) Shinano Fujitsu Ltd. (Japan) Shin-Etsu Fujitsu (Japan) Shinko Electric Industries Co. Ltd. (Japan) Ten Orikyo Ltd. (Japan) Totalizator Engineering Limited (Japan) Toyama Fujitsu (Japan) Yamagata Fujitsu Limited (Japan) Yonago Fujitsu (Japan) ROW Fujitsu de BrasU Limitada (Brazil) Fujitsu Vitonia Computadores e Services Ltda (Brazil) ALLIANCES, J O I N T VENTURES, AND LICENSING A G R E E M E N T S 1991 EPWING Consortium The EPWING Consortium was created with Sony t Corporation and several publishing houses to establish a standard for CD-ROM electronic books. Hitachi Ltd., Sony Corporation, Texas Instruments Japan Ltd. Fujitsu Ltd., Hitachi Ltd., Sony Corporation, and Texas Instruments Japan Ltd. signed an agreement to codevelop the MUSE decoder integrated circuits. MUSE is the standard high-definition television format in JapaiL The cooperative efforts by the four companies is expected to accelerate the development of a small, low-cost, next generation MUSE decoder. Texas Instruments Fujitsu and Texas Instruments signed a five-year global semiconductor patent cross-licensing agreement The deal encompasses most of the semiconductor patents by the two firms except the Texas Instruments Kilby patent Cadence Design Systems Cadence Design Systems and Fujitsu have signed a joint development agreement to produce ASIC software tools. Quotient pic Quotient pic and Fujitsu signed a joint development agreement to produce financial software systems. KBS2 Corp. KBS2 Corp. and Fujitsu signed a joint development agreement to develop crashworthiness software. Rodime pic Rodime pic entered into a nonexclusive royaltyfree patent cross-licensing agreement with Fujitsu Ltd. The agreement is for the use of Rodime patents that apply to 3.S-inch drives. Cincom Systems Cincom Systems and Fujitsu will combine business efforts in the Canadian market to offer highperformance software. McDonnell Douglas Information Systems International (MDISI) MDISI and Fujitsu have made an agreeement to port the PRO-rV 4GL software package developed by MDISI to Fujitsu's K Series office computers. The two firms wiU then market the software. 1990 Novell K.K. A joint marketing venture to sell Netware products in Japan was formed with Novell and six partners, Fujitsu being one of them. ©1991 Dataquest Incorporated December—^Reproduction Prohibited 00123S9 Fujitsu Limited Isuzu The two companies have formed an automotive electronics venture and currently are attempting to get General Motors to join. Matsushita Electric Industrial The two companies plan to strengthen their business relationship by mutually supplying their computers on an OEM basis. Fujitsu wiU supply Matsushita with its high-end laptop and desktop 32-bit PCs; Matsushita will supply Fujitsu with die M550 and M600 series of 32-bit desktop personal computers. Poqet Computer Fujitsu will produce and market Poqet Computer's pocket-size conqjuter under hcense, Fujitsu's stake in Poqet Computer has grown gradually over the last two years because of mutual agreement and investments into R&D and manufacture of Poqet's product lineup. Nokia Data Systems Oy An agreement has been made whereby Nokia will act as an OEM of digital PBX systems (die F-620 and F-640) for Fujitsu. Matsushita Electric Industrial The two companies plan to strengthen their business relationship by mumaUy supplying their computers on an OEM basis. UNIX International Fujitsu has joined a new marketing group comprising 21 other high-tech companies. The group wUl promote UNIX's System V release 4 and furdier standard developments. Molecular Design Ltd. and IBM Fujitsu has formed a relationship with the two con^anies to ensure that Molecular Design software for managing and communicating scientific information will run on their computers. Mitsui Bank Research Institute The two companies have agreed to establish a system consulting service. MEDIAGENIC MEDIAGENIC has agreed to develop entertainment software for the Fujitsu FM TOWNS. Daisy/Cadnetix Inc. The companies jointiy produced an ASIC design kit developed for the DAZIX design environment on the Sun-4 family of workstations running on UNIX. Vitesse Semiconductor Corporation The companies have entered into an alternate sotu°ce agreement with regard to Vitesse's Fury gallium arsenide (GaAs) VLSI gate-array family. 0012369 1989 Japan Tobacco Inc. Fujitsu formed a tie-up agreement with Japan Tobacco whereby Fujitsu will market two of Japan Tobacco's software modules. The Australian National University in Canberra The two organizations signed an R&D agreement for two three-year projects. One project is to develop a small image processing system; the other is to develop software for parallel processors. Vitesse Semiconductor The two companies agreed to jointiy develop GaAs gate arrays. Southern New England Telecommunications Systems Southern New England Telecommunications agreed to market Fujitsu's ISDN telecommtmications equipment in the United States on an exclusive basis. The list of products includes digital telephones and terminal adapters. NTT Data Communications Systems The two companies will jointiy market their respective logic chip design software products as a total CAE design system. Sony Corporation The two companies jointiy developed a trial common rule to develop CD-ROM XA software for their personal computers. BeU Atlantic Optical Network (SONET) Fujitsu agreed to sell Bell Atlantic's transmission products under a two-year, $2 million contract Fujitsu wiU provide its FLM 50/150 Fiber LOOP Multiplexer for deployment in Bell Atlantic areas. Poqet Computer Corporate An agreement provides Poqet with funding and credit guarantees; the companies made a cooperative technology agreement allowing for mutual adaptation of technologies and joint development of new technology. Sun Microsystems Inc. Sun and Fujitsu will jointiy develop a high-speed RISC chip. 1988 Telecom Australia Telecom Australia agreed to sell Fujitsu's digital PBXs in Australia; the companies established a sales joint-venture, Information Switching Technology. ©1991 Dataquest Incorporated December—Reproduction Prohibited Fujitsu Limited Daisy Systems Fujitsu's FAME was made available on Daisy's Advansys Series of CAD/CAE systems. Hitachi Ltd. The two companies agreed to cooperate on the development of a 32-bit MPU and peripheral LSI family based on TRON architecture. ICL pic Fujitsu purchased 80 percent of ICL, a subsidiary of STC pic. The merger increases Fujitsu's global presence and makes it the second largest computer manufacturer in the world. KEY OFFICERS M E R G E R S AND ACQUISITIONS Fulcrum Communications Ltd. British Telecommunications pic sold the manufacturing division of Fulcrum Communications to Fujitsu Ltd. but will retain a 25.1 percent interest in the new company. The company makes and markets pubUc switched telephone network equipment such as call monitoring and logging products, call queueing, exchange monitoring, and fiberoptic tools. Nokia Data Nokia Data, which is one of Europe's largest computer companies, was purchased by ICL Ltd. (80 percent owned by Fujitsu). ICL Ltd. will pay $402.3 miUion for the company and will assume about $174.9 million of Nokia's debt. Nokia's parent corporation, Nokia Corporation, wUl receive a 5 percent stake in ICL Ltd. Poqet Computer Corporation Fujitsu increased its stake to 85 percent in Poqet Computer Corporation for $37 milUon. In 1988, Fujitsu had purchased a 28 percent equity stake in the firm. Fujitsu has been working with Poqet Computer to develop Japanese versions of pocket computers. Softway Fujitsu acquired a 40 percent interest in Softway, an Australian software company. Both companies will collaborate on UNIX systems development Continental Venture Capital, Softway, and Techway staff also hold a 20 percent interest in the company. Hal Computer Systems Inc. Fujitsu Ltd. acquired a 44 percent interest totaling $40.2 million in Hal Computer Systems. The company is developing a family of high-performance open systems based on the SPARC architecture and UNIX System V Release 4. 10 Takuma Yamamoto Chairman and representative director Matami Yasufuku Vice chairman and representative director Tadashl Sekizawa President and representative director Kazuo Watanabe Vice president and representative director Mikio Ohtsuki Executive vice president Motojiro Shiromizu Executive director Mamoru Mitsugi Executive director Tokio Tatsuta Executive director Eigo Kato Executive director Matsuro Umezu Executive director Ryoichi Sugioka Executive director PRINCIPAL INVESTORS Fuji Electric Co. Ltd.—13.5 percent Asahi Mutual Life Insurance Company—6.5 percent FOUNDERS Information is not available. ©1991 Dataquest Incorporated December—^Reproduction Prohibited 0012369 Fujitsu Limited Table 3 Balance Sheet Fiscal Year Ending March 31 (Millions of U.S. DoUars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets 1987 1,125 2,904 137 2,562 307 7,035 3,424 2,067 12,527 1988 1,764 3,645 648 3,354 408 9,818 4,289 2,678 16,784 1989 2,379 4,615 189 3,734 452 11,369 5,481 3,617 20,467 20,789 1991 2,906 6,025 159 5,038 599 14,726 6,947 4,792 26,465 1990 1,833 5,104 225 4,097 265 11,523 5,777 3,489 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Eamings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 4,991 2,117 1,153 8,261 NA 2.115 71 2,080 4,266 7,059 2,185 1,548 10,792 NA 3,364 92 2,536 5,992 8,581 2,467 1,924 12,973 NA 4,252 110 3,133 7,495 8,979 2,368 1,849 13,197 NA 4,219 110 3,264 7,592 11,939 4,091 2,225 18,256 NA 4,350 123 3,737 8,210 12,527 16,784 20,467 20,789 26,465 Exchange Rate 159.51 138.02 128.25 142.93 141.21 NA = Not available 0012369 (U.S.$1=^ Source: Fujitsn Limited Amnial Reports Dataquest (December 1991) ©1991 Dataquest Incorporated December—Reproduction Prohibited 11 Fujitsu Limited Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (MiUions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Domestic Overseas Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=¥) 1987 1988 1989 1990 1991 11,218 8,757 2,461 7,728 1,043 2,057 814 301 2.68 135 1,593.3 14,830 11,551 3,279 9,703 1,378 2,883 1,209 768 5.18 305 1,710.0 18,616 14,496 4,120 11,914 1,925 3,328 1,825 1,210 6.50 545 1,760.1 17,839 13,581 4,258 11,043 2,093 3,337 2,105 1,191 6.68 607 1.760.1 21,043 15,818 5,225 12,893 2,336 4,298 2,231 1,088 5.17 585 1,760.1 13.40 8.00 2.68 23.50 8.00 3.50 36.80 9.00 4.26 36.80 9.00 4.31 $36.80 9.00 4.66 159.51 138.02 128.25 142.93 141.21 Somce: Fujitsn Limited Amnial Reports Dataquest (December 1991) 12 ©1991 Dataquest Incoiporated December—^Reproduction Prohibited 0012369 Fujitsu Limited Table 5 Balance Sheet Fiscal Year Ending March 31 (Millions of Yen) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets 1987 179,409 463,150 21,863 408,718 49,035 1,122,175 546,233 329,779 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate ( U . S . $ 1 ^ NA = Not available 0012369 1,998,187 1988 243,492 503,035 89,402 462,869 56,326 1,355,124 591,921 369,549 2,316,594 796,143 337,660 183,980 1,317,783 NA 337,308 11,359 311,737 680,404 2,624,927 1990 261,928 729,471 32,154 585,546 37,867 1,646,975 825,757 498,633 2,971,365 1991 410,365 850,761 22,413 711,392 84,579 2,079,510 980,961 676,699 3,737,170 974,268 301,618 213,685 1,489,571 NA 464,365 12,659 349,999 827,023 1,100,577 316,395 246,778 1,663,750 NA 545,369 14,050 401,758 961,177 1,283,409 338,481 264,347 1,886,237 NA 602,980 15,658 466,490 1,085,128 1,685,950 577,700 314,221 2,577,871 NA 614,205 17,381 527,713 1,159,299 1,998,187 2,316,594 2,624,927 2,971,365 159.51 138.02 128.25 142.93 3,737,170 141.21 1989 305,166 591,815 24,219 478,840 58,017 1,458,057 702,988 463,882 Somce: Fujitsu Limited Annual Reports Dataquest (December 1991) ©1991 Dataquest Incorporated December—Reproduction Prohibited 13 Fujitsu Limited Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of Yen, except Per Share Data) Consolidated Income Statement Revenue Domestic Overseas Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Net Income Shares Outstanding, Millions 1987 1988 1989 1990 1991 1,789,417 1,396,876 392,541 1,232,722 166,342 328,184 129,822 48,012 2.68 21,609 1,593.3 2,046,802 1,594,193 452,609 1,339,183 190,130 397,968 166,924 106,048 5.18 42,115 1,710.0 2,387,442 1,859,129 528,313 1,527,908 246,906 426,779 234,113 155,152 6.50 69,948 1,760.1 2,549,773 1,941,075 608,698 1,578,343 299,107 476,979 300,822 170,216 6.68 86,758 1,802.4 2,971,462 2,233,493 737,969 1.820,554 329,823 606,890 315,109 153,573 5.17 82,673 1,812.1 Per Share Data Earnings Dividend Book Value 13.40 8.00 427.04 23.50 8.00 483.64 36.80 9.00 546.09 45.40 9.00 602.05 42.20 10.00 639.75 Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21 Source: Fujitsu Lhnited Annual Reports Dataquest (December 1991) 14 ©1991 Dataquest Incorporated December—^Reproduction Prohibited 0012369 Fujitsu Limited Table 7 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios Liquidity Current (llines) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (¥)/Employee Capital Spending % of Assets Exchange Rate (U.S.$1=^ 1987 1988 1989 1990 1991 1.41 293.68 117.01 193.68 1.39 280.11 117.80 180.11 1.32 273.10 114.50 173.10 1.28 273.83 118.27 173.83 1.23 322.36 145.43 222.36 1.08 3.40 1.21 1.82 6.19 2.06 2.66 8.46 2.93 2.92 9.03 3.40 2.21 7.62 2.78 9.30 7.25 89^93 20,040 6.50 9.29 8.16 94,825 21,585 7.21 10.34 9.81 104,503 22,846 8.92 11.73 11.80 115,000 22,172 10.12 11.10 10.60 145,000 20,493 8.43 159.51 138.02 128.25 142.93 141.21 Source: Fajitsu limited Ammal Reports Dataqaest (December 1991) 0012369 ©1991 Dataquest Incorporated December—Reproduction Prohibited 15 General Instrument Corporation BACKGROUND AND OVERVIEW General Instrument Corporation (GI), for more than 50 years, has been among the leaders in the application of modem technology to entertainment, industrial, military, data, and communications electronics. In 1960, GI entered the transistor business with the acquisition of General Transistor Corporation, founded by Herman Fialkov. Mr. Fialkov, who became head of GI's semiconductor division in the United States, was intrigued at the time by the potential of MOS technology. With the recruitment of Frank Wanlass, a key member of the MOS development team at Fairchild, and a team of designers, GI was able to begin a push in MOS development. The advent of the digital cable converter in the 1970s convinced GI that it could gain leverage not only through cable product sales but through all communications equipment sales by applying its semiconductor expertise. During this time, the Company was transformed from a components manufacturer to a communications company. GI's early success in Europe emphasized the consumer end-user market segment, starting with the emerging calculator business. In the early 1970s, GI shifted its emphasis to the emerging strong, feature-oriented European television receiver market. By 1975, the Company had its ICs designed into almost every European television set. These circuits were all specified, designed, and produced at the GI facility in Glenrothes, Scotland. Later, the first game chip was designed at this facility, together with a range of telecommunications circuits. In November 1980, Racal, in the United Kingdom, and GI signed an agreement in which both companies would cooperate on process and product development of silicon gate CMOS devices. In December 1981, Plessey Semiconductors and GI signed a second-sourcing agreement whereby Plessey would second-source GI's PLC family of single-chip microcomputers and provide a new bipolar integrated data slicer circuit. In October 1982, GI opened a major new facility at Glenrothes, Scotland, which greatly expanded its existing operation. The new plant is dedicated to silicon gate production in NMOS, CMOS, and nonvolatile memory processes. Announced concurrently with the opening of the new facility were three new products to extend GI's EEPROM range. In February 1983, GI introduced the first commercial IC combining elements of speech recognition and speech synthesis on the same chip. This chip was the result of a joint development between GI and Milton Bradley (a U.S. manufacturer of low-cost electronics products). Also in February 1983, GI announced a voice-synthesis module. The module, containing a single-chip NMOS IC, is able to synthesize any phrase in the English language. ESIS Volume III 0001400 © 1988 Dataquest Incorporated November General Instrument Corporation In April 1983, Texas Instruments and GI signed a second-sourcing agreement whereby GI would second-source Texas Instruments* TMS 7000 family of NMOS and CMOS 8-bit, single-chip microcomputers. In November 1984, this agreement was extended to include the TMS 70120 single-chip microcomputer. Having sustained considerable losses in 1985, GI shut down its Glenrothes plant in Scotland. The Company also discontinued or consolidated a number of (q>erations in the United States, including the movement of all electronics (^>erations from Hicksville, New York, to GI's Chandler, Arizona, facility. In 1986, in an attempt to revamp the Company's microelectronics division and to break into the military market, GI recruited five key managers from other semiconductor companies. In September 1986, General Instrument acquired the Cable/Home Communications Division of M/A-COM Inc., a manufacturer of coaxial cable and encryption/decryption equipment. This acquisition was reportedly made for $220,000 in cash plus assumed liabilities of $32,858. In January 1988, General Instrument announced that it would split its semiconductor operation into two parts. The Power Semiconductor Division would remain under the control of General Instrument, and the microelectronics (^>eration would trade as an independent company under the name of Microchip Technology Inc. In February 1988, Microchip Technology announced that it had filed papers with the Security and Exchange Commission so that it could bring out an offer for 2.3 million shares, eiq^ecting to raise some $27.6 million from the offer. General Instrument would contribute $10 million toward the new organization, becoming a minority shareholder. As shown in Table 1, Dataquest estimates that CI's European revenue was $40 million in 1987. Table 2 shows the key financial figures, and Table 3 shows a breakdown of revenue by geographic area. © 1988 Dataquest Incorporated November ESIS Volume HI 0001400 General Instrument Corporation Table 1 General Instrument Corpwation Estimated £ur(^>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1984 1985 IfiM 1987 $50 $42 $37 $40 Total Integrated Circuit Bipolar Digital MOS Linear $28 0 24 4 $21 0 17 4 $12 0 10 2 $13 0 11 2 Total Discrete Transistor Diode Thyristor Other $13 0 13 0 0 $12 0 12 0 0 $15 0 15 0 0 $16 0 16 0 0 Total Optoelectronic $ 9 $ 9 $10 $11 Total Semiconductor Source: Dataguest November 1988 Table 2 General Instrument Key Financial Inf(Hinati<m (Millions of U.S. Dollars) 1984 1985 1986 ISfil 1988 Revenue Profit (before taxes) $680.8 $ 76.5 $728.0 $ 15.7 $612.4 ($ 31.7) $787.8 $ 29.7 $1,155.5* $ 107.9 Research and Development $ 27.5 $ 29.3 $ 22.8 $ 27.6 $ 37.5 Note: Year Ending February 29. *First-quarter 1988 revenue reached $312.9 million compared with $280.1 million in the first quarter of 1987. Source: ESIS Volume 0001400 ffl General Instrument Corporation 1988 Annual Report © 1988 Dataquest Incorporated November General Instrument Corporation Table 3 General Instrument Revenue by Geograi^c Area (In Millions of U.S. Dollars) 1984 United States Western Europe Far East Other N/A M/A N/A N/A 1985 1986 1987 1988 $610.8 $ 51.4 $ 20.6 $ 45.2 $495.5 $ 56.7 $ 11.8 $ 48.4 $660.0 $ 79.3 $ 17.0 $ 31.5 $1,031.0 $ 73.8 $ 23.0 $ 27.7 N/A = Not Available Source: General Instrument Corporation 1988 Annual Report Products and Markets Served GI is the world's leading producer of low-current, iq)-to-30-ampere rectifiers, and is a major manufacturer of cable TV products, off-track and on-track wagering systems, and apparatus for defense applications. The Company also has interests in high-volume application-specific products for lamp dimming, home control, and entertainment. One of GI's traditional strengths lies in nonvolatile memory and speech synthesis. The Company's speech chip product lines comprise a range of processors with enough on-board ROM for up to 20 seconds of natural speech; a range of speech ROMs of 16K, 32K, and 128K density; a range of speec^l interface circuits; and a complete speech synthesis module containing a 32-word vocabulary. Recently, GI also has become strong in the field of DSPs, and 1986 saw the introduction of a 2-micron CMOS DSP. GI's main products in the nonvolatile memory field are 16K, 32K, and 64K ROMs and IK, 4K, 8K, and 16K EEPROMs. GI also has a 4K NVRAM—a chip that has both static RAM and EEPROM on the same substrate. A 1Mb ROM was planned for volume introduction in 1985, having been announced in 1984, but GI decided to deemphasize the ROM line and is presently not producing ROMs greater than 2S6K. The GI CMOS range was extended in 1985 and early 1986. In late 1985, GI announced a 256K CMOS UV EPROM, the first in a family of CMOS EPROMs soon to be made available. In early 1986, GI introduced both the 64K CMOS EEPROM and a 2-micron CMOS DSP device that is a licensed second-source from Texas Instruments TMS320 Services. © 1988 Dataquest Incorporated November ESIS Volume III 0001400 General Instrument Corporation OUTLOOK General Instrument is concentrating its resources in two principal areas: communications systems and components. In the 1987 fiscal year, GI made provisions for discontinuing businesses in the areas of semiconductors and venture investment. In the semiconductor area, the Company discontinued its microelectronics and optoelectronics (^>eration5. It eliminated the semiconductor segment and consolidated the Power Semiconductor Division into the components segment. In Europe, Dataquest expects General Instrument to continue to enjoy success in targetable areas of expertise. In the United States, cable q?erations have standardized on the GI videocypher chip set. Recently, GT Europe announced its success in signing i^ Europe's first direct-broadcast syndicate (BSB) as a customer for a modified conditioning access system. ESIS Volume HI 0001400 © 1988 Dataquest Incorporated November General Instrument Corporation (Page intentionally left blank) © 1988 Dataquest Incorporated November ESIS Volume HI 0001400 Harris Corporation BACKGROUND AND OVERVIEW Harris Corporation is the successor of a 1967 merger between Harris-Inter type Corporation, a leading manufacturer of printing equipment, and Radiation Inc., an electronics company engaged in the design, development, and manufacture of advanced communications and information-processing equipment and systems. In February 1980, Farinon Corporation, a producer of microwave transmission and telephone equipment, merged with Harris Corporation. In April 1983, Harris sold its Printing Equipment Sector and became a 100 percent electronics company. In July 1983, Harris Corporation and Lanier Business Products, Inc., agreed in principle to the merger of Lanier into Harris on a pooling-of-interest basis. Lanier produces and distributes office automation products. Harris Corporation designs, produces, and markets communications and information-processing equipment, systems, and components. The Company's products are used in voice and video communications, data processing, data communications, and graphics communications systems. Immediately following the merger of Radiation and Harris-Intertype, Harris Semiconductor became a division of the new Company. In 1977, it became a group, and in April 1982, Harris Semiconductor reached sector status within the Harris Corporation (the other four sectors being Communications, Information Systems, Lanier Business Products, and Government Systems). Organizationally, Harris Semiconductor is composed of four divisions and a joint venture in Europe (Matra-Harris). (See Figure 1 for details.) Harris Corporation's executive offices and semiconductor fabrication facilities are located in Melbourne, Florida, in the United States. Harris Semiconductor operates a large assembly plant in Kuala Lumpur, Malaysia. The Company has plans for another offshore assembly facility to supplement existing domestic assembly capability. In September 1979, Harris and Matra, the French state-controlled arms and electronics group, formed a European joint venture known as Matra-Harris. This venture was formed to manufacture semiconductor devices for the European markets, particularly the French. In 1985, Harris and Analogic announced a linear IC pact in which Analogic is second-sourcing new Harris products, and there is a joint development of new hybrid products. In early 1986, Harris and Matra-Harris began a new sales strategy. Their European sales force and distributor network was separated to permit both companies direct and independent access to European customers. Also in early 1986, Harris closed its Scottish factory in Irvine, Strathclyde, and sold it to a U.S. company. Harris and 3M (the U.S. industrial and consumer products group), formed a joint-venture company called Harris/3M in 1986. Harris/3M is a worldwide supplier of copying and facsimile products. ESIS Vol. Ill 0001432 © 1988 Dataquest Incorporated November Harris Corporation Figure 1 Harris Corporation Company Organization Chart Harris Corporation Sectors Commiin I cations Sector Information Systems Sector Semloonduotor Sector Lanier Business Products Sector Digital Division Custom ICs Devision Microwave Division Government Systems Sector Divisions Analog Division Marketing Sales Administration M a tra-Harris Finances Source: Harris Corporation 0001432-1 The Company had traditionally been heavily reliant on U.S. government defense business. It was in 1986 that Harris faced up to the fact that business was declining (due to defense budget cuts) and the fact that if the Company were to survive, it needed to rid itself of complacency. So restructuring began in earnest. The CMOS bipolar memory business and the fledgling cellular radio operations were shut down; materials and components were sourced overseas, and jobs were reduced. By the end of 1987, most of the restructuring was finished. The Company hoped that 1988 would be a year of consolidation—improvements in every sector, earnings growth, positive cash flow, and strengthening of the management team. In 1987, Harris successfully subdued a takeover bid by Plessey of the United Kingdom. This episode served to reinforce the Company's restructuring plans, which were aiming to replace complacency with a sense of urgency. Harris knows that if it wants to stay independent, it has to break out of the U.S. defense department dependability and become more competitive. © 1988 Dataquest Incorporated November ESIS Vol. Ill 0001432 Harris Corporation Table 1 shows Dataquest's estimates of Harris' European revenue. Table 1 Harris Corporation Estimated European Semiconductor Group Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987 $28 $40 $31 $38 $40 $28 $40 $31 $38 $40 14 10 4 20 14 6 19 7 5 0 14 24 0 14 26 Total D i s c r e t e Transistor Diode Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total O p t o e l e c t r o n i c b 0 0 9 0 Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Source: Dataquest November 1988 PRODUCTS AND MARKETS SERVED Although the U.S. defense business remains Harris's main revenue earner (approximately 40 percent of sales), the Company plans to move to nondefense-related government sectors. For example, Harris was awarded a contract for a mobile communications system for the Federal Emergency Management Agency. The Company hopes to win contracts from the U.S. Army, the Federal Aviation Administration, and NASA. Harris is also expanding its commercial client base. In 1988, Harris expanded its activities in the United Kingdom with the establishment of an affiliated assembly operation. The new plant, owned by MTL Microtechnology, a subsidiary of Cambridge Electronic Industries, is part of a concerted drive to develop Harris' sales throughout Western Europe. It produces specialized high-powered microprocessors mainly for the U.K. military market, an area where Harris sees scope for expansion. Harris also gained the top level of U.K. standards approval for its 80C86 CMOS processor family, making it the first choice for many applications. The Company now plans to seek approval for a wide range of devices. ESIS Vol. Ill 0001432 © 1988 Dataquest Incorporated November Harris Corporation OUTLOOK Harris is optimistic about the future. The Company plans a more determined push into Western Europe, while looking for other opportunities to expand. The main reason for this strategy is the cutbacks in U.S. military spending, which are driving Harris to cut its dependence on 85 percent of sales from the United States to about 65 percent by 1990. The Company hopes to get 25 percent of semiconductor sales from Europe. At the time of this printing, it had just been announced that Harris had bought the semiconductor operations of General Electric (GE) for an undisclosed amount. The purchase includes the RCA semiconductor operation that GE bought two years ago. Further details of this merger and its implications will be published in a newsletter. © 1988 Dataquest Incorporated November ESIS Vol. Ill 0001432 Company Backgrounder by Dataquest Hewlett-Packard Company 3000 Hanover Street Palo Alto, California 94303 Telephone: (415) 857-1501 Fax: (415) 857-5518 Dun's Number: Not available Date Founded: January 1, 1939 CORPORATE STRATEGIC DIRECTION Hewlett-Packard Company (HP) is engaged worldwide in the design, manufacture, and servicing of a broad array of precision electronic instruments and systems for measurement, analysis, and computation. HP offers integrated systems solutions to specific customer problems. Founded in 1939 by Bill Hewlett and Dave Packard, HP employs 92,000 people worldwide and had revenue of $13.2 billion* during 1990. The $13.2 biUion revenue in fiscal 1990 represented an increase of 11.2 percent over 1989's total revenue of $11.9 billioiL Net income decreased 10.9 percent to $739 million in fiscal 1990, down from a 1989 record net income of $829 million. A large factor in this decrease in net income deals was the increasing proportion of HP's sales to volume purchasers such as dealers and OEMs, who receive discounts on the HP products they purchase. These discounts reduce earnings by driving up HP's cost of selling its products. Domestic sales totaled $6.0 billion, $5.6 billion, and $4.8 billion, respectively, during fiscal years 1990, 1989, and 1988. International sales reached $7.2 billion, $6.3 billion, and $5.1 billion in fiscal years 1990, 1989, and 1988, representing 54.5, 53.3, and 51.6 percent of total revenue, respectively. The majority of international orders were from the commercial sector, primarily in Europe. The percentage of total respective international revenue derived fixjm Europe during fiscal years 1990, 1989, and 1988 was 66.1, 65.2, and 65.2 percent In October 1990, HP began to implement a major reorganization in its management structure to reduce operating expenses and facilitate the management of research and development, manufacturing, and marketing activities. Three new organizations were *A11 dollar amounts are in U.S. dollars. 0011509 formed as a result of the reorganization: the Computer Systems Organization, the Computer Products Organization, and the Test and Measurement Organization. The reorganization aligned businesses that bad traditionally operated separately in HP's structure, but had been converging in form and function in recent years. The Computer Systems Organization unites HP's workstation and multiuser systems businesses, the Computer Products Organization combines the company's PCs and peripherals businesses, and the Test and Measurement Organization combines the activities of the company's Electronic Instruments and Microwave and Communications groups. Although HP's structure has been recently reorganized, the company continues to financially divide operations into six business segments, all of which are engaged in the design and manufacture of precision electronic equipment for measurement, analysis, and computation. The six business segments are Measurement, Design, Information, and Manufacturing Equipment and Systems; Peripherals and Network Products; Service for Equipment, Systems, and Peripherals; Medical Electronic Equipment and Service; Analytical Instrumentation and Service; and Electronic Components. The Measurement segment continued to be the largest source of income in fiscal 1990 for the conq)any, with $5 billion in revenue, or 36.9 percent of total revenue. The Service for Equipment, Systems, and Peripherals segment showed the highest rate of increase in 1990, increasing 21.3 percent to $2.6 billion. HP has more than 480 sales and service offices in approximately 150 cities throughout the United States and in 107 countries worldwide. Approximately 31 percent of the sales and service offices are located in die United States. In areas where HP has no sales or service offices, it markets through more than ISO distributorships located in more than 60 countries. ©1991 Dataquest Incorporated October—Reproduction Prohibited Hewlett-Packard Company HP markets approximately 70 percent of its products directly through its own sales organizatiorL Marketing operations are supported by approximately 30,000 individuals, including field service engineers, service personnel, and administrative support staff. The remaining revenue is obtained through valueadded resale channels including dealers and OEMs. Research and development expenses totaled $1.4 bilUon in 1990, representing 10.3 percent of total revenue. Capital expenses reached an all-time high in 1990 of $955 million, representing 7.2 percent of total income. The R&D and capital expense totals for 1989 were $1.3 bUlion and $857 miUion, respectively, representing 10.7 and 7.2 percent of total revenue. HP currendy offers more than 10,000 products, which range from scientific measuring instruments to handheld calculators. HP's traditional key areas of strength have been test and measurement equipment and minicomputers. The company recenfly successfully established itself in the UNIX workstation market HP possesses the key ingredients to be a major force in computer-integrated manufacturing (CIM), with its high-performance instruments, peripherals products, UNIX platforms, and networking products. Local R&D has allowed HP to quickly adapt its products to suit local European markets. More detailed information is available in Tables 1 through 3, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region and distribution channel. Tables 4 through 6 at the end of this backgrounder present comprehensive financial information. In 1990, HP announced HP NewWave Computing, a strategy to link a variety of computers in a network so they operate as one. The company has based this approach on open systems and advanced software technology, enabling users to build on computing resources currently in their possessioiL Other major announcements in 1990 included the HP 9000 Model 1240, the company's entrant in the emerging fault-tolerant UNIX-based computer market; the HP LaserJet HI printer, and the HP 400 Series woricstation, the company's first workstation developed from the combination of HP and recently acquired Apollo Computer Inc. In November 1989, HP introduced HP NewWave Office, an integrated office system enabling users to share data and information, even with computers and software from different vendors. More than 100 software developers and resellers are supporting HP NewWave Office with a full range of word processing, spreadsheet, database, graphics, communications, and multimedia applications as well as vertical market solutions. With the HP NewWave line, HP has unveiled its office-systems strategy for the 1990s: to deliver a complete office system that combines industry standards with emerging technologies, allowing customers to quickly and easily receive the infonnation they need. A major part of the strategy is to integrate existing applications and systems frxim multiple vendors to protect customers' computing investments. BUSINESS SEGMENT STRATEGIC DIRECTION According to Dataquest estimates, HP ranked first in the 1990 worldwide traditional workstation market for 1990 with a 24.98 percent market share and $709.3 million in factory revenue. Dataquest also estimates that HP was the market leader in the medical workstation and superworkstation worldwide markets in 1990. Technical Computers The HP 9000 series includes desktop-size workstations and midtiuser systems originally intended to be used by scientists and engineers. Iff* offers a wide range of workstation products, with applications including the commercial client-server marketplace, electronic publishing, computer-aided design (CAD), computer-aided manufacturing (CAM), computeraided software engineering (CASE), and other advanced graphics markets. In May 1991, HP introduced three new models in the HP ApoUo 9000 Series 400 workstation family: die 425e, 425t, and 425s models. The Series 400 models run the HP-UX and Domain/OS operating systems and are compatible with HP's Motorola-based workstation family. The 425e is powered by Motorola's 25-MHz MC68040 processor, performs at 22.1 mips and 2.6 mflops, and offers a 2-D, frame-buffer graphics system that is tuned for X ^^^dow System performance at 2,017 operations per second (ops). The 425e has an internal storage capacity of 840MB, a total disk capacity of 9.11GB, and storage options consisting of an integrated, DOS-compatible 3.5-inch ©1991 Dataquest Incorporated October—^Reproduction Prohibited 00US09 Hewlett-Packard Company floppy drive or an internal CD-ROM drive. The 425e is designed for use in commercial or desktop pubUshing, CASE, and entry-level CAD markets. The 425t and 425s models are more advanced models than the 425e, offering increased X Window performance at 3,100 ops. The 425t is a desktop model based on the 25-MHz MC68040 microprocessor, while the 425s is a desk-side system with increased expansion and performance capabilities. The 425s comes with four extended industry standard architecture (EISA) or three DIO-II expansion slots, and three full-height 5.25-inch storage slots for disks, CDROM, or digital audio tapes (DATs). Internal disk storage options range from 660MB to 3.9GB, with a maximum disk storage capacity of 27.3GB. The 425t and 425 s models are targeted for mechanicalengineering and electrical-engineering design customers. Other members of the HP Apollo 9000 family include the 300, 700, and 800 Series. The 300 Series mcludes HP's most basic workstation models. Introduced in March 1991, the 700 Series revolutionized performance levels in the workstation market with system performance exceeding 76 mips, the fastest on the market. The 700 Series is available in both desktop and desk-side models. The 800 Series of superminicomputers is oriented toward technical and realtime computing in the manufacturing sector and toward general-purpose UNIX computing in the government and commercial markets. These computers are based on HP Precision Architecture (HPPA) reduced-instruction-set computiag (RISC) technology, allowing users access to more than 3,500 RISC appUcations and tools from more than 220 independent software vendors. In April 1989, HP acquired Apollo for $500 millioa The acquisition gave HP an installed base of about 84,000 Apollo machines at almost 3,000 sites and another proprietary RISC architecture. Business Computers The HP 3000 series of supermimcomputer systems spans a broad performance range and is designed for business data processing appUcations. Introduced in 1970, the 3000 Series is suited for on-line transaction processing (OLTP) and distributed processing and is compatible throughout the product line. The HP 3000 family shares the MPE operating system and uses HP's Precision Architecture in the higher-end systems. All HP 3000 computers use an open network 00U509 computer philosophy for customers with a multivendor or multiarchitecture environment HP unveiled eight new multiuser HP 3000 systems in January 1990: 980/100, 980/200, 949, 922LX, 922RX, 922, 932, and the MICRO 3000RX. The Series 980/100 and 980/200 are the first to use advanced complementary metal-oxide semiconductor (CMOS) technology on a single VLSI chip. The 980/ 100 operates between 60 and 70 transactions per second (^s); and the 980/200 operates at more than 100 tps. The 922LX, 922RX, 922, and 932 perform at 7.7 tps and are designed to support 16 to 240 users in small to medium-size businesses, departments of large corporations, or branch offices. The HP MICRO 3000RX is a complete entry-level business system that can support up to 24 users. It is fully compatible with the HP 3000 product line and includes a system disk, tape cartridge, console, 16 terminal ports, operating system, database, and a menu-driven interface. The company recendy aimoimced 10 new models for the HP 3(X)0 line, which should be available in October 1991. These new models in the 900 Series are powered by the same Precision Architecture-RISC (PA-RISC) chips used in the 700 Series, making HP an industry leader in offering compatible RISC-based products from the desktop level to enterprisewide data center systems. Personal Computers Since its entry into the PC business, HP has been a high-end PC vendor aiming at the business market The company's Vectra product line has met with considerable success since its introduction in 1986. The Vectra line consists of computers based on Intel's 80286, 80386, and 80486 microprocessors. Dataquest estimates that HP ranked 11th in the worldwide PC market in calendar year 1990, with a market share of 1.77 percent and factory revenue of $884.6 million. The HP Vectra 486 personal computer is the highestperformiog member of the HP Vectra family. It is a floor-standing unit based on the Intel i486 microprocessor. It uses the EISA, and the design optimizes performance for high-end personal computing (for example PC CAD multiuser, LAN serve) and provides the speed for high-powered single-user applications. The 486 supports up to 64MB of RAM on a single memory board, 1.3GB of mass storage, and a video graphics adapter. It comes standard with ©1991 Dataquest Incorporated October—Reproduction Prohibited Hewlett-Packard Company 2MB of RAM; one 5.25-inch, 1.2MB flexible disk drive; two serial (RS-232-C) ports; one parallel (Centronics) port; connections for four flexible disks and tow-embedded hard disks; keyboard (Mini-DIN) and mouse (Mini-DIN) ports; HP disk-cache software; and memory management software. It also offers an array of hard disk drives, memory, and video products. Dataquest estimates that the Vectra 486 PC was the third-ranked 80486 model in 1990, with $113.7 million in factory revenue and a 4.76 percent market share. HP ranked third overall in the worldwide 80486 computer market, based on $146.7 million in factory revenue and a 6.14 percent market share. In April 1991, HP released the much-heralded HP 95LX palmtop PC, the first hand-held computer to combine PC power with the capabUities of Lotus 1-2-3 in a device the size of a business calculator. The Uoz 95LX is designed to work as a companion to desktop and laptop PCs, and will run MS-DOS 3.22 in addition to Lotus 1-2-3 Release 2.2. According to Dataquest estunates, the 95LX will propel HP into the leading position in 1991 in terms of units shipped in the notebook market Supercomputers and Visualization Systems Through its Apollo Systems Division, HP offers the Apollo Series 10000 personal supercomputers and visualization systems designed for graphic-intensive applications. Both systems incorporate multiprocessing capabilities, parallel-instruction dispatch and extension, advanced-compiler technology, a RISCbased instruction set, and the capability to be configured with the IBM Token-Ring network or Ethernet as native networks. During 1990, the major components of the Series 10000 received the following upgrades: a new PRISM CPU that doubles computer power from 22 mips to 44 mips (12 mflops) per processor, parallelizing and vectorizing compilers that increase system performance two to four times; a specialized software-development environment for parallel programs and an interactive scientificsoftware computation and visualization environment; main memory capacity expanded fourfold, disk capacity improved by a factor of six, and local area network (LAN) bandwidth increased by a factor of 10. Software Although HP offers a selection of software for business and technical applications, a vital part of its Cooperative Computing Enviromnent is the NewWave environment, which has continued to gain widespread acceptance. In May 1990, HP introduced the HP NewWave 3.0, a software applications environment that runs on any industry-compatible MS-DOS PC with an Intel 80286 or 80386 microprocessor. The HP NewWave 3.0 utilizes the enhancements made by Microsoft to Windows, including improvements to memory management and the user interface. From this, HP NewWave 3.0 requires only 2MB of extended memory to run several applications. More than 100 independent software vendors, including Micrografx Inc. and Microsoft Corporation, have committed resources to develop future HP NewWave applications. FutureSoft Engineering Inc., Lotus Development Corporation, New Media Graphics Corporation, and VideoLogic have all begun shipping NewWave. HP also has licensing agreements for HP NewWave with AT&T Computer Systems Inc., Canon Inc., Data General Corporation, and NCR Corporation. In January 1991, HP announced that its SoflBench and Encapsulator products, which had previously only been offered for HP/Apollo workstations, would be compatible with Sun's SPARCstation computers. SoftBench is a software-development product for CASE that coordinates and controls the separate software programs that engineers use to design, build, and test software products. Encapsidator allows the customization of SoftBench through the addition of CASE tools of the user's choice. The move by HP further demonstrates the company's commitment to open systems environments. HP released several new software products in the first half of 1991. In May, the company released HP SharedX, a distributed-computing software product that allows geographically separated work groups to view and modify information simultaneously on their UNIX-based workstations and X terminals. The program is a breakthrough in real-time computing and can be used immediately by current X '^ndow System users with no modification to their existing systems. In June, the company released HP Open'^ew Interconnect Manager, a network-management program that greatly reduces mapping time on networks. Peripherals HP's peripherals products include video display terminals, magnetic disk and tape drives, plotters, and laser printers. HP's laser printers were first introduced in 1975. Technology exchanges and license agreements with Canon led to HP's 2680 laser printer series, which includes the 2689, an IBM-compatible version. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011509 Hewlett-Packard Company HP expanded its printer product line in March 1991 with the release of the high-end HP LaserJet nisi printer. Designed for the business environment, the LaserJet nisi prints 17 pages per minute (ppm) and uses Resolution Enhancement technology ^id HP's PCL 5 printer language. Options include a networkprinter interface card for direct connection to a LAN, a two-sided printing mechanism, and a power envelope feeder that holds up to 100 envelopes. as a single, integrated system, regardless of location, vendor, or operating system. These networks will manage the simultaneous transmission of voices, data, and video. The restilting distributed system can integrate diverse applications, environments, and computers, and will allow more effective processing of information. Semiconductors According to Dataquest, HP led the North American 1- to 10-ppm PNPP printer market with a 53.5 percent market share in 1990, based on $1.96 billion in factory revenue. HP has also been a market leader in the X \^ndow System graphics terminals market HP released the HP 700/X family of X Window graphics terminals in 1989, and the family has continued to gain market share. The 700/X family consists of a comprehensive set of color and monochrome network-based graphics terminals based on the industry-standard X Window System from the Massachusetts Instimte of Technology (MIT). The terminals are designed to operate in multivendor networked environments and provide the equivalent graphics and LAN performance of an entry-level workstation configured as an X server. Dataquest estimates that HP ranked third in the 1990 worldwide X Window terminal market with a 12.4 percent market share and $22.3 million in factory revenue. HP was the market leader in the 1990 worldwide Color X Window market, garnering 20.3 percent of the inarket with $17.0 milUon in factory revenue. HP also provides monitors for workstations, where Dataquest estimates that HP ranked second in the 1990 worldwide workstation monitor market, with $175.5 million in revenue and a 22.2 percent maiket share. According to Dataquest HP ranked 21st in the 1990 North American total semiconductor market, with a market share of 1 percent HP is the market leader in the North American optoelectronic semiconductor market, holding a 40 percent market share in 1990 with $132 nuUion in factory revenue. HP manufactures a number of dedicated integrated circuits (ICs) for internal consumption only. These are supported by a wide range of optoelectronic devices (both components and modides) that are generally available on the merchant market together with several specialized diode and transistor products. Computer Storage HP's storage devices family includes 5.25-inch harddisk storage systems for entry-level through high-end computer systems; digital data storage (DDS) format tape drives for HP computer systems; and a famUy of mass-storage systems that combine a high-capacity hard-disk mechanism with a choice of two additional drives (DAT drive, CD-ROM drive, rewritable-optical disk drive, and/or additional hard-disk drives). Dataquest estimates that HP ranked eighth in the worldwide 5.25-inch rigid disk drive market in 1990, with a 1.7 percent market share. HP also ranked second in the worldwide 1/2-inch reel-to-reel tape drive market with 14.9 percent of the market Telecommunication HP's vision of future information technology is called the Cooperative Computing Environment Its goal is to develop integrated networks of both generalpurpose and specialized computers working together 0011509 Further Information For further information about the biisiness segments, please contact the appropriate industry service. ©1991 Dataquest Incorporated October—^Reproduction Prohibited Hewlett-Packard Company Table 1 Five-Year Corporate Highlights (MiUions of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change 7,102 9.18 8,090 13.91 9,831 21.52 11,899 21.04 13,233 11.21 Capital Expenditure Percent of Revenue 497 7.00 510 6.30 648 6.59 857 7.20 955 7.22 R&D Expenditure Percent of Revenue 824 11.60 901 11.14 1,056 10.74 1,269 10.66 1,367 10.33 82,000 86.61 82,000 98.66 87,000 113.00 95,000 125.25 92,000 143.84 516 5.52 644 24.81 816 26.71 829 1.59 739 (10.86) Number of Employees Revenue ($K)/Employee Net Income Percent Change 1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 3,103 173 3,308 186 3,242 178 3,580 202 Sonice: Hewlett-Padcaid Company Anaual Reports Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America International AU Others 54.00 31.00 15.00 51.00 33.00 16.00 48.00 34.00 18.00 46.73 34.72 18.55 45.53 36.00 18.47 Source: Hewlett-Packaid Company Annual Reports Dataquest (October 1991) Table 3 Revenue by Distribution Channel (Percent) Channel Direct Sales Indirect Sales Distributors Dealers OEMs *Conq>uter systems only NA = Not available 1987* 1988* 1989 58 42 1 1 40 60 40 1 1 38 60 40 NA NA NA Source: Hewlett-Packard Company Annual Reports Dataquest (October 1991) ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011S09 Hewlett-Packard Company 1990/1991 SALES OFFICE LOCATIONS* North America- -129 Eiffope—111 Japan—^28 ROW—191 •Includes service offices MANUFACTURING LOCATIONS North America AguadiUa, Puerto Rico Terminals Andover, Massachusetts Medical equipment Avondale, Pennsylvania Analytical instruments Boise, Idaho Disk drives, printers Chelmsford, Massachusetts Workstations Colorado Springs, Colorado Electronic test instruments, telecom test equipment CorvaUis, Oregon Calculators, hand-held computers, ASICs Cupertino, California Minicomputers Everett, Washington Electronic instruments Exeter, New Hampshire Workstation components Fort CoUins, Colorado Workstations, network controllers, ASICs, RISC Processors Greeley, Colorado Printers, tape drives Loveland, Colorado Logic design systems, high-frequency linear digital oscilloscopes McMinnviile, Oregon Medical equipment Palo Alto, California Test equipment Rockaway, New Jersey Test equipment Rohnert Park, California Test equipment Roseville, California Network products, personal computers San Diego, California Plotters 0011509 San Jose, CaUfomia Microwave, opto, diode, transistors Santa Qara, CaUfomia Electronic instruments, ASICs Santa Rosa, CaUfomia Microwave test equipment, opto, diode, transistors Spokane, Washington Test equipment Sunnyvale, CaUfomia Computer-integrated manufacturing systems, workstation systems integration, PCs, workstations Waltham, Massachusetts Medical equipment Waterloo, Canada X terminals, industrial terminals Vancouver, Washington Printers Europe Barcelona, Spain Printers, drives Bergamo, Italy Network products Boeblingen, Germany Workstations, midrange computers, analytical instruments, medical instruments Bristol, England Disk drives Grenoble, France Networking products, personal computers Lyon, France Midrange computers Pineswood, England Software South Queensfeny, Scotland Telecom test equipment, microwave test equipment \^efontaine, France A-series and various industrial automation and medical products, networks, telecom Waldbronn, Germany Analytical instruments Japan Hachioji, Japan Test equipment Kobe, Japan Test equijonent ROW Bangalore, India Distribution Guadalajara, Mexico PCs, multiuser systems ©1991 Dataquest Incorporated October—^Reproduction Prohibited Hewlett-Packard Company Penang, Malaysia Semiconductor devices Singapore Software networks, printers, graphics imaging components, calculators, keyboards, terminals, optoelectronic LED components Seoul, South Korea Instruments, peripherals, distribution Taipei, Taiwan Asian language PC products Aguadilla, Puerto Rico Printed circuit devices SUBSIDIARIES North America ApoUo Computer Inc. (United States) Apollo World Trade Inc. (United States) Applied Optoelectronic Technology Corp. (United States) EON Systems Inc. (United States) Fleet Systems Inc. (United States) Hewlett-Packard Atlantic Inc. (United States) Hewlett-Packard (Canada) Ltd. (Canada) Hewlett-Packard Delaware Inc. (United States) Hewlett-Packard Delaware Funding Inc. (United States) Hewlett-Packard Delaware Holding Inc. (United States) Hewlett-Packard Delaware Investment Inc. (United States) Hewlett-Packard European Distribution Operations Netherlands Inc. (United States) Hewlett-Packard Finance Company (United States) Hewlett-Packard Hellas Inc. (United States) Hewlett-Packard Inter-Americas Corp. (United States) Hewlett-Packard Laboratories Japan Inc. (United States) Hewlett-Packard Pipeline Co. (United States) Hewlett-Packard Puerto Rico (United States) Hewlett-Packard World Trade Inc. (United States) IDACOM Electronics Inc. (United States) The Tall Tree Insurance Company (United States) Europe Geneva Investments N.V. (Netherlands Antilles) Hewlett-Packard A/S (Denmark) Hewlett-Packard (Austria) Ges.m.b.H. (Austria) Hewlett-Packard Belgium S.A.N.V. (Belgium) i Hewlett-Packard Benelux B.V. (Netherlands) Hewlett-Packard DDR (Germany) Hewlett-Packard Equipment Leasing Ltd. (Great Britain) Hewlett-Packard Espanola S.A. (Spain) Hewlett-Packard Finance Ltd. (Great Britain) Hewlett-Packard France (France) Hewlett-Packard GmbH (Germany) Hewlett-Packard International Sales Corporation B.V. (Netherlands) Hewlett-Packard Ireland Ltd. (Ireland) Hewlett-Packard Italiana S.p.A. (Italy) Hewlett-Packard Leasing Ltd. (Great Britain) Hewlett-Packard Ltd. (Great Britain) Hewlett-Packard Nederland B.V. (Netherlands) Hewlett-Packard Norge A/S (Norway) Hewlett-Packard OY (Finland) Hewlett-Packard Product Leasing Ltd. (Great Britain) Hewlett-Packard S.A. (Switzerland) Hewlett-Packard (Schweiz) A.G. Hewlett-Packard Singapore (PTE) Ltd. (Singapore) Hewlett-Packard Sverige A.B. (Sweden) Hewlett-Packard Technical B.V. (Netherlands) Hewlett-Packard Trading S.A. (Switzerland) IDACOM Electronics (Germany) Japan Yogokawa Hewlett-Packard Design Systems Laboratory Ltd. (Japan) Yokogawa Hewlett-Packard Ltd. (Japan) ROW Applied Optoelectronic Technology (Asia) PTE Ltd. (Singapore) Applied Optoelectronic Technology Taiwan Ltd. (Taiwan) Arrendadora Hewlett-Packard S.A. de C.V. (Mexico) China Hewlett-Packard Company Ltd. (China) China Hewlett-Packard (Shenzhen) Company Ltd. (China) E.I. Industria e Cuercio S.A. (Brazil) Grupo Hewlett-Packard S.A. de C.V. (Mexico) Hewlett-Packard Argentina S.A. (Argentina) Hewlett-Packard Asia Pacific Limited (Hong Kong) Hewlett-Packard Australia Finance Ltd. (Australia) Hewlett-Packard Australia Ltd. (Australia) Hewlett-Packard Bilgisayar Ve Oleum Sistemleri Anonim Sirketi (Turkey) Hewlett-Packard de Venezuela C.A. (Venezuela) Hewlett-Packard do Brasil S.A. (Brazil) Hewlett-Packard Far East Pte. Ltd. (Singapore) Hewlett-Packard FPG (China) Hewlett-Packard Hong Kong Ltd. (Hong Kong) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011509 Hewlett-Packard Company Hewlett-Packard (India) Private Ltd. (India) Hewlett-Packard (India) Software Operation Private Ltd. (India) Hewlett-Packard Investment Ltd. (Liberia) Hewlett-Packard (Malaysia) SDN.BHD. (Malaysia) Hewlett-Packard Malaysia Technology, Sdn. Bhd. (Malaysia) Hewlett-Packard (N.Z.) Ltd. (New Zealand) Hewlett-Packard Penang Sdn. Bhd. (Malaysia) Hewlett-Packard S.A. de C.V. (Mexico) Hewlett-Packard Sales (Malaysia) Sdn. Bhd. Hewlett-Packard Singapore (Sales) Pte. Ltd. (Singapore) Hewlett-Packard Taiwan Ltd. (China) Hewlett-Packard (Thailand) Ltd. (Thailand) Hewlett-Packard USSR (USSR) Moriya Pty. Inc. (Australia) Samsung Hewlett-Packard Ltd. (Korea) Sispar Participacoes Ltda. (Brazil) Telecom Hewlett-Packard Pty. Ltd. (Austtalia) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 Computer Associates International Inc. HP and Computer Associates agreed to codevelop systems management, database, and applications software for HP's 9000 Series computers that run the HP/UX UNIX-based operating system. Hermes Plus HP and Hermes jointly formed the Yugoslavianbased Hermes Plus Company, which will market and service HP personal computers and peripherals in Yugoslavia. Informix Software Inc. HP and Informix signed a five-year joint agreement to develop, market, and sell faster versions of HP hardware and Informix software primarily for OLTP and CASE. Ithaca Software HP and Ithaca Software agreed to a licensing arrangement under which Ithaca will incorporate HP Advanced Rendering Technology into its HOOPS graphics development system. Lotus Development Corporation HP and Lotus agreed to a marketing and development treaty designed to make Lotus 1T2-3 software available on HP workstations. Mentor Graphics and Serveco HP, Mentor Graphics, and Serveco signed an agreement to manufacture CAD systems in the Soviet Union for use in electronic equipment design. Serveco, a Soviet-Swiss joint venture, will be the distributor and servicer on the Soviet market Mentor Graphics will provide specialized CAD software and HP's USSR subsidiary (HP USSR) will manufacture the hardware. Microsoft Corporation HP and Microsoft signed an agreement authorizing HP to provide worldwide support for Microsoft LAN Manager, Microsoft Windows graphical environment 3.0, MS-DOS and OS/2 operating systems, and Microsoft SQL Server. Microtest Inc. HP and Microtest entered into an agreement in which Microtest will supply its LAN test products to HP, and HP will market them. Mitsubishi Electric Corporation HP and Mitsubishi signed an agreement whereby Mitsubishi will be supplied with a new RISC workstation that it will market in Japan. Hitachi Ltd. HP and Hitachi entered a cooperative agreement to develop expert-systems technology based on an enhanced version of Hitachi's ES/Kemel for HP's Motorola-based 9000 workstations and Precision Architecture RISC-based computers. Mitsumi Electric Company HP and Mitsumi signed a contract giving HP an exclusive supply of 3.5-inch DAT meclianisms from Mitsumi for HP's 2GB and 8GB DAT drives. IBM Corporation HP and IBM signed a licensing agreement licensing HP's SoftBench integration framework and Encapsulator software technologies for use in future CASE solutions targeted to IBM's AIXbased RISC System/6000 family of workstations and servers. Northern Telecom Limited HP and Northern Telecom signed an agreement in which the companies will jointiy market centtal office-based call handling capabilities based on a link between Northern's DMS-100 central office switch and HP's UNIX-based Apphed Computerized Telephony. 0011509 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 9 Hewlett-Packard Company Panacea Inc. HP and Panacea signed a nonexclusive licensing agreement allowing a version of Panacea's Display List Driver (DLD) to be tailored to the HP Intelligent Graphics Controllers (IGCs). Cognos HP entered into an agreement with Cognos, establishing Cognos' PowerHouse fourth-generation language (4GL) software as a growth path for users of HP's RAPID and ALLBASE tool sets. Sequoia Systems Inc. HP extended its OEM and technology-licensing agreement with Sequoia Systems through 1994. The new agreement extends HP's exclusive marketing rights for Sequoia systems to the worldwide telecommunications market and increases the number of Sequoia's fault-tolerant systems HP is committed to sell in 1992. Emerald Systems Corporation HP signed Emerald Systems to a distribution agreement in which Emerald will offer RAMP backup and restore software for use with the HP Network Mass Storage System. Software AG HP and the Germany-based Software AG made a marketing agreement imder which Software AG's Adabas database management system. Network networking product, and Natural fourth-generation language will be made available on HP's UNIX platforms. Sun Microsystems Inc. HP and Sun entered a joint-development agreement to create a common, next-generation, objectoriented distributed confuting environment called Distributed Application Architecture (DAA). The move brings together two of the leading operating systems in Sun's Open Network Computing (ONC) and HP's Network Computing System (NCS). HP and Sun also signed an agreement by which HP will port its mechanical computer-aided design (MCAD) software to Sun SPARCstation workstations. 1990 Actel Corporation HP and Actel Corporation annoimced that they will cooperate in developing, licensing, and manufacturing an advanced family of field programmable gate arrays (FPGAs). Under the terms of the five-year agreement, HP has immediate access to Actel's FPGA design software and will make a 5 percent equity investment in ActeL AT&T Computer Systems HP signed an agreement to license HP NewWave software to AT&T Computer Systems. Terms of the contract were not disclosed. Cascade Microtech Inc. HP purchased a minority equity position in Cascade Microtech Inc. and licensed some waferprobing technology to Cascade. 10 Hughes Aircraft Company HP and Hughes Aircraft Company signed a strategic agreement to develop and manufacture advanced workstations, personal computers, and other related equipment MAI Basic Four Inc. MAI Basic Four became an HP VAR. Under the VAR agreement, MAI Basic Four wiU resell the computers with MANBASE, its MRP 11 (manufacturing/resource/planning) software solution to manufacturers. McDonnell Douglas Systems Integration Co. HP and McDonnell Douglas Systems Integration entered into a three-year, $75 million VAR agreement that allows McDonnell Douglas to resell HP's Motorola and RISC-based HP 9000 family of workstations with its Unigraphics software. Mentor Graphics Corporation HP and Mentor Graphics announced a multimillion-dollar software-marketing agreement Under the terms of the agreement HP will adapt Mentor Graphics' design and analysis software for board-test applications and will market it with future HP board-test products. NCR/Data General/Canon HP signed an agreement to license the HP NewWave software environment to NCR, Data General, and Canon. Novell Inc. HP and Novell signed a licensing agreement that will enable HP to offer Novell's Portable NetWare network operating system to users of its HP 3000 Model 900 RISC-based minicomputers. Numetrix Inc. HP and Numetrix Inc. signed an agreement in which Numetrix's Schedulex production scheduling software will be ported to HP 9000 Series 800 HP-PA computers and HP Vectra personal computers. HP and Numetrix will market the HP-based Schedulex software solution to process manufacturers in the food, beverage, pulp and paper, chemical, pharmaceutical, and consumer packaged goods industries. ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011509 Hewlett-Packard Company Octet Communications Corporation HP and Octel Communications Corporation have become strategic partners in bringing highperformance voice-processing equipment to Europe. Penstock Inc. HP announced that Penstock Inc. has become a distributor of HP RF and microwave components and integrated products in the United States and Canada. Under the terms of the agreement. Penstock win focus on selling devices above 1 GHz and will stock a broad line of silicon and gallium arsenide (GaAs) beam-lead and chip devices, as well as packaged versions of these products. In addition. Penstock will have inventory of selected HP mechanical switches, programmable step attentuators, and fixed coaxial attentuators. Sequoia Systems Inc. HP and Sequoia Systems Inc. announced a strategic relationship that includes a matketing agreement, technology hcensing, and an equity investment. Under the technology licensing agreement, HP has the right to use most of Sequoia's faulttolerance, muiltiprocessor technology in future HP systems. The agreement also calls for the crosslicensing of any improvements to this technology by either company. Visual Information Technologies Inc. (VITec) HP and VITec signed an agreement to develop and market a high-end, image-processing workstation that runs on the recently introduced HP Apollo 9000 Model 400s. 1989 3Com Corporation HP announced a strategic alliance with 3Com, which will license its OS/2-based 3+Open LAN Manager network operating system to HP. HP will sell the product under the name HP3+Open LAN Manager. Blue Star Ltd. HP has established Hewlett-Packard India PvL Ltd., a joint-venture company with Blue Star Ltd., the sole distributor of HP products in India. HP will have 40 percent equity in the venture and Blue Star 20 percent The remaining 40 percent will be in the form of pubUc shares to be issued in 1990. Carlisle Memory Products Group HP signed a $4.5 million contract that renews and expands a previous agreement to purchase Carlisle half-inch tape reels in all worldwide locations. Compression Labs Inc. (CLI) Compression Labs Inc. signed an agreement with HP to provide videoconferencing systems for HP's international communications network. The agreement, worth more than $2 million, calls for CLI to provide 50 videoconferencing systems over a twoyear period. Decision Data Inc. (DDI) HP and Decision Data Inc. established an OEM agreement in which DDI intends to purchase $20 miUion worth of newly developed HP terminals compatible with IBM System/3X and AS/400 computers. The new terminals will be resold by Decision Data Computer Corporation, a subsidiary of DDI. The OEM terminals, developed jointly by HP and DDI, are manufactured at HP's automotated facility in RosevUle, California. The terminals will be sold exclusively to DDI. Interphase HP, through its Apollo Division, extended its OEM agreement with Inteiphase for another two years at a value of approximately $2.1 million. Microsoft Corporation The two companies engaged in joint development to port the MS LAN Manager OS/2 technology to the UNIX system environment. Aeritalia's Systems and RPVs Group of Italy HP, Aeritalia's Systems, and RPVs Group of Italy signed a joint agreement to market EMC measurement systems. NEC Corporation HP and NEC announced an agreement to develop comprehensive development tools for several NEC original microprocessors and microcomputers. Under the terms of the agreement, HP will develop, sell, and support HP 64700 series emulators for many of NEX's original microprocessors and microcontrollers. AGFA Compugraphic Division HP and AGFA Compugraphic Division joindy developed Type Director, which is based on Compugraphic's InteUifont font-scaling technology and has been implemented according to HP's specifications. National Semiconductor Corporation HP and National Semiconductor Corporation announced joint development efforts aimed at providing integrated semiconductor and system network products that conform to the IEEE 802.3 lOBASE-T network standard. 0011509 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 11 Hewlett-Packard Company Nellcor Inc. HP was granted a license imder Nellcor Inc.'s sensor-coding patents to use NeUcor's oximeter sensors with HP patent-monitoring systems. Oki Electric Industry Co. Ltd. The two companies agreed to build and operate a printed circuit board facility in Puerto Rico. Oracle Corporation HP, through its Apollo Division, announced a marketing agreement with Oracle under which both companies will promote and market the Oracle relational database management systems software products. Philips Components HP and Phihps Components of the Netherlands announced an agreement to develop and make high-voltage optocouplers. Samsung Electronics Co. Ltd. HP and Samsung Electronics Co. in Korea formed an agreement for Samsung to develop, manufacture, and resell chip sets, workstations, and other computers using HP's RISC technology. Sony of America Sony of America will supply 5.25-inch rewritable optical disk storage products to HP for the HP C17QA Optical Disk Library System, the first rewritable optical disk autochanger. The Sony drive and controller will also be used for a standalone rewritable optical disk subsystem, the HP C1711A, which is fully compatible with the Optical Disk Library System. Spatial Technology Inc. HP and Spatial Technology Inc. agreed to jointly market solid-modeling software for the mechanical computer-aided design and computer-aided manufacturing market HP bought about a 10 percent equity stake in Spatial. VHA Supply Company Inc. HP and VHA Supply Company signed a two-year extension to a three-year purchase agreement signed in 1987, covering a variety of HP medicalelectronic and computer products. Under the terms of the agreement, HP will provide cridcal-care and diagnostic equipment as well as computer systems to VHA's national network of 669 locally owned hospitals and their 177 affiliates. Included in the critical-care equipment are the HP CareVue 9000 clinical information system and the HP Component Monitoring System. m MERGERS AND ACQUISITIONS 1991 Applied Optoelectronic Technology HP purchased Milpitas, California-based Applied Optoelectronic Technology, thereby expanding HP's range of semiconductor test gear. AOT makes automatic testing gear for smart-power modules and integrated circuits. 1989 Apollo Computer Inc. This merger with Apollo gave HP a strong foothold in the networking arena, with a 30.4 percent shate of the 1988 workstation market. The acquisition gave HP an installed base of about 84,000 Apollo machines at almost 3,000 sites and another proprietary RISC architecture. Optotech HP purchased certain assets of Optotech, a privately held company that designs and develops optical disk drives. KEY OFFICERS David Packard Chairman of the board John A. Young President, chief executive officer Dean O. Morton Executive vice president, chief operating officer Richard C. Alberding Executive vice president. Marketing and International John L. Doyle Executive vice president. Business Development Richard A. Hackborn Executive vice president, Computer Products Organization Lewis E. Piatt Executive vice president. Computer Systems Organization ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011509 Hewlett-Packard Company William E. Terry Executive vice president. Measurement Systems Robert Wayman Senior vice president, chief financial officer ^^^^^^^^^^^^^^^^^^^^^M • • • • • • ^ FOUNDERS William R. Hewlett (stepped down as Vice President of board of directors, February 1987) David Packard PRINCIPAL INVESTORS David Packard—17.1 percent William R. Hewlett—12.2 percent 0011509 ©1991 Dataquest Incorporated October—Repnxiuction Prohibited 13 Hewlett-Packard Company Table 4 Balance Sheet Fiscal Year Ending October 31 (Millions of U.S. Dollars) Balance Sheet 1986 1987 1988 1989 1990 Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets 1,372 1,344 0 981 117 3,814 2,236 237 2,645 1,561 0 1,117 167 5,490 2,328 315 814 1,982 118 1,478 170 4,562 2,516 780 906 2,494 20 1,947 364 5,731 2,893 1,451 1,077 2,883 0 2,092 458 6,510 3,201 1,684 6,287 8,133 7,858 10,075 11,395 1,518 110 285 1,913 0 712 0 3,662 4,374 2,735 88 288 3,111 0 776 0 4,246 5,022 2,589 392 344 3,325 0 234 0 4,299 4,533 3,743 474 412 4,629 0 459 0 4,987 5,446 4,443 139 450 5,032 0 739 0 5,624 6,363 6,287 8,133 7,858 10,075 11,395 Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Soutce: Hewlett-Packard Company Annual Reports and Fbims 10-K. Dataquest (October 1991) 14 ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011509 Hewlett-Packard Company Table 5 Consolidated Income Statement Fiscal Year Ending October 31 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions 7,102 3,812 3,290 3,353 824 2,145 497 780 10.98 33.90 516 256 8,090 4,122 3,968 3,785 901 2,442 510 962 11.89 33.10 644 257 9,831 4,763 5,068 4,832 1,056 2,859 648 1,142 11.62 28.50 816 234 11,899 5,561 6,338 6,091 1,269 3,327 857 1,151 9.67 28.00 829 238 13,233 6,025 7,208 6,993 1,367 3,711 955 1,056 7.98 0 739 244 Per Share Data Earnings Dividend Book Value 2.02 0.22 17.09 2.50 0.23 19.54 3.36 0.28 19.37 3.52 0.36 22.88 3.06 0.42 26.08 Sovce: Hewlett-Packard Company Annual Reports and Fonns 10-K Dataquest (October 1991) Table 6 Key Financial Ratios Fiscal Year Ending October 31 Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets 1986 1987 1988 1989 1990 2.51 143.74 34.71 43.74 2.01 161.95 54.46 61.95 1.76 173.35 57.11 73.35 1.53 185.00 68.73 85.00 1.47 179.08 69.83 79.08 8.21 11.80 7.27 7.92 12.82 7.96 10.38 18.00 8.30 8.23 15.22 6.97 6.49 11.61 5.58 11.60 7.00 82,000 86.61 7.91 11.14 6.30 82,000 98.66 6.27 10.74 6.59 87,000 113.00 8.25 10,66 7.20 95,000 125.25 8.51 10.33 7.22 92,000 143.84 8.38 Source: Hewlett-Packard Con^wny Annual Reports Dataquest (October 1991) 0011509 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 15 Hitachi Ltd. 6, Kanda-Surugadai 4-chome, Chiyuoda-ku Tokyo 101, Japan Telephone: (03) 258-1111 Fax: (03) 253-2186 Dun's Number: 69-054-1503 Date Founded: 1910 CORPORATE STRATEGIC DIRECTION Hitachi Ltd. was foimded to develop indigenous Japanese electrical power equipment manufacturing technology. Initially, the company emphasized the development of heavy electrical equipment and industrial machinery. After World War H, Hitachi expanded into the consumer product area and in the 1950s entered the electronics field, producing computers, semiconductors, and other electronic devices. Over the years, most of Hitachi's business operations involved large equipment such as power plants and industrial machinery. The plant-as-profit-center concept was the basis of the management system. Today, however, a large percentage of Hitachi's business relates to electric and electronic consumer goods, office automation equipment, and other mass-market products. Under the new system, the business divisions make the decisions regarding product development and coordinate the work of the laboratory, plant, and sales division in all phases of the development process, from R&D to marketing. This new system created the Semiconductor Design and Development Center and the Instimte of Advanced Business Systems, as well as a system for promoting the development and marketing of new products in new business fields. During 1990, the office computer system design operations, which had been split between two works, were consolidated under die newly established Center for Small-Scale Processors and Workstations Development. Thus, a new profit center was created under the wing of the computer division. Hitachi also consoUdated the operations of its subsidiaries in each of the three major regions—^United States, Europe, and Asia—where the company has production and marketing bases. Hitachi also 0012329 made an effort to expand production at overseas sites. As part of this expansion, a company was set up in France for manufacturing computer products. Hitachi also increased the production capacity of a number of bases in other parts of the world. During fiscal year 1991, operating income was held back by the high value of the yen, the economic slowdown in the United States and Europe, and the transition to a new generation of products in key computer and semiconductor sectors. In order to offset these factors, Hitachi increased its plant and equipment investment by 19 percent to ¥781,488 million (U.S.$55.6 million). (Percentage changes refer only to ¥ amounts; U.S.$ percentage changes will differ because of fluctuations in Dataquest exchange rates.) Most of these funds were used to strengthen and consolidate the computer and semiconductor operations. Hitachi's consolidated revenue of ¥7,737.0 billion (U.S.$54.8 billion) for fiscal 1991 was an increase of 10.65 percent from ¥7,077.8 biUion (U.S.$49.5 bUlion) during fiscal 1990. Hitachi is divided into four separate segments: Information Systems and Electronics, Power and Industrial Systems, Consumer Products, and Materials and Others. Information Systems and Electronics was the largest contributor of revenue with 34 percent or ¥2,781,351 million (U.S.$19,798 million); Power and Industrial Systems contributed 28 percent or ¥2,357,892 million (U.S.$16,783 million); Materials and Others contributed 25 percent or ¥2,100,870 million (U.S.$14,953 million); and Consumer Products contributed 13 percent or ¥1,107,388 milhon (U.S.$7,882 miUion). ©1991 Dataquest Incorporated November—Reproduction Prohibited I Hitachi Ltd. Net income increased by 10.4 percent to ¥230.2 billion (U.S.$1.6 billion) for fiscal 1991, compared with ¥211.0 billion (U.S.$1.5 biUion) in fiscal 1990. The improved results were attributed to the company's steady expansion on a worldwide scale. Hitachi employs more than 290,000 people worldwide. Research and development expenditure increased to ¥490.7 billion (U.S.$3.5 biUion) and represented 6.3 percent of total revenue for the period. Over 60 percent of this expenditure was channeled into the Information Systems and Electronics division. During 1990, Advanced Research Laboratory was relocated to Saitama Prefecture, Japan. This laboratory concentrates on long-temi research projects with a duration of 10 to 20 years. It is currently engaged in research in the areas of quantum measurement, software science, biotechnology, and materials science. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder provide comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION In the second half of 1990, the supply of MOS memories exceeded demand, increasing the downward pressure on prices. Therefore, as a result of industry cutbacks in the production of 1Mb DRAMs implemented in fall 1990, prices stabilized. During the latter half of 1990, there was a growing demand for 4Mb DRAMs for use in new workstations and 32-bit personal computers. According to Dataquest estimates, Hitachi increased its DRAM market share firam 8.5 percent in 1989 to 9.7 percent in 1990, and the company ranked fourth worldwide in DRAM production, accounting for U.S.$697 million in revenue. Computers During fiscal 1990, Hitachi introduced the large-scale general-purpose HITACHI M-880 Processor Group. This system will become a mainstay product in Hitachi's computer operations. In addition, the technology involved will be applied extensively in other products. During 1990, in the business computer market, Hitachi had a 12.45 percent worldwide market share and ranked third in supercomputers. In mainframes, it ranked second with a 7.40 percent worldwide market share. In the technical computer market, Hitachi had a 2.09 percent worldwide market share and ranked tenth in supercomputers. In mainframes, it ranked third with a 7.79 percent worldwide market share. In the personal computer market, Hitachi had less than one percent of the market Computer Storage Semiconductors During calendar year 1990, Hitachi was the third largest worldwide semiconductor manufacturer with U.S.$3,893 million, representing a 6.7 percent market share. Dataquest estimates the company's single largest market to be Japan, which generated approximately U.S.$2.8 million, representing 12.1 percent of the semiconductor market during 1990. Dataquest ranks Hitachi third of all Japanese companies in this market. Hitachi's next largest market is North America, where Hitachi's sales were U.S.$517 million in calendar 1990, ranking eighth, with a 3.0 percent market share. Hitachi was the third largest worldwide supplier of MOS memory in 1990, accounting for approximately U.S.$1,366 million in revenue worldwide. This represented a 10 percent share of the worldwide market, which is an increase of about 10 percent over 1989. In addition to intioducing the HITACHI M-880, the company also introduced die H-6587 series of massstorage magnetic disk storage subsystems for large computers. Dataquest estimates that Hitachi ranks third in the worldwide total optical disk drive market with 11.5 percent of the maiket and U.S.$23.4 million in 1990 revenue. In the CD-ROM optical disk drive market, Hitachi ranks second worldwide with revenue of U.S.$10.4 milUon and a market share of 17.5 percent. Hitachi also ranks third in the worldwide 12-inch WORM optical disk drive maiket with a 20 percent maiket share and U.S.$13 million in revenue. Other Products Hitachi's Power and Industrial Systems witnessed a 5 percent increase in fiscal 1990 sales over 1989. The main contributing factors were a higher level of industrial demand accompanying the continuing ©1991 Dataquest Incorporated November—Reproduction Prohibited 0012329 Hitachi Ltd. expansion of the domestic economy. Sales in Hitachi's Consxmier Products division grew 10 percent in 1990 firom 1989. In Japan, sales were derived from air conditioners, washing machines, and 8mm camera/recorders. Although overseas sales were severely affected by the depressed state of the U.S. market, there was a recovery in exports of color television sets and VCRs to China and brisk exports to the USSR and Eastern Europe. The Materials and Others division posted an increase of 12 percent over 1989. Hitachi Cable Ltd. achieved an increase in sales based on a combination of strong domestic demand, mostly from the electric equipment and construction industries and brisk exports. At Hitachi Metals Ltd., sales were pushed up by demand from the automobile and electronics-related industries. Active business in 0012329 the electronics equipment and industries, plus a high level of new housing starts, led to increased sales for Hitachi Chemical Co. Ltd. The major part of the service sector business was derived from Hitachi Transport System. The continuing driviog pace of the Japanese economy generated strong demand for freight-hauling services and produced an increase in company sales. Further Information For further information pertaining to die company's business segments, please contact the appropriate Dataquest industry service. ©1991 Dataquest Incorporated November—Reproduction Prohibited Hitachi Ltd. Table 1 Five-Year Corporate Highlights (Billions of U.S. Dollars) 1987 1988 1989 1990 Five-Year Revenue Percent Change 30.4 34.19 36.0 18.61 49.9 38.48 49.5 (0.79) 54.8 10.65 Capital Expenditure Percent of Revenue 4.1 13.56 2.7 7.49 4.0 8.04 3.6 7.27 5.3 9.61 R&D Expenditure Percent of Revenue 1.9 6.34 2.3 6.51 2.9 5.83 3.0 6.07 3.5 6.34 161,325 0.19 159,910 0.23 274,508 0.18 290,000 0.17 310,000 0.18 0.6 38.67 159.56 1.0 60.22 138.03 1.4 46.02 128.25 1.5 2.01 142.93 1.6 10.43 141.21 Number of Employees Revenue ($K)/Employee Net Income Percent Change Exchange Rate ( U . S . $ 1 ^ 1991 Source: Hitachi Lid. Annual Reports Dataquest (November 1991) Table 2 Revenue by Geographic Region (Percent) Region 1987 1988 1989 1990 1991 Japan International 73.82 26.18 76.00 24.00 77.05 22.95 76.58 23.42 76.02 23.98 Source: Hitachi, Ltd. Annual Reports Dataquest (November 1991) ©1991 Dataquest Incorporated November—Reproduction Prohibited 0012329 Hitachi Ltd. 1991 SALES OFFICE LOCATIONS North America—2 Europe—2 Asia/Pacific—61 Japan—50 ROW—9 AsialPacific MANUFACTURING LOCATIONS North America High Voltage Breakers, Norcross, Georgia SF6 gas breakers Hitachi Automotive Products, Farmingtonhills, Michigan Electronic auto parts Hitachi Cable Manchester Inc., Manchester, New Hampshire Cables Hitachi Cable Manchester Inc., New Albany, Indiana Automobile brake hose Hitachi Computer Products (America), Norman, Oklahoma Computer products (magnetic disk devices, magnetic tape cartridges) Hitachi Construction Machinery Corp., Brampton, Ontario Excavators, cranes, tunnel shield machines Hitachi Electronic Devices USA Inc., Greenville, South Carolina Color picture mbes Hitachi Home Electronics of America, Anaheim, California Color TVs, VCRs Hitachi Denshi (Canada) Ltd., Scarborough, Ontario Broadcast and professional video, CCTV equipment, test and instrumentation Hitachi (HSC) Canada Inc., Pointe Claire, Quebec TVs, VCRs, and household electric appliances Hitachi Instruments Inc. Medical instruments Hitachi Semiconductor (America), Irving, Texas Semiconductors Hitachi Telecom, Norcross, Georgia Digital PBXs Europe Hitachi Consumer Products (Europe), Germany VCRs 0012329 Hitachi Consumer Products (U.K.), United Kingdom Color TVs Hitachi Semiconductor Europe, Germany Semiconductors Akita Electronic Co., Akita, Japan MOS, bipolar IC Hanshi Electric, Japan Ignition coils for automobiles Haramachi Semiconductor Ltd., Ibaraga, Japan Diodes, thyristors Hitachi Computer Engineering, Japan Development of automatic designing systems Hitachi Consumer Products, Malaysia TV parts Hitachi Consumer Products, Singapore Color TVs, audio equipment, vacuum cleaners Hitachi Consumer Products, Thailand Electric fans, refrigerators, TVs, motors, air conditioners, electric rice cookers Hitachi Cubu Electric, Japan Switchboards Hitachi Denshi, Japan Communications equipment, measuring instruments, information equipment Hitachi Electronic Devices, Singapore Color CRTs Hitachi Electronics Engineering, Japan Information equipment, semiconductor devices, energy-saving equipment Hitachi Elevator Engineering, Singapore Elevators, escalators Hitachi Engineering, Japan Electric/electronic equipment, plant engineering Hitachi Haramachi Semiconductor, Japan Semiconductor parts Hitachi Kiden Kogyo, Japan Cranes, water treatment equipment, FA-related equipment Hitachi Kyowa Kogyo, Japan Electric equipment Hitachi Maxell, Japan Dry batteries, magnetic tapes, electronic devices Hitachi Medical, Japan Medical equipment Hitachi Microcomputer Engineering, Tokyo, Japan MPUs, ASICs Hitachi Mizusawa, Japan Transformers for TVs Hitachi Naka Seiki, Japan Chromatographic equipment, scientific instruments Hitachi Nissin Electronics, Japan Electronic parts ©1991 Dataquest Incorporated November—Reproduction Prohibited Hitachi Ltd. Hitachi Ohira Industrial, Japan Parts for refrigerators, air conditioners Hitachi Process Computer Engineering, Japan Process computers Hitachi Semiconductor, Malaysia Semiconductors Hitachi Setsubi Engineering, Japan FA equipment Hitachi Techno Engineering, Japan Electronic part manufacturing equipment Hitachi Telecom Technologies, Japan Switching systems Hitachi Television, Taiwan Color TVs, audio equipment, displays Hitachi Video Engineering, Japan Development of video equipment Hitachi Works, Ibaraga, Japan Discrete devices Hitachi Yomezawa Electronic, Japan Semiconductor elements Hokkai Semiconductor, Hokkaido, Japan SRAMs Horiba Ltd., Japan Electric measuring instruments Japan Servo, Japan Precision motors Jidosha Denki Kogyo, Japan Electrical auto parts Kaohsiung Hitachi Electronics, Taiwan Electronic parts, transistors, LCDs Kokusai Electric, Japan Electric communications equipment Kokusan Denki, Japan Electrical auto parts, generators, motors Komoro Works, Nagano, Japan Photo devices, hybrid ICs Mobara Works, Chiba, Japan DRAMs, CMOS logic, LCDs Musashi Works, Tokyo, Japan MPUs, diodes, DRAMs, SRAMs Naka Works, Ibaraga, Japan Semiconductor sensors, DRAMs, SRAMs Nakayo Telecommunications, Japan Telephone and switching systems Nigata Works, Nigata, Japan Linear, bipolar digital ICs Nippon Colimibia, Japan Records, stereos, and other audio equipment Nissin Electronics Ltd., Ibaraga, Japan MOS Taga Sangyo, Japan Electric equipment Taiwan Hitachi, Taiwan Room air conditioners Takasaki Woiks, Gunma, Japan Bipolar and MOS ICs, EPROMs, CMOS logic Tobu Semiconductor Ltd., Aomari, Japan Bipolar ICs Tobu Semiconductor Ltd., Saitama, Japan Transistor, hybrid ICs Tokico Ltd., Japan Electrical auto parts and equipment Tokyo Electronics Co., Yamanashi, Japan Diodes, bipolar ICs Yagi Antenna, Japan Antennas Yomezawa Electronic Co., Yamagata, Japan MOS ROW ladustrias Hitachi, Brazil Distribution equipment, air conditioners, electronic parts, transformers, switches Hitachi Consumer Products de Mexico, Mexico Televisions SUBSIDIARIES North America Hitachi America Ltd. (United States) Hitachi Automotive Products (USA) Inc. (United States) Hitachi (Canadian) Ltd. (Canada) Hitachi Computer Products (America) Inc. (United States) I£tachi Electronic Devices (United States) Hitachi Farmington Technical Center (United States) Hitachi Home Electronics of America Inc. (United States) Ifitachi Micro Systems Inc. (United States) Hitachi Semiconductor (America) Inc. (United States) Hitachi Telecom (USA) Inc. (United States) Europe Hitachi Consumer Products Europe Ltd. (United Kingdom) Ifitachi Semiconductor Europe (Germany) Hitachi Consumer Products (Europe) (Germany) Asia/Pacific Asahi Kogyo Co. Ltd. (Japan) Babcock-Hitachi K.K. (Japan) Chuo Shoji Ltd. (Japan) ©1991 Dataquest Incorporated November—Reproduction Prohibited 0012329 Hitachi Ltd. Hitachi Air Conditioning & Refrigeration Co. Ltd. (Japan) Hitachi Australia Ltd. (Australia) Hitachi Automobile Appliances Sales Co. Ltd. (Japan) Hitachi Cable Ltd. (Japan) Hitachi Chemical Co. Ltd. (Japan) Hitachi Construction Machinery Co. Ltd. (Japan) Hitachi Consumer Products (Malaysia) Sdn. Bhd. (Malaysia) Hitachi Consumer Products Pte. Ltd. Hitachi Credit Corporation (Japan) Hitachi Electronic Components (Asia) Ltd. (Hong Kong) Hitachi Electronic Devices (Singapore) Pte. Ltd. (Singapore) Hitachi Denshi Ltd. (Japan) Hitachi Electronics Engineering Co. Ltd. (Japan) Hitachi Electronics Service Co. Ltd. (Japan) Hitachi Elevator Engiaeering and Service Co. Ltd. (Japan) Hitachi Engineering Co. Ltd. (Japan) Hitachi Heating Appliances Co. Ltd. (Japan) Hitachi Higashi Shohin Engineering Ltd. (Japan) Hitachi Hokkai Semiconductor Ltd. (Japan) Hitachi Kiden Kogyo Ltd. (Japan) Hitachi Lighting Ltd. (Japan) Hitachi Machinery and ^gineering Ltd. (Japan) Hitachi Maxell Ltd. (Japan) Hitachi Medical Corporation (Japan) Hitachi Metals Ltd. (Japan) Hitachi Mokuzai Jisho Ltd. (Japan) Hitachi Nishi Shohin Engineering Ltd. (Japan) Hitachi Plant Engineering & Construction Co. Ltd. (Japan) Hitachi Power Engineering Co. Ltd. (Japan) Hitachi Printing Co. Ltd. (Japan) Hitachi Sales Corporation (Japan) Hitachi Seiko Ltd. (Japan) Hitachi Semiconductor (Malaysia) Sdn. Bhd. (Malaysia) Hitachi Service Engineering Co. Ltd. (Japan) Hitachi Software Engineering Co. Ltd. (Japan) Hitachi Techno Engineering Co. Ltd. (Japan) Hitachi Telecom Technologie Ltd. (Japan) Hitachi Television Ltd. (Taiwan) Hitachi Tochigi Electronics Co. Ltd. (Japan) Hitachi Tohbu Semiconductor Ltd. (Japan) Hitachi Tokyo Electronics Co. Ltd. (Japan) Hitachi Transport System Ltd. (Japan) Hitachi Welfare Service Ltd. (Japan) Japan Servo Co. Ltd. (Japan) Nippon Business Consultant Co. Ltd. (Japan) Nissei Sangyo Co. Ltd. (Japan) 0012329 ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 Texas Instruments Inc., Fujitsu Ltd., and Sony Corporation Texas Instruments, Fujitsu, and Sony, along with Hitachi Ltd., have agreed to collaborate on HDTV chip development Texas Instruments will be doing the frame memory store, Fujitsu the signal processors, Sony the analog components, and Hitachi the audio circuits. The full Muse chip set is scheduled for completion duriug the first quarter of 1992. Bull CP8 S.A. Bull CP8 S.A., a subsidiary of Groupe BuU, located in Trappes France, has signed Hitachi Ltd. as the first Japanese licensee of its selfprogrammable one-chip microcomputer (SPOM) patent Hitachi's chips for microcomputer cards will be made available in Japan through Tokyobased SPOM Japan KK, a joint venture between Bull CP8 and Dai Nippon Printing Co. Ltd, and worldwide through Hitachi's overseas sales office. Dongfang Power Corp. Hitachi Ltd. is planning to supply thermal power plant construction technology to Dongfang Power Corp., a Chinese company located in Sichuan Province. Under a 10-year agreement with the Chinese company, Hitachi will provide technology relating to steam turbines and generator for use in 600,000kw class thermal power stations. The two companies will then jointiy construct four power plants. TRW Inc. Hitachi Ltd. and TRW Inc. formed a 15-year strategic alliance to joindy pursue opportunities in space systems and related ground systems and technologies. The two companies signed an agreement to set up a management team that will meet periodically to review future space programs, market opportunities, and technology requirements. Ultra-Network Technologies Ultra-Network Technologies, a U.S. network system manufacturer, and Hitachi Ltd. have formed a software agreement. The agreement will allow Hitachi to port ULTRANET software, a high-speed network software package developed by UltraNetwork, to its mainframe computers. The new ©1991 Dataquest Incorporated November—Reproduction Prohibited Hitachi Ltd. version of ULTRANET will run under Hitachi's VOS3 operating system. Hewlett-Packard Company Hewlett-Packard Company (HP) and Hitachi Ltd. have agreed to joindy develop an ardficial intelligence software product based on Hitachi's ES/ Kernel expert systems technology. The new software will run on HP 9000 UNIX workstation as weU as on Hitachi workstations. National Semiconductor Corporation National Semiconductor Corporation and Hitachi Ltd. have signed a 10-year patent cross-licensing agreement that covers aU semiconductor products and technologies developed by either company in tbe past and during the course of the agreement The new agreement expands and replaces a previous cross-hcensing agreement between the two companies concerning FACT logic products. Goldstar Electron Company Ltd. Hitachi Ltd. licensed Lucky Goldstar Group's Goldstar Electron Company Ltd. to fabricate 4Mb memory chips to Hitachi's design. Part of the ou^ut will be sold back to Hitachi. 1990 Comparex Information Systems GmbH Comparex Information Systems GmbH agreed to ship Hitachi's new Integrated Vector Feature for its 8/9X series of processors. VLSI Technology Inc. Hitachi plans to supply SRAMs to VLSI Technology on an OEM basis. The SRAMs have been joindy developed by the two companies. Kansai Electric Power Co., Matsushita Electric Industrial Co. Ltd., Toshiba Corporation, Mitsubishi Electronics Corporation, Sumitomo Electric Industries Ltd., Kawasaki Heavy Industries Ltd., and Kobe Steel Ltd. Hitachi agreed to set up a new company, which wiU perform research and development for free electron lasers with the preceding companies. Zuken Inc. Hitachi agreed to allow Zuken to develop CAD/ CAM/CAE software packages for the 2050G Series of engineering workstations made by Hitachi. Adaptive Information Systems (AIS) AIS has been formed by Hitachi to market document image processing systems using optical storage technology. Hewlett-Packard Hewlett-Packard is hcensing its proprietary Precision Architecture to Hitachi. The two companies also agreed to joindy develop a new set of chips using HP's proprietary Precision Architecture RISC MPU technology. Texas Instruments Inc. Texas Instruments supplied SRAMs to Hitachi on an OEM basis. GoldStar Hitachi signed a major pact with South Korea's GoldStar Company covering 1Mb DRAMs, for which Hitachi wiU provide technical consultations and manufacturing technology. Hitachi will get royalty payments fix)m GoldStar and eventually will buy chips to sell under its own label. Cray litis agreement gives each company the right to make use of the other's patents in designing computer hardware. National Semiconductor Under this production agreement for FACT logic devices, both companies can mutually produce independently defined and independentiy developed new fimctions. MERGERS AND ACQUISITIONS Sears, Roebuck and Company Hitachi agreed to let Sears market its VY15A video printer. 1991 Hitachi has made no merger or acquisition in 1991. 1989 1990 Sun Microsystems Inc. Hitachi licensed Sun's Open Network Computing/ Network File System technology for implementation on Hitachi's mainframe computers. Dataproducts Corporation Two Hitachi affiliates, Hitachi Koki and Nissei Sangyo, acquired Dataproducts Corporation for approximately $160 million. Dataproducts « ©1991 Dataquest Incorporated November—Reproduction Prohibited 0012329 Hitachi Ltd. manufactures a broad range of band, dot matnx, laser, solid ink, and thermal printers, and a wide range of printer supplies. Dataproducts is counting on solid ink jet printers to play a significant role in the printer industry and is investing heavily to finance this strategically important technology. The 1988 acquisition of Imaging Solutions Inc. gave Dataproducts 100 percent ownership of this new technology. Dataproducts had sales of $353 million in fiscal 1989. National Advanced Systems Hitachi purchased National Advanced Systems from National Semiconductor Corporation. The name of the company was changed to Hitachi Data Systems. The company markets and services mainframe computers and peripheral subsystems. Takeo Miura Executive vice president and representative director Toshi Kitamura Executive vice president and representative director Tadashi Okita Executive vice president and representative director Iwao Matsuoka Executive vice president and representative director PRINCIPAL INVESTORS KEY OFFICERS Katsushige Mita Chairman and representative director Nippon Life Insurance—^3.8 percent Sumitomo Trust—2.7 percent Mitsubishi Trust—2.1 percent Dai-ichi Life Insurance—2.6 percent Tsutomu Kanai President and representative director Yutaka Sonoyama Executive vice president and representative director FOUNDERS Namihei Odaira Sutezo Hata Executive vice president and representative director 0012329 ©1991 Dataquest Incorporated November—Reproduction Prohibited Hitachi Ltd. Table 3 Balance Sheet Fiscal Year Ending in March (Billions of U.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Minority Interests Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1=¥) 1987 5.6 6.3 2.9 5.6 1.1 21.6 7.4 4.4 1988 8.0 7.8 3.0 7.0 1.4 27.2 8,2 5.3 1989 12.8 10.7 3.0 9.7 1.7 38.0 11.5 4.6 1990 13.0 11.2 2.3 9.5 1.8 37.7 12.0 4.9 1991 11.7 13.0 2.7 11.3 2.0 40.7 14.1 5.6 33.4 40.7 54.1 54.6 60.4 14.3 3.1 2.2 19.6 0 0.9 1.3 9.3 11.4 2.3 17.4 3.1 2.8 23.3 0 1.3 1.8 11.5 14.6 2.8 24.8 4.1 3.8 32.6 0 1.7 2.5 13.6 17.8 3.7 23.2 6.2 3.5 32.9 0 1.7 2.5 13.7 17.9 3.8 26.2 6.3 3.7 36.2 0 1.9 2.9 15.1 19.9 4.3 33.4 40.7 54.1 54.6 60.4 159.56 138.03 128.25 142.93 141.21 SoDtce: Hitachi Ltd. Anaual Reports Dataqnest (November 1991) 10 ©1991 Dataquest Incoiporated November—Reproduction Prohibited 0012329 Hitachi Ltd. Table 4 Consolidated Income Statement Fiscal Year Ending in March (Billions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate ( U . S . $ 1 ^ 1987 30.4 22.4 8.0 23.0 1.9 6.0 4.1 1.6 5.33 57.50 0.6 2,816.3 1988 36.0 27.3 8.7 28.7 2.3 7.5 2.7 2.4 6.66 56.10 1.0 2,921.7 1989 49.9 38.4 11.5 35.5 2.9 11.0 4.0 3.8 7.67 56.10 1.4 3,017.7 1990 49.5 38.1 11.6 35.1 3.0 10.7 3.6 3.7 7.49 53.90 1.5 3,072.8 1991 54.8 40.8 13.1 38.4 3.5 12.8 5.3 4.0 7.27 51.20 1.6 3,273.7 0.21 0.06 0 159.56 0.32 0.07 0.01 138.03 0.46 0.07 0.01 128.25 0.43 0.06 0.01 142.93 0.44 0.06 0.01 141.21 Source: Hitacbi Ltd. Annual Reports Dataquest (November 1991) 0012329 ©1991 Dataquest Incorporated November—Reproduction Prohibited 11 Hitachi Ltd. Table 5 Balance Sheet Fiscal Year Ending in March (Billions of Yen) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Ejumings Total Shareholders' Equity Minority Interests Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1=*) 1991 1987 892.9 1,010.6 470.6 898.5 172.2 3,444.8 1,179.1 704.1 1988 1,103.9 1,080.7 412.3 960.6 199.9 3,757.4 1,133.0 730.7 1989 1,638.3 1,372.2 385.1 1,250.0 224.4 4,870.0 1,473.1 594.4 1990 1,853.7 1,594.3 324.8 1,355.0 263.1 5,390.9 1,708.9 705.3 5,327.9 5,621.1 6,937.5 7,805.1 1,648.5 1,833.9 384.9 1,597.1 286.6 5,751.0 1,985.7 789.3 8,526.0 2,288.5 488.9 352.3 3,129.7 0 141.2 199.6 1,485.0 1,825.8 372.4 2,399.0 432.8 381.9 3,213.7 0 180.3 244.4 1,593.9 2,018.6 388.8 3,183.5 520.9 481.0 4,185.4 0 219.4 322.0 1,740.3 2,281.7 470.4 3,314.9 886.8 494.0 4,695.7 0 246.9 357.8 1,956.1 2,560.8 548.6 3,694.3 891.0 520.1 5,105.4 0 269.7 410.4 2,131.0 2,811.1 609.5 5,327.9 159.56 5,621.1 6,937.5 7,805.1 8,526.0 138.03 128.25 142.93 141.21 Souce: Hitachi Ltd. Annual Reports and Dataquest (November 1991) 12 ©1991 Dataquest Incorporated November—Reproduction Prohibited 0012329 Hitachi Ltd. Table 6 Consolidated Income Statement Fiscal Year Ending in March (Billions of Yen, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=¥) 1990 1987 4.848.7 3,579.3 1,269.4 3,675.0 307.6 958.8 657.4 258.3 5.33 57.50 98.7 2,816.3 1988 4,975.0 3,781.0 1,194.0 3,961.9 324.0 1,032.4 320.4 331.1 6.66 56.10 136.8 2,921.7 1989 6,401.4 4,932.3 1,469.1 4,552.1 373.5 1,416.1 532.4 491.1 7.67 55.50 185.6 3,017.7 7,077.8 5,420.1 1,657.7 5,023.5 429.4 1,533.2 514.9 530.0 7.49 53.10 211.0 3,072.8 1991 7,737.0 5,881.6 1,855.4 5,417.2 490.7 1,813.4 743.4 562.1 7.27 51.70 230.2 3,273.7 33.45 9.00 0.65 159.56 44.14 9.00 0.69 138.03 58.94 9.00 0.76 128.25 61.71 9.00 0.83 142.93 65.96 9.00 0.86 141.21 Source: Hitachi Ltd. Amnial Reports Dataquest (November 1991) Table 7 Key Financial Ratios Fiscal Year Ending in March Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (¥K)/Employee Capital Spending % of Assets Exchange Rate (U.S.$1=¥) 1987 1988 1989 1990 1991 1.51 291.81 125.34 171.42 1.57 278.47 118.84 159.20 1.53 304.05 139.52 183.43 1.63 304.79 129.45 183.37 1.56 303.30 131.42 181.62 1.85 5.41 2.04 2.43 6.78 2.75 2.68 8.13 2.90 2.70 8.24 2.98 2.70 8.19 2.98 6.34 13.56 161,325 30.06 12.34 159.56 6.51 6.44 159,910 31.11 5.70 138.03 5.83 8.32 274,508 23.32 7.67 128.25 6.07 7.27 290,000 24.41 6.60 142.93 6.34 9.61 290,000 26.68 8.72 141.21 Source: Hitachi Ltd. Annual Reports Dataquest (November 1991) (X)12329 ©1991 Dataquest Incorporated November—Reproduction Prohibited 13 Inmos International pic BACKGROUND AND OVERVIEW Inmos International pic was founded in 1978 by two Americans, Richard Petritz and Paul Schroeder, and an Englishman, lann Barron. Inmos was primarily a spin-off company from Mostek Corporation. Mr. Petritz was a foimder of Mostek, and Mr. Schroeder was one of Mostek's key memory design managers. Under the original agreement, Inmos Ltd. was to be a British-backed semiconductor venture funded by the National Enterprise Board (NEB). The concept called for design and manufacturing facilities in both the United States and the United Kingdom. In this way, Inmos planned to gain synergy from the existing high-technology base in the United States. The Labor government in the United Kingdom approved the plan in May 1978 and invested an initial £50 million in the Company. Inmos' strategy was to start out by making high price/performance ICs. These were to be marketed to customers in demanding areas (e.g., telecommunications, measuring equipment, military equipment, and large computers). Once established in this market, Inmos planned to move into commodity products and more competitive markets. In January 1979, Inmos opened the Harrison Park facility in Colorado Springs, Colorado, in the United States. Wafer fabrication operations began within a few months. Inmos faced an uncertain future, however, with the Conservative government election victory in 1979. Under the Conservative government, the NEB—later renamed the British Technology Group (BTG)—started divesting its investments acquired under the previous government. At the same time, Inmos was seeking further funding. After an eight-month delay, the NEB invested an additional £25 million in August 1980. This brought the total of U.K. taxpayers* investment, in Inmos to approximately £100 million. Attached to the loan was the condition that the new U.K. production facility should be situated in Newport, South Wales, an economically depressed area some distance from the Company's Bristol design and corporate headquarters facility. By December 1980, Inmos' first product, a 16K NMOS SRAM, went on the market. In February 1981, a second facility in Colorado Springs, Colorado, was opened in the United States. By May 1982, Inmos had completed its family of high-performance 64K DRAMs. From its inception, Inmos has been engaged in parallel architecture microprocessor development. This resulted in the parallel architecture of the transputer requiring a totally different programming solution, which led Inmos to develop OCCAM, a special language. This met with some resistance in the market because the concept was too advanced for its time. Design engineers were used to the sequential languages, such as FORTRAN and Pascal. As with most revolutionary products, the transputer took a long time to ramp up revenue. The transputer is now an established architecture in leading applications such as imaging, laser printers, and parallel processors. ESIS Volume III 0001483 © 1988 Dataquest Incorporated November Inmos International pic In 1984, the IMS 1423, a 16K CMOS SRAM, was introduced. Toward the end of the year, the IMS 1600, a 64K CMOS SRAM, was sampled. The DRAM range was also extended to include two new versions of the IMS 2600 64K DRAM. The 1984 semiconductor boom confirmed a need for an assembly operation under Inmos' direct control and near the Newport production site. In September 1984, the Company broke ground for a 100,000-square-foot assembly facility at Coed Rhedyn, Newport. This facility was to assemble a high percentage of the existing Newport production and to test all devices made there, thus freeing space in Newport for expansion of existing activities. By 1985, the facility was almost complete; however, it was mothballed because of the depressed state of the semiconductor industry. In 1986, Inmos announced that it would reopen the Coed Rhedyn facility. At the end of 1984, Inmos had 2,135 employees worldwide, with 1,014 in the United Kingdom and 1,121 in the United States. The Company invested $32 million in capital expenditure in 1984, a large proportion of it in developing the Newport operation. The semiconductor recession resulted in a large amount of redundancies, and the size of the Company was reduced by one-half, both in the United States and the United Kingdom. Working hours were cut also. In September 1984, Thom-EMI acquired the U.K. government's 76.1 percent shareholding in Inmos for £95 million. On March 31, 1987, the total holding of Thom-EMI in Inmos stood at 99.9 percent. Thom-EMI started restmcturing Inmos to bring it to profitability. In 1985 and 1986, when it licensed the technology to NMB semiconductors of Japan, Inmos pulled out of the DRAM market. Production at the Colorado Springs facility ceased, leaving behind only research and development (R&D), pilot wafer fabrication, and marketing. Subsequently, in December 1987, the rest of the facility was closed. The plant's activities were transferred to the Newport site in the United Kingdom for an annual savings of $20 million. The divestments are indicative of Inmos' increasing reliance on its transputer products. In December 1987, the transputer accounted for more than 50 percent of sales; this will increase to between 70 and 80 percent by 1989. Thom-EMI is currently seeking a majority partner that can finance the future capital investments required for Inmos to continue further development of its transputer, memory, and DSP lines. PRODUCTS AND MARKETS SERVED To date, Inmos has pulled out of the DRAM and high-density SRAM markets to concentrate on the transputer, color look-up table, and DSP chips. The Company announced that it was on the threshold of a major boom in transputer orders, particularly from major United States and Japanese corporations. © 1988 Dataquest Incorporated November ESIS Volume III 0001483 Inmos International pic Inmos is continually widening applications of the transputer. The Company recently introduced a line of modules called TRAMs that make it possible to build multitransputer systems quickly and simply. Modules can be chosen to suit the application, depending on whether it is processor intensive or memory intensive, or performs some special-purpose function. OUTLOOK Table 1 shows Dataquest's estimates of Inmos' European semiconductor revenue. Table 2 shows Dataquest's estimates of Inmos' worldwide semiconductor revenue. Despite an uncertain future at times, Inmos has come a long way since its inception. The Company's range of transputer products are complex and have taken longer to generate substantive revenue than originally planned. Dataquest believes that the parallel processing applications in imaging, graphics, laser writers, and workstations are just beginning to play a significant role in the marketplace, and the transputer is well placed to take advantage of them. With substantial design wins in Japan, the United States, and Europe under its belt, the future outlook for the transputer range is very bright. Besides transputers, Inmos has its color look-up table designed in many graphics applications including the PS/2. Inmos' new range of innovative DSP chips is creating a stir in the marketplace, and we expect Inmos to be a significant participant in the function-specific DSP market. ESIS Volume III 0001483 © 1988 Dataquest Incorporated November Inmos International pic Table 1 Inmos International pic Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other 1983 1984 1995 $18 1997 $25 1995 $18 $9 $9 0 9 0 $25 0 25 0 $18 0 18 0 $18 0 18 0 $20 0 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $20 Total Optoelectronic Table 2 Inmos International pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor other X993 1984 1995 1986 1987 $58 $146 $85 $80 $91 $58 0 58 0 $146 0 146 0 $85 0 85 0 $80 0 80 0 $91 0 91 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Optoelectronic Source: © 1988 Dataquest Incorporated November Dataquest November 1988 ESIS Volume III 0001483 Intel Corporation 3065 Bowers Avenue Santa Clara, California 95052-8131 Telephone: (408) 765-8080 Fax: (408) 987-5686 Dun's Number: 04-789-7855 Date Founded: 1968 CORPORATE STRATEGIC DIRECTION Founded in 1968, Intel Corporation originally flourished as a supplier of semiconductor memory for mainframe and minicomputer manufacturers. Today, Intel and its subsidiaries are engaged primarily in the business of designing, developing, manufacturing, and marketing advanced microcomputer components and related products at various levels of integration. Microcomputers based on Intel technology can be found in thotisands of appUcations ranging from personal computers and automobiles to robots and supercomputers. As a leader in the semiconductor industry, Intel has helped revolutionize the computing industry with such inventions as the microprocessor and the erasable programmable read-only memory (EPROM) device. In addition to being a dominant player in the microprocessor and memory markets, Intel is an important participant in other semiconductor areas. The company manufactures microprocessor peripheral components, embedded control products, software, microcomputer systems, and development tools. In terms of profitability, Intel had an excellent year in fiscal 1990, as both net revenue and net income posted substantial gains over previous company records. Net revenue increased 25.4 percent to $3.92 billion* in 1990, up from $3.13 billion recorded in 1989. Intel attributes the increase primarily to strong unit growth of its high-performance proprietary components and to systems based on these components. The associated revenue growth was moderated by lower average selling prices following a normal product maturity/pricing trend. For the fourth year in a row, the company's net income *A11 dollar amounts are in U.S. dollars 0011165 increased, with a net profit of $650.3 million being reported in fiscal 1990. This represents a 66.3 percent gain over 1989's net income of $391.0 million. Most of Intel's products are sold or Ucensed through a network of 79 sales offices located in 21 nations throughout the world. Additionally, the company uses distributors and representatives to distribute its products in the United States and elsewhere. Typically, distributors handle a wide variety of products, including those competitive with Intel products, and fill orders for small quantities. Sales representatives generally do not offer competitive products, but may cany complementary items mantifactured by other companies. Representatives do not maintain a product inventory; instead, their customers place large quantity orders directly with Intel and refer smaller orders to distributors. The North American region continued to account for the majority of Intel's 1990 revenue, and over the past five years that number has fluctuated between 54 percent and 61 percent of the company's total revenue. In 1990, Europe and Japan accoimted for 22 percent and 10 percent, respectively, of Intel's total revenue. The company employs 23,900 people worldwide. In 1990, R&D expense totaled $516.7 million, an increase of 41.5 percent compared with 1989's result of $365.1 million. Intel's new submicron development facility in Santa Qara, CaUfomia, which began operation in 1990, contributed largely to this increase. As a percentage of revenue, R&D expense increased to 13.2 percent in 1990 ft-om 11.7 percent and 11.1 percent in 1989 and 1988, respectively. According to Intel, these results were primarily due to continued investment in strategic programs. The company believes that high investment in R&D is necessary for the company to remain competitive and ©1991 Dataquest Incorporated October—Reproduction Prohibited Intel Corporation provide the flow of new products necessary to meet the continuing demands of the marketplace. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highhghts and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgroimder present comprehensive financial information. BUSINESS S E G M E N T STRATEGIC DIRECTION Semiconductors According to Dataquest, Intel jumped from the position of eighth-largest worldwide semiconductor vendor in 1989 to fifth-largest in 1990, based on 1990 factory revenue of $3.17 billion. In the MOS digital market, Intel ranked second with a 9.8 percent market share based on 1990 factory revenue of $3.16 billion. MOS microcomponents accounted for $2.73 billion, or 86.3 percent, of this amount. MOS memory devices accounted for $371 million, or 11.8 percent of MOS digital revenue, while MOS logic devices accounted for the final $60 miUion, or 1.9 percent of revenue. applications. The Intel 386 and Intel 486 fanuhes include the 386DX microprocessor, the 386SX microprocessor, and the 486DX microprocessor. In 1990, the 20-MHz 386SL microprocessor was introduced. It is designed for portable systems and incorporates the 386 microprocessor core, cache, and main memory controllers, bus controller, and a power management unit During April 1991, Intel introduced its low-end 486SX microprocessor, a 20-MHz version of the 486DX chip without the 486DX's math coprocessor. The 486SX is targeted primarily at highend desktop machines but will also be aimed at the entry-level and medium-size LAN server and multiuser markets. Intel's i860 microprocessor, a 64-bit reducedinstruction-set computing (RISC) microprocessor, is designed for high-speed multiprocessing systems, technical workstations, and graphics subsystems. In mid-1991, Intel unveiled the i860 XP, an upgrade of the two-year-old i860 chip, which is twice as fast as its predecessor and has 2.5 miUion transistors, making it more than twice as large as the older chip. In addition, the i860 XP doubles the data cache of the i860 from 8MB to 16MB and quadruples the instruction cache from 4MB to 16MB. Microprocessor Peripheral Components Intel offers microprocessors in three main families: the 32-bit Intel 386 and Intel 486 family, which is the latest addition to the line of x86 architecture products; the i860 family of 64-bit central processing tmits (CPUs); and the i960 family, which is used in embedded control applications and is described in that section. A microprocessor peripheral component is a specialpurpose chip that works with a CPU in managing selected input/output or other system functions. Peripheral devices, such as graphics coprocessors, control the visual screen display of graphic and text information, while mathematics coprocessors handle high-speed calculations. Other peripheral components control floppy disk drives, 'Mnchester disk drives, keyboards, and printers. Through the use of communications peripherals, computers can operate in networks and communicate locally and over long distances. The 32-bit family of Intel 386 and Intel 486 microprocessors serves as the "brains" in PCs, as do Intel's earlier 16-bit microprocessors, which include the 8086, 8088, and 80286 CPUs. Additionally, the higher performance of microprocessors in the Intel 386 and Intel 486 famihes has enabled the microprocessors to be used in minicomputers, parallel processing systems, engineering workstations, and artificial intelligence and telecommunications apphcations. The Intel 386 and Intel 486 microprocessors are compatible vidth the earlier 16-bit CPUs and are compatible with software used in office automation Intel's microprocessor peripheral components are available for controlling all of these functions and are designed to be fully compatible with its microprocessors. In 1990, Intel announced the 82360SL peripheral unit, the 89C024FT modem chip set, the 8SC224 and 8SC060 programmable logic devices, and the Smart Cache for the Intel 386 microprocessor. The 82360SL peripheral unit contains most of the input/output circuitry necessary for an industrystandard architecture desktop system. Like the 386SL microprocessor, the unit was designed for portable computers. ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011165 Intel Corporation Digital Video Interactive (DVI) technology allows applications developers to access a full range of multimedia capabilities such as compressing video and audio into digital form, combining them with still images and graphics, and then storing the resultant application program on CD-ROM disks. The i750 video processor, a very large scale integration (VLSI) chip set that brings motion video, still images, graphics, and audio to desktop systems, was introduced in 1990. It consists of two separate components, the 82750PB pixel processor, which compresses and retrieves information, and the 82750DB display processor, which controls the display of information. Memory Components Memory components are used to store computer programs and data entered during system operation. Intel supplies a broad line of memory components, including EPROMs, flash memories, dynamic randomaccess memories (DRAMs), and static random-access memories (SRAMs). According to Dataquest, Intel was the top-ranked supplier of EPROMs in 1990, based on estimated revenue of $234.6 million, finishing just ahead of Advanced Micro Devices. Intel offers 128Kb, 256Kb, and 512Kb EPROMs, in addition to 1Mb, 2Mb, and 4Mb EPROMs. In 1988, the company introduced its flash memory devices to the marketplace. In 1990, Intel expanded its offerings of flash memory devices with the introduction of a 2Mb device. This device is easier and faster to update than EPROMs are because it can be reprogrammed without removal from its applications. Intel also introduced a flash memory card, designed to serve as a rugged storage medium in small portable computer systems, as well as in factory floor, medical, and technical instrumentation applications. In addition, the company continues to sell DRAMs and SRAMs, all of which are produced for Intel by subcontractors. Embedded Control Products Embedded control products (microprocessors and microcontrollers) are designed to be embedded within an application and to be programmed to control the operation of that application. Embedded control products typically incorporate a CPU, random-access memory, program memory, and input/output circuitry on one chip. They are utilized in computer and communications systems, automobile control applications, robotics, electronic instrumentation, keyboards, and home video machines. f»11165 Intel's product line consists of 32-bit microcontrollers, including the i960 CPUs, 16-bit microcontrollers, such as the 8096 and the 80C196, and 8-bit microcontrollers, such as the 8048 and the 8051. The i960 family of processors offers features and performance in variotis configurations to meet varied customer needs. The i960 family includes the i960 CA microprocessor, the first microprocessor capable of executing two instructions in one tick of the microprocessor's clock. The i960 CA is well suited for high-performance embedded apphcations such as the printer controller in laser printers. During 1990, Intel introduced the low-cost i960 SA and i960 SB processors, which both feature 32-bit internal performance and 16-bit external data btises. The i960 SB is equivalent to the i960 SA, with the SB containing a floating-point unit for high-performance math processing. Software Intel offers software for microcomputer operating systems, high-level networking, and developmental and debug support for OEMs incorporating Intel microprocessors and microprocessor-based systems into their end-user products. Intel markets its iRMX real-time operating system as well as the iRMK Real-Time Kernel, an operating system kemel for the Intel 386 microprocessor that is used in industrial control applications. Real-time operating systems are used in both embedded and reprogrammable applications where an ever-changing operating environment requires continual updating of system conditions. During 1990, Intel introduced a new version of its 32-bit iRMX-IH real-time operating system that permits users to run MS-DOS as a task while iRMX-m is running. The enhanced version, called IX)S/RMX, supports the use of Microsoft Windows and allows MS-DOS applications to be converted to a 32-bit environment and gain access to 4GB of memory. Microcomputer Systems Microcomputer system and module offerings firom Intel include microcomputer platforms, as weU as more than 150 single-board computer modules that can be used as the building blocks of microcomputer and real-time control systems. All are based on Intel ©1991 Dataquest Incorporated October—^Reproduction Prohibited Intel Corporation components. In 1990, Intel introduced the iSBC 386SX Embeddable PC, a Multibus I board designed to be embedded within industrial, scientific, and medical applications, and the iSBC 486/133SE, a Multibus n board that has a 33-MHz Intel 486 CPU and is designed for high-performance applications. Two industry standard architecture (ISA)-compatible systems, the Microcomputer Model 402, which comes with a 25-MHz 486 CPU, and the Model 300LPSX-I6, which comes with a 16-MHz 386SX microprocessor, also began shipping during 1990. Other system products provided by Intel include personal computer enhancement products and mainframe connectivity and networking products. Enhancement products for PCs are add-in cards and components that provide additional processing power, memory, and conmiunications capabilities. In 1990, Intel introduced the SatisFAXtion board, a PC fax board that allows users to fax files directly from their systems to facsimile machines. The company also announced the NetPort print server, which gives system users easy access to printers on Novell networks. Intel also sells a line of parallel supercomputers. In early 1990, the company introduced the iPSC/860 supercomputer based on the i860 microprocessor technology. Intel's iPSC/2 is a parallel supercomputer based on the Intel 386 microprocessor. The company's Touchstone Program is a comprehensive R&D project cosponsored by Intel and the Defense Advanced Research F*rojects Agency/Information Science &. Technology Office (DARPA/ISTO) to advance the state-of-the-art in scalable multicomputer systems. In September 1990, Intel demonstrated the third of four major Touchstone Program prototype systems. Called Delta System, this prototype is scalable to over 500 processors, has aggregate peak performance of over 30 billion floating-point operations per second, -and a new interconnect network based on a Caltech-designed router chip. Late in 1991, Intel expects to demonstrate the final Touchstone program prototype, Sigma System, which will comprise more than 2,000 processors and produce peak performance of 150 billion floating-point operations per second. Development Tools Development tools are used by engineers to develop and debug hardware and software for microcomputerbased systems. Intel developed the first in-circuit emulator (ICE) in 1975. The ICE module can be substituted for the microprocessor or microcontroller diat is used in the customer's systems, providing an effective way to develop and debug the customer's designs. In 1990, Intel introduced several emulators for Intel architectures, including the ICE-486. Further Information For further information on Intel's business segments, please contact Dataquest's Semiconductors service. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011165 Intel Corporation Table 1 Five-Year Corporate Highlights (Thousands of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change ,265,011 1,907,105 50.76 2,874,769 50.74 3,126,833 8.77 3,921,274 25.41 Capital Expenditure Percent of Revenue 154,827 12.24 301,530 15.81 477,460 16.61 422,102 13.50 679,546 17.33 R&D Expenditure Percent of Revenue 228,250 18.04 259,794 13.62 318,331 11.07 365,104 11.68 516,747 13.18 18,200 69.51 19,200 99.33 20,800 138.21 21,700 144.09 23,900 164.07 173,165) 248,055 243.24 452,922 82.59 391,021 (13.67) 650,261 66.30 Number of Employees Revenue ($K)/Employee Net Income Percent Change 1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 894,457 143,768 968,301 170,693 1,012,441 171,924 1,046,075 163,876 Source: Intel Coiporation Amraal Reports and Foims 10-K Dataqaest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America Europe Japan ROW 60.15 26.78 8.54 4.53 61.19 23.48 8.94 6.39 57.06 23.60 11.33 8.01 56.75 22.09 10.90 10.26 53.96 22.07 10.21 13.76 Source: Intel Corporation Annual Reports and Forms 10-K Dataquest (October 1991) 0011165 ©1991 Dataquest Incorporated October—^Reproduction Prohibited Intel Corporation 1990 SALES OFFICE LOCATIONS Intel Overseas Corporation (United States) Intel Puerto Rico hic. (Puerto Rico) Intel Semiconductor of Canada Ltd. (Canada) Jupiter Technology Inc. (United States) North America—^52 Europe—12 Japan—1 ROW—8 Europe MANUFACTURING LOCATIONS North America Aloha, Oregon High-volume commodity and logic, 386 microprocessors, logic SRAMs Chandler, Arizona Military microcontrollers, microprocessors Fokom, California HiUsboro, Oregon Microcomputers, memory boards, systems Las Piedras, Puerto Rico Microcomputers, memory boards, systems Rio Rancho, New Mexico Component production Santa Clara, California Flash 512K, 1Mb and 4Mb EPROMs, arrays, bum-in equipment Europe Intel Intel Intel Intel Intel Intel Intel Intel Intel Corporation Italia S.p.A. (Italy) Corporation Ltd. (United Kingdom) Corporation S.A.R.L. (France) Finland OY (Finland) Iberica S.A. (Spain) Semiconductor A.G. (Switzerland) Semiconductor B.V. (Netherlands) Semiconductor GmbH (Germany) Sweden A.B. (Sweden) Japan Intel Japan K.K. ROW Intel Intel Intel Intel Intel Intel Intel Intel Asia Electronics Inc. (India) AustraUa Pty. Ltd. (Australia) PRC Corporation (China) Semicondutores do Brazil LTDA (Brazil) Semiconductor Ltd. (Hong Kong) Singapore Technology Ltd. (Singapore) Technology Asia Ltd. (Korea) Technology Far East Ltd. (Taiwan) Leixlip, Ireland PC platforms for European market ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS ROW Jerusalem, Israel VLSI wafer production, 386 microprocessors Manila, Philippines VLSI component assembly and testing Penang, Malaysia VLSI component assembly and testing SUBSIDIARIES North America Intel Electronics Ltd. (United States) Intel International Inc. (United States) Intel Investment Ltd. (United States) 1991 Dialogue and Computer Aided Technologies (CAT) Intel signed its first two distributors for the Soviet Union, Dialogue and CAT, which will each market Intel's board- and box-level products. Digital Equipment Corporation (DEC) Intel entered into an agreement with DEC under which Digital will introduce a new family of personal computers using Intel's 80386 and 80486 microprocessors. Intel's Computer System Division will manufacture the network PCs, which are designed to be connected together in an office environment ©1991 Dataquest Incorporated October—^Reproduction Prohibited 001U6S Intel Corporation NMB Semiconductor Inc. The two companies entered into a new supply agreement whereby NMB will turn one of its plants into a flash memory foundry dedicated to Intel. Under the agreement, NMB will manufacture flash EPROMs and cards for Intel, and will not have any rights to the products. This deal replaces a contract in which Intel and NMB ran into problems with a DRAM manufacturing agreement That agreement, in contrast, was based on NMB's selling its own DRAMs to Intel for marketing under Intel's name. Pacific Bell Pacific BeU signed an agreement with Intel's Network and Services Division to market network integration services and equipment in conjunction with its Data Communications Group. Tartan Laboratories Inc. Tartan Laboratories and Intel's Military Division signed an agreement by which the two companies will jointly market Tartan's Ada 960MC Compilation System for the Intel 80960MC processor. Tartan's 960MC runs on either Sun or DEC VAX workstations running V M S . 1990 IBM Corporation Intel obtained exclusive marketiag rights to IBM's Parallel Interface (PI) Bus Interface Unit The PI Bus Interface Unit (PBIU) is currently fielded in the IBM's Common Avionics Modules. The M82916, Intel's version of the PBIU, integrates on a single chip the hardware necessary to design modules and systems based on the FI Bus standard protocol for parallel backplane buses. 1989 AT&T, Convergent Technologies, Ing. C. Olivetti S.p.A., Prime Computer Incorporated Intel annoimced a joint engineering effort with these four companies to create a multiprocessing version of the UNIX System V Release 4.0 operating system for the i860 processor. AT&T Microelectronics AT&T Microelectronics and Intel signed a fiveyear agreement to provide OEMs with an array of products supporting ISDN and LANs available from a common source. 0011165 Defense Advanced Research Projects Agency (DARPA) Intel Scientific Computers (ISC), an internal start-up company, signed a $7.6 million research agreement with DARPA to develop a prototype of a system that ultimately wUl contain as many as 2,000 processors that are equivalent to CRAY-1 power. IBM Corporation Intel signed an agreement with IBM to develop an MCA board to utilize DVI for die IBM PS/2 family. 1988 China Aviation Technology Import Export Corporation TTie two companies formed Intel China, a joint venture firm that has as its objective to take advantage of Intel's advanced microprocessor technology to raise the quaUty of computers in China. Siemens AG The two companies announced the formation of a joindy owned corporation, called BiiN, that will mani^acture and supply mission-critical information systems. Both Siemens and Intel will hold 50 percent stakes in the company. In late 1989, the two companies dissolved BiiN after determining it would take too long to achieve an acceptable return on investment. MERGERS AND ACQUISITIONS 1991 LANSystems Inc. Intel acquired the Network Products Division (NPD) of New York-based LANSystems as part of its ongoing thrust into the market for LAN software and hardware. NPD will become part of Intel's Personal Computer Enhancement DivisioiL 1989 Jupiter Technology Inc. Intel acquired Jupiter Technology, a supplier of data communications computers and operating systems. With its line of network-to-network and network-to-user device products, Jupiter Technology is expected to broaden Intel's offerings in the connectivity market. ©1991 Dataquest Incorporated October—^Reproduction Prohibited Intel Corporation Harold E. Hughes, Jr. Vice president and chief financial officer KEY OFFICERS Gordon E. Moore Chairman of the board Andrew S. Grove President and chief executive officer Craig R. Barrett Executive vice president Frank C. Gill Senior vice president and president, Systems Group David L. House Senior vice president and general manager, Architecture and Applications Group Robert W. Reed Senior vice president and general manager. Semiconductor Products Group Leslie L. Vadasz Senior vice president and director, Corporate Business Development Paul S. Otellini Vice president and general manager. Microprocessor Products Group Ronald J. Whittier ^^ce president and general manager. Software Technology Group Albert Y. C. Yu Vice president and general manager. Microprocessor Products Group PRINCIPAL INVESTORS Gordon E. Moore—6.6 percent Equitable Life Assurance Society—^5.6 percent Capital Group Inc.—^5.0 percent Michael Aymar Vice president and general manager. Entry Level Products Group FOUNDERS Kenneth B. Fine Vice president and general manager. Multimedia and Supercomputing Components Group Dr. Robert N. Noyce Dr. Gordon E. Moore Dr. Andrew S. Grove ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011165 Intel Corporation Table 3 Balance Sheet Fiscal Year Ending in December (Thousands of U.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Long-Term Investments Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Capital Stock Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 1986 74,528 298,378 298,696 197,931 154,124 1,023,657 779,321 209,195 67,893 1987* 629,845 439,022 50,287 235,527 36,144 1,390,825 891,196 203,760 13,003 1988 929,712 506,477 41,388 365,936 126,345 1,969,858 1,122,459 421,900 35,519 1989 1,063,734 568,709 26,005 347,077 157,348 2,162,873 1,284,050 507,669 39,391 1990 1,619,648 709,658 165,239 415,433 209,203 3,119,181 1,657,568 561,477 38,082 2,080,066 2,498,784 3,549,736 3,993,983 5,376,308 374,282 286,600 143,957 884,841 298,062 39,456 933,948 479,273 56,461 921,226 412,480 111,474 1,313,751 344,605 126,446 804,839 770,236 504,991 1,275,227 1,222,359 736,941 539,484 1,276,425 1,469,682 1,087,648 992,406 2,080,054 1,445,180 1,165,376 1,383,427 2,548,803 1,784,802 1,572,755 2,018,751 3,591,506 2,080,066 2,498,784 3,549,736 3,993,983 5,376,308 *Nimibers for fiscal years 1987-1990 bave been restated to reflect a ilew accounting policy Intel implemented daring fiscal 1988. 001116S Sonrce: Intel Coiporatian Annual Reports and Fbnns 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—Reproduction Prohibited Intel Corporation Table 4 Consolidated Income Statement Fiscal Year Ending in December (Thousands of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value 1986 1987 1988 1989 1990 1,265,011 760,895 504,116 860,680 228,250 311,340 154,827 (174,634) (13.80) (173,165) 175,538 1,907,105 1,166,943 740,162 1,043,504 259,794 357,871 301,530 287,886 15.10 14.00 248,055 180,358 2,874,769 1,640,216 1,234,553 1,505,925 318,331 456,200 477,460 629,062 21.88 28.00 452,922 180,437 3,126,833 1,774,585 1,352,248 1,720,979 365,104 483,436 422,102 583,021 18.65 33.00 391,021 188,778 3,921,274 2,115,957 1,805,317 1,930,288 516,747 615,904 679,546 986,261 25.15 34.00 650,261 202,911 (0.99) 1.38 2.51 2.07 3.20 - - - - - 7.26 7.08 11.53 13.50 17.70 - Source: Intel Corporation Annual Reports and Fonns 10-K Dataquest (October 1991) Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets 1986 1987 1988 1989 1990 2.73 163.11 29.35 63.11 1.57 195.76 69.32 95.76 2.11 170.66 44.90 70.66 2.35 156.70 36.14 56.70 2.37 149.70 36.58 49.70 (8.32) (13.58) (13.69) 9.93 19.43 13.01 12.76 21.77 15.76 9.79 15.34 12.51 12.09 18.11 16.58 18.04 12.24 18,200 69.51 7.44 13.62 15.81 19.200 99.33 12.07 11.07 16.61 20,800 138.21 13.45 11.68 13.50 21,700 144.09 10.57 13.18 17.33 23,900 164.07 12.64 Source: Intel Coiporation Annual Repoits and Fonns 10-K Dataquest (October 1991) 10 ©1991 Dataquest Incorporated October—^Reproduction Prohibited (X)1116S ITT Corporation BACKGROUND AND OVERVIEW The ITT Corporation (ITT) was founded by Sosthenes Behn in 1920 as the International Telephone and Telegraph Company. It was based in the Caribbean at that time. In 1924, ITT took over the Spanish telephone network and thus started its penetration into European markets. A policy of intense Europeanization and consolidation followed, particularly with ITT's 1925 purchase of the European marketing and research facilities of Western Electric Company. By the beginning of World War II, ITT had established a presence in every West European country except Finland. ITT established operations in Finland in 1954. World War n halted the Company's expansion plans. In 1945, ITT began rebuilding its networks abroad and developing new products. One new product was a telephone switching system, Pentaconta, that was adopted throughout the world. In 1960, Harold S. Geneen became president of ITT. Under his guidance, the Company's structure, management, and image changed to such an extent that by the end of the 1960s, ITT was a different organization. It had diversified into numerous product lines, including industrial equipment, services, natural resources, insurance, automotive products, telecommunications, and consumer products. The Company's planning, financial reporting, and control systems were modified accordingly. In a 1971 consent decree following the Company's acquisition of the Hartford Fire Insurance Company in the United States, ITT agreed to a reduction in certain assets and 10-year restrictions on fvirther acquisitions. Operations ITT is a diversified company made up of nine business segments, automotive products, electronic components, fluid teciinology, defense technology, insurance finance, communication and information services, hotels and community development, pulp, and timber. Half of its 1987 sales of $17.4 billion came from insurance and financial services. The rest includes hotels, auto parts, defense electronics, and paper products. In recent years, the Company has sold off all or part of 112 companies and the number of employees has decreased from 348,000 in 1980 to 120,000 in 1987. These changes are part of the asset redevelopment program that began in 1979. The intent of this program was to divest nonstrategic businesses, focus more sharply on selected. industries, streamline operations, and reduce debt. The proceeds from the redevelopment program have provided working capital needs and expansion of the remaining businesses. This has made possible the reduction of the 1987 year-end ratio of debt to total capitalization of 27 percent, the lowest in more than 25 years. Additionally, proceeds are being used for a $10 million share common stock repurchase program implemented by the Company during 1987. ESIS Volume III 0001402 © 1988 Dataquest Incorporated November 1 ITT Corporation In 1987, ITT's non-U.S. sales accounted for approximately 44 percent of the total Company sales. Western Europe was by far the largest non-U.S. market, with 1987 sales reaching $3,342 million, or 39 percent of the total sales. Table 1 shows ITT revenue by geographic area. Table 1 ITT Corporation Revenue by Geographic Segment (Millions of U.S. Dollars) 2M5. ITT and Consolidated Subsidiaries United States Western Europe Canada and Other 1986 1987 $ 4,788 3,342 421 $ 4,393 1,825 345 $ 4,609 2,572 $ 6,563 $ 7,596 • $ 8,551 $ 6,797 1,058 245 $ 8,648 683 510 $ 9,846 841 287 Subtotal $ 8,100 $ 9,841 $10,974 Total $14,663 $17,437 $19,525 Subtotal Insurance and Finance United States Western Europe Canada and Other Source: 415 ITT C o r p o r a t i o n 1987 Annual R e p o r t November 1988 Semicomiuctor Facilities ITT has semiconductor facilities worldwide. The locations and brief descriptions of these facilities are presented in Table 2. © 1988 Dataquest Incorporated November ESIS Volume III 0001402 ITT Corporation Table 2 ITT Corporation SemioMxluctor Facilities Lawrence. Massachusetts. U.S.A. Size; Number of employees: Year established: Products/technologies: Wafer outs: Wafer size: 8,000 square meters 520 1962 Discretes; wafer fabrication, assembly, and testing 8,000/month 3 inches gh^jl^Qn. Cgni^gctAcut;, TJ,^,k, Size: Number of employees: Year established: 4,000 sqtiare meters 200 1983 Wafer outs: Wafer size: Integrated circuits; wafer fabrication, assembly, and testing (In 1985, the plant was converted to serve the merchant market—class 10 operation with NMOS and CMOS (p-well) processes.) 10,000/month 4 inches Colmar. France Size: Number of employees: Year established: Products/technologies: Wafer outs: Wafer size: 4,000 square meters 350 1966 MOS and bipolar ICs, discretes; assembly No wafer fabrication Not applicable Products/technologies: Freiburg. West Germany Size: Number of employees: Year established: Products/technologies: Wafer outs: Wafer size: 40,000 square meters 1,400 1952, extension completed in 1983 MOS and bipolar ICs and discretes; assembly and testing 25,000/month 3, 4, and 5 inches (Continued) ESIS Volume III 0001402 © 1988 Dataquest Incorporated November ITT Corporation Table 2 (Continued) rrr Corporation Semiconductor Facilities Nuremberg, West Germany Ntunber of employees: Year established: Products/technologies: Wafer outs: Wafer size: 4,000 square meters 300 1961 Discretes; assembly and testing 10,000/month 4 and 5 inches Latina. Italy Size: Number of employees: Year established: Products/technologies; Wafer outs: Wafer size: 3,000 square meters 150 1981 Discretes; assembly and testing No wafer fabrication Not applicable Size: Source: Dataquest November 1988 Eur(^)ean Semiconductor Activities ITT's European semiconductor revenue increased from $215 million in 1986 to $243 million in 1987. A more detailed breakdown is given in Table 3. Because ITT's worldwide semiconductor operations are headquartered in Europe, Dataquest has, for this profile, included the Company's worldwide semiconductor revenue, which is shown in Table 4. ITT's Semiconductors Group employs 2,800 people, 150 of whom are involved in marketing. Only 500 employees work at its two U.S. plants, and the rest are based in Europe at Latina (Italy), Colmar (France), Nuremberg (West Germany), and Freiburg (West Germany). The group's policy is to concentrate design and manufacturing of telecommunications devices in the United States and products for the consumer industry in Europe. Since all the plants now use the same 1.5-micron technolo©^, they are geared to operate as second sources for each other if needed. Geographically, about 70 percent of ITT's semiconductor sales are in Europe; approximately 15 percent are in the United States; and the remaining 15 percent are in Japan and the rest of the world. © 1988 Dataquest Incorporated November ESIS Volume III 0001402 ITT Corporation Table 3 rrr Corporation Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1994 1995 1996 1997 $126 $171 $185 $215 $243 Total Integrated Circuit Bipolar Digital MOS Linear $ 61 0 33 28 $ 87 0 53 34 $ 95 0 57 38 $115 0 69 46 $132 0 99 33 Total Discrete Transistor Diode Thyristor Other $ 65 15 50 0 0 $ 84 19 65 0 0 $ 90 22 68 0 0 $100 36 64 0 0 $111 39 72 0 0 Total Semiconductor Total Optoelectronic Source: Dataquest November 1988 Table 4 ITT Corporation Estimated Worldwide SemiconductcH- Revenue by Product Line (Millions of U.S. Dollars) 1993 1994 1985 1986 1987 $185 $250 $270 $312 $357 Total Integrated Circuit Bipolar Digital MOS Linear $ 90 0 56 34 $125 0 80 45 $140 0 90 50 $168 0 107 61 $197 0 146 51 Total Discrete Transistor Diode Thyristor Other $ 95 26 69 0 0 $125 36 89 0 0 $130 38 92 0 0 $144 53 91 0 0 $160 57 103 0 0 Total Semiconductor Total Optoelectronic Source: ESIS Volume III 0001402 Dataquest November 1988 © 1988 Dataquest Incorporated November ITT Corporation The Company's strategy is to be only in those product areas where it can make a strong impact on the market. That is why the Company withdrew from optoelectronics and sold its memory plant at Footscray, England. ITT Semiconductors sells 80 percent of its products on the merchant market, and 20 percent in-house. However, each division of ITT buys competitively from all suppliers, so the semiconductor group does not enjoy a privileged position. The Company is hoping that the sale of its telecommunications activities to the new Alcatel consortium will bring in more business, since the new consortium has only a small activity in semiconductors. ITT retains a 37 percent interest in the joint-venture company called Alcatel NV. m Semiconductor Organization The reporting structure of ITT Semiconductors is shown in Figure 1. Figure 1 ITT Semiconductors Organization Chart Components Europe and Semiconductors Worldwide Group (Headquarters in Freiburg, West Germany) ITT Semiconductors Worldwide (Headquarters in Freiburg, West Germany) 1 U.S. Division (Lawrence, Massachusetts) (Shelton, Conneticut) 1 Continent al Europe (Frieburg, Wejst Germany) Freiberg — (West Germany) Colmar (France) D01402-1 _ Nuremberg (West Germany) Latina (Italy) Source: © 1988 Dataquest Incorporated November Dataquest N o v e m b e r 1988 ESIS Volume III 0001402 ITT Corporation Highlights of recently published information on ITT's semiconductor-related activities include the following: • In February 1988, ITT Cannon, United Kingdom, invested more than £1 million in production line and quality control facilities for telecommunications interconnect products. The Company has been working with British Telecom and suppliers on new product specifications and standards. • In January 1988, ITT Semiconductors released a pair of ICs (the SAF 1091 and 1092) that can be used in the design of programmable speedometers and mileage indicators in cars. The system can also be adapted for use with a digital dashboard display. • In October 1987, Intermetall GmbH released a new controller called FP (fast processor). It is a standard macrocell that is a microcontroller core for use with any of the Company's digital signal processors. • In October 1987, ITT sold its remaining 24 percent stake in STC PLC to Northern Telecom for $730 million. This means that ITT's presence in the world telecommunications market is now reduced to its investment in Alcatel NV, a joint venture with the French CGE and two smaller investors. • In October 1987, it was announced that Intermetall GmbH will henceforth design and lay out all new circuits so that they can be fabricated in CMOS technology with structures as small as 0.8 micron—part of the Company's strategy to keep ahead of its competitors in consumer product ICs. • In June 1987, ITT joined other U.S. multinationals and pulled out of South Africa. It sold its subsidiary, Alfred Teves Engineering SA Ltd., and announced the future sale of its minority holding in South African telephone directory and cable businesses. OUTLOOK With the consumer market as its main focus, ITT Semiconductors is pursuing a carefully targeted strategy that is paying off, despite the volatility of the semiconductor market as a whole. By specializing in signal processors and digital television devices, the Company has set itself at the leading edge of VLSI technology. Thanks to its narrow product range, its priority to automization of production lines, and its refusal to shift assembly to Asia (thus maintaining close interface between its designers, manufacturing engineers, and customers), ITT Semiconductors has positioned itself strongly in the market. ESIS Volume III 0001402 © 1988 Dataquest Incorporated November ITT Corporation (Page intentionally left blank) 4 © 1988 Dataquest Incorporated November ESIS Volume III 0001402 LSI Logic Corporation 1551 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 433-8000 Fax: (408) 434-6457 Dun's Number: 01-244-4253 Date Founded: 1981 CORPORATE STRATEGIC DIRECTION Founded in 1981, LSI Logic Corporation designs, develops, manufactures, and markets integrated circuit (IC) products and provides computer-aided design (CAD) and technology services and tools based on application-specific integrated circuit (ASIC) technologies. The company's products and services are marketed primarily to manufacturers in the electronic data processing (EDP), military/ aerospace, telecommunications, and consumer electronics industries. The company's key product lines are ASICs, which include gate arrays and cell-based circuits; 32-bit MIPS and SPARC reducedinstruction-set computing (RISC) microprocessors and peripherals; and application-specific standard products (ASSPs) consisting of chip sets and graphics products used in IBM-compatible personal computers. In addition, LSI Logic offers a growing line of video compression and digital signal processing (DSP) products. AU product areas are supported by the company's Concurrent Modular Design Environment (C-MDE) software tools, submicron CMOS and BiCMOS processing technologies, and high-pin-count packaging and test capabilities. LSI Logic's revenue growth in 1990 outpaced that of the semiconductor industry. The company's revenue increased nearly 20 percent to $655.5 million*, while worldwide semiconductor industry revenue increased 2 percent, according to DataquesL However, a net loss of $33 million was also reported for fiscal 1990, primarily as a result of a $44 million charge to cost of revenue during the fourth quarter of 1990. The primary elements of this charge were the writedown of certain manufacturing and production equipment at the company's United Kingdom wafer fab facility plus the write-off of goodwill in coimection with LSI Logic's 1988 acquisition of Video Seven Inc., a graphics board company. *A11 dollar amounts are in U.S. dollars. 0011168 R&D expense increased over $7 million to $60.2 miUion in 1990. The company attributes the increase mainly to the development of advanced products. LSI Logic is committed to technological leadership in the ASIC, RISC, and chip set markets and anticipates investing approximately 9 to 11 percent of its revenue in R&D in future years. LSI Logic operates in three major regions: North America, Europe, and the Far East, with the majority of its sales occurring in North America. The company markets its products and services through its worldwide direct sales and marketing organization and through independent sales representatives and distributors. LSI Logic employed approximately 4,400 people worldwide at the end of 1990. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgrounder present comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION ASICs A metal programmable array, also known as a gate array, is a matrix of uncommitted logic functions contained on a single chip of silicoiL The gate array remains uncommitted through most of its complex processing cycle and is programmed or customized only in the last steps of the wafer fabrication process. This enables the manufacturer to produce large quantities of uncommitted gate arrays, called base arrays, and benefit from the economies of volume chip production. ©1991 Dataquest Incorporated October—Reproduction Prohibited LSI Logic Corporation For the past several years, LSI Logic has consistently ranked among the top gate array suppliers in the world. According to Dataquest, LSI Logic ranked third in the total gate array market in 1990 with a 12.0 percent market share, based on estimated factory revenue of $464 million. According to Dataquest, the company ranked first in the MOS gate array market with factory revenue of $461 million and an 18.0 percent market share and sixth in the BiCMOS gate array market with factory revenue of $3 million in 1990. During 1991, LSI Logic introduced the LCA200K Compacted Array Turbo gate array family that boasts usable gate counts of up to 200,000. The company is introducing new libraries, proprietary tools, packaging options, and unique power management alternatives to support these products. The company also infinoduced the LEA200K Embedded Array series. Embedded arrays are masterslices containing customer-defined memory functions such as randomaccess memories (RAMs), read-only memories (ROMs), computer-aided manufacturing (CAMs), and first-in/first-outs (FIFOs) in addition to uncommitted gate logic. Both the LCA200K and LEA200K products are fabricated using advanced 0.7-micron drawn channel-length high-performance CMOS (HCMOS) technology. The company's cell-based technology allows the customer to combine standard cells, memories such as static RAM, metal programmable ROM, static multiport RAM, and other dedicated very large scale integration (VLSI) building blocks called megacells onto a single chip. LSI Logic's cell-based products allow for up to 2(X),000 equivalent gates of integration on a single chip, which through combinations of these various structures can provide the user with optimal solutions to digital design problems. Microprocessors During 1990, the company further expanded emphasis on its microprocessor product families. LSI Logic's principal microprocessor product focus is on the two 32-bit RISC microprocessor architectures that have met with broad market acceptance. These are the MIPS and SPARC architectures, which were originally developed by MIPS Computer Systems Inc. and Sun Microsystems Inc., respectively. Both of these architectures are designed to facilitate an "open system" design. LSI Logic has made a number of new product annoimcements in the microprocessor field recently. In October 1990, LSI Logic's SPARC Division introduced its SparKIT, a chip set that enables systems designers to clone the SPARCstation 1 workstation from Sun Microsystems. The company also offers ASIC cores for SPARC embedded applications. The MIPS Division at LSI Logic recently introduced a five-chip family for the MIPS architecture. Called the MipSET, this chip set can reduce the MIPS LR3000-based workstation design time and eliminate LR3000 noise and timing problems. The MipSET, which is available in 20- and 25-MHz speeds, can replace 40 or more standard logic circuits. In late 1990, the company introduced an embedded version of its 32-bit MIPS RISC microprocessor, called the LR33(X)0 Self-Embedding processor. This processor was designed for use in highly integrated, performance-oriented applications such as laser printers, X ^ ^ d o w terminals, disk controllers, protocol converters, and military/avionic products. LSI Logic also introduced the Ngine module, a highperformance subsystem that offers system designers a proven central processing unit (CPU) implementation and simplified interface, thus minimizing system development time and risk. The company also offers 16-bit microprocessor products that implement the MIL-STD-1750A instruction set and a family of high-speed digital signal and image processing devices that perform a wide variety of common DSP operations. These components are designed to operate in standalone or multiprocessing configurations. Software LSI Logic also offers a proprietary software for the CAD market. The company's Modular Design Environment (MDE) software is a computer-aided engineering (CAE) design system consisting of a core design software module and a number of other software programs that improve the circtiit designer's productivity. During 1990, the company debuted an advanced software methodology for ASIC design known as C-MDE. C-MDE software is a graphic and icon-based suite of design tools that are interactive and provide the designer with the capability of performing design activities based on a single unified database. LSI Logic expects to make C-MDE availaUe during ifae second half of 1991. In addition, tibe company has coupled key elements of its software programs with software products offered by selected CAE companies, thereby increasing the potential customer base available to LSI Logic. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011168 LSI Logic Corporation In mid-1990, LSI Logic demonstrated a prerelease version of a VHDL-based CAD software suite that is intended to expand the company's ASIC technology capabilities by further automation of the IC design process. Called "Silicon 1076," this software is intended to allow a chip designer to move from product concept to the layout of the final chip design and mask generation piu^uant to a more automated and integrated procedure than is currently available from most other semiconductor design software products. Headland Technology During 1989, LSI Logic's subsidiaries, previously known as G2 Incorporated and Video Seven Inc., merged into one subsidiary company, which changed its name to Headland Technology Inc. Headland's products, which are based on the product lines of the two predecessor companies, are sold to manufacturers and in certain instances resellers, of IBM and IBMcompatible personal computers. Headland's IC products consist primarily of highly integrated graphics chips and logic chip sets. Through use of LSI Logic's MDE software, tb&se Headland 0011168 products can be tailored to a particular customer's specifications. Headland Technology also develops and markets high-performance video graphics technology boardbased products under its \^deo Seven label principally for business and professional PC users. According to Dataquest, Headland ranked fourth in the worldwide low-end PC graphics board market in 1990 with an estimated 7.3 percent market share, based on estimated revenue of $45.6 million. Headland's graphic and video interface products enable IBM and IBM-compatible PC users to generate highresolution monochrome or color text and graphics on the monitor screea While supporting industry standards, the Yideo Seven lines of products offer customers the opportunity to take advantage of new levels of performance for existing IBM and IBMcompatible PC hardware and software. Further Information For further information about the company's business segments, please contact either Dataquest's Semiconductor industry service or Graphics and Displays industry service. ©1991 Dataquest Incorporated October—Reproduction Prohibited LSI Logic Corporation Table 1 Five-Year Corporate Highlights (Thousands of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change .94,335 262,131 34.89 378,908 44.55 546,870 44.33 655,491 19.86 Capital Expenditure Percent of Revenue 63,398 32.62 138,993 53.02 100,961 26.65 114,494 20.94 61,998 9.46 R&D Expenditure Percent of Revenue 21.558 11.09 28,919 11.03 36,964 9.76 52,457 9.59 60,196 9.18 Number of Employees Revenue ($K)/Employee 1,821 106.72 2,322 112.89 3,329 113.82 3,700 147.80 4,400 148.98 3,855 11,340 194.16 24,702 117.83 (24,892) (200.77) (32,995) (32.55) Net Income Percent Change 1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 139.072 2,096 159,698 6,203 172,471 4,189 184,250 (45,483) Souce: LSI Logic Animal Repons and Fomis 10-K Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America Europe Japan 85.00 13.00 2.00 81.00 14.00 5.00 77.00 12.00 11.00 75.00 13.00 12.00 72.00 14.00 14.00 Somce: LSI Logic Ammal Repoits ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011168 LSI Logic Corporation 1990 SALES OFMCE LOCATIONS North America—^31 Europe—9 Japan—2 ROW—3 ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1990 MANUFACTURING LOCATIONS North America Edmonton, Alberta, Canada Fremont, California Milpitas, California Sydney, Nova Scotia, Canada Europe Braunschweig, Germany Synopsys Inc. Synopsys granted a license to LSI Logic that will allow LSI to install Synopsys' software in its design centers and incorporate Synopsys' logic synthesis tools into its Silicon 1076 VHDL-based design environment Sun Microsystems Inc. LSI Logic signed a licensing agreement with Sun permitting LSI to sell worldwide the ASIC devices developed for the original SPARCstation I workstation. NHK In an agreement with NHK, Japan's state broadcasting authority, LSI Logic's Japanese subsidiary, LSI Logic K.K., will license NHK's Muse decoder system. LSI Logic K.K. intends to use die system to enter the Japanese HDTV market in collaboration with a Japanese television manufacturer and further develop technology for use in U.S. and European markets when they are established. Opus Systems The two companies announced an agreement whereby Opus will design a SPARC-compatible workstation and port the Sun Microsystems operating system to it, using the LSI SparKIT chip set LSI will then license the design to would-be SPARC doners. Japan Tsukuba Headland Technology Inc. (United States) LSI Logic Corporation of Canada, Inc. (Canada) Vantage Analysis Systems Inc. LSI Logic's proprietary Silicon 1076 product will incorporate VHDL simulation tools from Vantage. Under the terms of the agreement. Vantage's comprehensive simulation tools will be available in all of LSI's design centers worldwide. Europe 7959 LSI Logic (Europe) pic (United Kingdom) Synopsys Inc. LSI and Synopsys entered into a cooperative agreement for LSI to develop and market certified logic synthesis libraries for the Synopsys Design Compiler. As part of the agreement, LSI will purchase Synopsys synthesis tools for internal use. SUBSIDIARIES North America Japan LSI Logic K.K. (Japan) Nihon Semiconductor Inc. (Japan) 0011168 ©1991 Dataquest Incorporated October—Reproduction Prohibited LSI Logic Corporation 7955 Crosscheck Technology Corporation Under terms of a technology license and development agreement, LSI will license patented test structures from Crosscheck that will embed into the base-silicon cell structure of high-density gate arrays. Crosscheck will also supply a test generation package running on Sun workstations that will be integrated into LSI's gate array layout software. Imaging Technology Inc. (ITI) The two companies signed a marketing and technology agreement under which m will design a new generation of imaging products using LSI's L64200 series of real-time image-processing chips. Sun Microsystems Inc. Sun gave LSI worldwide licensing rights to manufacture, market, modify, and enhance MPUs, related components, software, and systems using the SPARC architecture. KEY OFFICERS Wilfred J. Corrigan Chairman and chief executive officer George D. Wells President and chief operating officer Cyril F. Hannon Executive vice president. Worldwide Operations Robert Blair Senior vice president, ASIC Marketing Brian L. Halla Senior vice president. Microprocessor and DSP Products James S. Koford Senior vice president, ASIC Engineering, and chief technical officer M E R G E R S AND ACQUISITIONS PRINCIPAL INVESTORS 1989 Wilfred J. Corrigan—11.0 percent G-2 Incorporated and Video Seven Inc. LSI merged the activities of G-2 and \^deo Seven to form Headland Technology, which wiU produce logic chip sets and graphics for PCs. FOUNDERS 1988 Video Seven Inc. LSI acquired \^deo Seven, a designer, manufacturer, and marketer of graphics boards. Wilfred J. Conigan Robert Walker William O'Meara Mitchell D. Bohn ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011168 LSI Logic Corporation Table 3 Balance Sheet Fiscal Year Ending in December (Thousands of U.S. DoUars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets 187,975 101,640 15,643 112,225 7,245 424,728 334,510 28,261 1989 120,035 105,839 32,867 114,918 18,193 391,852 349,348 23,961 1990 140,270 114,978 18,417 124,831 40,385 438,881 328,707 16,418 699,398 787,499 765,161 784,006 32,150 106,908 11,680 49,677 72,172 187,909 14,862 116,225 130,338 191,857 21,730 111,970 150,808 204,443 17,826 94,735 192,797 189,795 27,092 98,583 200,415 391,168 455,895 467,812 508,267 0 196,380 18,310 36,299 0 401 0 405 0 411 0 421 260,190 47,639 258,858 72,341 249,489 47,449 260,864 14,454 250,989 308,230 331,604 297,349 275,739 451,404 699,398 787,499 765,161 784,006 197,451 44,502 5,525 26,636 6,432 280,546 159,058 11,800 1987 195,583 59,031 71,715 51,195 5,006 382,530 290,479 26,389 Total Assets 451,404 Total Current Liabilities Long-Term Debt Other Liabilities Minority Interest Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Eqtiity 1986 1988 Souice: LSI Logic Coipoiation Annual Reports and Fbnns 10-K Dataquest (October 1991) 0011168 ©1991 Dataquest Incorporated October—^Reproduction Prohibited LSI Logic Corporation Table 4 Consolidated Income Statement Fiscal Year Ending in December (Thousands of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value 1986 1987 1988 1989 1990 194,335 172,372 21,963 129,150 21,558 40,200 63,398 8,535 4.39 48.00 3,855 40,191 262,131 223,859 38,272 168,403 28,919 55,726 138,993 17,294 6.60 41.00 11,340 40,674 378,908 332,644 46,264 235,671 36,964 80,145 100,961 31,202 8.23 42.00 24,702 41,133 546,870 499,308 47,562 424,544 52,457 99,885 114,494 (34,863) (6.38) (14.00) (24,892) 41,305 655,491 579,564 75,927 487,759 60,196 117,318 61,998 (18,521) (2.83) (89.00) (32,995) 42,063 0.10 6.24 0.28 7.58 0.60 8.06 (0.60) 7.20 (0.78) 6.56 Source: LSI Logic Coiporation Animal Rq)orts and Ftems 10-K Dataquest (October 1991) Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Hmes) Total Assets/Equity (%) Current LiabiUties/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets 1986 1987 1988 1989 1990 8.73 179.85 12.81 79.85 5.30 226.91 23.41 126.91 3.26 237.48 39.31 137.48 2.60 257.33 50.72 157.33 2.28 284.33 69.92 184.33 0.85 1.54 1.98 1.62 3.68 4.33 3.14 7.45 6.52 (3.25) (8.37) (4.55) (4.21) (11.97) (5.03) 11.09 32.62 1,821 106,72 14.04 11.03 53.02 2,322 112.89 19.87 9.76 26.65 3,329 113.82 12.82 9.59 20.94 3,700 147.80 14.96 9.18 9.46 4,400 148.98 7.91 Source: LSI Logic Coiparation Annual Reports and Forms 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited (X)11168 Marconi Electronic Devices Limited BACKGROUND AND OVERVIEW Marconi Electronic Devices Limited (MEDL) was formed in 1980 as part of a major reorganization of the GEC/Marconi Group. It now comprises all the semiconductor activities within the group—consolidating AEI Semiconductor (specializing in rectifiers and high-power discrete components), GEC Semiconductor (specializing in MOS integrated circuits), and the joint semiconductor activities of Marconi Space and Defense Systems. The following is a list of MEDL operational sites worldwide: • Doddington Road, Lincoln, United Kingdom VLSI CMOS IC manufacturing RF, microwave, and millimeter-wave active devices, components, and subsystems manufacturing Headquarters of Marconi Electronic Devices Limited • Carholme Road, Lincoln, United Kingdom Power semiconductor devices, stacks, and assembly manufacturing • East Lane, Wembley, United Kingdom LSI computer-aided design (CAD) center • Hargreaves Road, Swindon, United Kingdom High-volume, thick-film microelectronics circuits for the telecommunications and industrial markets • The Railway Triangle, Portsmouth, United Kingdom Custom-designed, thick-film hybrid and microelectronic circuits for defense and specialized industrial markets • Radford Crescent, Billericay, United Kingdom - • Fourier transforms, microwave and millimeter-wave materials, passive components, and waveguide elements Marconi Electronic Devices, Inc., Hauppauge, New York Sales and marketing, IC design, power, microsystem, and microwave organizations ESIS Volume III 0001916 © 1988 Dataquest Incorporated December Marconi Electronic Devices Limited • Marconi Electronic Devices, S.A., Asnieres, France Sales and marketing, IC design, power, microsystem, and microwave organizations Marconi Electronic Devices also has a U.S. facility called CTI in Farmingdale, New York, working with hi-rel custom-designed, thick-film microelectronics for defense applications. The Company's Europe and United States-based organization is divided into four manufacturing divisions: • • • • Integrated circuits Microwave devices Power semiconductors Microsystems Table 1 shows MEDL's turnover by business division. Table 1 Marconi Electronic Devices Limited Turnover by Business Division (Percent of Revenue) 1987-1988 1986-1987 Microsystems 28% CTI IC 26"^ 26% 24% 19% 16% 15% Microwave Power Note: 18% 17% 11% Some of the IC, power, and microwave s a l e s were captive to CTI. Source: MEDL IC Division The IC Division has now been centralized. MEDL has changed the organization to a single business group covering both IC product lines: silicon on sapphire (SOS) for space and defense, and CMOS for industrial and telecommunications markets and applications. Formerly Telecoms/Industrial and Space/Defense, the new single operational group manufactures products in VLSI CMOS for the communications industry and provides SOS and VLSI CMOS for space and defense applications. © 1988 Dataquest Incorporated December ESIS Volume III 0001916 Marconi Electronic Devices Limited Microwave Division The Microwave Division has developed a comprehensive range of high-frequency products for electronic warfare, communications, and markets throughout the worldPower Semiconductor Division The Power Semiconductor Division manufactures fast-switching thyristors, highvoltage rectifiers, bipolar-switching transistors, and tracker balls. Microsystems Division The Microsystems Division is involved in the design, development, and manufacture of custom and standard microsystems both for the military/avionics and industrial/ commercial markets. MEDL REVENUE Dataquest estimates that MEDL revenue for 1987 was $47 million worldwide, of which $37 million was from Europe. The Company is predominantly a domestic supplier, but has recently made efforts to penetrate niche markets in the United States. It also markets some power products in Asia. Tables 2 and 3 show Dataquest's estimates for MEDL European and worldwide revenue, respectively. Table 2 Marconi Electronic Devices Limited Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987 .al Semiconductor $21 $26 $30 $32 $37 Total Integrated Circuit Bipolar Digital MOS Linear $11 0 11 0 $15 0 15 0 $19 0 19 0 $17 0 17 0 $21 0 21 0 Total Discrete Transistor Diode Thyristor Other $10 2 3 3 2 $11 2 3 3 3 $11 2 3 3 3 $15 3 4 8 0 $16 4 4 8 0 Source: ESIS Volume III 0001916 Dataquest December 1988 © 1988 Dataquest Incorporated December Marconi Electronic Devices Limited Table 3 Marconi Electronic Devices Limited Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 19?4 19?5 1996 1987 :al Semiconductor $25 $31 $35 $43 $47 Total Integrated Circuit Bipolar Digital MOS Linear $12 0 12 0 $16 0 16 0 $20 0 20 0 $21 0 21 0 $27 0 27 0 Total Discrete Transistor Diode Thyristor Other $13 3 4 3 3 $15 3 4 4 4 $15 3 4 4 4 $22 4 5 9 4 $20 5 5 10 0 Source: Dataguest December 1988 PRODUCTS AND MARKETS SERVED In 1987, MEDL's activities appeared to be evenly spread among its IC, Power Semiconductor, Microwave, and Microsystems Divisions. The Company also manufactures some power transistors, microwave discretes, and hybrid components. Much of the consumption is internal by companies within the GEC organization, particularly for telecommunications and military applications. The following is a list of MEDL's main product lines: • Standard products manufactured in CMOS Telephone dialers Telephone exchange products Industrial PWM generator Databuse products—1553 Speech scramblers 4 © 1988 Dataquest Incorporated December ESIS Volume III 0001916 Marconi Electronic Devices Limited • Standard Products in SOS for radiation-hard applications in space 64K SRAM Databuse 1553 - Viper/1750/2901 microprocessors Digital speech synthesizer (DSP) chips MEDL has won a contract from the United States Air Force for products to be incorporated into the F16 and F18 aircraft. The Company is intent on extending its business base in the United States, building on its niche-oriented product and its stable business base in the United Kingdom. Semicustom CMOS Products MEDL's semicustom CMOS products are as follows: • 3-micron, double-level metal gate arrays: 1,000 to 3,800 gates • 2-micron, double-level metal gate arrays: 3,900 to 10,000 gates • 3-micron, analog/digital gate arrays with analog cells covering op-amps to D/A and A/D converters on double-poly, double-metal 10 volt CMOS • Standard cell on 3-micron, double-poly, double-metal 10-volt CMOS— MACROMOS, with digital cell library-BITMOS and analog cell libraryANAMOS (The analog cell library includes converter and full-filter capability.) Semicustom SOS Products MEDL's semicustom SOS products are as follows: • 3-micron, double-level metal gate arrays: 2,400 to 4,000 gates • Standard cell 3-micron MACROMOS with digital library and analog functions • 1.5-micron SOS to be developed next ESIS Volume III 0001916 © 1988 Dataquest Incorporated December Marconi Electronic Devices Limited Discrete Products Discrete devices include the following: • Large-area, high-power, high-voltage products for electric traction and power transmission projects • Fast-switching thyristors and transistors chopper and inverter duty • High-current devices for mining, electrochemical, motor drive, environmental control, and welding applications • Asymmetrical thyristors high-frequency circuits and fast with fast-recovery epitaxial diodes for diodes for specialized New Products The Company's new products are as follows: • Video speed CMOS convertors • Standard filter chips MEDL's Microwave Division designs, develops, and manufactures an extensive range of Schottky barrier, backward, PIN, varactor, and Gunn diodes; transistors; microwave integrated circuit (MIC) components; and subsystems. These products operate at frequencies that range from 10 MHz to 100 GHz in ECM, radar, and communications systems. Maximizing the in-house capability in solid-state device and thick-film technology, the MIC facility uses advanced CAD and automatic test equipment (ATE) to produce a wide range of microwave and millimeter-wave components. These include the following: Single-ended balanced/double-balanced image rejection and harmonic mixers (500 MHz to 100 GHz) Small-signal bipolar amplifiers (50 MHz to 18 GHz) GaAs FET amplifiers (50 MHz to 18 GHz) High-stability Gunn oscillators (4 GHz to 100 GHz) Active/passive limiters Alternators, modulators, digital/analog phase shifters Single multithrow switches (1 GHz to 40 GHz) © 1988 Dataquest Incorporated December ESIS Volume III 0001916 Marconi Electronic Devices Limited The MIC activity is further extended by the addition of control and command circuit design and production expertise into subsystem technology. OUTLOOK During 1987 and 1988, MEDL suffered an operating loss of £1.8 million. This compares with an operating loss of £3.9 million in 1986 and 1987. MEDL's total employment fell from 2,585 in 1986 and 1987 to 2,475 in 1987 and 1988. However, the future holds some good prospects for MEDL in the telecommunications area and the military markets. MEDL has a strong market share in the U.K. telephone dialer business. It is estimated that MEDL supplies approximately 80 percent of dialers currently built into telecommunications main exchange systems (e.g., System-X), with the gate array content estimated at approximately 10 to 15 percent of the total business. MEDL is also supplying mixed analog/digital systems on a chip, using two process technologies: CMOS and CMOS SOS. (SOS is MEDL's radiation-tolerant analog.) MEDL has rights to the 1750 microprocessor and the Viper microprocessor, which is built to the U.K. Defence Ministry specification for use in safety-critical systems. The Viper-1 applications include aircraft and medical electronics, process control, signaling, robotics, and F>ower-station control. The strength of MEDL's discrete portfolio traditionally has helped its operation to better withstand the cyclic perturbations of the IC marketplace. Dataquest believes that MEDL's future growth will depend on the Company's ability to expand its defense and telecommunications contract business into new areas. ESIS Volume III 0001916 © 1988 Dataquest Incorporated December Marconi Electronic Devices Limited (Page intentionally left blank) © 1988 Dataquest Incorporated December ESIS Volume III 0001916 Matra-Harris Semiconducteurs BACKGROUND AND OVERVIEW Matra-Harris Semiconducteurs (MHS) was formed in 1979 as a joint-venture company between Matra of France and Harris Corporation of the United States. The venture was supported by the then French government, which was keen to develop high technology in France. The Company built a 12,000-square-meter factory near Nantes, France, an area designated for industrial development. This allowed MHS to gain government financial assistance for the scheme. Prior to this formal link, Matra and Harris had made agreements for CMOS technology transfer. Initial wafer production at the Nantes plant began in December 1980. Production capability has now reached 80,000 five-inch wafers per year, and MHS ships more than 12 million circuits annually. In 1981, MHS signed an agreement with Intel Corporation covering the manufacture of NMOS circuits in Nantes and the establishment of a joint-design facility called Cimetal for telecom chips and video controllers. Following this agreement with Intel, MHS was able to manufacture Intel's 8086, 8088, 8051, and 8052, as well as Harris' 80C86/88. MHS was also entitled to design CMOS versions of the 8051 MCU family, which is now one of MHS' key areas. MHS increasingly has become involved in joint ventures. In 1985, MHS and SGS Microelectronics (now SGS Thomson Microelectronics) signed an agreement to develop a fully automated assembly and test line for integrated circuits. In a deal with Cypress Semiconductor of the Silicon Valley, MHS received licensing rights to manufacture Cypress fast 16K and 64K CMOS SRAMs and to use Cypress fast 1.2 and 0.8 micron processes. In April 1988, MHS extended its links with Cypress in a deal that will provide $4.75 million for MHS' research into bipolar technology. MHS developed an advanced submicronic process (Super-CMOS) with France's national telecom research labs (CNET), to combine speed and low power consumption. Most new devices will be designed using this process, which is now ramping-up at MHS. MHS has also signed a second-source agreement with NEC covering the mutual manufacture and design rights to NEC's 78312 16-bit microcontroller family. From 1982 to 1986, MHS and Harris had common marketing operations in Europe. In 1986, they separated their sales forces and distributor networks to permit both companies to have direct and independent access to European customers. In 1987, MHS totally separated its marketing from Harris, and now has its own worldwide sales and distribution network, with direct subsidiaries in Santa Clara, London, Milan, Munich, Hong Kong, and Stockholm. As a result, MHS and Harris no longer sell each other's products. Matra currently controls more than 80 percent of MHS. ESIS Volume III 0001589 © 1988 Dataquest Incorporated October Matra-Harris Semiconducteurs PRODUCTS AND MARKETS SERVED MHS offers four main product areas, all in CMOS. Most circuits are available in commercial, industrial, and military temperature ranges. MHS is also a manufacturer of hi-rel devices for military, aeronautics, and space applications; its factory has been qualified AQAP-1, and a variety of products have been approved by the corresponding agencies. Below is a listing of MHS products. Static RAMs • Fast 16K and 64K devices: HM65728/767/768 HM65764/787-790, and a fast 8Kx9:HM65779 (down to 15ns) and • Very low power 16K and 64K memories (6 transistors per cell): HM65162/262 and HM65641 (8Kx8, 55ns, luA) • 64K SRAM, such as HM65687:35ns, luA Microcontrollers The 8051 family in CMOS, for which MHS is one of the leaders: • ROM capacity from 4K to 16Kbytes: 80C51, 83C154 • Low-voltage (2.7V), fuse-protected "secret ROM," high-speed (18 MHz) versions and a specific single-chip keyboard controller: 80C752 CMOS ASIC Five gate-array families, with gate counts from 250 to 55,000 gates, ultrafast CMOS arrays, proprietary software tools running on VAX or turnkey systems such as Daisy, Hewlett Packard, Mentor, and Valid Two families of composite arrays mixing optimized blocks (RAM, ROM, and others) with regular gate arrays Specific smart software for system analysis and logical synthesis Digital and/or analog custom design capabilities using standard software from Genesil, GDT, and Silicon Compilers Systems Inc. © 1988 Dataquest Incorporated October ESIS Volume III 0001589 Matra-Harris Semiconducteurs Dedicated Telecom Products A family of combo devices (HC3054/57) compatible with a market standard (NS) Specific chips for modem applications, the 29C42 error correction circuit for V42 modems, the HC55421 21 interface, etc. OUTLOOK MHS is conducting a major development effort to introduce a semiconductor family dedicated to ISDN PABX, terminals and adapters. These products, to be made available in 1989, are targeted for next-generation equipment. MHS' strategy is to develop its position as a specialist in CMOS system integration—a "toolbox" methodology that uses all basic functions (e.g., microcontrollers, memories, DSP, etc.) with the best-suited design tools and the Super-CMOS process to offer semiconductor solutions for specific applications. ESIS Volume III 0001589 © 1988 Dataquest Incorporated October Matsushita Electric Industrial Co. Ltd. 1006 Kadoma, Kadoma City Osaka 571, Japan Telephone: (06) 908-1121 Fax: (06) 906-1762 Dun's Number: 69-053-6552 Date Founded: 1918 CORPORATE STRATEGIC DIRECTION Matsushita Electric Industrial Co. Ltd. was founded as a family business in 1918 by Konosuke Matsushita to produce and market an electric adapter plug for consumer products. Today, Matsushita is a worldwide electric and electronics manufacturer with products that range from consumer electronics equipment, home appliances, and housing-related products through sophisticated industrial and communications equipment, including electronic components. Matsushita is currently divided into four major business segments. These segments are discussed below: Audiovisual (AV) Products and Home Appliances The audiovisual products and home appliances segment is Matsushita's core business. Matsushita strengthened its position as a digital video industry leader by introducing its composite digital 1/2-iach tape VCR system (D3) for broadcast use. This system win be used as the official system for the 1992 Barcelona Olympic Games. of AV information networks employing sateUite signals. To meet emerging markets, such as integrated services digital network (ISDN)-related products and systems and intraorganizational information systems, the company is currentiy constructing the Tokyo Information and Communications Development Center. Construction Electronics Matsushita is a major manufacturer of virtually all of the key equipment needed in homes, offices, and other buildings, including air-conditioning equipment, gas water-heating equipment, kitchen-related products, lighting fixtures and elevators, as well as appliances and communications equipment used in the home. Drawing on its capabilities as a manufacturer of a comprehensive range of products, Matsushita is using this approach to develop a totally integrated package concept and proposing it to the constmction industiy. To foster this concept, the company established tiie Construction Electronics Business Group. Components and Industrial Gk)ods Fiulher advances in intelligent products are expected in home appliances, ' ^ t h Matsushita's success of appliances employing fuzzy logic and neuro-fiizzy logic, the company is worldng to develop nextgeneration technologies. It is pursuing basic R&D into artificial intelligence and home-use robots. Matsushita supplies a vast array of electronic components including semiconductors. The company is also one of Japan's leading suppliers of factory automation equipment It plans to continue developing a wellbalanced semiconductor business, stressing not only memory devices but also bipolar ICs, microprocessors, logic ICs and charge-coupled devices. Information and Communications Equipment In systems and networks, Matsushita has made advances in urban cable TV (CATV) systems, as well as in airport traffic control systems and subway information management systems that use optical fiber LANs. The company is also increasing installations 0012543 Within the four major segments, Matsushita has six major product categories: video equipment, communications and industrial equipment, electronic components, home appliances, audio equipment, and batteries and kitchen-related products. ©1992 Dataquest Incorporated January—Reproduction Prohibited Matsushita Electric Industrial Co. Ltd. Matsushita's products are sold in more than 160 coimtries under the brand names National, Panasonic, Technics, and Quasar and under other trade names including JVC. The company reported consolidated sales of $46.7 biUion* for the fiscal year ended March 31, 1991. Net income for the year increased over 13 percent, to $1.8 billion, versus $1.6 billion in fiscal 1990. International sales accounted for 45 percent of revenue in fiscal 1991. ''Mthin the major product categories, video equipment sales increased 9 percent; audio equipment sales rose 8 percent; home apphances sales increased 13 percent; communications and industrial equipment had a sales growth of 14 percent; electronic components' sales grew 9 percent; and batteries and kitchen-related products had sales gains of 13 percent (Note; Percentage growth figures apply to U.S. dollar-based growth.) In December 1990, Matsushita acquired MCA Inc. for approximately $6.1 billion. MCA Inc. is a leading U.S. entertainment company, which includes Universal Pictures Production. It engages primarily in the film, music, and publishing business. MCA's strength in the production of film and music software will widen Matsushita's business scope in the audiovisual field. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Liformation on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder provide comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION Mdeo Ekiuipment The video equipment category remains Matsushita's largest revenue producer, accounting for 26 percent of fiscal 1991 revenue. Sales totaled $12,144 million for this period. This category includes VCRs, camcorders and related equipment; color, projection, and liquid crystal display televisions; videodisc players; and satellite broadcast receivers. *AI1 dollar amoimts are in U.S. dollars. Communications and Industrial Equipment The second-largest revenue-producing category for the company is commimications and industrial equipment This category accoimted for 24 percent of fiscal 1991 revenue. Total sales increased 14 percent over the previous period to $11.0 billion and include Matsushita's targeted growth areas of information/ commtmication and factory automation. Products include facsimile and copier equipment PCs and workstations, printers, telephones and private branch exchange systems, industrial robots, electronic parts mounting equipment welding machines, air conditioners, and compressors. Computers Matsushita has expanded its desktop and laptop PC lines, resuming exports to Eiux>pe and North America, which were ctirtailed in 1987. The company is manufacturing 8-, 16-, and 32-bit IBM-compatible laptops in Japan, imder the Panasonic label, for sale in Europe. In the U.S. market the company is selling 16- and 32-bit models made by Tandy Corporation on an OEM basis. According to Dataquest Matsushita had less than 1 percent of the worldwide market share for desktop and laptop PCs during 1990. Facsimiles During 1989, Matsushita merged its Panafax Corporation into the larger Office Automation Group of Panasonic Communications & Systems Company. The company intends to expand its presence across the entire spectrum of facsimile product markets through the merger of the two groups. According to Dataquest, Panasonic facsimile sales in the North American market during 1990 were more than 95,000 units, placing Panasonic/Matsushita among the top five vendors in the market with a 6.8 percent market share. In addition to sales by its Panasonic subsidiary, Matsushita manufactures facsimile eqiiipment sold by Pimey Bowes Inc. and several models sold by Fujitsu, Tandy, and Telautograph. In April 1990, Matsushita's Quasar subsidiary announced a facsimile model for sale in the U.S. market, manufactured by Matsushita in Japan. Copiers Selling copiers under the Panasonic label, Matsushita continued to gain market share during 1990. Panasonic copiers compete in segments 1 through 4 of the six Dataquest copier segments. Based on plain paper ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012543 Matsushita Electric Industrial Co. Ltd. copier placements, Dataquest ranked Panasonic thirteenth in 1990, with 30.7 thousand units. In the Westem Etmjpean copier market, Panasonic's 1990 sales rose to a total of 24.9 thousand units, up from 23.1 for 1989. In addition to copier sales under the Panasonic label, Matsushita manufactures several models sold under the Lanier label in the United States and tmder the Adler-Royal label in Europe. Sales for the period were $6,370 million, up 13 percent from $5,614 million for the previous period. Products in fiie home appliances category include refrigerators, room air conditioneTs, laundry equipment, vacuum cleaners, electric irons, microwave ovens, electric fans, electric blankets, and cooking appliances. Apphances using fiizzy or neuro-fuzzy logic and air conditioners with heating and cooling capabiliti^ sold especially well. Printers Matsushita also manufactures and markets its printers under the Panasonic label. Its product line focus is primarily on the serial printer market According to Dataquest, Panasonic ranked fourth among page printer vendors in North America during 1990, with 75.S thousand units and a market share of 3.6 percent In the serial printer market, the company had unit shipments of 1.2 million with a market share of 20.8 percent Electronic Components The electronic components categoty accounted for 13 percent of Matsushita's fiscal 1991 revenue, with sales of $5,961 nuUion. In the general components field, sales gains domestically as well as overseas were led by surface-mounted components and microwave parts used in audiovisual and mobile conmnmications equipment, as well as parts for office automation equipment Semiconductors Matsushita's 1990 worldwide semiconductor ranking went from ninth in worldwide semiconductor sales to tenth, based on revenue of $1,942 million. Its semiconductor sales include MOS digital ICs, analog devices, discrete devices, optoelectronics, and bipolar digital ICs. The total revenue and worldwide market share breakdown is as follows: MOS digital, $819 miUion with a 2.5 percent market share; MOS memory, $284 million with a 2.2 percent market share; MOS microcomponents, $250 mUlion with a 2.5 percent market share; MOS logic, $285 miUion with a 3.1 percent market share; analog devices, $410 million with a 3.9 percent market share; discrete devices, $374 million with a 4.5 percent market share; and optoelectronics, $325 million with a 12.1 percent market share. Audio Equipment Matsushita's audio equipment category accounted for 9 percent of the oornpany's revenue, with sales of $4,234 million for ±c period ended March 31, 1991. Although audio equipment in Japan was generally slow during this fiscal year, compact discs (CDs), radio/cassette recorders, and portable headphone cassette players continued as sales leaders in this segment Other products under the audio equipment category are radios, tape recorders, stereo hi-fi and related equipment, car audio products, and electronic musical instruments. Batteries and Kitchen-Related Products The batteries and kitchen-related products category accounted for 5 percent of Matsushita's revenue, $2,474 million for the fiscal year 1991. Batteries include compact batteries such as nickel-cadmium batteries. These batteries are used in video camcorders, portable phones, notebook-size personal computers, and other portable electronic products. lidiium batteries are also produced and used in cameras and for of&ce automation equipment memory backups. Others The balance of Matsushita's business includes sales of bicycles, cameras and flash units, prerecorded t^pes and discs, water purifiers, and imported materials and products such as nonferrous metals, lumber, paper, medical equipment, and cabin cruisers. This category accounted for 10 percent of the company's total revenue for fiscal 1991, with total sales of $4,551 million. Further Information Home Appliances The home appliances category accounted for 14 percent of total revenue during the 1991 fiscal year. 0012543 For further information on the company's business segments, please contact the appropriate Dataquest industry service. ©1992 Dataquest Incorporated January—Reproduction Prohibited Matsushita Electric Industrial Co. Ltd. Table 1 Four-Year Corporate Highlights (Millions of U.S. Dollars) 1988* 1989 1990 1991 Four-Year Revenue Percent Change 36,710.8 NA 42,918.1 16.91 41,998.1 -2.14 46,733.9 11.28 Capital Expenditure Percent of Revenue 1,679,8 4.58 2,537.5 5.91 2,482.0 5.91 3,377.9 7.23 R&D Expenditure Percent of Revenue 2,022.7 5.51 2,488.1 5.80 2,418.5 5.76 2,718.6 5.82 Number of Employees Revenue ($K)/Employee 134,186 273.58 193,088 222.27 198,299 211.79 210,848 221.65 Net Income Percent Change 1,192.7 NA 1,664.4 39.56 1,648.1 -0.98 1,833.4 11.25 Exchange Rate ( U . S . $ 1 ^ 138.03 128.25 142.93 141.21 1991 Fiscal Year Ql Quarterly Revenue Quarterly Profit 11,162.8 413.02 Q2 11,831.9 486.13 NA = Not applicable *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Because of these changes, no infonnation is included for 1987. Q3 Q4 12,635.8 596.03 11,103.5 338.36 Source: Matsushita Electric Industrial Co. Ltd. Anmial Reports Dataquest (January 1992) Table 2 Revenue by Geographic Region (Percent) Region Japan International 1988* 1989 1990 1991 59 41 58 42 56 44 55 45 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents o i ^ four mondis from November 1986 to March 31, 1987. Because of these changes, no information is included for 1987. Source: Matsushita Electric Industrial Co. Ltd. Annual Reports Dataquest (January 1992) ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012543 Matsushita Electric Industrial Co. Ltd. Europe 1991 SALES OFFICE LOCATIONS North America—9 Europe—15 Asia/Pacific—142 Japan—132 ROW—12 MANUFACTURING LOCATIONS North America America Kotobuki Electronics Industries (United States) VCRs American Matsushita Electronics Corporation (United States) Color TV picture tubes Kyushu Matsushita Electric Corporation of America (United States) Deflection yokes Matsushita Communication Industrial Corporation of America (United States) Car telephones, pagers, point-of-sale electronic cash register systems Matsushita Compressor Corporation of America (United States) Air conditioning con^ressors Matsushita Computer Company (United States) Personal computers, workstations Matsushita Electronic Components Corporation of America (United States) Electrolytic capacitors, car audio speakers, filters, switchers Matsushita Industrial Canada (Canada) Color TVs, speaker boxes, TV cabinets, AV racks Matsushita Industrial de Baja Califomia S A. de C.V. (United States) TV chassis, color TVs Matsushita Refrigeration Co. of America (United States) Refrigerators Matsushita Semiconductor Corporation of America (United States) Semiconductors Matsushita-Ultra Tech. Battery Corp. (United States) Batteries Panasonic Technologies (United States) R&D 0012543 Kyushu Matsushita Electric (United Kingdom) Electronic typewriters, printers Matsushita Business Machine (Germany) Plain paper copiers Matsushita Communication Deutschland (Germany) Car radios/stereos Matsushita Communication Industrial (United Kingdom) Car telephones Matsushita Electric (United Kingdom) Color TVs, microwave ovens Matsushita Electric Motor (Germany) Motors Matsushita Electronic Components (Germany) Electronic parts, materials Matsushita Electronic Components (United Kingdom) Transformers, LC filters Matsushita Electronic Magnetron Corp. (United Kingdom) Magnetrons for microwave ovens Matsushita Graphic Communication Systems Ltd. (United Kingdom) Fax machines Matsushita "V^deo Manufacturing (Germany) VCR mechanisms MB 'Video (Germany) VCRs, CD players Panasonic Espana (Spain) Electric equipment Panasonic France S.A. (France) Consumer electronics AsialPacific A.P. National (Thailand) Home electrical appliances Asahi Kogyo (Japan) Tape recorders Beijing-Matsushita Color CRT (China) Color CRTs International Fan Manufacturing (Hong Kong) Electric fans Katano Matsushita (Japan) Audio equipment Kibi Matsushita (Japan) Video equipment Kyushu Matsushita Electric (Japan) Data processing, business machines, magnetic heads Matsue Matsushita Denki (Japan) Capacitors Matsusaka Seimitsu (Japan) Assembly of motors Matsushita Air-Conditioning Corporation (Malaysia) Air conditioners ©1992 Dataquest Incorporated January—Reproduction I*rohibited Matsushita Electric Industrial Co. Ltd. Matsushita Communication Industrial (Japan) Data processing, commimication, control, video equipment Matsushita Commimication Industrial Corp. of the Philippines (Philippines) FDDs, ECM Matsushita Compressor & Motor (Malaysia) Compressors, fan motors Matsushita Denshi (Singapore) IC production, large-scale integration (LSI) design Matsushita Electric (Australia) TVs, audio equipment Matsushita Electric (Malaysia) Home electrical appliances Matsushita Electric CTaiwan) Electrical appliances Matsushita Electric Instimte of Technology (Taiwan) R&D Matsushita Electric Works (Japan) Electrical housing equipment Matsushita Electronic Components (Japan) Electronic equipment parts Matsushita Electronic Components (Malaysia) Electronic parts Matsushita Electronic Components (Singapore) Electronic parts Matsushita Electronic Motor (Malaysia) Electronic motors Matsushita Electronic Motor (Singapore) Precision motors, applied equipment Matsushita Electronics (Japan) Semiconductors, electron tubes, lighting equipment Matsushita Electronics (Singapore) Audio equipment Matsushita Graphic Commimication Systems (Japan) Facsimiles, graphics equipment Matsushita Graphic Communications Systems (Singapore) Fax machines Matsushita Industrial (Malaysia) Air conditioners, compressors Matsushita Industrial Equipment (Japan) Industrial equipment Matsushita-Kotobuki Electronics (Japan) Video equipment, TVs, tape recorders Matsushita Precision Industrial (Malaysia) Flyback transformers, coils Matsushita Refrigeration (Japan) Refrigerators, air conditioners Matsushita Refrigeration Industries (Malaysia) Refrigerator/freezers Matsushita Refrigeration Industries (Singapore) Compressors Matsushita Refrigeration Industries (Thailand) Refrigerator/freezers Matsushita Research Institute (Japan) Electronics research Matsushita Seiko (Japan) Electric fans, ventilators, air conditioners Matsushita Seiko Hong Kong International Manufacturing Co. Ltd. (Hong Kong) Air conditioners Matsushita Technical Center (Singapore) Production equipment Matsushita Television (Malaysia) Color TVs Miyazaki Matsushita Denki (Japan) Ceramics, magnetic materials, resistant materials National Micromotor (Japan) Microprecision motors National Thai (Thailand) Home electrical appliances PFU Ltd. (Japan) Minicomputers Precision Electronics (Philippines) Home electrical appliances P.T. Matsushita Gobel Battery Industry (Indonesia) Batteries P.T. National Gobel (Indonesia) Home electrical appliances Takefu Matsushita Electric (Japan) Micromotors •N^ctor Company of Japan (Japan) Video/audio equipment, TVs Wakayama Precision (Japan) Refrigerators, air conditioners ROW Matsushita Electric (East Africa) Radios, radio cassette recorders, dry batteries Matsushita Electrica de Guatemala (Guatemala) Audio equipment Matsushita Electric de El Salvador (El Salvador) Audio equipment Matsushita Industrial de Baja California (Mexico) Color TV chassis National Centroamericana Dry batteries, audio equipment National Componentes Electronicos do Brazil (Brazil) Electronic parts National do Brazil (Brazil) Matsushita group products National Electric Cote d'lvoire (Ivory Coast) TVs, radio cassette recorders National Panasonic Fueguina Color TVs, radio cassette recorders National Peruana (Peru) Home electrical appliances Panasonic de Mexico (Mexico) Audio equipment, electronic parts Panasonic Industrial de Venezuela C.A. (Venezuela) Consumer electronic products ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012543 Matsushita Electric Industrial Co. Ltd. Springer National Componentes (Brazil) Assembly of micromotors, CRT sockets, PC boards Springer National da Amazonia (Brazil) Color TVs, audio equipment ALLIANCES, J O I N T VENTURES, AND LICENSING AGREEMENTS 1991 Digital Tape Licensing Matsushita will share its digital compact cassette tape technology, which was jointly developed with Philips, with third parties. Tbe aim is to make the digital tape format, which competes against digital audio tape, a standard in the industry. SUBSIDIARIES North America Matsushita Electric Corporation of America (United States) Solboume Computer (United States) Europe Matsushita Electric (U.K.) Ltd. (United Kingdom) Matsushita Electronic Magnetron Corp. (United Kingdom) Matsushita Graphic Communication Systems U.K. Ltd. (United Kingdom) Panasoiuc Espana S.A. (Spain) Panasonic France S.A. (France) Asia/Pacific Kyushu Matsushita Electric Co. Ltd. (Japan) Matsushita Battery Industrial Co. Ltd. (Japan) Matsushita Communications Industrial Co. Ltd. (Japan) Matsushita Electric (Taiwan) Co. Ltd. (Taiwan) Matsushita Electronic Components Co. Ltd. (Japan) Matsushita Electronics Corporation (Japan) Matsushita Electronics (S) Pte. Ltd. (Singapore) Matsushita Graphic Communications Systems Inc. (Japan) Matsushita Housing Products Co. Ltd. (Japan) Matsushita Industrial Equipment Co. Ltd. (Japan) Matsushita Industrial Corporation Sdn. Bhd. (Malaysia) Matsushita Kotobuki Electronics Industries Ltd. (Japan) Matsushita Refrigeration Company (Japan) Matsushita Refrigeration Industries (S) Pte. Ltd. (Singapore) Matstishita Seiko Co. Ltd. (Japan) \^ctor Company of Japan Ltd. (Japan) 0012543 Tandy Corporation Tandy Corporation and Matstishita have signed a joint venture to manufacture laptop and notebook computers. Both companies will be equal partners and share in the technology of the new company called PTCC Inc. Texas Instruments Inc. (TI) TI and Matsushita signed a cross-Ucensing agreement This five-year agreement replaced the previous agreement fliat expired in 1990. TI will continue to receive royalty payments from Matsushita based on worldwide sales of chips by the two Japanese firms. Energy Conversion Devices Co. (ECD) ECD and Matsushita have signed a patent Ucensing agreement for ECD's patented phase transformation optical disk system, "^th this agreement Matsushita wiU be able to sell optical disks worldwide. Siemens Nixdorf Information Systems (SNI) SNI and Matsushita have signed an agreement to develop PC peripherals. The development will include an expansion tinit for 16-bit and 32-bit notebook-size PCs. The unit will contain extra memory and space for an additional battery unit Matsushita will produce the expansion unit The company wiU market it in Europe and will also supply the device to SNI on an OEM basis. Sun Microsystems Inc. Sun Microsystems Inc. has signed an agreement with Matsushita, Fujitsu, and Toshiba whereby Sun will exchange information wifii the other firms on image-processing techniques for multimedia workstations. ©1992 Dataquest Incorporated January—Reproduction Prohibited Matsushita Electric Industrial Co. Ltd. 1990 The Santa Cruz Operation The Santa Cruz Operation and Matsushita have signed an agreement to codevelop a Japanese version of a UNIX operating system. Matsushita will manufacture the new product on an OEM basis, while The Santa Cruz Operation will be responsible for marketing efforts through a new branch office to be established in Japan. Tosoh The companies agreed to jointiy develop conductive electron-beam resist that completely solves the electrification problem occurring with direct-write e-beams. Motorola Matsushita agreed to purchase Motorola semiconductors for use in videocassette recorders. SNI SNI and Matstishita signed an agreement to have SNI supply desktop PCs to Matsushita. In return, Matsushita will supply laptop PCs to SNI on an OEM basis. 7957 1989 SAE Inc. SAE and Matsushita agreed to joindy develop a 64-bit microprocessor with plans for a 64-bit engineering workstation in 1989. Signetics Company Signetics and Matsushita entered a sales agency agreement for memory products. Weitek Corporation Weitek and Matsushita are joindy developing a microprocessor product Siemens Matsushita and Siemens formed a joint venture for producing passive electronic components. Office Workstations Ltd. Matsushita and Office Workstations of Scotland formed a joint venture for development of office automation software products. 1988 Hewlett-Packard Company, IBM Corporation, Intel Matsushita agreed to supply these companies with a total of more than 1 milUon 1Mb DRAMs per month. Intel Corporation Matsushita agreed to subcontract production of Intel's 8-bit microcontrollers for the Japanese market The companies also agreed to jointiy develop a sub-0.5-micron 16Mb DRAM process. Sun Microsystems The SPARC RISC chip was licensed for use in workstations being developed by Solboume Computer, a Matsushita subsidiary. NEC Corporation NEC and Matsushita agreed to develop the next generation of steppers for very large scale integration (VLSI) manufacturing. Philips Philips and Matsushita renewed a business cooperation agreement for the next ten years in which Matsushita Electric will continue to own 65 percent of Matsushita Electronics and Philips will own 35 percent Matsushita agreed to supply LSIs for compact discs to Philips, and the companies made a second-source agreement for 8-bit CMOS microcontrollers. Intel Matsushita obtained a license from Intel for the 8051 and three other 8-bit microcontrollers. TRW The companies agreed to jointly develop a 0.8-micron-wavelength GaAlAs semiconductor laser for space communications. Nikon Corporation The companies jointiy developed advanced i-line steppers and excimer lasers for next-generation VLSIs. MERGERS AND ACQUISITIONS 1991 Matsushita made no mergers or acquisitions in 1991. ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012543 Matsushita Electric Industrial Co. Ltd. 1990 MCA Inc. MCA Inc. was acquired by Matsushita for approximately $6.1 billioa MCA is primarily engaged in the production and distribution of motion pictures and musical recordings, theme parks, book publishing, retailing, and real estate development. Keiya Toyonaga Senior managing director Hiroyuki Mizuno Senior managing director Tsuzo Murase Senior managing director 1989 Matsushita made no mergers or acquisitions in 1989. PRINCIPAL INVESTORS 7955 Matsushita Electric IVading Co. Ltd. (MET) MET, a 51.24 pox^nt owned consolidated subsidiary, was merged into the company in exchange for 73.4 million shares of Matsushita common stock having a fair market value of $1.1 billion. KEY OFFICERS Sumitomo Bank—4.4 percent Sumitomo Life Insurance—4.4 percent Nippon Life Insurance—4.0 percent Matsushita Investment and Development3.2 percent Mitsubishi Trust—^3.0 percent Sumitomo Trust—^2.9 percent Konosuke Matsushita—2.6 percent Toyo Trust—-2.0 percent Kyowa Bank—^2.0 percent Masaharu Matsushita Chairman of the board Akio Tanii President Shoji Sakuma Executive vice president FOUNDERS Konosuke Matsushita Masahiko Hirata Executive vice president 0012543 ©1992 Dataquest Incorporated January—^Reproduction Prohibited Matsushita Electric Industrial Co. Ltd. Table 3 Balance Sheet Fiscal Year Ending March 31 (MiUions of U.S. Dollars) Balance Sheet 1988* 10,016.4 4,915.5 2,562.6 4,857.9 1,967.2 24,319.6 5,056.0 8,971.7 3,149.8 1989 11,229.2 6,137.8 1,652.8 6,210.6 2,303.0 27,533.4 6,426.6 11,828.3 4,128.9 Total Assets 41,497.2 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Other Equity Retained Earnings Total Shareholders' Equity Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Investments Other Assets Total Liabilities and Shareholders' Eauitv Exchange Rate (U.S.$1=^ 1991 49,917.3 14,068.8 7,782.4 2,346.6 5,919.0 2,157.4 32,274.3 6,700.1 11,527.1 4,429.0 54,930.5 11,737.8 9,062.4 1,294.5 6,593.7 2,491.3 31,179.8 8,202.7 17,420.9 5,239.7 62,043.1 13,359.1 4,093.6 6,005.4 16,717.6 4,849.1 5,999.5 18,208.2 8,375.3 5,952.1 22,500.5 8,665.8 6,553.4 23,458.1 1,048,2 1,815.8 15,175.1 18,039.1 27,566.3 1,280.7 3,266.7 17,803.6 22,351.0 32,535.6 1,293.9 3,700.2 17,400.8 22,394.9 37,719.7 1,383.0 3,688.8 19,251.5 24,323.3 41,497.2 49,917.3 54,930.5 138.03 128.25 142.93 62,043.1 141.21 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents only four months &om November 1986 to March 31, 1987. Because of these changes, no information is included for 1987. 10 1990 Source: Matsushita Electric Industrial Co. Inc. Annual Reports Dataquest (January 1992) ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012S43 Matsushita Electric Industrial Co. Ltd. Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1988* 1989 1990 1991 Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin Effective Tax Rate (%) Net Income Shares Outstanding, Millions 36,710.8 24,223.1 2,022.7 9,880.5 1,679.8 3,283.6 8.94 55.50 1,192.7 1,861.8 42,918.1 28,622.9 2,488.1 11,042.3 2,537.5 4,128.2 9.62 54.20 1,664.4 1,955.6 41,998.1 28,052.8 2,418.5 10,777.8 2,482.0 4,000.1 9.52 52.60 1,648.1 2,080.2 46,733.9 31,113.2 2,718.6 12,273.9 3,377.9 4,230.6 9.05 51.10 1,833.4 2,093.4 Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=¥) 0.67 0.80 9.69 138.03 0.76 0.90 11.43 128.25 0.68 0.63 10.77 142.93 0.83 0.89 11.62 141.21 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Because of these changes, no information is included for 1987. 0012543 Source: Matsushita Electric Industrial Co. Ltd. Aimual Reports Dataquest (January 1992) ©1992 Dataquest Incorporated January—Reproduction Prohibited 11 Matsushita Electric Industrial Co. Ltd. Table 5 Balance Sheet Fiscal Year Ending March 31 (Billions of Yen) 1988* 1,382.6 678.5 353.7 670.5 271.5 3.356.8 697.9 1,238.4 434.8 1989 1,440.1 787.2 212.0 796.5 295.4 3,531.2 824.2 1,516.9 529.6 1990 2,010.8 1,112.3 335.4 846.0 308.4 4,612.9 957.6 1,647.6 633.0 1991 1.657.5 1,279.7 182.8 931.1 351.8 4,402.9 1,158.3 2,460.0 739.9 Total Assets 5,727.9 6,401.9 7,851.1 8,761.1 Total Current Liabilities Long-Term Debt Other Liabilities 1,843.9 565.0 828.9 2,144.0 621.9 769.4 2,602.5 1,197.1 850.7 3,177.3 1,223.7 925.4 Total Liabilities Common Stock Other Equity Retained Earnings Total Shareholders' Equity 3,237.8 144.7 250.7 2,094.7 2,490.1 3,535.3 164.3 419.0 2,283.3 2,866.6 4,650.3 184.9 528.9 2.487.1 3,200.9 5,326.4 195.3 520.9 2,718.5 3,434.7 5.727.9 6,401.9 7.851.2 8,761.1 138.03 128.25 142.93 141.21 Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Investments Other Assets Total Liabilities and Sliareholders' Equity Exchange Rate (U.S.$1=¥) *In 1987, Matsushita changed its fiscal year-end from November to March 31. Hscal 1987 represents only four months from November 1986 to March 31, 1987. Because of these changes, no information is included for 1987. 12 Source: Matsushita Electhc Industrial Co. Ltd. Annual Reports Dataquest (January 1992) ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012543 Matsushita Electric Industrial Co. Ltd. Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of Yen, except Per Share Data) Income Statement 1988* Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate ( U . S . $ 1 ^ 1989 1990 1991 5,067.2 3,343.5 279.2 1,363.8 231.9 453.2 8.94 55.50 164.6 1,861.8 5,504.3 • 3,670.9 319.1 1,416.2 325.4 529.4 9.62 54.20 213.5 1,955.6 6,002.8 4,009.6 345.7 1,540.5 354.8 571.7 9.52 52.60 235.6 2,080.2 6,599.3 4,393.5 383.9 1,733.2 477.0 597.4 9.05 51.10 258.9 2,093.4 80.34 9.52 1.34 99.94 11.90 1.47 108.34 10.00 1.54 117.12 12.50 1.64 138.03 128.25 142.93 141.21 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Because of these changes, no information is included for 1987. Source: Matsushita Electric Industrial Co. Ltd. Annual Reports Dataquest (January 1992) Table 7 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios Liquidity Current (Hmes) Fixed Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue OfM)/Employec Capital Spending % of Assets Exchange Rate (U.S.$1=^ 1988* 1989 1990 1991 1.82 230.03 74.05 130.03 1.65 223.33 74.79 123.33 1.77 245.28 81.31 145.28 1.39 255.08 92.51 155.08 2.87 6.61 3.25 3.33 7.45 3.88 3.00 7.36 3.92 2.96 7.54 3.92 5.51 4.58 134,186 37.76 4.05 5.80 5.91 193,088 28.51 5.08 5.76 5.91 198,299 30.27 4.52 5.82 7.23 210,848 31.30 5.44 138.03 128.25 142.93 141.21 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Because'of these changes, no information is included for 1987. 0012S43 Source: Matsushita Electric Industrial Co. I4d. Annual Reports Dataquest (Jamaiy 1992) ©1992 Dataquest Incorporated January—^Reproduction Prohibited 13 Mitsubishi Electric Corporation BACKGROUND AND OVERVIEW Mitsubishi Electric Corporation began in 1898 as a heavy electrical equipment plant adjacent to the Nagasaki Shipyard. A related plant was set up in 1905 at Mitsubishi Shipbuilding's Kobe Works. In 1921, these two vmits were consolidated to form Mitsubishi Electric Manufacturing Company. During the Company's early years, it established heavy electrical equipment factories throughout Japan. In 1923, a technical cooperation agreement was made with Westinghouse Electric International; production of consumer goods began in the 1930s. In 1958, Mitsubishi established separate groups for heavy machinery, electronics, consumer products, and overseas business. The Semiconductor Marketing Division began in 1972, and the Computer Marketing Division was founded in 1976. Mitsubishi is the fourth largest Japanese electronics company, following Matsushita, Hitachi, and Toshiba. Mitsubishi has been a major supplier of electronic equipment to the Japan Defense Agency for more than twenty years. The Company produces missiles and electronics for use in land, sea, and air vehicles; active phased-array radar used in fire control systems; the next-generation warning control radar; and computers for fighter planes. Mitsubishi also was the prime contractor for 9 of the 18 satellites lavmched by Japan's National Space Development Agency. Table 1 shows Dataquest estimates of Mitsubishi's Em"opean semiconductor revenue. Table 1 Mitsubishi Electric CorpcH'ation Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987 $15 $21 $17 $33 $39 Total Integrated Circuit Bipolar Digital MOS Linear $14 0 13 1 $20 0 19 1 $15 1 14 0 $29 1 28 0 $34 2 32 0 Total Discrete Transistor Diode Thyristor Other $ 1 0 0 0 1 $ 1 0 0 0 1 $ 1 0 0 0 1 $ 3 2 1 0 0 $ 2 2 0 0 0 f 0 $ 1 $ 1 $ 3 Total Semiconductor Total Optoelectronic Source: ESIS Volume III 0000829 © 1988 Dataquest Incorporated September Dataquest September 1988 Mitsubishi Electric Corporation PRODUCTS AND MARKETS SERVED Mitsubishi's main product strengths are in the areas of EPROMS and DRAMs. The Company is now a mass producer of the 1-megabit DRAM and at the forefront of development of the 4-megabit device. Mitsubishi's semiconductor product line includes the following: • Bipolar digital logic—Low-power Schottky TTL (LSTTL) and ALSTTL • MOS memory—64K, 256K, and 1Mb DRAMS; NMOS and CMOS SRAMs; ROMs; and EPROMs • MOS microcomponents—Second-sourcing of Intel microcontroller in NMOS and CMOS, 8-bit CMOS and NMOS microperipherals, and original 8-bit microprocessors • Linear—Transistor arrays, op amps, voltage comparators and regulators, timer ICs, and current drivers Mitsubishi also manufactures gallium arsenide (GaAs) field-effect transistors (FETs). Some recent developments in the Company's semiconductor-related activities are related below: • In March 1988, Mitsubishi announced an investment of £3 million at its video recorder plant in Livingston, Scotland, creating approximately 250 jobs over the next two years. • In March 1988, profits at the top five Japanese electronics companies rocketed in the half year that started in September, 1987. Mitsubishi topped the list with a 26 percent rise in profits. The Japanese companies' success is generally attributed to the industry's efforts to put emphasis on domestic sales, to streamline plant operations, and to a general recovery in the semiconductor market. • In March 1988, it was reported that Mitsubishi had begun talks with the major European banks and computer houses in order to interest them in its family of "smart" cards and memory cards. It is Mitsubishi's plan to dominate the European IC card market. The Company also announced the launch of a range of logic ICs: two new families. Advanced Schottky TTL (MAST), and 74HC-advanced high speed CMOS; as well as both conventional and industry-standard families. • In August 1987, Mitsubishi announced plans to build a £12 million plastics component plant at Bridgend in Wales. It will make plastic covers and panels for television sets and electronic office equipment. © 1988 Dataquest Incorporated September ESIS Volume III 0000829 Mitsubishi Electric Corporation In August 1987, Mitsubishi and Intel signed an agreement whereby Mitsubishi would make EPROMs for Intel in Japan. The devices will be sold in the Japanese market under the Intel brand name. The contract is open-ended and will last until the two parties dissolve it. In July 1987, NTT and Mitsubishi formed a joint venture company based in the United States to develop and sell integrated circuit technology made from optical fiber. OUTLOOK Mitsubishi is continuing market penetration in Europe. Its U.K. subsidiary, Mitsubishi Electric U.K. Ltd., is now firmly established as a supplier to the European as well as the U.K. markets. Its consumer products factories export throughout the EEC and the Company supplies mobile radio equipment to the Scandinavian market and retail automation systems to the European Cooperative Movements. ESIS Volume III 0000829 © 1988 Dataquest Incorporated September Mitsubishi Electric Corporation (Page intentionally left blank) © 1988 Dataquest Incorporated September ESIS Volume III 0000829 Motorola Incorporated 1303 E. Algonquin Road Schaumberg, Illinois 60196 Telephone: (708) 576-5000 Fax: (708) 576-7653 Dun's Number: 00-132-5463 Date Founded: 1928 CORPORATE STRATEGIC DIRECTION Motorola Incorporated is one of the world's leading suppliers of electronic equipment, systems, components, and services. Applications range from the telecommunications market to the semiconductors market, with products including two-way radios, pagers, cellular telephones and systems, semiconductors, defense and aerospace electronics equipment, automotive and industrial electronics equipment, computers, data communications equipment, and information processing and handling equipment. Founded in 1928 for the purpose of manufacturing automobile radios. Motorola has grown from a radio equipment and communications manufacturer to a $10.9 billion* Fortune 100 company with operations in diverse electronics markets. Motorola entered the semiconductor industry early in its history in 1948, when semiconductor operations were established to develop automobile radio applications. Today, Motorola maintains one of the broadest product lines of all semiconductor manufacturers and offers electronics products in other sectors as well. Motorola is the largest semiconductor producer based in the United States. Motorola divides its operations into eight main groups: Land MobUe Products, Paging and Telepoint Systems, Semiconductor Products, General Systems Products, Information Systems Products, Government Electronics Products, and the Automotive and Industrial Electronics groups. The Communications Products segment, which includes the Land Mobile Products and Paging and Telepoint Systems groups, remains the largest segment in terms of net sales, bringing in $3.6 biUion and accounting for 32.7 percent of revenue in fiscal 1990. The Semiconductor *A11 dollar amounts are in U.S. dollars. 0011021 Products group continues to close the gap with the Communications Products segment, bringing in $3.4 billion in revenue in 1990, accounting for 31.5 percent of revenue. The General Systems Products group represented the highest rate of growth in 1990, as the group's revenue increased 39.2 percent to $2.6 billion in sales. General Systems has increased 140.3 percent in the last two years, up from the 1988 net sales total of $1.1 biUioa Motorola's total revenue increased 13.1 percent to $10.9 billion in fiscal 1990 from $9.6 billion in fiscal 1989. Net income increased 0.2 percent to $499.0 million in fiscal 1990 from $498.0 million in fiscal 1989. Motorola employs approximately 115,400 people worldwide. The international market continues to increase its impact on Motorola's total revenue figures. In fiscal 1985, international sales accounted for 25 percent of revenue, while in fiscal 1990 the figure had increased to 44 percent of total revenue. Over the last two years, international sales revenue has increased 48.6 percent, nearly doubling the domestic growth of 24.8 percent Motorola expects this international growth trend to continue in fiscal 1991, with the main growth coming from Asia and Europe. Accordingly, Motorola has continued to expand its operations on a global scale. In 1990, international highlights included the opening of a new semiconductor facility in Hong Kong, the provision of the radio system for the Asian games in China, and the cementing of plans to supply the communications system for the Channel Tunnel that will link England and France. The company also began operations in the emerging eastern Europe maikets, selling two-way radios in Romania and Yugoslavia and cellular telephones in Hungary. ©1991 Dataquest Incorporated October—^Reproduction Prohibited Motorola Incorporated Research and development expenditure totaled $1.0 billion in fiscal 1990, representing 9.3 percent of revenue. Capital spending expenditure totaled $1.3 billion in fiscal 1990, representing 12 percent of revenue. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution diannd is not available. Table 3, a conqsiehensive financial statement, is at the end of this backgroimder. BUSINESS SEGMENT STRATEGIC DIRECTION Communications Products The Communications Products segment accounted for 32.7 percent of Motorola's 1990 net sales, bringing in $3.6 billion in factory revenue. This group produces a wide variety of radio communications equipment, including base stations, digital voice communications systems, high-frequency single-banded radio systems, mobile/portable data communications, FM two-way radio communications systems, and radio paging systems. Motorola can claim the distinction of being the first foreign supplier to join Japanese competitors in selling to Japan's national telephone company, Nippon Telegraph and Telephone Company. Motorola is a market leader in radio paging equipment. The group's 1990 revenue of $3.6 billion represented a 7.6 percent increase over 1989*s revenue of $3.3 biUion. Operating profits decreased 25.5 percent to $225 million in 1990, down from $302 million in 1989. Motorola attributes this decline to increased research and development costs in the areas of radio frequency (RF) cormnimications and radio data communications, expenses associated with expansion of international distribution, changes in domestic distribution, and shortfalls in implementation and efficiency in certain areas of business. At the end of fiscal 1990, the Commxmications Products sector was divided into two divisions: the Land Mobile Products group and the Paging and Telepoint Systems Group. Land Mobile Products Nineteen-ninety was an active year for the Land Mobile Products sector, as Motorola continued to invest heavily in future technologies. Using this newly formed sector, the company is active in the development of Specialized Mobile Radio (SMR) systems, wireless data communications, and digital trunking. Motorola took major steps toward the completion of its Coverage Plus SMR system, a nationwide voice and data communications and vehicle location network currently being implemented in the United States. The system enables dispatchers to locate and communicate direcdy with vehicles ans^where on the network either by voice or data messages. Over 500 sites have been installed to date in the United States. The company also implemented SMR systems in China and Germany. Motorola introduced a number of new models of trunked radio system products in 1990. The JSMR-II, the company's first 1.5-GHz shared trunked radio system, was installed in Japan. The system features newly developed repeaters and subscriber radios in the new frequency band. Motorola also began distribution of the company's first 1.5-GHz mobile radio, the MG-100, and the MIB-5000, an 800-MHz system that boasts the world's smallest trunked mobile radio. Motorola continued production of the ARDIS radio data communications system, a result of a joint venture with IBM. The system provides communications networking applications in the areas of field service, insurance claims, and public safety and transportation. The company also introduced two modems that are compatible with networks such as ARDIS—the RPM 840 integrated portable radio data modem and the RPM 400i modem for laptop and other hand-held computers. Paging and Telepoint Systems Motorola introduced a number of new products in 1990 under the auspices of the Paging and Telepoint Systems group. The introduction of the CT-2 cordless telephone marked Motorola's entrance into the second-generation digital cordless telephone market The CT-2 technology provides cordless technology that allows the personal cordless telephones to be utilized in the home or office through conventional methods. The technology also allows use of the CT-2 telephones outside the home and office through the use of base stations known as telepoints, providing limited-range access. The CT-2 system was especially ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 Motorola Incorporated popular in the international markets, as Motorola received substantial orders for the CT-2 from Singapore Telecom and other companies in Malaysia, Thailand, and Hong Kong. onto the number two position in 1990 with 9.8 percent of the worldwide market share, with discrete revenue amounting to $808 million. Motorola offers a diverse line of pagers and is a market leader in radio paging equipment In 1990, the company introduced the Advisor pager, an alphanumeric unit with a four-line display and up to 32,000 characters of memory. FuU production of the revolutionary Wristwatch pager began in the fourth quarter of 1990. The Wristwatch pager, the result of a joint venture with Timex, combines a numeric display pager with a digital watch and is compatible with existing paging systems throughout the world. Serving the broad range of discrete markets also requires a broad range of capabilities, including advanced submicron technology for such products as RF semiconductors, power MOS and small-signal devices, and leading-edge manufacturing and packaging technologies for mature, high-volume semiconductors. These new technologies often combine discrete and integrated circuit technologies to provide new products containing substantial added value. The company also offers a broad range of silicon pressure sensing devices including a new fully signalconditioned integrated pressure sensor. Semiconductor Products Optoelectronics In an era of increasing specialization and niche market-oriented companies. Motorola represents an unusual breed of U.S. semiconductor manufacturers. As the largest U.S. chipmaker. Motorola continues to be one of the few remaining broad-based semiconductor suppliers in the natioa The company considers its wide product breadth to be critical to its semiconductor strategy and has charted a course that provides an extensive product portfolio. Motorola's optoelectronic products include emitter/ detectors, optocouplers, optointerrupters, and fiberoptic switches and components. However, with revenue of $26 million during fiscal 1990, Motorola is a small player in the $2.7 billion optoelectronics market. Dataquest fotmd Motorola to rank nineteenth in the worldwide optoelectronics market during 1990. The company's semiconductor revenue in 1990 was $3.43 billion, an increase of 13.1 percent over 1989. The semiconductor products segment accounted for 31.5 percent of total sales for fiscal 1990. According to Dataquest, Motorola possessed 6.3 percent of the 1990 worldwide semiconductor market, ranking it fourth among more than 140 vendors. The company ranks first in the North American semiconductor market with 11.3 percent market share and $2.0 billion in factory revenue. A review of Motorola's product portfolio shows that the company is manifestly strong in the areas of discrete devices and analog, logic, and microcomponent products. It is investing to establish a stronger position in memory through the development of a competitive fast SRAM offering, as well as a strategic position in DRAMs under a technology agreement with Toshiba. Discrete Devices Although many semiconductor producers had abandoned discrete products for integrated circuits. Motorola remains an important force in discretes such as transistors, diodes, and thyiistors. In a market dominated by Japanese companies. Motorola had been the leading supplier and was dislodged from the number one position only in 1987 by Toshiba. Motorola held 0011021 Analog Motorola's growing portfolio of analog circuits is targeted primarily toward automotive, telecommunications, and consumer applications. Using bipolar and CMOS technologies. Motorola has developed a variety of proprietary and custom devices. In 1990, Motorola held a 4.6 percent market share and ranked sixth in the worldwide analog market, according to Dataquest Logic Motorola offers a variety of logic products in standard logic, gate arrays, and custom products. The company has long been a leading producer of standard logic circuits, producing a variety of products in TTL, ECL, and CMOS technologies. In die standard logic arena. Motorola is a major market participant, ranking fourth in the bipolar and digital logic markets and third in the MOS logic market during 1990, according to Dataquest Application-Specific ICs (ASICs) In addition to working closely with key customers to offer high-performance system solutions in both bipolar and CMOS technologies. Motorola drives the indtistry standards for computer-aided design (CAD) actively in order to accelerate the availabiUty and ©1991 Dataquest Incorporated October—Reproduction Prohibited Motorola Incorporated Utility of open architecture alternatives. These activities are key features of the company's strategy in the ASIC markets. During 1989, Motorola introduced a new design concept for ASICs called Customer-Defined Arrays. Customer-Defined Arrays combine array- and cellbased chip architectures with multiple process technologies on a single circuit Motorola's new Open Architecture CAD System gives customers a complete ASIC development environment using industrystandard workstations and leading third-party design and verification tools. Motorola is the leading supplier of ECL gate arrays to the merchant market Motorola's MCA HI process supports 2,200- and 10,000-gate ECL arrays featuring 12C^s typical gate delays and 1,200- to 1,500-MHz input firequencies. In 1990, Motorola extended the line by introducing an ETL series providing mixed ECL, TTL, and pseudo-ECL interfaces in 750-, 3,200-, and 6,200-gate densities. System clock speeds up to 2,500 MHz are supported. Motorola also offers bipolar foundry services based on the MCA V process with four-layer metal and 0.8-inicron emitters. Typical gate delays of 80ps are achieved in a channeUess architecture. Next-generation bipolar arrays wiU shrink emitter width and include a BiCMOS process option for high-speed embedded memory. Initial products will allow 20,000 to 30,000 gates of 50ps logic combined with 256,000 bits of BiCMOS RAM. In the arena of CMOS process technology. Motorola has a family of high-density CMOS gate arrays manufactured in a submicron process. The H4C Series utilizes a sea-of-gates architecture and ranges in gate count from approximately 27,000 to 318,000 gates. Utilizing triple layer metal routing, the H4C Series combines user-configurable RAMs up to 256Kb, digital phase-locked loops, and low power consumption for true systems integration. Microcomponents Motorola is a leading participant in the microcomponents market The company has been a long-time supplier of proprietary microprocessors, microcontrollers, and microperipherals to this market With estimated revenue of $1.0 billion in an approximately $10.1 billion market a 10.0 percent market share, Motorola ranks as the third-largest microcomponent manufacturer in the world. Motorola has ranked consistendy as the number three supplier to this market, behind Intel and NEC. According to Dataquest Motorola closed the gap with second-place NEC in 1990, pulling to within $74 million in yearly revenue. Motorola is the leading supplier of 8-bit microcontrollers in terms of units shipped, garnering a 23.9 percent share of the worldwide market The company's 68HC05 continues to be the top microcontroller on the market in terms of unit shipments, with over 73.6 million units shipped in 1990. A leading application for these 8-bit MCUs is in the automotive industry. The company introduced its first 16-bit microcontroller, the MC68HC16, in 1990. The MC68HC16 features on-chip control-oriented digital signal processing (DSP) capability, with plaimed applications including future vehicles from Chrysler Corporation. Motorola also tmveiled the 68332, a 32-bit embedded microcontroller. It is based on Motorola's 68020 central processing unit and has been chosen by General Motors for control functions in future vehicles. The 68302 Integrated Multiprotocol Processor was developed for communications applications. In addition, the company introduced the 68HC16 microcontroller family, its first 16-bit MCU device, to provide a smooth migration path from 8-bit to 32-bit microcontroller appUcations. The company is also prominent in high-end microprocessors, where it has a full line of products including high-performance floating-point coprocessors and DSP support. Motorola ranked second in the 32-bit microprocessor market with a 30.5 percent market share in 1990, according to Dataquest estimates. Motorola had the advantage of a head start in the emerging 32-bit microprocessor market with its 68020 and 68030 devices. Because the M68000 microprocessor, a 16-bit microprocessor introduced in 1979, had a 32-bit internal architecture. Motorola was able to upgrade 16-bit data bus paths to a fuU 32-bit architecture with the 68020 a full two years before its competitors. In early 1987, Motorola produced silicon for the 68030, a second-generation 32-bit microprocessor that incorporated such functions as a paged MMU, an instruction cache, and a data cache with burst-fillable mode in a Harvard-style architecture. These devices have found tisage in a variety of applications, including business systems, artificial intelligence platforms, robotics, telecommunications, multiprocessor systems, military products, and most prominently in technical workstations. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 Motorola Incorporated In the fourth quarter of 1990, Motorola began fullscale production of its next-generation complexinstruction-set computing (CISC) microprocessor, the MC68040. With 1.2 million transistors, the MC68040 dehvers 20 mips and a sustained rate of 3.5 mfiops at 25 MHz. Fabricated with Motorola's 0.8-micron highperformance HCMOS process, the MC68040 features an integer unit, a floating-point unit, two memorymanagement units, and two 4KB cache memories (one for data and one for instructions). It is compatible with the software base of the M68000 family. It has been endorsed as a platform for future products by customers including Apple Computer Inc., Bull, Commodore, Hewlett-Packard/Apollo, NeXT, Nixdorf, and Unisys. Motorola's 88000 reduced-instruction-set computing (RISC) family of 32-bit microprocessors, first introduced in 1988, has been endorsed by more than 50 computer and telecommunications systems manufacturers, with more than 20 systems already announced. More than 1,500 software packages are under development for the 88000, usmg its applications software compatibility standard. The company plans to release its second-generation RISC engine, die 88110, during fiscal 1991. Based on Symmetric Superscaler technology, the 88110 will permit instructions to be executed simultaneously and will also eliminate instruction-sensitive performance degradation foimd in competing RISC processors. As a part of a proposed three-way technology alliance among Apple, IBM Corporation, and Motorola, the companies announced in July 1991 that Motorola will codesign and manufacture a single-chip implementation of IBM's RS/6000 Power Architecture to be called Power PC. The new RISC chip will be the hardware base of a new entry-level software product to be developed and marketed by Apple and IBM. It will also be the base hardware for future Apple Macintosh computers. This chip will become the third high-performance processor platform in Motorola's portfolio, joining die 68000 and 88000 families. In 1989, the CPUAX, the new superdup containing 4 million transistors, was designed by TRW and fabricated by Motorola under the U.S. Department of Defense Very High Speed Integrated Circuits (VHSIC) Phase 2 program. This 0.5-micron device can perform 200 mflops and can automatically configure and repair itself. Originally intended by TRW for defense and space applications, the processing knowledge will be used by Motorola in future commercial products. 001IQ21 In digital signal processing. Motorola has introduced its 96002 Media Engine, a 32-bit IEEE floating-point processor. Based on the same architecture as the company's 24-bit fixed-point device, the 96002 is able to create vivid color graphics while generating stereo sound. Memories Motorola manufactures a variety of DRAMs and fast SRAMs using CMOS and BiCMOS technologies. The company has developed a strategic supply position in DRAMs as a part of its technology agreement with Toshiba. Motorola is producing 1Mb DRAMs in two of its own fabrication faciUties and in its joint venture with Toshiba in Sendai, Japan. A variety of microcomponents also are produced at ths site. According to Dataquest estimates. Motorola climbed to 9th in the worldwide MOS memory market with a market share of 3.0 percent in 1990, up from a 12th-place ranking and a 2.5 percent market share in 1989. General Systems Products The General Systems sector includes the Motorola Cellular group and the Motorola Computer Systems group, formerly called Four-Phase Systems before its acquisition by Motorola in 1982. TTie General Systems sector was the fastest-growing sector for Motorola in fiscal 1990, with sales increasing 39.2 percent to $2.6 biUioa The sector accounted for 24.3 percent of Motorola's total revenue in fiscal 1990, up from the 19.8 percent that the sector's revenue accoimted for in 1989. The Cellular group produces mobile and portable subscriber products and telephone systems, conventional car telephone systems, electronic mobile exchanges, IMTS car telephones, and low-density cellular base stations. As a leader in the fast-growing cellular telephone industry. Motorola is one of the top suppliers of celltilar telephone systems as well as mobile and portable phones. Motorola is the market leader in cellular telephones, garnering a 15.2 percent market share with $400 million in revenue in 1990. More than half of the company's cellular revenue comes from outside the United States. Motorola believes that in many underdeveloped countries with limited wireline systems, cellular radiotelephones may become the principal telecommunications system. ©1991 Dataquest Incorporated October—^Reproduction Prohibited Motorola Incorporated The MicroTAC personal telephone, introduced in 1989, continues to grow in popularity. One of the smallest and Ughtest cellular telephones currently on the market, the MicroTAC is the size of a checkbook and fits into a pocket or purse while offering the same power, features, and performance as larger cellular phones. The MicroTAC won Japan's 1990 foreign product design award from the Ministry of International Trade and Industry. Motorola is currently testing a new cellular call handling system, the Narrow Band AMPS, which has the potential to multiply cellular system capacity more than threefold using existing cellular standards. The Computer Systems group develops, manufactures, markets, and services multiuser, supermicroclass computers and board-level products. The group's products are based on industry standards, such as the VMEbus hardware standard, the UNIX operating system, and industry-standard peripheral interfaces. Computer products are marketed to enduser customers, OEMs, VARs, and distributors worldwide. Motorola's 68000 microprocessors and the 88000 series RISC microprocessors are at the core of the VME board-level products. In 1990, the MultiPersonal Computer was introduced by the Computer Systems group. Based on the 88000 RISC microprocessor, AT&T's UNIX operating system, and the X Window graphics standard developed by Massachusetts Institute of Technology, the MultiPersonal Computer is designed to integrate the commercial desktop computer into the office environment. Features include the MultiPersonal Image Exchange, which allows users to send and receive facsimile documents on-line and route them to the proper user. Also in 1990, Motorola began full-scale production of the MVME165, a VME processor module built around the company's 68040 microprocessor. The MVME165 is designed for embedded control and distributed real-time applications. Information Systems Products The Information Systems Products segment accounted for 5.5 percent, or $599 million, of Motorola's total revenue for fiscal 1990. The products are designed and manufactured by Codex Corporation and Universal Data Systems Inc. (UDS). Codex manufactures and sells high-speed leased-line and dial modems; data/voice, time division, and statistical multiplexers; network management and control systems; X.25 networking equipment; and LAN interconnection products. These products are offered alone and, increasingly, in systems, which have been configured to transmit information between dispersed business machines, terminals, and other peripheral devices, and host computers. Codex also sells communications products that it does not manufacture. Codex was active in 1990 with the addition of a host of new products. The Codex 3600 Communications platform is a new proprietary communications platform that can be configured as a 24,000-bps modem or a digital transmission device, offering customers increased flexibiUty. The platform is complemented by two new releases: the 3500 Digital Service Unit/ Channel Service Unit and a terminal adaptor for the Integrated Services Digital Network (ISDN). Release 3 of the Codex 9800 Network Management System offers an operational Interface kit that allows the integration of non-Codex products. Interfaces were also released for the "supermanagers" offered by AT&T, Digital Equipment Corporation, and IBM. UDS manufactures and sells data communications modems, multiplexers, digital data systems (DDS) service units, and ISDN equipment UDS' 9,600-bps V.32 modems, introduced in 1989, continued to gain popularity in 1990 as shipments more than doubled. The V.32 modems, which are of the plug-in variety and support the IBM PS/2 computer family, won international support with major orders coming from Japan, Germany, and Egypt. Government Electronics Products The Government Electronics group is engaged in the design, development, and production of electronic systems and products. During tiscal 1990, it accounted for 6.3 percent of Motorola's total revenue. The group produces diversified military and space electronics equipment, including aerospace telecommunications systems, military communications equipment, radar systems, data links, display systems, positioning and navigation systems, instrumentation products, countenneasuies systems, missile guidance equipment, electronic ordnance devices, and drone electronic systems. According to Dataquest, Motorola ranked second in the worldwide military/aerospace semiconductor market in 1990, garnering a 6.7 percent market share. Major contracts awarded in 1990 included a $78.5 million contract for the FMU-139 fuze and a $36.9 million contract for the MK45 target-detecting device used on die Standard missile. A new product introduced in 1990 was the latest model of the Lightweight Satellite Terminal system, the LST-5C. The ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011021 Motorola Incorporated LST-5C radio weighs only 8.5 pounds and provides full power to establish and maintain a worldwide satellite communications link with only the use of a hthium battery. Automotive and Industrial Electronics The Automotive and Industrial Electronics group manufactures and markets soUd-state electronic ignition systems, engine management controls, sensors, automotive instruments, and other automotive electronic products. These products are sold to OEMs, including foreign and domestic automobile manufacturers, heavy vehicle manufacturers, and 0011021 farm equipment manufacturers. In 1990, the group began production of new programs in passenger car and light vehicle applications with Chrysler/Jeep and Ford Motor Company. The group also started shipping diesel engine control models to Cummins Engine Co. and Vehicle Management and Control (V-MAC) modules to Mack Trucks Inc. Further Information For further information about Motorola's business segments, please contact the appropriate Dataquest industry service. ©1991 Dataquest Incorporated October—^Reproduction Prohibited Motorola Incorporated Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1986 1987 1988 1989 1990 5,888.0 8.18 6,727.0 14.25 8,250.0 22.64 9,620.0 16.61 10,885,0 13.15 Capital Expenditure Percent of Revenue 567.0 9.63 658.0 9.78 899.0 10.58 1,094.0 11.37 1,256.0 11.54 R&D Expenditure Percent of Revenue 481.0 8.17 524.0 7.79 665.0 8.06 810.0 8.42 1,008.0 9.26 Number of Employees Revenue ($K)/Employee 94,400 62.37 97,700 68.85 102,000 80.88 104,000 92.50 115,400 94.32 Net Income Percent Change 194.0 169.44 308.0 58.76 445.0 44.48 498.0 11.91 499.0 0.20 Five-Year Revenue Percent Change 1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 2,533.0 127.0 2,715.0 161.0 2,703.0 102.0 2,934.0 1,095.0 Source: Motorola Incoiporated Aonual Reports Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America International 71.31 28.69 67.94 32.06 63.85 36.15 59.65 40.35 55.70 44.30 Source: Motorola Incorporated Annual Reports ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 Motorola Incorporated 1990 SALES OFFICE LOCATIONS North America—209 Europe—^21 Japan—4 ROW—26 MANUFACTURING LOCATIONS North America Albuquerque, New Mexico Communications products Arlington Heights, Illinois Cellular telephone products Austin, Texas CMOS logic, MOS digital/analog, ASICs, MCUs, FSRAMs, complex MPUs Boynton Beach, Florida Communications products Carlisle, Pennsylvania Communications products Chandler, Arizona Semiconductor products Cupertino, California General information system products Elma, New York Automotive electronics products Fort Worfli, Texas Communications products Huntsville, Alabama Modems Lawndale, CaUfomia Semiconductor products Mansfield, Massachusetts Data communications products Mesa, Arizona MPUs, ASICs, DRAMs, MOS digital/analog, telecom, regulators, op amps, automotive bipolar logic, gate arrays, logic Mt Pleasant, Iowa Communications products Northbrook, Illinois Automotive electronics products Phoenix, Arizona Power products, RF power products, small-signal sensors, thyristors, TMOS power, Zener diodes, rectifiers Plantation, Florida Communications products 0011Q21 Schaumberg, Illinois Communications products Seguin, Texas Automotive electronics products Tempe, Arizona Semiconductor products, general information system products Vega Baja, Puerto Rico Communications products "WiUowdale, Canada Communications products Europe Basingstoke, England Communications products Bordeaux, France Semiconductor products Camberly, England Communications products Copenhagen, Denmark Communications products E. Kilbride, Scotland MCUs, logic, MOS digital/analog, MPUs, memory Flensburg, Germany Communications products Munich, Germany Semiconductor products Stotfield, England General information system products Swindon, England Cellular telephone products Taunusstein, Germany Communications products Toulouse, France Power products, telecom, consumer, regulators, op amps, auto, rectifiers Asia/Pacific Aizu Wakamatsu, Japan Logic, power, standard cells, MCUs, memory Chung Li, Taiwan Communications products, semiconductor products Kowloon, Hong Kong Semiconductor products Kuala Lumpur, Malaysia Semiconductor products Manila, Philippines Communications products, semiconductor products Melbourne, Australia Communications products Penang, Malaysia Communications products Sendai, Japan DRAMs, SRAMs, FSRAMs, ASICs, MCUs ©1991 Dataquest Incorporated October—^Reproduction Prohibited Motorola Incorporated Seoul, Korea Communications products, semiconductor products Seremban, Malaysia Small-signal products Singapore Communications products Tokyo, Japan Communications products ROW Arad, Israel Communications products Guadalajara, Mexico Power products Leon, Mexico Communications products San Jose, Costa Rica Commimications products Tel Aviv, Israel Communications products, general information system products North America Codex Corporation (United States) Motorola Canada Ltd. (Canada) Motorola Components de Puerto Rico Inc. (Puerto Rico) Motorola Credit Corp. (United States) Motorola International Corp. (United States) Motorola International Development Corp. (United States) Motorola Portatiles de Puerto Rico Inc. (Puerto Rico) Motorola Portavoz de Puerto Rico Inc. (Puerto Rico) Motorola Telcarro de Puerto Rico Inc. (Puerto Rico) Universal Data Systems (United States) Europe Motorola GmbH (Germany) Motorola Ltd. (United Kingdom) Motorola Semiconducteurs S.A. (France) ROW 10 ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 Apple Computer Inc. and IBM Corporation Motorola signed a preliminary technology agreement with Apple and IBM to share technology in the production of a new Motorola-produced RISC chip that wiU be the hardware base of a new entry-level software product to be developed and sold by IBM and Apple. This chip will also serve as the base hardware for future Apple Macintosh computers. GRID Systems Motorola and GRID signed an agreement allowing Motorola's Mobile Data division to become an official VAR for GRiD's laptop computer. SUBSIDIARIES Motorola Motorola Motorola Motorola Motorola Motorola Motorola de Mexico S.A. (Mexico) Motorola Israel Ltd. (Israel) Motorola Stomo S.A. (Mexico) Asia Ltd.. (Hong Kong) Electronics Pte. Ltd. (Singapore) Electronics Taiwan Ltd. (Taiwan) Korea Ltd. (South Korea) Malaysia Sdn. Bdh. (Malaysia) Semiconductor Sdn. Bdh. (Malaysia) Integrated Micro Products Ltd. Motorola and Integrated Micro Products signed an OEM agreement involving a special adaptation of the latter's fault-tolerant UNIX for use in Motorola's trunked radio systems for police and emergency radio services. Lansdale Semiconductor Inc. Lansdale purchased the exclusive rights to manufacture the DTL, HTL, RTL, and TTL military integrated-circuit series from Motorola. Lockheed Motorola and Lockheed will jointly conduct the Iridium global personal communications project Lockheed will supply the 77 teleconununications satellites for the Iridium system. Northern Telecom Limited Motorola and Northern Telecom signed an agreement to develop major enhancements to their existing cellular products for global markets. Ontario Systems Corp. Ontario signed an agreement with Motorola hcensing Ontario to sell Motorola's Delta 8000 RISCbased systems. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 Motorola Incorporated OSC Communications Corp. Motorola and OSC Communications agreed to cooperate in developing open cellular systems interface standards for worldwide cellular telephone markets. PacTel Corp. Motorola and PacTel signed an agreement to conduct an extensive field test and market trial of the code division multiple access (CDMA) digital cellular telephone technology. Softsel Computer Products Ltd. Softsel signed an agreement with Motorola allowing the former to distribute Motorola's Delta and M88000 RISC systems in the United Kingdom. Tech Data Corp. Motorola named Tech Data as a distributor of its Altair wireless ethemet products. Unitrode Corp. Motorola and Unitrode signed a technology partnership agreement to develop proprietary techniques to be used in the manufacture of direct wafer bonded silicon wafers. XcelleNet Inc. Motorola and XcelleNet signed a joint marketing agreement providing network access and information delivery capabilities for widely distributed organizations. 1990 BT Tymnet Inc. BT Tymnet awarded Motorola a contract to provide networking for the Coverage PLUS veWcle communications system. IBM Motorola and IBM formed a joint venture to provide a nationwide radio data information service in the United States. The new service, called ARDIS, will give companies with mobile work forces access to company computer databases and information systems through two-way radio data terminals. Interphase Interphase signed a three-year OEM contract with Motorola valued at $8 million. Liant Software The companies reached a two-year agreement for Motorola to sell Liant's RM/COBOL-85 programming language system to users of Motorola's UNIX-based computer systems. 0011Q21 Philips International Motorola and Philips signed an agreement to supply a full-screen, full-motion video IC for CDInteractive appUcations. Synopsys Inc. Motorola and Synopsys signed a technology partnership agreement to joindy develop software libraries and models for Motorola's ECL ASICs. Tekelec Tekelec signed an agreement to supply Motorola with communications test equipment 1989 Digital Equipment Corporation (DEC) The companies will jointly design a fiberdistributed data interface chip set that Motorola will manufacture and mariceL IBM Motorola will fund and assign personnel to an R&D program for an X-ray lithograph project Interphase Corp. Motorola bought 20 percent of this disk controller maker. Oracle Oracle will port its popular ORACLE relational database management system and related ORACLE tools to Motorola's M88000-based computer systems. Philips International The companies will cooperate on VSLI integrated circuits for interactive compact discs. Thomson-CSF Thomson-CSF wiU standardize its military and defense products to Motorola's M88000 RISC microprocessor family. 1988 Data General Data General is to develop an ultrahigh-speed version of the M88000 RISC microprocessor family. Omnirel The two companies jointly introduced power MOSFET devices intended for military appUcations. Unisoft Group Unisoft is acting as Motorola's exclusive agent for future products based on UNIX Release V. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 11 Motorola Incorporated James Donnelly Executive vice president and director of Personnel MERGERS AND ACQUISITIONS 1991 UNIX Systems Laboratories Motorola joined 10 other companies in the purchase of 20 percent of the stock of AT&T-owned UNIX Systems Laboratories. David W. Hickie Executive vice president and chief corporate staff officer David G. Wolfe Executive vice president and general manager, Government Electonics group Edward F. Staiano President and general manager. General Systems sector KEY OFFICERS George M. C. Fisher Chairman of the board and chief executive officer Gary L. Tooker President and chief operating officer PRINCIPAL INVESTORS Christopher B. Galvin Senior executive vice president and assistant chief operating officer Information is not available. Donald R. Jones Executive vice president and chief financial officer Arnold S. Brenner Executive vice president and general manager, Japanese group 12 FOUNDERS Information is not available. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021. Motorola Incorporated Table 3 Comprehensive Financial Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data) Balance Sheet 1990 Cash Receivables Marketable Seciirities Inventory Other Current Assets Total Current Assets 1986 42.0 851.0 143.0 819.0 384.0 1987 47.0 1,101.0 211.0 909.0 439.0 1988 195.0 1,400.0 145.0 1,144,0 496.0 1989 231.0 1,683.0 202.0 1,173.0 626.0 265.0 1,857.0 312.0 1,245.0 773.0 2,239.0 2,707.0 3,380.0 3,915.0 4,452.0 Net Property, Plants Other Assets 2,140.0 303.0 2,329.0 285.0 2,854.0 476.0 3,337.0 434.0 3,778.0 512.0 Total Assets 4,682.0 5,321.0 6,710.0 7,686.0 8,742.0 Total Current Liabilities Long-Term Debt Other Liabilities 1,371.0 334.0 223.0 1,668.0 344.0 301.0 2,691.0 343.0 301.0 2,751.0 755.0 377.0 3,048.0 792.0 645.0 Total Liabilities Common Stock Odier Equity Retained Emiings 1,928.0 385.0 817.0 1,552.0 2,313.0 388.0 843.0 1,777.0 3,335.0 389.0 851.0 2,135.0 3,883.0 391.0 878.0 2,534.0 4,485.0 395.0 929.0 2.933.0 2,754.0 3,008.0 3,375.0 3,803.0 4,257.0 4,682.0 5,321.0 6,710.0 7,686.0 8,742.0 Total Shareholders' Equity Total Liabilities and Shareholders' Equity Source: Motorola Incorporated Animal Reports Dataquest (October 1991) 0011021 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 13 Motorola Incorporated Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data) Income Statement Revenue U.S. Revenue* Non-U.S. Revenue* Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value 1986 1987 1988 1989 1990 5,888.0 4,124.0 1,764.0 3,647.0 481.0 1,431.0 567.0 265.0 4.50 46.00 194.0 126.5 6,727.0 4,482.0 2,245.0 4,059.0 524.0 1,659.0 658.0 416.0 6.18 40.00 308.0 128.9 8,250.0 5,269.0 2,981.0 5,040.0 665.0 1.957.0 899.0 612.0 7.42 34.00 445.0 129.7 9,620.0 5,997.0 3,623.0 5,905.0 810.0 2,289.0 1,094.0 646.0 6.72 34.00 498.0 130.0 10,885.0 6,063.0 4,822.0 6,822.0 1,008.0 2,414.0 1,256.0 666.0 6.12 34.00 499.0 131.7 1.53 0.64 21.77 2.39 0.64 23.34 3.43 0.67 26.02 3.83 0.76 29.25 3.80 0.76 32.32 *Dataquest estimate Sonice: Motorola Incorporated Aimual Reports Dataquest (October 1991) Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (K)/Employee Capital Spending % of Assets 1986 1987 1988 1989 1990 1.63 170.01 49.78 70.01 1.62 176.89 55.45 76.89 1.26 198.81 79.73 98.81 1.48 202.10 69.79 102.10 1.46 205.36 71.60 105.36 4.14 7.04 3.29 5.79 10.24 4.58 6.63 13.19 5.39 6.48 13.09 5.18 5.71 11.72 4.58 8.17 9.63 94,400 62.37 12.11 7.79 9.78 97,700 68.85 12.37 8.06 10.58 102,000 80.88 13.01 8.42 11.37 104.000 92.50 14.23 9.26 11.54 115,400 94.32 14.37 Source: Motorola Incorporated Annual Reports Dataquest (October 1991) 14 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 National Semiconductor Corporation 2900 Semiconductor Drive Santa Clara, California 95052-8090 Telephone: (408) 721-5000 Fax: (408) 732-9742 Dun's Number: 04-147-2986 Date Founded: 1959 CORPORATE STRATEGIC DIRECTION National Semiconductor Corporation was formed in 1959 in Danbury, Connecticut, as a manufacturer of transistors. In 1967, when Charles E. Sporck was named president and CEO, the company moved its headquarters to Santa Clara, CaUfomia, and began producing proprietary integrated circuits (ICs). In January 1991, Mr. Sporck announced his retirement and Dr. Gilbert F. Amelio was named president and CEO. Dr. Amelio took over in May 1991. Under Dr. Amelio, National has been reorganized into two major business groups, the Communications and Computing Group and the Standard Products Group. In addition to the two groups, Military/Aerospace operates as a separate division. This decentralization is an attempt by the company to provide principal operating groups with fuU responsibility and control of their operations. The Communications and Computing Group is structured aroimd applications-focused product lines that use the company's VLSI technologies to serve selected vertical markets. The group is made up of six businesses: Innovative Products, Local Area Networks (including the Computer Enhancement Group and board level products). Mass Storage, Embedded Control, Office Automation (formerly known as Imaging), and ASIC. The second major business group is the Standard Products Group, which focuses on broad, horizontal markets. The Standard Products Group is made up of large, high-volimie product lines, including digital logic, linear, memory and programmable products, and discretes. 0011283 The company reported revenue of $1.7 bUlion* for the fiscal year ending in May 1991, an increase of 1.6 percent from the previous year. National reported a net loss of $151.4 million for fiscal 1991. The year's financial results reflect the impact of the restructuring activity that the company annotmced in August 1990, including a one-time pretax charge of $143.6 million, taken in the first quarter. Following this restructuring, the remaining three quarters showed modest but improved profitability. The company employs 29,000 people worldwide. National considers research and development essential to the future profitability of the company. For 1990, R&D expenditure was $198.6 million, which equates to 11.67 percent of revenue. National's primary process technology is built on a core CMOS process called M2CMOS. To this core, modules ate added for analog, E2 memory, EPROM, and BiCMOS applications. The woridiorse M2CMOS process appears across the board in several product lines. National offers a range of M2CMOS processes with design rules ranging down to 0.8 microiL The company plans to further shrink M2CMOS to 0.5 micron by the middle of the decade. M2CMOS uses dual-layer metalization with an optional third layer of metal. In addition to M2CMOS is the company's highperformance core VLSI bipolar process. Advanced Single-Poll Emitter-Coupled Technology (ASPECT). ASPECT and its BiCMOS module. Advanced BiCMOS (ABiC), are used for high-performance gate array and communications devices. ASPECT has been scaled from 2.5 microns to 0.8 micron and will be scaled in the future to 0.5 micron. *AI1 dollar amounts are in U.S. dollais. ©1991 Dataquest Incorporated October—^Reproduction Prohibited National Semiconductor Corporation In advanced packaging technology, the company uses a range of surface-mount devices including smalloutline packages, plastic chip carriers, and both lead and leadless ceramic chip carriers. National also commercialized tape-automated bonding with the development of TapePak. come largely from the Communications and Computing Group, grew 44 percent in calendar year 1990, placing National ninth in the worldwide market share rankings in this category. Innovative Products Division More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region and distribution channel. Tables 3 through 5, at the end of this backgrounder, present comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION Dataquest estimates that National Semiconductor held 11th place in both the 1989 and 1990 worldwide semiconductor market share rankings. The majority of National's semiconductor sales came firom the United States, which contributed revenue of $894 million. Asia/Pacific-ROWwas second with $417 million, followed by Europe with sales of $408 million. National offers analog, logic, memory, discrete, microcontroller, and ASIC products. Given the company's calendar year 1990 revenue of $619 million, Dataquest ranks National number 2 in the worldwide manufacture of analog ICs, representing 36 percent of the company's total semiconductor sales; number 4 in the worldwide manufacture of bipolar digital logic sales, representing 25 percent of the company's total semiconductor sales; number 13 in the worldwide manufacture of MOS digital, representing 35 percent of the company's total semiconductor sales; and number 24 in the worldwide manufacture of discrete devices, representing 4 percent of the company's total semiconductor sales. Communications and Computing Group The six divisions tmder the Communications and Computing Group are Innovative Products, Local Area Network, Mass Storage, Embedded Control, Office Automation, and ASIC. Dataquest estimates that National's MOS microcomponent sales, which The Innovative Products Division is a new division within the Communications and Computing Group designed to service new and developing businesses. The product lines currently in this division are: ^ ^ e less Communications (formerly known as Digital Mobil Radio), Advanced Communications (FDDI), Telecom, and PC Products. Under the Innovative Products Division, the Advanced Communications Business Unit supports the fiber-distributed data interface (FDDI) market National introduced its BiCMOS FDDI chip set in April 1990. In late 1990, National and Cabletron agreed to develop a transceiver to allow FDDI to be used for an unshielded twisted pair (UTP) transceiver. The Telecommimications Business Unit includes National in the noncaptive analog line card market with its COMBO family of CODECs. The COMBO I and COMBO n were developed by National and Ucensed to SGS-Thomson as a second source. The COMBO is the mdustry's first CMOS coder/decoder circuit (CODEC filter), and National holds foiupatents on this product The Personal Computer Product line includes floppy disk controllers, universal asynchronous receiver transmitters (UARTs), PC chips including the Enhanced AT, Super l^O, Video Graphics Adapter, and Biphase Communications Processor. Local Area Network Division The Local Area Network Division is the largest of the six product areas. According to National, this division has an estimated 80 percent market share of the PC LAN ethemet adapter board market The division has introduced new LAN products, such as the 32-bit SONIC (Systems-Oriented Network Interface Controller), and the ST-NIC, the industry's first singlechip lObase-T Ethemet Serial Network Interface Controller. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011283 National Semiconductor Corporation Mass Storage Division According to National, the Mass Storage Division grew 28 percent in fiscal year 1991. The company focuses on high-performance drives and supplies pulse detectors, data synchronizers, encoders/ decoders, servo controllers, and disk controllers. supplier worldwide, with calendar year 1990 sales of $590 million holding a 6.4 percent market share. Analog Division The Analog Division supports four business units: Standard Linear Products, Systems Products, Interface, and Custom Linear ASIC (CLASIC). Embedded Control Division National offers 4-, 8-, and 16-bit microcontrollers through its Embedded Control Division. For calendar year 1990, Dataquest estimates that National ranks ninth as the worldwide supplier of 4-bit microcontrollers, with 4.7 percent of the market share; eighth as the supplier of 8-bit microcontrollers with 3.0 percent of the market share; and foxirth as suppUer of 16-bit microcontrollers with 9.6 percent of the market share. Dataquest estimates that National's total MOS microcontroller sales were $99 miUion in calendar year 1990, an increase of 46 percent over the previous year. Office Automation Division The Office Automation DivisionCformerly the Imaging Group) manufactures image processors for laserbeam printers, high-speed facsimile machines, scanners, and other imaging peripherals needing embedded control processors. The group produces five imaging processors that range from 3 to 100 mips. These processors include the NS32CG160 Integrated System Processor, which is designed for use in midrange office peripherals including page printers and scanners; the NS32FX16 Imaging/Signal Processor, designed for use in fax machines and page printers; and the NS32GX320 high-performance 32-bit Integrated System Processor, a highperformance counterpart of the NS32FX16. ASIC Division The Linear Systems Business Unit suppUes the audio/ video and automotive markets with applicationsspecific products including video monitors and consumer audio and other automotive applicators. The Interface Business Unit offers both bipolar and CMOS products. Product offerings include real-time clocks, DRAM memory management, and peripheral drivers using mixed technology. The group offers a range of line drivers and receivers, as well as bus circuits. Several of the transmitter-devices are based on backplane transceiver logic (BTL), a technology invented by National. A set of four BTL-based transceivers and controllers for Futurebus was announced in early 1991. CLASIC, National's linear ASIC product, employs over ISO cells in its standard linear library, many of which are tailored to specific market segments. National offers CLASIC capability in bipolar, CMOS, and BiCMOS technologies. CLASIC addresses many mixed-signal applications and design methodologies. Memory and Programmable Products Division In the ASIC arena. National services market segments such as ECL gate arrays, mixed-analog and digital products, and BiCMOS gate arrays. Dataquest estimates that National's ASIC sales were $114 million in calendar year 1990. National's ASIC processes include M2CMOS, ASPECT, and its BiCMOS module ABiC. Standard Products Group The Standard Products Group consists of four divisions: Analog, Memory and Programmable Products, Logic, and Discretes. Dataquest estimates that National is the niimber one monoUthic analog IC 0011283 The Standard Linear Business Unit produces operational amplifiers, power management circuits (motion control and voltage regulators), and data acquisition circuits. New products within the Standard Linear Business Unit are high-speed VIP amplifiers, 12bit self-caUbrating Analog to Digital and Simple Switchers. National's memory products sales worldwide amounted to $172 milUon in calendar year 1990. National's memory product line is comprised of EPROMS and EEPROMS. National offers 16Kb to 4Mb CMOS EPROMS ranging in speedfirom90ns to 250ns. EEPROM densities range fiom 256 bit to 4Mb. National also offers fast CMOS TTLIO SRAMS ranging from 64 bit to 1MB with access times of 20ns to 45ns. The programmable logic products include high-performance TTL and ECL PALs, as well as high-performance/high-density CMOS PLDs. In the CMOS market. National produces CMOS GALS as well as the newly released high-density MAPL family. ©1991 Dataquest Incorporated October—^Reproduction Prohibited National Semiconductor Corporation Logic Division National's digital logic product line spans three technologies bipolar: CMOS, and BiCMOS. National offers appUcation targeted high-performance logic in the following industry recognized standard product famihes: FACTQS, FASTr, BCT, 100k ECL. Discretes Division National has discrete manufacturing facilities located in the Philippines and Brazil. Computing Group and the Standard Products Group. The company has manufactured products in the aerospace industry for the past twenty years. The company's devices have been used in satellites and lunar probes. National's products have qualified to Class S of the government's MIL-M-38510 specification and have participated in the U.S. Air Force Monitored Line program (administered by Lockheed Missiles and Space Company), which provides circuits for defense satellite systems. European and Japanese space programs also use National components. Further Information Military/Aerospace Division National's Military/Aerospace Division functions independently of both the Communications and For further information on the company's business segments, please contact Dataquest's Semiconductor industry service. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011283 National Semiconductor Corporation Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1987 1988 1989 1990 1991 1,867.9 NA 1,432.1 (23.33) 1,647.9 15.07 1,675.0 1.64 1,701.8 1.60 Capital Expenditure Percent of Revenue 94.7 5.07 154.2 10.77 277.6 16.85 182.0 10.87 97.6 5.74 R&D Expenditure Percent of Revenue 218.9 11.72 225.6 15.75 264.8 16.07 252.4 15.07 198.6 11.67 29,200 63.97 37,700 37.99 32,200 51.18 32,700 51.22 29,000 58.68 (24.6) NA 62.7 (354.88) (23.2) (137.00) (25.0) 7.76 (151.4) 505.60 Five-Year Revenue Percent Change Number of Employees Revenue ($K)/Employee Net Income Percent Change Fiscal Year 1990 Qi Quarterly Revenue Net Income 442.7 (165.5) Q2 Q3 Q4 427.4 3.5 386.8 3.5 444.9 5.6 Souice: Nadonal Semiconductor Coip. Annual Reports and Forms 10-K Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region North America Europe Asia 1987 1988 1989 1990 1991 58.00 25.00 17.00 55.00 24.00 21.00 55.00 23.00 22.00 55.00 21.00 24.00 52.53 23.97 24.50 Source: Nationid SSemiconductor Corp. Atmual Reports and Fbrms 10-K Dataquest (October 1991) 0011283 ©1991 Dataquest Incorporated October—^Reproduction Prohibited National Semiconductor Corporation 1990 SALES O F n C E LOCATIONS Information is not available. Cadence Design Systems Inc. National is a member of Cadence's Analog Alliance to develop future CAD systems for analog and mixed-analog/digital circuits. Valid Logic Systems Inc. National has an agreement with Valid to jointly develop models for Simple Switcher products. MANUFACTURING LOCATIONS 1988 Information is not available. Analogy National and Analogy will jointly develop models for Simple Switcher products. SUBSIDIARIES Information is not available. ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS Cadence Design Systems Inc. National and Cadence Design Systems signed three agreements, thefirstof which is a technology partnership involving collaboration on an IC design system. The second is for Cadence to supply software to National's engineering organization for use in National's workstations. The third allows National to develop and market a fourth-generation ASIC design automation system using IC design products from Cadence. SGS-Thomson Microelectronics B.V. SGS-Thomson and National are codeveloping ISDN devices. 1991 Hitachi Ltd. National entered into a broad patent cross-licensing agreement with Hitachi. The agreement is effective for 10 years and includes patents for products and technologies during that time frame, as well as those previously developed. MERGERS AND ACQUISITIONS 1989 1990 Ifitachi Ltd. Hitachi Data Systems puidiased National Advanced Systems fiom National Semiconductor. WaferScale Integration (WSI) National and WSI signed a five-year manufacturing and technology exchange agreement for highspeed, high-density CMOS EPROM products. Additionally, National has made an investment in WSI and is licensed to manufacture and market worldwide certain families of WSI's high-density EPROM products. ICL Inc. National sold its retail systems unit, Datachedca* Systems, to ICL. 1989 KEY OFFICERS Acer Inc. Acer and National developed an enhanced I/O chip for use in 286 AT and 386 AT computers. Peter J. Sprague Chairman of the board Hitachi Ltd. Hitachi will second-source the FACT line of standard logic. Charles E. Sporck President and chief executive officer from 1966 to 1991, member of the board of directors ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011283 National Semiconductor Corporation • Dr. Gilbert F. Amelio President and chief executive officer, member of the board of directors Edgar R. Parker Senior vice president, Military/Aerospace Donald P. Beadle Senior vice president. International Business Group Kirk Pond Copresident, Standard Products Group Patrick J. Brockett Corporate vice president. International Business Group Charles P. Carinalli Executive vice president, Communications and Computing Group David S. Dahmen Treasurer George Scalise Senior vice president. Planning and Development Richard L. Sanquini Senior vice president. Business Development John G. Webb Senior vice president. General Counsel and secretary Raymond J. Farnham President, Communications and Computing Group Michael E. Hawkins Senior vice president. Human Resources PRINCIPLE INVESTORS Don Macleod Senior vice president. Finance, and chief financial officer Information is not available. Robert B. Mahoney Controller R. Thomas Odell Copresident, Standard Products Group FOUNDERS Jim Owens Senior vice president. Quality and Strategic Operations Information is not available. 0011283 ©1991 Dataquest Incorporated October—^Reproduction Prohibited National Semiconductor Corporation Table 3 Balance Sheet Fiscal Year Ending in May (Millions of Dollars) Balance Sheet Cash Receivables Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Preferred Stock Common Stock Other Equi^ Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 189.1 269.2 270.1 96.5 824.9 633.9 40.6 1,499.4 473.5 35.7 99.1 608.3 0.1 51.3 687.2 152.5 891.1 1988 147.2 401.5 417.0 76.1 1,041.8 683.6 51.6 1,777.0 669.8 37.3 56.3 763.4 0.1 53.9 142.1 142.1 1,013.6 1989 228.0 194.2 218.9 37.3 678.4 696.5 41.2 1,416.1 448.8 52.2 66.6 567.6 0.1 51.3 108.9 108.9 848.5 1990 128.7 211.4 220.0 64.9 625.0 702.2 50.4 1.377.6 401.6 64.2 95.0 560.8 0.1 51.6 73.9 73.9 816.8 1991 192.5 200.3 188.4 31.4 612.6 527.4 50.7 1,190.7 416.5 19.9 96.0 532.4 0.1 52.0 (87.5) (87.5) 658.3 1,499.4 1,777.0 1,416.1 1,377.6 1,190.7 1987 Source: National Semicondactor Coip. Ammal Reports and Fonns 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011283 National Semiconductor Corporation Table 4 Consolidated Income Statement Fiscal Year Ending in May (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense Restructuring Costs Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividends Book Value 1987 1988 1989 1990 1991 1,867.9 1,080.9 787.0 1,319.1 218.9 NA 94.7 (9.3) (0.50) 46.00 (24.6) 91.7 1,432.1 799.2 623.9 979.9 225.6 NA 154.2 31.7 2.21 35.00 62.7 107.7 1,647.9 908.1 739.8 1,280.3 264.8 53.6 277.6 (198.5) (12.05) 34.00 (23.2) 103.1 1,675.0 921.0 754.0 1,251.1 252.4 (8.0) 182.0 (32.4) (1.93) NA (25.0) 102.7 1,701.8 894.0 825.0 1,294.3 198.6 119.6 97.6 (149.0) (8.76) NA (151.4) 103.4 (1.73) 0 9.72 0.49 0 9.41 (0.32) 0 8.23 (0.34) 0 7.95 (0.34) 0 6.37 NA = Not available Source: National Semiconductor Corp. Annual Reports and Fbnns 10-K Dataquest (October 1991) Table 5 Key Financial Ratios Fiscal Year Ending in May Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets NA = Not available 0011283 1987 1988 1989 1990 1991 1.74 168.26 53.14 68.26 1.56 175.32 66.08 75.32 1.51 166.89 52.89 66.89 1.56 168.66 49.17 68.66 1.47 180.87 63.27 80.87 (1.64) (2.76) (1.32) 3.53 6.19 4.38 (1.64) (2.73) (1.41) (1.81) (3.06) (1.49) (12.72) (23.00) (8.90) 11.72 5.07 29,200 63.97 6.32 15.75 10.77 37,700 37.99 8.68 16.07 16.85 32,200 51.18 19.60 15.07 10.87 32,700 51.22 13.21 11.67 5.74 29,000 58.68 8.20 Source: National Semiconductor Corp. Annual Reports and Forms 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited Company Backgrounder by Dataquest NEC Corporation 33-1 Shiba 5-chome Minato-ku, Tokyo 108, Japan Telephone: (03) 454-1111 Fax: (03) 452-6351 Dun's Number: 00-183-6014 Date Founded: July 1899 CORPORATE STRATEGIC DIRECTION NEC Corporation (known as Nippon Electric Company Ltd. prior to April 1, 1983) was founded in 1899 to manufacture telephone sets and switchboards. NEC is a leading global supplier of a broad range of communications systems and equipment, computers and industrial electronic systems, electron devices, consumer electronics, and information services. The company bases its activities on the synergistic integration of computers and communications systems. NEC divides its operations into five main product groups: Communications Systems and Equipment, Computers and Industrial Electronic Systems, Electron Devices, Home Electronic Products, and Other Operations. In 1990, the Computers and Industrial Electronic Systems group remained the largest in terms of percentage of total revenue, with sales totaling ¥1.5 trilhon (U.S.$9.5 billion), which accounted for 43.7 percent of total revenue. (Percentage changes refer only to ¥ amounts; U.S.$ percentage changes will differ because of fluctuations in Dataquest exchange rates.) This figure was up 13 percent from the group's 1989 revenue of ¥1.3 trillion (U.S.$8.4 billion). The biggest rate of increase in 1990 came from the Other Operations group, whose 1990 revenue of ¥192.9 billion represented a 23.7 percent increase over the 1989 total of ¥155.9 billion. operating results. NEC operates 56 consoUdated subsidiaries, 62 manufacturing plants, and more than 300 sales offices in Japan. Domestic sales in 1990 totaled ¥2.55 trillion, accounting for 74.0 percent of total sales. Overseas, NEC markets its products through a network of 68 subsidiaries and affiliates in 28 countries. Overseas sales increased 15.0 percent in 1990, chmbmg to ¥892.1 billion, or 25.9 percent of total revenue. Capital expenditure increased 20.3 percent during fiscal 1990 to ¥343.8 biUion, representing 10 percent of total revenue. Research and development expenditure totaled ¥552.9 bUUon for fiscal 1990, representing 16.1 percent of revenue. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highhghts and revenue by region and distribution channel. Information on revenue by distribution chaimel is not available. Tables 3 through 5, at the end of this backgroimder, present comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION Computers and Industrial Electronic Systems NEC reported consolidated revenue for fiscal year ending March 31, 1990, of ¥3.44 trillion, or approximately U.S.$22.2 biUion, up 11.7 percent from fiscal 1989's total of ¥3.08 trillion (U.S.$19.5 billion). Net income rose 32.1 percent from ¥64.48 billion (U.S.$408.1 miUion) in fiscal 1989 to ¥85.22 billion (U.S.$539.4 miUion) in fiscal 1990. NEC's Computers and Industrial Electronic Systems group manufactures, designs, and markets a diverse product line of mainframe computers, personal computers, small business computers, peripherals, software, and industrial electronics systems. In 1990, sales of computers and industrial electromc systems rose 13.1 percent to ¥1.51 trillion, accounting for 43.8 percent of total sales. NEC points to the strength of the domestic Japanese economy as a major contributor to its strong NEC introduced a number of new products designed to strengthen and expand its product line in 1990. In 0011240 ©1991 Dataquest Incorporated October—Reproduction Prohibited J NEC Corpora tiun February, NEC released the NEC System 3600 series of large-scale maintrame computers, a series featuring bipolar complemeniaiy metal oxide semiconductors (BiCMOS) to increase processing speed and reduce power consumplioiL NEC also added 12 new models to its popular PC-9800 series. Designed for scientific and engineering calculations, image processing, and (xmimunication that requires high-speed processing, the PC-H98 features new extended standard architecture, a 32-bit bus architecture offering a faster data transfer rate. OtlKr PC-9800 series addidons include the PC-9801N NOTE laptop and a new addidon to the PC PowerMate series that adopts the cxtendecd industry standard architecture. In the software market, NEC released SPECDESSIN, a development support system for business-application software that improves efficiency in system design for mainframes. NEC's PC product line centers around the PC-9800 and PowerMate scries. According to Dataquest estimates, the PC-980] XXXX was the sixth-rated model in the 1990 worldwide desktop computer market, with a market share of 2.09 percent based on 312,000 units shipped. NEC ranked third in the 1990 worldwide desloop market, trailing only IBM Corporation and Apple Computer Inc. NEC garnered 7.85 percent of the market with sales totaling $2.5 biUion. The PC-9801 N/NV laptop computer was the leading model in the 1S)90 worldvride laptop D/C market, bringing in $319-9 miUion in factory revenue and an 8.11 percent market share. NEC ranked second overall in the 1990 woridwide laptop D/C market with an 18.17 percent market share and $715.6 million in factory revenue. NEC is also active in the computer storage market; Dataquest estimates that NEC ranked sixth in the total rigid disk drive market, with 2.1 miUioQ units shipped in 1990 and a 7.1 percent market share. The company's strongest entry in [he storage inark^t is 8- to 14-inch disk drives; NEC ranked third in the worldwide market in 1990 with a 13.8 percent market share. Electron Devices NEC is active in the production of various memories, microcontrollers, microcomponents, integrated circuits (ICs), gate arrays, and logic devices through its Electron Devices product group. TTie group's sales increased 7,1 percent lo ¥605,9 billion in 1990, comprising 17.6 percent of total revenue. Dataquest estimates that NEC was the world leader in semiconductor sales m 1990, possessing an 8.4 percent maiicet share based on $4.9 billion in factory revenue. NEC was also the worldwide market leader in 1990 in the total IC, the MOS Digital, and the MOS Logic markets with respective market shares of 8,9, 10.8, and 11.3 percent During fiscal 1990, NEC began production of 4Mb DRAMs at its manufactming facilities in Yamaguchi and Kyushu. Production of 4Mb DRAMs also began in 1990 at NEC's new Hiroshima manufacturing planL Other major accomplishments for the group in 1990 included a joint ventine with AT&T Microelectronics of the United States, involving cooperation on semiconductor technologies such as gate arrays; the development of the world's fastest 4Mb SRAM; the introduction of the company's first 32-bit RISC products, die VR3000 and the VR30I0; the release of a 75mW helium-neon (He-Ne) laser designed for spectral analysis and holography; and the release of a new galhum arsenide prescaler IC for VSATs that responds at frequencies up to 14 GHz. Communications Systems and Equipment Communications systems are an integral part of NEC's vision of "C&C," the company's corporate strategy of integrating computers and communicatioiL NEC's product line in the communications industry includes digital switching systems, fiber-optic and radio transmission systems, space electronics, mobUc communications systems, customer premises equipment, and broadcast equipment. The Commuiucations Systems and Equipment group's revenue increased 9.1 pcrccru in 1990 to ¥875 billion, representing 25.4 percent of total revenue. Dataquest estimates that NEC ranked fifth in the 1990 North American PBX systems market with 309,400 lines installed and a 6.9 percent market share. NEC also ranked third in 1990 in Segment 5 of the North American facsimile equipment market with a 7.8 percent market share. Major contracts m 1990 included an order for an optical submarine cable system, which will link Japan, Hong Kong, and the Republic of Korea. Two NEC satcUites were released in 1990 by Japan's National AeroSpace Development Agency: the Momo-Ib marine observation satellite and the Fuji 2 amateur radio satellite. NEC also strengthened its Integrated Services Digital Nctwoii (ISDN) product line in fiscal 1990 with the introduction of two new products: the (34 fs:simile NEFAX D800, (ksigned to meet the needs of ISDN services primarily in domestic financial institudotis and local govenmient, and the Advanced P K Series digital key telephone system. ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011Z40 NEC Corporation Home Electronics Products Home electronics products in NEC's portfoho include color TV receivers and projectors, VCRs, videodisk players, and other small home electronics devices such as electronic diaries. The group's sales increased 16.8 percent to ¥264 biUion in 1990, and accounted for 7.7 percent of total revenue. NEC has been active in the introduction of 4he state-of-the-art broadcast satellite visual audio home entertainment system. In 1990, the PARABOLA series of home-use direct broadcast satellite receiver systems was released, consisting of antennas, tuners, televisions, VCRs, and projection televisions using the new tuning systems. revenue increased 23.7 percent to ¥193 billion, representing 5.6 percent of total revenue. The VAN information system has continued to gain widespread acceptance both in Japan and internationally. The number of subscribers to the company's PC-based VAN service doubled during 1990; flie current total is more dian 100,000 subscribers. In 1990, NEC released the C&C Marine VAN Service, which provides ships at sea with the same communications services offered to onshore subscribers. NEC also released the AF-8410P memory testing system in 1990, which boasts the world's highest test rate of 500 MHz. Other Operations Other services offered by NEC include value-added network (VAN) information services, electrical connectors, and measuring and testing systems. The Other Operations group was NEC's fastest-rising group in terms of revenue in fiscal 1990. The group's 0011240 Further Information For further information about the company's business segments, please contact the appropriate industry service. ©1991 Dataquest Incorporated October—^Reproduction Prohibited NEC Corporation Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change 13,501 46.24 17,159 27.09 22,220 29.49 23,510 5.81 22,179 (5.66) Capital Expenditure Percent of Revenue 1,648 12.20 1,326 7.73 2,016 9.07 - 2,148 9.14 2,176 9.81 R&D Expenditure Percent of Revenue 1,836 13.60 2,629 15.32 3,496 15.73 3,657 15.56 3,499 15.78 Number of Employees Revenue ($K)/Employee 95,796 140.94 101,227 169.51 102,452 216.88 104,022 226.01 104,022 213.22 Net Income Percent Change 153 (42.92) 103 (32.55) 205 98.54 485 137.07 539 11.26 1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit N/A NA NA NA NA NA NA NA NA = Not available Source: NEC Coipoiation Annual Rq)orts Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 Japan All Others 67.00 33.00 72.00 28.00 73.00 27.00 75.00 25.00 74.00 26.00 Source: NEC Cotpoiation Annual Reports Dataquest (October 1991) ©1991 Dataquest Incorporated October—Reproduction Prohibited (X)11240 NEC Corporation 1990 SALES OFFICE LOCATIONS Japan—More than 300 Overseas—170 MANUFACTURING LOCATIONS Japan Ando Electric Measiuing and testing systems Anelva Corp. Semiconductor manufacturing equipment, vacuum equipment Amitsu Corp. Communications and electronic equipment, measuring instruments Anten Kogyo Antennas, related equipment Japan Aviation Electronics Electrical connectors, electronic equipment Kaijo Denki Lidustrial marine equipment NEC Akita ICs, discrete semiconductor devices NEC Data Terminals Computer terminals NEC Fukui ICs, discrete semiconductor devices NEC Fukuoka ICs NEC Fiikusbima Communications equipment, related components NEC Gunma Computers, related systems NEC Hiroshima 4Mb DRAMs NEC Home Electronics TVs, home electronic appUances, electronic parts NEC Hyogo Communications equipment parts NEC Ibaraki Computers, related systems NEC Kagoshima Electronic devices NEC Kansai ICs, discrete semiconductor devices, electronic devices NEC Kofu Development of computers 0011240 NEC Kiunamoto ICs NEC Kyushu ICs NEC Miyagi Communications equipment, related components NEC Nagano Home electrical appliances NEC Niigata Computers, related systems NEC Oita ICs NEC Radio & Electronics Communications equipment, related components NEC Saitama Communications equipment, related components NEC San-ei Instruments Medical electronic eqmpment, industrial measuring systems NEC Shizuoka Communications equipment, computer terminals NEC Tohoku Communications equipment, computer terminals NEC Toyama Electronic devices NEC Yamagata ICs, discrete semiconductor devices NEC Yamaguchi ICs NEC Yonezawa Communications equipment, computer terminals Nico Electronics Special communications equipment, vending machines Nippon Avionics Electromc equipment for aircraft Nippon Electric Glass CRTs, other glass products Nippon Electric Industry Electrical machinery, precision instruments Nitsuko Ltd. Communications equipment and parts Showa Koki Seizo Optical precision instruments Takasago Ltd. Telephones, communications equipment Tama Electric Resistors Tohoku Metal Industries Magnetic materials Tokin Corp. Magnetic materials, electric parts Toyo Communication Equipment Communications equipment and parts ©1991 Dataquest Incoiporated October—Reproduction Prohibited NEC Corporation North America NEC America Faxes, printers, magnetic disk drives NEC Electronics 256K DRAMs NEC Home Electronics Home electronic products, laptop PCs NEC Information Systems Office computers, printers, etc. NEC Research Institute R&D center Europe NEC Ireland ICs NEC Semiconductor, United Kingdom 256K DRAMs NEC Technologies, United Kingdom VCRs, printers, car telephones, faxes Asia/Pacific NEC Electronics Singapore Linear ICs, 256K DRAMs NEC Home Electronics, Malaysia Home electronic products NEC Semiconductor, Malaysia ICs, discrete semiconductor devices NEC Technologies, Thailand Telephones PERNAS NEC Telecommunications, Malaysia Communications equipment Siam NEC Company (Thailand) Color TVs Taiwan Telecommunications Ind. Communications equipment ROW NEC Australia ICs NEC de Mexico Communications equipment NEC do Brazil Telephone switching systems, radio equipment electronics NEC Home Electronics, Australia Color TVs PECOM-NEC, Argentina Digital electronic switching Philco Argentina TVs, radios, etc. SUBSIDIARIES Japan ANELVA Corporation Ando Electric Company Ltd. Japan Aviation Electronics Industry Ltd. NEC Aldta Ltd. NEC Data Terminals Ltd. NEC Engineering Ltd. NEC Factory Engineering Ltd. NEC Field Service Ltd. NEC Fukui Ltd. NEC Fukuoka Ltd. NEC Fukushima Ltd. NEC Gunma Ltd. NEC Home Electronics Ltd. NEC Hyogo Ltd. NEC Ibaraki Ltd. NEC Information Service Ltd. NEC Kagoshima Ltd. NEC Kansai Ltd. NEC Kumamoto Ltd. NEC Kyushu Ltd. NEC Miyagi Ltd. NEC Nagano Ltd. NEC Niigata Ltd. NEC Oita Ltd. NEC Radio & Electronics Ltd. NEC Saitama Ltd. NEC San-ei Instruments Ltd. NEC Shizuoka Ltd. NEC Software Ltd. NEC System Integration & Construction Ltd. NEC Tohoku Ltd. NEC-Toshiba Information Systems Inc. NEC Toyama Ltd. NEC Warehouse and Distribution Ltd. NEC Yamagata Ltd. NEC Yamaguchi Ltd. NEC Yonezawa Ltd. Nippon Avionics Co. Ltd. North America HNSX Supercomputers Inc. (United States) NEC America Inc. (United States) NEC Business Communication Systems (United States) NEC Canada Inc. (Canada) NEC Electronics Inc. (United States) NEC Industries Inc. (United States) NEC Logistics America Inc. (United States) NEC Research Institute Inc. (United States) ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011240 NEC Corporation NEC USA Inc. (United States) NMI Corporation (United States) Europe NEC Business Systems (Italiana) s.r.l. (Italy) NEC Deutschland GmbH (Germany) NEC Electronics (Europe) GmbH (Germany) NEC Electronics (France) S.A. (France) NEC Electronics (Germany) GmbH (Germany) NEC Electronics Italiana s.r.l. (Italy) NEC Electronics (UK) Limited (United Kingdom) NEC Finland OY (Finland) NEC France S.A. (France) NEC Electronics GmbH (West Germany) NEC Iberia S.A. (Spain) NEC Industries Netherlands B.V. (Netherlands) NEC Scandinavia AB (Sweden) NEC Semiconductors Ireland Limited (Ireland) NEC Semiconductors (UK) Limited (United Kingdom) NEC Technologies (UK) Ltd. (United Kingdom) NEC (UK) Ltd. (United Kingdom) ROW Home Electronics Co. Ltd. (Thailand) NEC Argentina S.A. (Argentina) NEC Australia Pty. Ltd. (Australia) NEC do Brasil S.A. (Brazil) NEC Chile S.A. (CMle) NEC Colombia S.A. (Colombia) NEC Communication Systems (Thailand) Co. Ltd. (Thailand) NEC Customer Services (Australia) Pty. Ltd. (Australia) NEC Electronics Hong Kong Limited (Hong Kong) NEC Electronics Singapore Pte. Ltd. (Singapore) NEC Electronics Taiwan Limited (Taiwan) NEC Engineering (Thailand) Co. Ltd. (Thailand) NEC Home Electronics Australia Pty. Ltd. (Australia) NEC Home Electronics (Malaysia) Sdn. Bhd. (Malaysia) NEC Hong Kong Limited (Hong Kong) NEC Information Systems Australia Pty. Ltd. (Australia) NEC de Mexico, S.A. de C.V. (Mexico) NEC Nigeria Limited (Nigeria) NEC Sales (Malaysia) Sdn. Bhd. (Malaysia) NEC Saudi Arabia Limited (Saudi Arabia) NEC Semiconductors Sdn. Bhd. (Malaysia) NEC Singapore Pte. Ltd. (Singapore) NEC Taiwan Ltd. (Taiwan) NEC Technologies Hong Kong Limited (Hong Kong) NEC Technologies Philippines Inc. (Philippines) 0011240 NEC Technologies (Thailand) Co. Ltd. (Thailand) NEC (Thailand) Ltd. (Thailand) NEC de Venezuela (Venezuela) New Zealand Telecommunications Systems Support Centre Limited (New Zealand) PERNAS NEC Telecommunications Sdn. Bhd. (Malaysia) Siam NEC Co. Ltd. (Thailand) Taiwan Telecommunication Industry Co. Ltd. (Taiwan) Hanjin NEC Telecommunications Engineering Co. Ltd. (China) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 AT&T Corporation The two companies agreed to jointly produce digital car telephone systems tai;geted at Japanese communications companies. In a separate agreement, the two companies also agreed to joindy develop 0.35-micron CMOS technologies. Robert Bosch GmbH The two companies signed an agreement giving NEC worldwide rights to design, develop, and maiket large-scale integrated circuits that conform with Bosch's Controller Area Network specification. DEC Corporation NEC joined DEC'S PowerFrame Synergy Programme, a union of 23 companies designed to promote industry standards in ASIC design. IBM Japan Ltd. NEC and IBM Japan signed an agreement whereby IBM Japan will market NEC's SX-3 supercomputer. NTT Corporation NEC and NTT signed a joint technology agreement dealing with the joint development of a digital portable telephone with a volume of only 195CC. Otsuka Shokai and Matra Datavision K.K. NEC and Otsuka Shokai made an agreement with Matra Datavision K.K., under which NEC and Otsuka Shokai will market a version of Matra Datavision's EUCLID-IS 3-D mechanical CAD/ CAM/CAE software. ©1991 Dataquest Incorporated October—^Reproduction Prohibited NEC Corporation Sanyo Corporation Sanyo entered the UNIX engineering market by signing a technology agreement with NEC that allows Sanyo to sell NEC's EWS4800 Series engineering workstations. Valid Logic Systems Inc. Valid Logic Systems signed a $1 miUion technology development agreement with NEC for the development of analog IC tools. 1990 Hughes Aircraft Company Hughes Aircraft hcensed NEC to build C-Nite night-attack fire control equipment for Japanese Groimd Self Defense Force AH-IS antitank helicopters. Honeywell Bull NEC Computer Systems and Honeywell Bull will cooperate in R&D of artificial intelligence. Corvus Systems NEC and Corvus Systems are involved in joint development of a CMOS single-chip controller. Digital Research Incorporated NEC has a joint-marketing agreement with Digital Research regarding a CP/M operadng system for the V Series. Oki NEC has developed a CMOS signal processor (UPD77C20) with Oki. Philips NV NEC and Philips signed a licensing agreement to manufacture and market chips using Philips I(2)Cbus system technology. Sharp Electronics Corporation NEC and Sharp agreed to joinfly develop and produce V Series microperipherals. Under the agreement, NEC will provide its original microperipherals to Sharp on an OEM basis, and Sharp will develop new microprocessors for NEC. Texas Instruments Inc. (TI) NEC and TI renewed their five-year semiconductor patent cross-licensing agreement Sharp and Sony Sharp and Sony have been announced as second sources for the NEC V Series. 1989 MIPS Computer Systems Inc. MIPS entered into a royalty-bearing technology exchange with Siemens and NEC for its RISC MPUs. NEC plans to manufacture the R2000A and R3000 devices and peripherals in Japan and Europe. Siemens will manufacture in Europe. MERGERS AND ACQUISITIONS Infonnation is not available. 1988 Optoelectronics Research Labs Photodiodes KEY OFFICERS Summit Microcircuits 64K/256K fast SRAMS Kenzo Nakamura Chairman of the board Enabling Technologies Inc. Enabling Technologies entered into a strategic alUance with NEC Home Electronics (United States) to develop products and explore new technologies in graphics manipulation, animation, and optical media. Tadahiro Sekimoto President British Telecom U.K. NEC's U.K. subsidiary, NEC Technologies, manufactures jointly developed car telephones for British Telecom. Yoshiteru Ishii Senior executive vice president Koji Maeda Senior executive vice president Toshiro Kunihiro Senior executive vice president ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011240 NEC Corporation PRINCIPAL INVESTORS Sumitomo Life Insurance Sumitomo IVust & Banking Sumitomo Bank Mitsubishi Trust & Banking Nippon Life Insurance Dai-ichi Mutual Life Insurance Sumitomo Marine & Fire Insurance Toyo Trust «fe Banking Sumitomo Electric Industries Sumitomo Corporation 0011240 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 9 >fEC Corporation Table 3 Balance Sheet Fiscal Year Ending March 31 (Millions of LI.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Long-Term Receivables and Investments Net Property, Plants Other Assets 1,685.9 5,987.3 404.9 5,243.0 1,436.5 14,757.6 2,101.1 5,490.5 1,077.5 1989 2,930.5 6,568.7 442.9 5,140.1 889.2 15,971.4 2,247.4 5,787.7 1,154.6 1990 2,230.8 6,329.5 424.3 4,657.6 516.6 14,158.8 1,970.4 6,061.6 1,125.6 18,944.4 23,426.7 25,161.1 23,316.4 10,162.9 5,052.8 206.4 15,422.1 784.3 1220.0 49.1 1,470.0 (0.8) 3,523.4 12,878.5 5,480.4 283.9 18,642.8 1,184.9 1716.7 64.0 1,818.8 (0.2) Total Shareholders' Equity 7,987.6 3,579.7 163.7 11,731.0 600.0 953.6 44.9 1,199.7 (0.1) 2,798.2 4,784.4 13,234.8 6,431.1 311.9 19,977.8 1,202.8 1842.9 75.1 2,068.9 (6.5) 5.189.7 12,408.9 5,478.8 332.6 18,220.3 1,109.8 1,700.9 289.8 1,995.7 (0.1) 5,096.2 Total Liabilities and Shareholders' Equity 14,529.1 18,944.7 23,427.0 25,161.0 23,316.4 Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Additional Paid-in Capital Other Equity Retained Earnings Treasury Stock 1986 822.6 3,635.7 437.0 3,087.9 748.1 8,731.3 1,563.9 3,621.0 612.8 14,529.0 1987 1,229.0 4,670.8 558.8 4,100.2 1,493.4 12,052.2 1,662.1 4,395.2 834.9 1988 Source: NEC Corporation Annual Reports Dataquest (October 1991) 10 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011240 NEC Corporation Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1:^ 1986 1987 1988 1989 1990 13,501.3 8,868.7 1,836.2 3,422.9 1,647.7 661.9 4.90 58.00 152.7 1,387 17,159.1 1,1654.5 2,629.2 4,492.3 1,326.2 397.6 2.32 58.00 103.0 1,408 22,219.5 15,120.0 3,495.7 5,863.0 2,016.0 566.0 2.55 56.00 204.5 1,469 23,509.5 15,778.2 3,657.4 6,011.2 2,148.3 993.9 4.23 56.00 484.8 1,494 22,179.2 14,451.6 3,499.3 5,869.9 2,175.8 1,099.6 4.96 54.00 539.4 1,520 0.11 0.05 2.02 178 0.07 0.06 2.50 146 0.14 0.07 3.26 124 0.31 0.07 3.47 133 0.33 0.07 3.35 158 Source: NEC Coiporation Annual Reports Dataquest (October 1991) Table 5 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Cuixent Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue ($K)/Employee Capital Spending % of Assets Exchange Rate (U.S.$1=^ 1986 1987 1988 1989 1990 1.09 519.23 285.45 419.23 1.19 537.67 288.44 437.71 1.15 489.65 269.18 389.66 1.21 484.83 255.02 384.95 1.14 457.53 243.49 357.53 1.05 4.56 1.13 0.54 2.92 0.60 0.87 4.27 0.92 1.93 9.34 2.06 2,31 10.58 2.43 13.60 12.20 95,796 140.94 11.34 178 15.32 7.73 101,227 169.51 7.00 146 15.73 9.07 102,452 216.88 8.61 124 15.56 9.14 104,022 226.01 8.54 133 15.78 9.81 104,022 213.22 9,33 158 Source: NEC Corporation Annual Reports Dataquest (October 1991) (X)11240 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 11 Company Backgrounder by Dataquest N.V. Philips Gloeilampenfabrieken Groenewoudseweg 1 5621 BA Eindhoven The Netherlands Telephone: (31-40) 786022 Fax: (31-40) 785486 Dun's Number: 40-455-3240 Date Founded: 1891 CORPORATE STRATEGIC DIRECTION N.V. Philips Gloeilampenfabrieken (Philips), incorporated in 1912, is a widely diversified multinatioiial group of companies, engaged primarily in the manufacturing and distribution of electronic and electrical products, systems, and equipment. The legal entity, N.V. Gcmeenschappehjk Bezit van Aandeelcn Phihps Gloeilampenfabrieken (Philips N.V), operates solely as a holding company for share capital of N.V Phihps Gloeilampenfabrieken (Piuhps), of which it holds 99.99 percent Phihps Industries functions as the primary holding conqiany for the company's nimieious national organizations, which are wholly owned subsidiaries operating in over 60 cotmtries. These subsidiaries' businesses vary from simple marketing organizations to fiilly integrated manufacturing and marketing concerns. PhiUps' product activities are grouped into five product sectors: Lighting, Constmier Plx>ducts, Professional Products and Systems, Components, and Miscellaneous. to lasting profitability and in:]|)roving its financial structure. As part of this revitaUzation process, drastic restructuring measures were taken to put Ptulips' Components product sector and Information Systems Division on a sound footing. At the same time, it was decided to launch a worldwide campaign to improve efficiency in all organizational units. This efficiency drive is aimed at achieving substantial cost reductions within a short period of time and at promoting a permanent mindset toward profit and costs. The campaign is also aimed at intensifying quality and customer orientation. The measures to turn aroimd die Coniponents product sector and the Information Systems Division, in addition to the woridwide campaign to improve efficiency, will result in a reduction of 45,000 to 55,000 jobs between September 1990 and the end of 1991. In addition, since the end of 1990, Phihps has been reappraising the organization and composition of the businesses in which the company operates. This portfoUo analysis will result in the divestment, closure, or drastic reorganization of some units, while in odier cases it will give rise to a strengthening and expansion of operations or the creation of alliances. Fiscal year 1990 was a year of fundamental reappraisal for Philips. Persistently large losses on information systems and integrated circuits had been causing a drain on the company's equity and even threatening the continuation of healthy growth in other sectors. In Europe and the United States, the con^any's Lighting product sector had to contend with intense price competition, which could be only partly offset by improvements in efficiency. Furthermore, exchange rate movements and appreciable rises in interest rates had an adverse impact on both Philips' earnings and its competitiveness. A total of F 4.6 billion (US$2.5 billion) was charged against operating income in fiscal 1990 for the implementation of the whole revitalization program. (Percentage changes refer only to F amounts; US$ percentage changes will differ because of flucmations in Dataquest exchange rates.) As a result, the year was concluded with a net loss of F 4.24 billion (US$2.34 biUion). Againsttitiisbackdrop, Phihps decided that the measures taken in the past few years to enhance the company's maneuverability should he radically intensified and speeded up. A revitalization process was started with the aim of rapidly restoring the company In fiscal 1990, net revenue decreased 3 percent to F 55.76 bilKon (US$30.81 bilHon) fiom F 57.22 bilhon (US$26.87 billion) in fiscal 1989. However, die 1989 sales figure included Phihps* defense businesses in Europe, which have since been disposed of. A 00X1336 ©1991 Dataquest Incorporated October—Reproduction Prohibited N.V. Philips Gloeilampenfabrieken number of other, smaller changes in consolidations took place as a result of the disposal and acquisition of other businesses. Disregarding the effects of these changes and of exchange rate movements, net sales on a comparable basis increased 5 percent in fiscal 1990. Philips remains the world leader in lightLng and color picture tubes and is second in size only to Matsushita, of which the company owns 35 percent, in consumer electronics revenue. On an overall basis, Philips* main revenue comes from the European market, which has accounted for approximately 60 percent of the company's total sales over the past five years. The company's R&D expense decreased 4 percent to F 4.38 billion (US$2.42 billion) in fiscal 1990 firom F 4.56 billion (US$2.14 billion) in fiscal 1989, but remained at approximately 8 percent of net revenue. This decline in R&D expenditure was entirely due to the divestment of Philips' defense businesses. Approximately 35,000 employees are engaged in product development and in the development of production methods and equipment The responsibility for the development of products and production methods lies withJba each individual product divlsioiL The divisions have development laboratories at their disposal in 25 countries throughout the world. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Infomiation on revenue by distribution channel is not available. Tables 3 through 7, at the end of this backgrounder, present comprehensive financial informatioiL BUSINESS SEGMENT STRATEGIC DIRECTION Professional Products and Systems Division The Professional Products and Systems Division comprises Communications Systems, Information Systems, Medical Systems, Industrial and ElectroAcoustic Systems, and Defense and Control Systems, all serving the professional market Sales in the Professional Products and Systems Division decreased 17 percent to F 13.06 billion (US$7.21 bilhon) in 1990 and accounted for 23.4 percent of Philips' total revenue. Communications Systems The company's Commtmications Systems products include private branch exchanges and key telephone systems, cable transmission and network access equipment, switching and netwoik management systems, radio trunk transmissions and subscriber access systems, copper and fiber-optic cables, and optical fiber. The company also produces car and cordless telephones, mobile radio truncated networks, and wide area paging systems. In September 1990, AT&T repurchased Philips' 15 percent stake in AT&T Network Systems Ihtemational B.V., which was founded in 1983 as AT&TPhihps Telecommunications. At its founding. Philips held 50 percent of the company, which makes and markets AT&T switches overseas. Philips then cut back its stake to 40 percent, and later transferred another 25 percent back to AT&T. Information Systems The company's Information Systems products include personal computers and workstations, doctmient handling systems, optical media, peripherals, and dictation systems. In 1990, sales in this division declined as a result of sharp falls in prices affecting virtually all information systems products. As a result of reduced sales and low margins, appreciable losses were incurred in this division. According to Philips, radical restructuring measures are being carried out to remedy this situatioa Philips launched a number of new personal computer models in 1990 to help die company reach its new goals, which include a 5 percent market share by 1993. The company created two groups of PC products, one aimed at small businesses and home users and the other targeted at systems integrators, VARs, and corporate businesses. The company's new personal computers range from an entry-level 12-MHz 286-based system to a 25-MHz 486-based rc that features 4MB RAM and a hard disk drive expandable to 650MB. During 1990, Philips introduced its first portable personal computer, the Magnavox Metalis/286, which has a 20MB hard drive and an internal 1.44MB 3.5-inch floppy drive. Targeted at the nonstop user, the Metalis/286 features battery life of up to four hours per charge, with full recharge in imder four hours. It also features 1MB of RAM (expandable to 8MB), and is equipped with a backlit video graphics array (VGA) monitor. ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrielten The company's image processing system, Megadoc, is based on optical recording. During mid-1990, Philips introduced the Megadoc 10, a PC-based version of Megadoc that can be networked but will be offered mainly as a standalone system. The Megadoc 10 runs unders MS-DOS, and conforms to UNIX System V.4 and Posix, enabling users to integrate existing software and add other appUcations more easily. Smart cards, which are optical media products, are memory components that are the size of a credit card and contain an integrated circuit Philips currently markets these cards for personal, business, and industrial applications. Sales have been slow for these cards because of cost/benefit factors. Medical Systems The company's Medical Systems activities focus primarily on the production of diagnostic imaging systems, such as equipment based on X-radiation (including computer tomography), ultrasound, and magnetic resonance. Philips also produces systems for radiation therapy and provides consultancy services on the operational structure within hospitsds and clinics. The company's medical products are sold to hospitals, other institutions, and governments directly and, in certain countries, through agents. The market for medical systems is subject to rapid change due to developments in technology and diagnostic effectiveness. Industrial and Electro-Acoustic Systems The Industrial and Electro-Acoustic Systems Division concentrates on the production and marketing of products and systems for applications in research, industry, business, and government A large range of electronic test and measuring equipment is produced, including oscilloscopes, logic analyzers, and automatic test equipment. Defense and Control Systems The Defense and Control Systems Division develops and produces electronic systems, subsystems, equipment and strategic components for shipbome, landbased, and airborne military applications and civil derivatives. Products manufactured by this division include radars, optoelectronics, sonars, and electronic warfare equipment, including electronic systems measures, electronic countenneasures, electronic counter countetmeasures, and chaff/flare launchers. 0011336 During 1990, significant steps were taken to reduce Philips' defense activities, lite company disposed of a major portion of its Western European defense business to the French cott^any Thomson-CSF, selling an 80 percent interest in Philips' Dutch subsidiary HoUandse Signaalapparaten B.V., along with that subsidiary's interest in the Belgium company MBLE Defense, and a 99 percent stake in Philips' French company TRT Defense. In addition, PhUips sold its British defense businesses to Thom-EMI, and disposed of its German defense activities via a management buy-out Components Division The Philips Components Division is a supplier of components and subassemblies for both its own products and outside parties. Philips produces a broad range of components such as integrated circuits, discrete semiconductors, passive components, liquid crystal displays, and magnetic products. Component sales accoimted for 14.6 percent of total net sales in 1990. Sales from this division fell 3.7 percent to F 8.16 billion (US$4.51 billion) in fiscal 1990 from F 8.74 billion (US$4.10 billion) in fiscal 1989. Semiconductors In early 1991, Philips removed its semiconductor activities from its Components Products Division to form the Semiconductor Products Division, which win handle aU of Hiilips' IC and discrete semiconductor business. The new division will also encompass Philips Components-Signetics, a subsidiary located in Svmnyvale, California. According to Philips, the move will allow the company to react better to the rapid changes in the semiconductor market Under the new structure, approximately onethird of Philips' employees in its Components Products Division will work in the Semiconductor Products Division, with the remainder (approximately 50,000) working in the scaled-down Components Product Division. Philips considers its semiconductors to be the heart of its electronics product business. The company's general IC goal is to strengthen its position as an applications-oriented suppUer to the world markets. According to Dataquest Philips moved up one place to rank as the ninth-largest vendor in the worldwide semiconductor market in 1990, based on estimated factory revenue of $2.01 billion. Net sales for the company increased 17 percent while as a whole, the semiconductor market grew at only 2 percent in ©1991 Dataquest Incorporated October—^Reproduction Prohibited N.V. Philips Gloeilampenfabrieken calendar 1990. Among European semiconductor companies, Philips continued to be the top-ranked manufacturer, with the company's main competition in this region coming from SGS-Thomson Microelectronics B.V. and Siemens AG. In the worldwide analog integrated circuit market, Philips jumped from fourth place to the leading position, holding a 6.2 percent market share based on estimated factory revenue of $653 miUion. As part of the company's restructuring, an enq)hasis was placed on reducing losses in the Components Divisioa Along these lines. Philips pulled out of static RAM (SRAM) development and pilot production as one of several cost-cutting measures. The company also dropped out of the $5 billion Joint European Submicron Silicon (JESSI) program, a consortium of European chip vendors. Other cost-cutdng actions included the closing of PhiUps' IC Advanced Development and Manufacturing center (located in Eindhoven) and concentration of advanced application-specific integrated circuit (ASIC) development in Hamburg, Germany. Video Products Video products include television sets (including receivers equipped for Teletext and stereo sound), video recorders, and camera recorders (cameras with a built-in video recorder), very high resolution monitors, and other displays. Products in this sector are sold primarily to the OEM market Philips brand names in the United States include Philips, Magnavox, Sylvania, and Philco. Home Office Equipment Home office equipment products include personal computers, videotex terminals, and other peripheral equipment, which are marketed specifically toward the home market. For personal computers for business applications, see Communications Systems. Philips' Compact Disk Interactive (CD-I) system is an interactive, fully digital, multimedia system that allows audio, video, text, and graphics to be stored and integrated on a single compact disk. CD-I is schediiled to be introduced in the consumer market in the United States and Japan during late 1991 and in Europe in 1992. Passive Components The company is the world's leading supplier of passive components with product lines consisting of a variety of capacitors and resistors in both leaded and SMD versions. A wide range of crystals and oscillators is available for professional, industrial, and consumer equipment PolyGram Another division of the Consumer Products Division is PolyGram Records Inc., which engages primarily in the acquisition, production, marketing, and distribution of recorded music. Domestic Appliances and Personal Care Consumer Products Division The Consumer Products Division includes the consumer electronics product division, PolyGram Records division, domestic appliances, and personal care products. Major categories in consumer electronics are audio, video, and home office eqmpment Sales in 1990 in the Consumer Products Division accounted for 45.5 percent of the total net sales. Sales increased 8.0 percent to F 25.40 billion (US$14.03 billion) in fiscal 1990 fit)m F 23.58 billion (US$11.07 billion) in fiscal 1989. Audio Products Audio products include portable radios, radio receivers, car radios, receivers, amplifiers, tuners, cassette recorders, turntables, and compact disc systems. Compact disc players and changers are still the fastest-growing products in the consiuner electronic market The domestic appliances and personal care division includes home comfort and kitchen appliances, shavers, and other personal care products. Philips' main product of this division is Philishave, based on rotary shaving technology. Along with the other personal care products and domestic appliances, Philishave is mariceted under the Norelco brand in the United States. Lighting Division The company has been in the lighting business since its founding in 1891. The Lighting Division's products serve a broad range of apphcations, including general hghting service lamps, gas-discharge and special lamps, fixtures, special products, and batteries. Net sales of the Lighting Division accounted for 12.6 percent of total net sales, or F 7.03 billion (US$3.88 billion). Lighting sales decreased 7 percent in fiscal 1990. ©1991 Dataquest Incorporated October—Reproduction Prohibited 00U336 N.V. Philips Gloeilampenfabrieken Miscellaneous Miscellaneous business activities, which are outside die company's basic range of products, include ancillary activities obtained as part of other acquisitions. Included in this sector are the operations in major domestic appliances in some countries that have not been transferred to Philips' joint venture with Whirlpool, begun in 1989. During 1990, Philips divested two of its larger U.S. subsidiaries incorporated in the Miscellaneous sector. Anchor Advanced 0011336 Products Inc. and Genie Manufacturing Inc. Miscellaneous sales accounted for 3.8 percent of total net revenue in 1990. Sales in this division grew 8.0 percent to F 2.12 bilUon (US$1.17 billion). Further Information For further information about the company's business segments, please contact the appropriate Dataquest industry service. ©1991 Dataquest Incorporated October—Reproduction Prohibited N.V. Philips Gloeilampenfabrieken Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1986 1987 1988 1989 1990 Rve-Year Revenue Percent Change 22,464.1 25,968.0 15.60 28,322.7 9.07 26,865.7 (5.14) 30,808.8 14.68 Capital Expenditure Percent of Revenue 1,904.9 8.48 2,342.9 9.02 2,093.4 7.39 1,483.6 5.52 1,569.1 5.09 R&D Expenditure Percent of Revenue 1,706.9 7.60 2,149.8 8.28 2,334.8 8.24 2,139.4 7.96 2,418.8 7.85 343,800 65.34 336,700 77.12 310,300 91.28 304,800 88.14 272,800 112.94 414.3 403.0 (2.73) F 2.03 533.3 32.36 F 1.98 645.1 20.95 F 2.13 (2,342.5) (463.15) F 1.81 Number of Employees Revenue ($K)/Employee Net Income Percent Change Exchange Rate (US$1=F) F 2.45 1990 Fiscal Year Qi Q2 Quarterly Revenue Quarterly Profit 7,080.7 185.6 7,480.1 20.4 NA = Not available Q3 Q4 9,001.1 (1,355.8) 7,247.0 (1,192.8) SoDice: N.V. Philips Gloeilaiiq)eiifabrieken Animal Reports and Foims 10-K Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent) Region Europe North America Asia/Pacific ROW 1986 1987 1988 1989 1990 59,20 24.30 7.60 8.90 61.40 22.40 8.60 7.60 61.30 22.20 8.70 7.80 57.30 24.10 10.00 8.60 60.90 21.20 10.50 7.40 Source: N.V. Fhilqis Gloeilampenfalsieken Annual Reports and Forms 10-K Dataquest (October 1991) ©1991 Dataquest Incorporated October—Repioduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken ROW 1990 SALES OFFICE LOCATIONS Information is not available. MANUFACTURING LOCATIONS North America Albuquerque, New Mexico Wafer fabrication of MOS ICs Orem, Utah Wafer fabrication of bipolar ICs, assembly and testing of logic and bipolar memory products Riviera Beach, Florida Passive components, discrete semiconductors Sunnyvale, California Wafer fabrication, MOS and bipolar ICs United States and Canada AH principal products Africa Lighting, consumer electronics, professional products and systems Austraha and New Zealand Lighting, professional products, systems, components Bangkok, Thailand Assembly and testiag Hong Kong Transistors, diodes Kao-Hsixmg, Taiwan ICs Latin America AJl principal products Manila, Philippines Transistors, diodes, optoelectronic products Recife, Brazil ICs Sao Paulo, Brazil Discrete devices Seoul, South Korea Assembly and testing Europe Barcelona, Spain Diodes, transistors Caen, France Bipolar digital, bipolar analog, and consumer ICs; discrete devices, power transistors, optoelectronic products Hamburg, Germany NMOS microprocessors, controllers, memories, bipolar analog consumer ICs, small-signal transistors, varicap diodes Netherlands AH principal products Nijmegen, Netherlands CMOS devices Sittard, Netherlands Not available Southampton, United Kingdom NMOS ROMs, dedicated consumer logic Stadskanaal, Netherlands Diodes Stockport, United Kingdom Power transistors, power diodes Zurich, Switzerlan4 ICs Japan Tokyo, Japan Testing 0011336 SUBSIDIARIES North America North American Philips Corporation (United States) Philips Canada Ltd. (Canada) Philips Components-Signetics (United States) PolyGram Records Inc. (United States) Europe Bang & Olufeen A/S (Denmark) Compagnie Francaise Philips (France) Europe Mij Voor Fabricage en Verkoop Van Gloeilampcnonderdelen CE.M,G.O.) (Belgium) Giundig Aktiengesellschaft (Gennany) Ibcrtica de Alumbrado S.A, (Spain) Nederlands Philips Bedrijven B.V. (Netherlands) Norsk Atkieselskap Philips (Norway) Osterreichische Philips Industrie GesmbH (Austria) Oy Philips AB (Finland) PhiUps AG (Switzerland) Philips and Du Pont Optical Company (Netherlands) PhiUps Beteihgungs AG (Switzerland) Philips Communication Systems International B.V. (Netherlands) Philips Consumer Electronics International B.V. (Netherlands) Philips Danmark A/S (Denmark) ©1991 Dataquest Incorporated October—^Reproduction Prohibited N.V. Philips Gloeilampenfabrieken Philips Electronics Ireland Limited (Ireland) PhiUps Export B.V. (Netherlands) PhiUps GmbH (Germany) PhiUps Iberica S.A.E. (Spain) Philips Industrial S.A. Hellenique de Produits Electrotechniques et Electroniques (Greece) Philips Information Systems International B.V. (Netherlands) PhiUps International B.V. (Netherlands) PhiUps International Finance S.A. (Luxembourg) PhiUps Lighting Hellas Commercial and Industrial S.A. (Greece) PhiUps Lighting Holding B.V. (Netherlands) PhiUps Luxembourg Consumer Products (Luxemboiu-g) PhiUps Luxembourg Professional Systems (Luxembourg) PhiUps Matsushita Battery Corporation (Belgium) Philips Medical Systems International B.V. (Netherlands) PhiUps Norden Aktiebolag (Sweden) PhiUps Portuguesa S.A. (Portugal) PhiUps S.A. (Belgium) PhiUps S.A. HeUenique Commerciale de Produits Electrotechniques (Greece) PhiUps Sistemi MedicaU S.p.A. (Italy) PhiUps Societa per Azioni (Italy) PhiUps Systemes Medicaux (France) PhiUps U.K. Limited (United Kingdom) PolyGram GmbH (Germany) PolyGram Leisure Ltd. (United Kingdom) PolyGram N.V. (Netherlands) PolyGram S.A. (France) Ttirk PhiUps Aydinlatma Sanayi ve Hcaret Anonim Sirketi (Turkey) Turk PhiUps Sanayi Anonim Siiketi (Turkey) Tuik PhiUps Ticaret Anonim Siiketi (Turkey) Whirlpool International B.V. (Netherlands) Japan Japan New Media Systems Inc. (Japan) Marantz Japan Inc. (Japan) Matsushita Electronics Corporation (Japan) PhiUps Japan Ltd. (Japan) PNN Corporation (Japan) ROW Associated Electronic Products (Nigeria) Limited (Nigeria) Audio Electronics Sdn. Bhd. (Malaysia) Bangladesh Electrical Industries Limited (Bangladesh) « Bangladesh Lamps Limited (Bangladesh) Beijing PhiUps Audio/Video Corporation (China) Car Audio Electronics (China) Company Limited (China) Electrical Lamp Manufacturers Thailand Limited (Thailand) Elinthai Limited (Thailand) El Nasr Company for Electrical and Electronic Apparatus (Egypt) Hua Fei Colour Display Systems Company Ltd. (China) Inbraphil-Industrias Brasilerras PhiUps Ltda. (Brazil) Industria de Productos Electricos Centro-Americana, S.A. de C.V (El Salvador) Industrias BoUvianas PhiUps S.A. (BoUvia) Industrias PhiUps de Colombia S.A. (Colombia) Industrias PhiUps del Uruguay S.A. (Uruguay) Industrias Venezolanas PhiUps S.A. (Venezuela) Malaysian Lamps Sendirian Berhad (Malaysia) Manufacture Nationale pour la ReMgeration et TElectronique (Morocco) PEC Investments Limited (South Afirica) Peico Electronics & Electricals Limited (India) PhiUps AntiUana N. V. (Netherlands Antilles) PhiUps Argentina S.A. de Lamparas Electricas y Radio (Argentina) PhiUps Bangladesh Limited (Bangladesh) PhiUps Chilena S.A. (Chile) PhiUps China Hong Kong Group Company Limited (Hong Kong) PhiUps Components (PhiUppines) Inc. (PhiUppines) PhiUps del Paraguay S.A. (Paraguay) PhiUps do BrasU Ltda. (Brazil) PhiUps Ecuador C.A. (Ecuador) PhiUps Electrical Company of Pakistan Limited (Pakistan) PhiUps Electrical Company of Thailand Limited (ThaUand) PhiUps Electrical Industries of Pakistan Limited (Pakistan) PhiUps Electrical Lamps Inc. (PhiUppines) PhiUps Electrical (Private) Limited (Zimbabwe) PhiUps Electrical Zambia Ltd. (Zambia) PhiUps Electric Lamps (E.A.) Limited (Kenya) PhiUps Electronic Building JBements Industries Ltd. (Taiwan) PhiUps Electronics Holdings Limited (South Afirica) PhiUps Electronics Industries Ltd. (Taiwan) PhiUps Electronics Ltd. (South Korea) PhiUps Electronics South-East Asia Holding B.V. (China) PhiUps Ethiopia (Ethiopia) PhiUps Hong Kong Limited (Hong Kong) PhiUps Industrial Development Inc. (PhiUppines) PhiUps Industries Holdings Limited (AustraUa) ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken Philips Industries Ltd. (South Korea) Philips Iran Ltd. (Iran) Philips (Kenya) Limited (Kenya) Philips Lighting Taiwan, Ltd. (Taiwan) Philips Malaysia Sdn. Berhad (Malaysia) Philips Maroc (Morocco) Philips Mexicana, S.A. de C.V, (Mexico) Philips Midden Oosten B.V. (Egypt) Philips Midden Oosten B.V. (Iraq) Philips Midden Oosten B.V. (United Arab Emirates) Philips New Zealand Limited (New 2fealand) Philips Peruana S.A. (Peru) Philips Semiconductor Corporation of Shanghai (China) Philips Singapore Private Limited (Singapore) Philips Taiwan Ltd. (Taiwan) P.T. Philips Development Corporation (Indonesia) P.T. Philips-Ralin Electronics (Indonesia) Shenzhen Shen Fei Laser Optical Systems Company Limited (China) Shenzhen Shen Fei Plastics and Metalware Company Limited (China) Signetics Korea Co. Ltd. (South Korea) Signetics Thailand Co. Ltd. (Thailand) Taiwan Lighting Industries Co. Ltd. (Taiwan) Taiwan Semiconductor Manufacturing Company Limited (Taiwan) Thai Lamps Company Limited (Thailand) Yangtze Optical Fibre and Cable Company Ltd. (China) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS ORIGIN, a joint venture with the Dutch software company BSO/Beheer. That same year, the two companies formed a systems integration joint venture, called BSO/Pass International. European Development Center Philips joined the European Development Center, which develops and supports computer-aided engineering and design tools and technology. Fujitsu Microelectronics A second-source and joint development agreement was made for local area network circuits. Matsushita Electric Industrial Co. Ltd. A joint venture was formed to develop, control, and maintain a chip standard for domestic audio and video systems. Motorola Incorporated Philips and Motorola signed an OEM agreement under which Philips will add Motorola's reduced instruction-set computing systems to its product line. Silicon Systems Inc. (SSI) Philips licensed its QUBIC BiCMOS process to SSI to serve as the basis for mixed signal designs. As part of the agreement, both companies have access to the o&er's foundry to augment capacity availability as QUBIC grows in acceptance. Teikoka Tsishin Kogyo The two companies formed a joint venture for the manufacture of integrated control panels for consumer electronics equipment 1991 Matsushita Electric Industrial Co. Ltd. and Sony Corporation Tlie three companies formed a consortiimi in Japan to laimch and promote Philips' Compact Disk Interactive (CD-I) multimedia technology. The company will be called CD-I Consortium JapaiL Sun Microsystems Inc. Philips and Sun signed an agreement that will allow Philips to resell Sun's complete line of SPARCstations. 1990 BSO/Beheer B.V. Philips service activities in the automation and information processing field were transferred to 0011336 Tesla Strasnice and Hloubetin Philips and Tesla, a Czechoslovakian electronics company, signed a cooperation agreement to improve the public telecommunications network in Czechoslovalda. The agreement wiU primarily focus on digital signal transmission equipment, which will facilitate multiple iise of cable routes already laid. Texas Instruments Incorporated (TI) TI and Philips entered into a joint sourcing agreement for the ABT high-performance bus interface logic family. VEB Kombinat Robotron An agreement was reached concerning industrial measiiring systems. ©1991 Dataquest Incorporated October—Reproduction Prohibited N.V. Philips Gloeilampenfabrieken 1989 Catalyst Semiconductor Inc. Philips signed an agreement with Catalyst to supply Catalyst with its 12C protocol. ES2 Philips adopted E-beam direct-wire technology for ASICs; ES2 adopted a Philips' CMOS process. Customers can have devices manufactured by either company. Motorola Incorporated An agreement was made to develop very large scale integration (VLSI) integrated circuits. Hitachi Ltd. Hitachi will produce and sell Philips' HD68562 and HD64941 LSI chips. Seeq Technology Inc. The companies signed a five-year agreement calling for Philips to second-source and codevelop the Seeq 512Kb and 1Mb flash EPROMs. Seeq will get an alternate source for its flash EEPROM and foundry support for its 64Kb and 256Kb EEPROMs. Intel Corporation The companies made an agreement giving Philips access to Intel's CHMOS process and products and Intel access to Philips' serial buses. Sun Microsystems Inc. The two companies signed a licensing agreement that will allow Philips components to design and market 32-bit RISC microprocessors based on Sun's SPARC architecture. Synercom Technology The two companies have entered into an OEM agreement for Synercom's INFORMAP and related application software. Whirlpool Philips and Whirlpool entered into a joint venture agreement concerning major domestic appliances. 1988 ASM Lithography ASM Lithography agreed to manufacture lithography equipment used to produce semiconductors for Philips. AT&T AT&T agreed to develop, manufacture, and sell telecommunications network products for Philips. Canon Incorporated, Data General Corporation, Hewlett-Packard Company, Prime Computer Incorporated, and Unisys Corporation Philips and these companies formed a consortiiun to establish a common way to implement objectoriented software technology across a network of computers and servers. E.I. du Pont de Nemours and Sony Corporation The companies agreed to set CD-WORM standards. 10 Intel Corporation Philips was chosen to second-source Intel's 8095 16-bit MCU and use Intel's 256K EPROM technology. Motorola Incorporated Philips was chosen to second-source Motorola's 68010 16-bit MPU. Plessey Co. pic The companies are manufacturing microchips for satellite broadcasting receiver systems. R. R. Donnelly & Sons and Toppan Printing Co. Ltd. The companies agreed to develop software for interactive disks. Robert Bosch GmbH The companies agreed to develop a standardized pan-European automobile telephone system. Siemens AG Siemens agreed to furnish Philips with submicron technology. SMH The companies completed a CMOS wafer-fab production agreement Taiwan Semiconductor Manufacturing Co. (TSMC) TSMC agreed to manufacture customer-^ecific ICs for Philips. Texas Instruments Incorporated TI made an agreement with Philips to develop and manufacture an advanced CMOS logic family. Vitelec •\^telec Ucensed Philips' process technology so tiiat N^telec could produce CMOS SRAMs for use, license, and sale for both companies. ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken VLSI Technology Inc. The companies made an agreement covering CAD design software, foundry services, cell libraries, and gate arrays under which VLSI would provide IC design software and Philips would provide foundry services. Jan D. Timmer President, chairman of the board, chairman of Group Management (GMC) Yangtze Optical Fiber Cable Company The companies will manufacture and sell optical fiber cable in China. W. de Kleuver Chairman of Components Division, member of GMC W. Huisman Chairman, Communication Systems Division Thierry Meyer Chairman of Consumer Electronics Division, member of GMC MERGERS AND ACQUISITIONS 1991 E.I. Du Pont de Nemours and Company Philips acquired Du Font's interest in Philips & Du Pont Optical Company, a joint venture that was created in 1986 for the manufacture of optical disks. J.C. Tollenaar Chairman, Domestic Appliances and Personal Care Division F.A. de Bruijne Chairman, Industrial Electronics Division L.G. Nyberg Chairman, Information Systems Division E. Kloster Chairman of Lighting Division, member of GMC 1990 Bang & Olufsen A/S Philips acquired a 25 percent interest in Bang & Olufsen, a Danish conq)any that operates mainly at the top end of the audio and video market Marantz Japan Philips acquired the majority shareholding in Marantz Japan and at the same time acquired rights to use the Marantz brand name in North America. Robert Bosch Group Philips' interest in the Broadcast Television Systems joint venture with Robert Bosch for the production of television studio equipment was increased firom 50 percent to 75 percent. H. van Bree Chairman, Medical Systems Divison H.W. Hagmeister Chairman, Semiconductors Division A.M.I. Levy Chairman, Polygram Records Division PRINCIPAL INVESTORS Information is not available. 1989 Taiwan Semiconductor Manufacturing Co. (TSMC) Philips exercised its option to acquire 51 percent of TSMC's shares. FOUNDERS Gerard Philips KEY OFFICERS 0011336 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 11 N.V. Philips Gloeiiampenfabrieken Table 3 Balance Sheet Fiscal Year Ending in December (Millions of U.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets 1986 453.1 4,956.7 69.8 5,245.3 428.2 11,153.1 7,447.8 2,064.5 1987 712.3 5,870.0 175.9 5,956.7 402.5 13,117.2 9,106.9 2,376.4 1988 623.2 6,749.5 97.0 6,373.2 482.8 14,325.8 9,372.7 2,992.9 1989 657.3 6,565.3 69.0 6,028.2 984.0 14,303.8 8,730.5 2,777.5 1,309.9 6,469.6 81.8 6,389.0 1,507.2 15,757.5 9,222.7 3,525.4 Total Assets 20,665.3 24,600.5 26,691.4 25.811.7 28,505.5 Total Current Liabilities Long-Term Debt Other Liabilities 7,531.8 3,689.4 2,971.4 9,159.6 4,326.1 3,472.4 9,739.9 5,101.0 3,497.0 10,046.0 4,711.7 3,125.4 10,965.7 6,567.4 4,803.9 14,192.7 16,958.1 18,337.9 17,883.1 22,337.0 Common Stock Odier Equity Currency Adjustment Retained Earnings Total Shareholders' Equity 1,612.7 3,257.6 (1,723.0) 3,325.7 6,472.7 2,447.8 4,051.7 (2,753.0) 3,896.1 7,642.4 2,562.1 4,561.1 (2,942.0) 4,172.2 8,353.5 2,469.0 4,190.6 (3,583.0) 4,852.1 7,928.6 3,098.9 4,705.5 (5,139) 3,503.3 6,168.5 Total Liabilities and Shareholders' Equity Exchange Rate (US$1=F) 20,665.3 F 2.45 24,600.5 F 2.03 26,691.4 F 1.98 25,811.7 F 2.13 28,505.5 F 1.81 Total Liabilities 1990 Source: N.V. Philips Gloeilanq)eiifabriekBn Annual Reports and Foims 10-K Dataquest (October 1991) 12 ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. DoUars, except Per Share Data) Consolidated Income Statement Revenue U.S. Revenue Non-U.S. Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Thousands Per Share Data Earnings Dividend Book Value Exchange Rate (US$1=:F) 1986 1987 1988 1989 1990 22,464.1 13,289.8 9,174.3 16,776.3 1,706.9 4,636.7 1,904.9 799.2 3.56 42.00 414.3 230,957 25,968.0 15,942.4 10,025.6 19,553.2 2,149.8 5,432.0 2,342.9 368.0 1.42 28.00 403.0 245,500 28,322.7 17,344.9 10,977.8 21,344.9 2,334.8 5,910.6 2,093.4 409.1 1.44 39.00 533.3 256,252 26,865.7 15,403.3 11,462.4 20,252.6 2,139.4 5,657.3 1,483.6 594.8 2.21 41.20 645.1 266,508 30,808.8 18,768.0 12,040.9 23,020.4 2,418.8 6,624.9 1.569.1 (2,266.3) (7.36) 8.40 (2,342.5) NA 1.79 0.82 28.03 1.64 0.99 31.13 2.08 1.01 32.60 2.42 0.94 29.75 (8.22) F 2.45 F 2.03 F 1.98 F 2.13 F 1.81 - NA Source: N.V. Fbilips Gloeilampenfabrieken Annual Reports and Fonns 10-K Dataquest (October 1991) 0011336 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 13 N.V. Philips Gloeilampenfabrielcen Table 5 Balance Sheet Fiscal Year Ending in December (Millions of Guilders) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets 1,446.0 11,916.0 357.0 12,092.0 817.0 26,628.0 18,487.0 4,824.0 1988 1,234.0 13,364.0 192.0 12,619.0 956.0 28,365.0 18,558.0 5,926.0 1989 1.400.0 13.984.0 147.0 12.840.0 2,096.0 30,467.0 18,596.0 5,916.0 1990 2,371.0 11,710.0 148.0 11.564.0 2,728.0 28,521.0 16.693.0 6.381.0 50.630.0 49.939.0 52,849.0 54,979.0 51.595.0 18,453.0 9,039.0 7,280.0 18,594.0 8,782.0 7,049.0 19,285.0 10,100.0 6,924.0 21.398.0 10,036.0 6,657.0 19.848.0 11.887.0 8.695.0 34,772.0 34,425.0 36,309.0 38,091.0 40.430.0 3,951.0 7,981.0 (4,222.0) 8,148.0 15,858.0 4,969.0 8,225.0 (5,589.0) 7,909.0 15,514.0 5,073.0 9,031.0 (5,825.0) 8,261.0 16,540.0 5,259.0 8,926.0 (7,632.0) 10,335.0 16,888.0 5,609.0 8,517.0 (9,302.0) 6,341.0 11.165.0 50,630.0 F 2.45 49,939.0 F 2.03 52,849.0 F 1.98 54,979.0 F 2.13 51.595.0 F 1.81 1986 1,110.0 12,144.0 171.0 12,851.0 1,049.0 27,325.0 18,247.0 5,058.0 Total Assets Total Current Liabilities Long-Tenn Debt Other Liabilities Total Liabilities Common Stock Other Equity Currency Adjustment Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate (US$1=F) 1987 Source: N.V. Fbilips Gloei]aoq)ei]fabrieken Annual Reports and Forms 10-K Dataquest (October 1991) 14 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken s Table 6 Consolidated Income Statement Fiscal Year Ending in December (Millions of Guilders, except Per Share Data) Consolidated Income Statement Revenue European Revenue Non-European Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Thousands Per Share Data Earnings Dividend Book Value Exchange Rate (US$1=F) 1986 1987 1988 1989 1990 55,037.0 32,560.0 22,477.0 41,102.0 4,182.0 11,360.0 4,667.0 1,958.0 3.56 42.00 1,015.0 230.957 52,715.0 32,363.0 20,352.0 39,693.0 4,364.0 11,027.0 4,756.0 747.0 1.42 28.00 818.0 245,500 56,079.0 34,343.0 21,736.0 42,263.0 4,623.0 11,703.0 4,145.0 810.0 1.44 39.00 1,056.0 256,252 57,224.0 32,809.0 24,415.0 43,138.0 4,557.0 12,050.0 3,160.0 1,267.0 2.21 41.20 1,374.0 266,508 55,764.0 33,970.0 21,794.0 41,667.0 4,378.0 11,991.0 2,840.0 (4,102.0) (7.36) 8.40 (4,240.0) NA 4.39 2.00 68.66 2.45 3.33 2.00 63.19 2.03 4.12 2.00 64.55 1.98 5.16 2.00 63.37 2.13 (14.88) NA s Not available - NA 1.81 Sooice: N.V. Philips Gloeilampenfabrieken Annual Reports and Fbims 10-K Dataqoest (October 1991) • Table 7 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (FK)/Employee Capital Spending % of Assets Exchange Rate (US$1=:F) 1986 1987 1988 1989 1985 1.48 319.27 116.36 219.27 1.43 321.90 119.85 221.90 1.47 319.52 116.60 219.52 1.42 325.55 126.71 225.55 1.44 462.11 177.77 362.11 2.00 6.40 1.84 1.64 5.27 1.55 2.00 6.38 1.88 2.50 8.14 2.40 (8.22) (37.98) (7.60) 7.60 8.48 343,800 160.08 9.22 2.45 8.28 9.02 336,700 156.56 9.52 2.03 8.24 7.39 310,300 180.73 7.84 1.98 7.96 5.52 304,800 187.74 5.75 2.13 7.85 5.09 272,800 204.41 5.50 1.81 ,, Soujce: N.V, Riilips Gloeilampenfabfiekoi AnmiaJ Rqjorts and Fonns 10-K Dataqoest (October 1991) 0011336 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 15 The Plessey Company pic THE COMPANY STOP PRESS: In November 1987, Plessey acquired Ferranti Semiconductor for $49 million. Ferranti Semiconductor has assets valued at $64 million and 1986 worldwide semiconductor revenue of $96 million. Ferranti employs 2,000 people in its semiconductor operation. BACKGROUND AND OVERVIEW The Plessey Company pic was founded in 1919 by Brian Clark. His son, Allen Clark, later Sir Allen, led the Company through nearly four decades of major growth, from the 1920s until his death in 1961. The present chairman and chief executive officer is Sir John Clark; his brother, Michael Clark, is the deputy chairman. Prior to its first major investment in semiconductors, the Company's product portfolio included radio communications equipment (in particular military), aircraft equipment (primarily pumps), electrical components (resistors, capacitors, and connectors), among other equipment. In line with the Company's strategy of concentrating in the high-technology product areas, many of these activities have been dispensed with during the last few years. In 1957, Plessey began to invest in semiconductor operations. A joint activity (51 percent Plessey and 49 percent Philco) was formed to manufacture electrochemical transistors. During 1960 and 1961, Plessey acquired the telephone operations of ATE and Ericsson Telephones (the U.K. arm of Ericsson) in the United Kingdom, signaling its move into British Post Office procurements and into the telecommunications market, in general. Plessey's commitment to integrated circuits (including merchant sales) was marked by the introduction of an IC manufacturing process developed by Plessey Research (Caswell) Limited in 1966. Plessey's IC manufacturing operation is located in Swindon, Wiltshire, United Kingdom, In December 1983, Plessey created a gallium arsenide IC subsidiary called the Plessey Three-Five Group Ltd. Investment of US$75 million in the new company was spread over several years. Throughout 1986, Plessey continued to give priority to new product development and to the modernization of production and research facilities. In February 1986, Sir James Blyth was appointed managing director of the Company. Throughout 1986, Plessey was locked in battle to resist takeover by General Electric Company (GEC), the only U.K company with larger electronics sales than Plessey. The issue was whether such a merger would consolidate the fragmented U.K. electronics industry. ESIS Volume III © 1988 Dataquest Incorporated January 1 The Plessey Company pic The U.K. government finally ruled against GEC's $1.8 billion bid for Plessey on the grounds that the takeover would not serve the national interest. In June 1987, GEC assured the U.K. Office of Fair Trading that it would not acquire more than 15 percent of Plessey. PRODUCTS AND MARKETS SERVED Plessey's current activities center on the development and supply of telecommunications and electronic defense systems. The Company's work in solid-state and electronic components supports these activities and provides a presence in the merchant component market. The Plessey Company pic has established the following three major operational groups of logically integrated activities in which products and markets are interrelated: • Telecommunications • Electronic systems • Engineering and components All three operational groups rely extensively on silicon technology and are grouped for administrative purposes into management and trading companies and divisions. Table 1 shows Plessey's turnover by business activity; Table 2 shows the Company's turnover by main markets; and Table 3 shows Plessey's research and development expenditure. Plessey Telecommunications and Office Systems provides telecommunications authorities, public services, and commercial operators with equipment and systems based on software-controlled digital technology. The aim is to unite telecommunications and data processing in the new technology of integrated information handling. Plessey Electronics Systems supplies a related group of products and services to the avionics and defense industries, as well as to the civilian communications sector. Plessey Engineering and Components includes the Solid State Division, which manufactures standard, semicustom, and custom semiconductors and optoelectronic devices for military and industrial high-technology use, as well as components for professional applications. Plessey Microsystems produces custom-designed and standard digital systems and subsystems based on microsystems and memories. © 1988 Dataquest Incorporated January ESIS Volume III The Plessey Company pic Table 1 The Plessey Company pic Estimated Revenue by Business Activity (Millions of Pounds Sterling) (Fiscal Year Ending March 28) 1986 1995 Activity £ Telecommunications Electronic Systems and Equipment Microelectronics and Components Aerospace and Engineering Computer Peripherals Subtotal 681. 9 465. .9 149. ,0 129. ,5 39.,4 682. 4 518. ,0 161. ,3 120, ,7 34,r3 £1 ,465. .7 £1 ,516, .7 49f2 55,6 £1 ,416 .5 £1 ,461 .1 Less Intercompany C o n t e n t Total £ Table 2 The Plessey Company pic Revenue by Geographic Area (Millions of Pounds Sterling) (Fiscal Year Ending March 28) 1986 1985 United Kingdom North America Europe Africa Australia Asia Others Total 975.5 180.5 71.6 88.3 48.9 42.4 8.5 £1,036.9 174.5 85.9 60.5 47.5 41.3 14.5 £1,415.7 £1,461.1 £ Source: ESIS Volume III The Piesisey Company pic Dataquest January 1988 © 1988 Dataquest Incorporated January The Plessey Company pic Table 3 The Plessey Company pic Research and Development &q>enditure (Millions of Pounds Sterling) (Fiscal Year Ending March 28) 1995 1986 Group Funded Customer Funded £ 83.8 219.2 £ 81.2 237.5 Total £303.0 £318.7 Source: The Plessey Company pic Dataguest January 1988 Plessey Peripheral Systems is active in hardware (minicomputer systems, microcomputer systems, add-on memories, visual displays, terminals, and printers), software (for the range of mini/microcomputers), and service (hardware and software support and maintenance) operations. Plessey Research covers research and applications of electronic materials, devices, and subsystems. The R&D center has pilot production lines and serves as a link between R&D and subsequent full-scale production. FACILITIES Plessey's headquarters are located in Ilford, Essex, United Kingdom, and the main board's London offices are located in Millbank Tower, London, United Kingdom. Plessey is made up of about 34 subsidiaries and operates internationally through 250 establishments in 130 countries. Plessey Semiconductors, Ltd., has its headquarters in Swindon, Wiltshire, United Kingdom. It also maintains sales offices in France, West Germany, Italy, and Belgium. Plessey's major semiconductor facilities are listed in Table 4. © 1988 Dataquest Incorporated January ESIS Volume III The Plessey Company pic Table 4 The Plessey Company Pic Major Semiconductor Facilities Location Plessey Research (Caswell) Limited Towcester, Established: Northamptonshire Products: The Plessey Company pic Towcester, Established Northamptonshire Products: Technologies: Size: Swindon, Wiltshire Established: Products: Capacity: Size Irvine, California Established Products: Technology: Capacity: Description of Operation 1940 Process research for all Plessey semiconductor products. New fabrication line is currently under construction. A new 46,000-sguare-foot microelectronics research laboratory was completed in 1984. The facility is used for the research of submicron microcircuits and computer-aided design (CAD). 1940 Optoelectronic and microwave GaAs, GaP, GaAsP 40,000 square feet devices 1957 Bipolar digital and linear integrated circuits 5,000 wafers/month, 3-inch wafers 110,000 square feet 1970 Semicustom design center, CMOS and ECL gate arrays, Microcell semicustom ICs, and hybrid manufacturing facility. In 1986, Plessey doubled the space of the marketing and design center. CMOS, ECL, low-power NMOS No wafer fabrication. In October 1984, Plessey signed an agreement with Silicon Development Systems to supplement its existing center at Irvine. Plessey will use additional design locations in Boston and Los Angeles, through this agreement. (Continued) ESIS Volume III © 1988 Dataquest Incorporated January The Plessey Company pic Table 4 (Continued) The Plessey Company Pic Major Semiconductor Facilities Plympton, Devon Location Description of Operation Established: Products: Technologies: 1974 MOS integrated circuits N-channel and P-channel, silicon gate and metal gate, MOS, NMOS, and CMOS 8,000 wafers/month, 4-inch wafers 32,000 square feet. New clean room built in 1985 Capacity: Size: Roborough, near Plymouth, Devon Established: Products: Technology: Capacity: Size: 1986. Investment was £31 million, plus another £21 million for extra equipment and facilities inside. A second expansion phase is planned for 1989. Gate arrays CMOS 12,000 6-inch wafers/month (as of July 1987) 186,000 square feet Source: Dataguest January 1988 fflCHLIGHTS 1987 Below is a synopsis of recently published highlights of Plessey's electronics activities. In May 1987, Plessey was poised to announce a £160 million order from the Australian Ministry of Defense for the Raven tactical radio system. This is the largest tactical radio contract ever awarded outside the United States. © 1988 Dataquest Incorporated January ESIS Volume III The Plessey Company pic In April 1987, Plessey announced that it expects to create more than 1,000 jobs in the semiconductor area over the next five years. This is part of an ambitious development plan to expand sales from the current £70 million to £350 million. Part of the plan also includes the new £33 million facility at Roborough, near Plymouth, Devon, for the manufacture of semicustom circuits. In April 1987, Plessey's U.S. telecommunications subsidiary, Stromberg-Carlson Corporation, announced profitability for the first time in years. In 1986, sales grew 28 percent, establishing the company in the U.S. telecommunications market. In April 1987, Stromberg-Carlson Corporation won a $100 million digital telephone exchange order from BellSouth. Approximately 100 rural exchanges were installed throughout the southern United States, each with a capacity of about 6,000 lines. In March 1987, British Telecom awarded a £64 million cooperative contract to Plessey and GEC to supply 455,000 lines of System X equipment. Plessey and GEC have agreed to jointly market the exchange, with each company focusing on specific areas. If any orders are split between the two companies, then both would manufacture some of the exchanges. The two companies have increased their R&D spending on the exchange to $159 million annually for the next 15 years. In March 1987, Plessey won the first major export order for System X when it received a $24 million contract from Colombia for the digital exchange. In February 1987, Telettra and Italtel, Italian telecommunications manufacturers, approached Plessey and GEC with a view toward setting up an Anglo-Italian alliance for telecommunications equipment manufacture. The two Italian companies have already started similar discussions with Ericsson. In February 1987, Plessey unveiled a 1-micron bipolar-technology process using three layers of metal and a 5.25-micron line pitch. This process allows for up to 20,000 gates on a device, with maximum toggle frequency of 5.5 GHz and gate delays of 70ps. In 1988, the Company's strategy is to increase the layers from three to four, to decrease the pitch to 3.5 microns, to increase the number of gates to 30,000, and to reduce gate delays to 50ps. Samples are due in January 1988 and first production should occur in December 1988. Finally, in mid-1989, the Company hopes to sample devices of 0.7 micron, with line pitch of 2.5 microns, 40,000 gates per device, a maximum toggle frequency of 11 GHz, and gate delays of 35ps. Full production of this process is envisaged in the summer of 1990. In January 1987, Plessey and Westinghouse finalized their collaborative agreement on airborne radar, air defense, air traffic control, naval radar, electronic warfare systems, and advanced-technology research. ESIS Volume III © 1988 Dataquest Incorporated January The Plessey Company pic 1986 In December 1986, Plessey failed to break into the French market with its System X telephone exchange equipment. However, the French Minister of Posts and Telecommunications indicated that other areas, such as cellular radio telephone systems and private branch exchanges, may be open to the Company in France. In November 1986, Plessey launched six new products at the Electronica show in Munich, West Germany. These include the ELA 6000 family of ECL gate arrays and a four-piece DSP chip set capable of 64-bit or higher accuracy. In October 1986, Plessey announced the release of an intelligent bubble memory subsystem for the VME bus. In September 1986, Plessey ran the first 6-inch wafers produced at its new diffusion plant at Roborough, near Plymouth, Devon. In September 1986, Plessey and Valid Logic Systems announced a joint development program that enables designers to use Plessey semicustom libraries on Valid workstations. In August 1986, Plessey successfully fought off a £1.2 billion takeover bid by GEC. The U.K. government finally ruled that the takeover would be against public interest, as it would reduce competition in the United Kingdom. In July 1986, Plessey announced that it would upgrade its gallium arsenide foundry at Towcester so that it could manufacture faster devices. In July 1986, Plessey and Burroughs established a cooperative marketing agreement in advanced office automation systems. The agreement aims to link Burroughs' expertise in mainframe computing and Plessey's skills in telecommunications to provide integrated office networks where voice and data telephony can be combined in one system. In July 1986, Plessey, CIT-Alcatel, and Italtel set up a £100 million project to develop a module that will upgrade the three companies' public switches. Half the funding will come from the Eureka program, and half from the companies themselves. Dataquest's estimates of Plessey's European and worldwide semiconductor revenue are given in Tables 5 and 6, respectively. © 1988 Dataquest Incorporated January ESIS Volume III The Plessey Company pic Table 5 The Plessey Company pic Estimated European Semiconductor Revenue by Product Line (Millions of Dollars) 19?2 1993 1984 1985 1986 Total Semiconductor $35 $38 $51 $66 $78 Total Integrated Circuit Bipolar Digital MOS Linear $34 8 13 13 $37 8 17 12 $45 9 23 13 $58 13 29 16 $65 16 30 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 1 $ 1 $ 6 $ 8 $13 Total Discrete Transistor Diode Thyristor Other Total Optoelectronic Source: ESIS Volume III The Plessey Company pic Dataquest January 1988 © 1988 Dataquest Incorporated January The Plessey Company pic Table 6 The Plessey Company pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of Dollars) 1982 1983 1984 1995 1986 Total Semiconductor $53 $61 $82 $99 $112 Total Integrated Circuit Bipolar Digital MOS Linear $50 19 14 17 $58 21 19 18 $75 27 26 22 $89 30 35 24 $ 96 32 37 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 3 $ 3 $ 7 $10 $ 16 Total Discrete Transistor Diode Thyristor Other Total Optoelectronic Source: The Plessey Company pic Dataquest January 1988 OUTLOOK Plessey's investment in the semiconductor sector over the last few years is paying off. The Company is a pioneer of semiconductor development in the United Kingdom, as well as one of the world leaders in telecommunications and defense electronics. Plessey aims to maintain its present balance of semiconductor sales at about 80 percent merchant and 20 percent captive. Over the next five years, Plessey Semiconductors expects to create more than 1,000 jobs. This will nearly double its present work force. The ultimate aim is to expand sales from a current £70 million to £350 million. 10 © 1988 Dataquest Incorporated January ESIS Volume III Company Backgrounder by Dataquest Samsung Electronics Company Ltd. 250, 2-Ka, Eulchi-Ro Chung-Ku, Seoul, South Korea Phone: (02) 751-2114 Fax: (02) 753-0967 Dun's Number: 68-775-0836 Date Founded: 1969 CORPORATE STRATEGIC DIRECTION Samsung Electronics Company Ltd. (SEC), founded in 1969 by the Samsung Group, began as a manufacturer of black-and-white televisions. In November 1988, SEC merged with Samsung Semiconductor and Telecommunications Company. Today, SEC is a worldwide supplier of consumer electronics products, personal computers, semiconductors, factory automation systems, and telecommunications equipment. SEC actively participates in the development of electronics industries worldwide. The company operates a global business with six offshore plants, 22 subsidiaries, and 40 international branch offices. The company also actively works to expand its markets through licensing of production technologies and the Samsung brand name. SEC's strategy is to separate goods and services into fields of technology to improve international competitiveness. SEC continues to expand its manufacturing, production, and R&D facilities overseas. Dataquest estimates that Samsung ranks 15th in total semiconductor sales worldwide in 1990, holding a 2.3 percent market share based on estimated sales totaling over US$1.3 billioa Samsung ranks fifth worldwide in MOS memory, with annual sales estimated to be US$971 million and a market share of 7.4 percent Dataquest believes that Samsung's business aggressiveness, coupled with South Korea's electronics equipment recovery, should enable Samsung to become Asia's number one semiconductor vendor in 1991. Dataquest anticipates that Samsung wiU focus on developing microcomponents, application-specific standard products business, and 4Mb DRAMs. 0011216 In the Asia/Pacific-ROW market, Samsimg continues to narrow the distance behind Toshiba by pursuing a diversification strategy of its semiconductor business. Samsung's MOS memory sales dominated 18.7 percent of the Asian captive and merchant markets. Samsung increased sales of MOS logic devices from US$117 million in 1989 to US$142 million in 1990. This 21 percent increase allowed Samsimg to surpass Toshiba in Asia/Pacific-ROW by controlling a dominant 15.3 percent of the logic market Although actual R&D expenditure is not given, SEC reports that R&D spending is approximately 5 percent of annual sales. In addition to its R&D activities in South Korea, SEC is expanding R&D in the United States and Japan. SEC employs over 2,700 scientists and engineers in R&D activities worldwide. Total employment as of December 31, 1990, was approximately 43,000. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 8 at the end of this backgrounder present comprehensive financial information. Complete financial data for 1990 were not available at the time this report was written; thus, 1990 was not included in the financial tables. BUSINESS SEGMENT STRATEGIC DIRECTION SEC is divided into five major business sectors: the semiconductor business, the information systems business, the computer and systems business, the consumer electronics business, and the domestic sales business. ©1991 Dataquest Incorporated October—Reproduction Prohibited Samsung Electronics Company Ltd. Semiconductors SEC began developing semiconductor products in 1974 and currently produces over 3,000 types of semiconductor products. Its memory products include DRAMs, SRAMs, EPROMs/EEPROMs, and mask ROMs. SEC also produces microcontrollers; application-specific integrated circuits (ASICs), including gate arrays, standard cells, and PC chip sets; bipolar and MOS linear ICs; logic devices; and transistors. The company's latest products include the 1Mb and 4Mb DRAMs, advanced linear ICs, microprocessor peripheral devices, gate arrays, logic famihes, high-efficiency MOSFETs, and power transistors. The company's semiconductor segment headquarters are in Seoul, with major manufacturing plants in Bucheon and Kiheung, South Korea. Established in 1985, Samsung Semiconductor Inc., in San Jose, California, develops and markets memory products and microprocessor peripherals in the United States. SEC also has ASIC design centers in Tokyo, San Jose, and Seoul. Information Systems The company's information systems business segment includes the following subsections: fiber-optic communications systems, switching systems, telecommunications equipment, computer and office automation equipment, integrated communications systems, and home automation and new media equipment Fiber-optic communications systems consist of optical fibers, optical cables, and optical transmission equipment. SEC products are used in long-distance telecommunications applications such as fiber-optic LAN systems, data computer networks, and optical teleconferencing. They will also be used in South Korea's future Integrated Services Digital Networks. The switching systems segment produces electronic switching systems. By the end of 1988, SEC had installed more than 3.5 miUion electronic circuits in South Korea. One of the most recent product developments in this segment is SEC's TDX-1, a digital switching system. In addition, SEC is developing data communications switching equipment, known as private automatic branch exchange. Current models include the SDX-L and COREX systems. The telecommunications equipment segment is responsible for developing and marketing SEC's telephone products. Product lines in this category include cordless and cellular phones, key phone systems for small business or branch office use, and facsimile equipment. The integrated communications systems group produces LAN products, factory automation (FA) systems, integrated control systems (ICS), and building automation systems. SEC uses its own FA and ICS systems at its plants in Suwon and Kiheung, South Korea. The Suwon plant is one of the world's largest electronics integrated manufacturing complexes, covering 370 acres and producing everything from electronic parts and components to finished goods such as audio/video products and home appliances. Computer and Systems Business SEC produces and exports various kinds of computers including personal computers, mainframes, and supercomputers. The company also manufacdires computer products and peripherals such as printers, monitors, flexible, hard-disk drives, and workstations. In addition, SEC produces a wide range of office automation equipment, including teletext recorders, copiers, typewriters, electronic cash registers, and electronic calculators. SEC is also committed to the development of integrated communications systems such as LANs, FA, ICS, and building automation systems. In 1991, Samsung Information Systems America Inc. introduced its first UNIX-only product, the SCGS-19 X ^^ndow Systems Terminal, a 19-inch monochrome X-terminal based on die Advanced Micro Devices 29000 RISC microprocessor. In addition, Samsung announced the SystemMaster 486/33TE, a 33-MHz UNIX-compatible version of its 80486-based EISA engineering workstation and file server. Both products are designed to be sold by UNIX VARs that require a competitive, low-cost solution for technical and high-end commercial applications. Samsung Information Systems America also introduced a new addition to its family of slim-line IBM-compatible computers, the DeskMaster 386S/20. The company also announced 40- and 60MB versions of its NoteMaster 386S/16 notebook computer. The ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011216 Samsung Electronics Company Ltd. addition of the DeskMaster 386S/20 to Samsung's DeskMaster product line is in keeping with the company's commitment to provide corporate users with hardware solutions that maximize the capabilities of ^^^dows 3.0. SEC's overall strategy is to increase its share of the PC network hardware market, the area in which these products are targeted. electronic products. Video products include televisions, VCRs, and camcorders. Audio equipment ranges from portable cassette players to conq>act disc players to large home entertainment centers. The home appUance segment produces microwave ovens, washing machines, vacuiun cleaners, refrigerators, and commercial vending machines, and freezers. Consumer Electronics Samsung also produces a variety of audio and home appUance systems. SEC's line of audio equipment ranges from miniature portable cassette players to large home entertainment centers. SEC produces many different types of home appUances, including washing machines, vacuum cleaners, ulfrasonic humidifiers and dehumidifiers, and microwave ovens. The consumer electronics business segment is composed of several subsegments: industrial electronics equipment, video equipment, audio equipment, and home appliances. The industrial electronics equipment segment produces FA equipment The company produces a variety of automated equipment including partsinsertion machines, carriers, industrial robots, printed circuit board in-circuit testers, and line-monitoring systems. SEC's video, audio, and home apphance segments produce the bulk of the company's consumer 0011216 Further Information For further information on the company's business segments, please contact Dataquest's Semiconductors Asia service. ©1991 Dataquest Incorporated October—Reproduction Prohibited Samsung Electronics Company Ltd. Table 1 Corporate Highlights (Millions of U.S. Dollars) 1987 1988 1989 Three-Year Revenue Percent Change 2,917.0 4,249.3 45.67 6,063.4 31.95 Capital Expenditure Percent of Revenue 193.6 6.64 279.8 6.58 1,248.1 20.58 R&D Expenditure Percent of Revenue NA 0 NA 0 NA 0 Number of Employees Revenue (US$K)/Employee 22,965 127 38,079 112 43,000 141 Net Income Percent Change Exchange Rate (US$1=W) 41.8 825.94 138.7 231.82 734.25 233.4 55.64 679.00 1990 Calendar Year Ql Q2 Q3 Q4 Quarterly Revenue Quarterly Profit NA NA NA NA NA NA NA NA NA = Not available Source: Samsung Electronics Company Ltd. Annual Reports Dataquest (October 1991) l^ble 2 Revenue by Geographic Region (Percent) Region 1987 1988 1989 North America International 27.38 72.62 29.65 70.35 NA NA Source: Samsung Electronics Company Ltd. Animal Reports Dataquest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011216 Samsung Electronics Company Ltd. 1991 SALES OFFICE LOCATIONS SUBSIDIARIES North America—8 Europe—7 Japan—2 Asia/Pacific-ROW—19 North America MANUFACTURING LOCATIONS North America Ledgewood, New Jersey Color televisions Saddlebrook, New Jersey Electronics San Jose, California Semiconductors BiUingham, England VCRs and microwave ovens Estoril, Portugal Color televisions AsialPacific Bangkok, Thailand Video products Bucheon, South Korea Linear IC, ASIC IC, Logic IC, MOS IC, MICOM, transistors Kiheimg, South Korea DRAM semiconductors Kiuni, South Korea Switching systems, telecommunications equipment, fiber-optic communications systems Suwon, South Korea FA equipment, video, audio, cooUng/heating systems, home appliances Hjuana, Mexico Color televisions 0011216 Electronics America Inc. (United States) Electronics Canada Inc. (Canada) Information Systems America Inc. (United International Inc. (United States) Semiconductor Inc. (United States) Europe Samsung Electronica Portuguesa SARL (Portugal) Samsung Electronics Espanola S.A. (Spain) Samsimg Electronics France (France) Samsung Electronics GmbH (Germany) Samsung Electronics Hungarian (Hungary) Samsung Electronics Manufacturing UK (United Kingdom) Samsung Hectrooics UK Ltd. (United Kingdom) Samsung Electronics Europe GmbH (Germany) Japan Europe ROW Samsung Samsimg Samsimg States) Samsung Samsung Samsung Electronics Japan Co. Ltd. (Japan) ROW Samsung Electronic Australia Pty Ltd. (Australia) Samsung Electronic H.K. Co. Ltd. (Hong Kong) Samsung Electronics Panama S.A. (Panama) Samsung Electronics Ticaret A.S. (Turkey) Samsung Maspion Indonesia (Indonesia) Samsung Mexicana S.D. De C.V. (Mexico) Thai-Samsung Electronics Co. Ltd. (Thailand) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 Army Microsystems Inc. Under a five-year agreement with Array Microsystems, Samsung Electronics wiU manufacture high-performance digital signal processing chips codeveloped by engineers from both Samsung and Array Microsystems. The design and development will take place in the Array ©1991 Dataquest Incorporated October—^Reproduction I*rohibited Samsung Electronics Company Ltd. Microsystems headquarters in Colorado Springs, Colorado, while the manufacturing wUl take place at Samsung's manufacturing facilities in Bucheon, near Seoul, Korea. The two companies will contribute a total of about $5 million to the joint effort. Genus Incorporated Genus signed a joint-development pact with Samsung Electronics Co. to develop advanced tungsten processes for Samsung's coming 16Mb and 64Mb DRAMs. Genus of Mountain "V^ew, Cahfomia, will provide on-site support at Samsung's facility in Seoul to help Samsung develop volume-production technologies for submicron applications. Hewlett-Packard Company Samsung has an agreement with Hewlett-Packard whereby Samsung will manufacture the PA-RISC MPU and will develop other compatible devices used to manufacture the HP Apollo 9000 Series 7000. (Also see Yokogawa Hewlett-Packard.) Ingram Micro Inc. Samsung Information Systems America signed a distribution agreement with Ingram Micro, the world's largest distributor of microcomputer products. This deal makes Ingram Micro one of Samsung's select distributors of personal computers, notebooks, peripherals, and color and monochrome monitors. Texas Instruments Inc. Texas Instruments and Samsung Electronics Co. signed a five-year cross-licensing agreement in which both companies will pay royalties to each other for the use of their respective patented memory chip technology. Texas Instruments expects royalty payments from Samsung to gready exceed the amounts received by TI imder the previous agreement, which expired at the end of 1990. Yokogawa Hewlett-Packard (YHP) By the end of 1991, YHP will begin to market a low-end version of the "HP Apollo 9000 Series 700" RISC station, which will be manufactured by Samsung Electronics Co. (Also see HewlettPackard.) 1990 Applied Materials Inc. Applied Materials has a joint-development agreement with SEC on advanced plasma etch process development and production support using Applied Materials' Precision 5000 Etch system. The agreement follows an earlier one in May 1990 between the two on chemical vapor deposition process development with Samsimg's Kiheung Research and Development Center. The new agreement is aimed at meeting Samsung's current and future requirements in production fabs, and covers virtually all of Applied Materials' etch technologies, including single-crystal silicon, polysilicon, tungsten siUcide, and silicon oxide etching. Mass860 Intel and five of its largest customers—Alliant, IBM, Okidata, Olivetti Systems, and Samsung Electronics—^formed a consortium called M]ass860 to speed up porting of useful applications to Intel's i860 RISC microprocessor. Besides promoting a standard ABI for a wide range of hardware platfoims using the i860, the Mass860 program will provide software developers with porting help, technical support, and joint market opportunities. Sequa Samsung will jointly develop nonstop minicomputers with Sequa. Samsung will supply die computers on an OEM basis to Sequa and will market them in South Korea. Sequoia Systems Inc. Sequoia Systems and SEC have agreed to terms of an OEM contract in which Samsung will resell Sequoia's fault-tolerant computers and pay for development of a new low-end UNIX-based computer. The new machine will be marketed under the Samsung name in South Korea. Skydata Inc. Skydata of Melbourne, Florida, and two other companies—Matra of Paris, France, and Samsung—have agreed to jointiy develop a complete line of satellite and data communication products and systems. Matra will be responsible for marketing Skydata products and systems in Europe, the Middle East, and Africa. Skydata will be responsible for product development and marketing for the remainder of the world, while Samsung will be involved in manufacturing. Teradyne Inc. Teradyne and SEC have agreed to joindy develop a next-generation memory test system targeted at 16Mb and 64Mb DRAMs. Samsung will help characterize the system's capabilities and parameters; Teradyne wUl design the hardware and software. ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011216 Samsung Electronics Company Ltd. USSR Samsung Electronics will develop an assembly factory for VCRs, CRTs, and microwave ovens near Moscow. SEC will also export $500 million worth of semifinished VCRs and $1 billion worth of parts and equipment to the Soviet Union. Novell Inc. SEC signed an agreement with Novell to market LAN hardware systems with Novell's NetWare. Samsung Information Systems America and Novell comarketed the PC terminal and file servers until August 1989, at which time Samsung became the sole distributor of the servers. 1989 Hewlett-Packard Company (HP) SEC licensed HP's RISC-based Precision Architecture (PA). SEC will manufacture the HP-PA chips for use in HP and third-party systems. In return for manufacturing the chips, SEC gains advanced CMOS technology and a version of the UNIX operating system. IBM Corporation SEC and IBM signed a cross-Ucensing agreement for semiconductor technology. In addition, SEC and IBM signed an agreement giving SEC access to IBM's personal computer patents. Intergraph Corporation SEC was signed as the first alternate source for Intergraph's CUpper microprocessor, a 32-bit RISC chip. Samsung also has worldwide marketing rights for the processor. Microsoft Corporation Samsimg licensed Microsoft's PostScript software for iise with its printer products. USSR Samsimg agreed to export $81 million worth of semifinished and finished VCRs to the USSR. MERGERS AND ACQUISITIONS In November, 1988, SEC merged with Samsung Semiconductor and Telecommunications Company. KEY OFFICERS Jin-Ku Kang Chairman and chief executive officer Kwang-Ho Kim President, Semiconductor Business Yong-Moon Jung Executive vice president. Information Systems Sun-Doo Hwang Executive vice president. Domestic Operations Young-Soo Kim Executive vice president. Computers and Systems Jong-Yong Yun Executive vice president, Consimier Electronics 1988 Ixys SEC signed a licensing agreement with Ixys to produce power MOSFETs and smart-power ICs developed by Ixys. NCR Corporation SEC and NCR signed a technology licensing and exchange agreement that gives Samsung access to NCR's 1.5- and 2-micron CMOS ASICs. NCR will have access to manufacture and market SEC's 64K and 256K SRAMs. As part of the agreement, SEC will also Ucense NCR's ASIC design software for workstations, NCR's high-density ROMs, and will be able to subhcense the NCR products to SEC customers. 00U216 PRINCIPAL INVESTORS Samsung life Insurance—8.7 percent Lee Kun Hee—8.5 percent Samsung Company—4.2 percent FOUNDERS The Samsung Group ©1991 Dataquest Incorporated October—Reproduction Prohibited Samsung Electronics Company Ltd. Table 3 Balance Sheet Fiscal Year Ending in December (Millions of U.S. Dollars) Balance Sheet Cash Receivables Maiketable Securities Inventory Other Current Assets 1987 98.6 362.1 5.2 224.7 70.7 1988 200.6 512.4 18.7 615.1 198.3 1989 79.6 512.0 2.8 865.9 127.7 Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities 761.3 438.9 176.8 1,377.0 886.5 151.2 71.8 1,545.1 1,662.2 418.6 3,625.9 1,597.9 1,051.2 261.9 1,587.9 2,107.6 589.5 4,285.0 1,506.9 1,413.6 309.3 1,109.5 NA 84.1 50.6 132.8 2,910.2 NA 266.8 130.4 318.5 3,229.8 27.5 268.9 244.8 513.9 267.5 715.7 1,055.2 1,377.0 3,625.9 4,285.0 Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity NA = Not available Soince: Samsimg Electronics Company Ltd. Annual Reports Dataquest (October 1991) ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011216 Samsung Electronics Company Ltd. Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1987 1988 Revenue Domestic Revenue International Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions 2,917.0 798.6 2,118.4 2,480.5 NA 265.9 193.6 55.4 1.90 NA 41.8 13.9 4,595.1 1,408.6 3,186.5 3,762.9 NA 440.6 302.5 188.4 4.10 NA 138.7 36.2 6,063.4 2,370.80 3,692.6 4,554.3 NA 789.7 1,248.1 293.6 4.84 NA 233.4 36.5 9.50 0.01 15.90 8.24 0 13.42 14.08 0 28.91 825.94 734.25 679.00 Per Share Data Earnings Dividend Book Value Exchange Rate (US$1=W) NA = Not available 0011216 1989 Soutce: Samsung Electronics Company Ltd. Annoal Rqxnts Dataquest (October 1991) ©1991 Dataguest Incotporated October—Reproduction Prohibited Samsung Electronics Company Ltd. Table 5 Balance Sheet Fiscal Year Ending in December (Billions of Won) 1987 81.5 299.0 4.3 185.6 58.4 1988 136.2 347.9 12.7 417.7 134.6 1989 628.8 362.6 146.1 1,049.1 1,128.7 284.2 1,137.5 2,462.0 1,078.1 1,431.1 400.3 2,909.5 Total Current Liabilities Long-Term Debt Other Liabilities 732.3 124.9 59.3 1,084.5 713.8 177.8 1,023.2 959.8 210.0 Total Liabilities Common Stock Other Equity Retained Earnings 916.5 69.5 41.8 109.7 1,976.1 181.1 88.5 216.3 221.0 485.9 2,193.0 182.6 166.3 349.0 716.5 1,137.5 2,462.0 2,909.5 Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Shareholders' Equity Total Liabilities and Shareholders' Equity 54.0 347.6 1.9 587.9 86.7 Source: Samsung Electronics Company Ltd. Annual Repotts Dataquest (October 1991) 10 ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011216 Samsung Electronics Company Ltd. Table 6 Consolidated Income Statement Fiscal Year Ending in December (Billions of Won, except per Share Data) Consolidated Income Statement Revenue Domestic Revenue International Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value 1987 1988 1989 2,381.3 650.2 1,731.2 2,048.9 NA 219.7 159.9 45.8 1.92 NA 34.5 13.9 3,028.2 905.7 2,122.6 2,555.0 NA 299.2 205.4 127.9 4.22 NA 101.8 36.2 4,006.8 1,499.6 2,507.3 3,092.4 NA 536.2 847.4 199.4 4.98 NA 158.5 36.5 7.89 0.24 15.90 5.98 0.56 13.42 9.56 0 19.63 Source: Samsniig Electronics Coiiq>any Ltd. Annual Repoits Dataqoest (October 1991) Tkble 7 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (W K)/Employee Capital Spending % of Assets Exchange Rate (US$1=W) NA s Not available 0011216 1987 1988 1989 0.86 514.83 331.44 414.81 0.97 506.67 223.19 406.68 1.05 406.06 142.79 306.06 0.03 0.16 1.45 0.04 0.21 3.36 0.05 0.22 3.96 0 6.71 22,965 104 14.06 825.94 0 6.78 38,079 80 8.34 734.25 0 21.15 43,000 93 29.13 679.00 Source: Samsong Electronics Conq>any Ltd. Annual Repoits Dataqoest (October 1991) ©1991 Dataquest Incorporated October—^Reproduction Prohibited 11 Semikron International BACKGROUND AND OVERVIEW Semikron International was founded in 1951, in Nuremberg, West Germany, by Dr. Fritz Martin and several executives from ITT Semiconductors. Initially established to produce selenium rectifiers, the Company has grown to be a profitable worldwide operation. The Company relies on niche products, technological excellence, and maximum flexibility for the customer. Tables 1 and 2 give Dataquest estimates of Semikron's European and worldwide semiconductor revenue, respectively. Table 1 Semikron International Estimated Eur(q>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other Total Optoelectronic 1983 1994 3-99? 1996 1987 $25 0 0 0 0 $27 0 0 0 0 $30 0 0 0 0 $43 0 0 0 0 $49 0 0 0 0 $25 0 9 10 6 $27 0 10 10 7 $30 0 11 11 8 $43 0 17 13 13 $49 0 19 15 15 0 Source: Dataquest January 1989 ESIS Volume III 0002205 © 1989 Dataquest Incorporated January Semikron International Table 2 SemikrcMi Intemati<»al Estimated Worldwide SemioMiductor Revenue by Product Line (Millions of U.S. Dollars) al Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other Total Optoelectronic 1993 1994 199? 1990 1987 $36 $40 $48 $72 $79 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $36 0 12 14 10 $40 0 14 15 11 $48 0 18 17 13 $72 0 28 22 22 $79 0 30 26 23 0 0 0 0 0 Source : Dataque;St January 1989 PRODUCTS AND MARKETS SERVED From early production of selenium rectifiers, the Company has specialized in the development of semiconductor rectifiers, thyristors, assemblies (bridge rectifiers), and other specific power products. Semikron has a strong capability in, and a flexible approach to packaging, a key area in high-power discrete devices. Dataquest believes that the major market outlets for Semikron's products are industrial electronic end-equipment makers, consumer electronics houses, and other end-user segments. OUTLOOK Semikron has estalished itself as a leader in a specialized area of the merchant semiconductor market. The Company aims to maintain this position by being innovative and flexible. Dataquest believes that Semikron will continue growing steadily and that its reputation will be enhanced, both by this and by operating results, which have shown a profit for every year of operation to date. © 1989 Dataquest Incorporated January ESIS Volume HI 0002205 SGS-Thomson Microelectronics BACKGROUND AND OVERVIEW SGS-Thomson Microelectronics B.V. (SGS-Thomson) was formed on May 21, 1987, and results from the combination of the total semiconductor business of IRI-STET and the civil semiconductor business of Thomson-CSF. The Company is owned 50 percent by Thomson-CSF, 45 percent by IRI, and 5 percent by its subsidiary, IRI-Finmeccanica. The Company is registered in Amsterdam, The Netherlands. The Company employs approximately 17,000 people worldwide at 18 factories, 7 R&D centers, 13 design centers, 42 direct sales offices in 20 countries, and more than 600 representatives and distributors worldwide. Table 1 lists the locations of these facilities. Table 1 Location of SGS^-Thomson Facilities Total Revenue 1988: $1,085 million (1987: $859 million) Employees 17,000 Factories 18 France: Grenoble, Maxeville (Nancy), Rennes, Rousset (Aix-En-Provence), Tours Italy: Agrate (Milan), Castelletto (Milan), Catania Malaysia: Muar Malta: Kirkop, S. Gwann Morocco: Casablanca (2 factories) Singapore: Ang Mo Kio, Toa Payoh U.S.A.: Dallas, Montgomeryville (Philadelphia), Phoenix Advanced R&D Centers 7 France: Grenoble, Rousset (Aix-En-Provence), Tours Italy: Agrate (Milan), Castelletto (Milan), Catania U.S.A.: Dallas France: Grenoble, Rennes, Paris (Gentilly) Italy: Agrate (Milan) Germany: Grafing, Munich Malaysia: Singapore Sweden: Stockholm (Kista) U.K.: London (Marlow) U.S.A.: Dallas, Montgomeryville (Philadelphia), Phoenix, Santa Clara Design Centers Sales Offices 42 direct sales offices in 20 countries, more than 600 reps and distributors Source: ESIS Volume III 0003912 © 1989 Dataquest Incorporated June SGS-Thomson Dataquest June 1989 SGS-Thomson Microelectronics In the last 18 months, Mr. Pasquale Pistorio, the Company's president and CEO, restructured the Company. SGS-Thomson closed or sold five factories and reorganized its production by shifting approximately 100 processes. Since January 1, 1988, the Company has been acting as a single unit. The Company's 1988 results were good—sales grew approximately 26 percent, productivity increased from $44,000 per employee to $62,000 per employee in the last 18 months, and there was a small operating profit of $2.2 million. Although small in real terms, the profit is significant because it shows a reversal in the Company's performance from the day of its creation. In 1988, approximately 20 percent of total sales was spent on R&D, and 17.6 percent was spent on capital investments. R&D efforts are focused on high-growth market segments, while a high level of cooperation is being maintained in national and European R&D programs like ESPRIT, RACE, and Eureka. In October 1988, SGS-Thomson, Philips, and Siemens reached an agreement over the launch of the ECU 3.8 billion (US$4.2 billion) joint research and development program called Joint European Submicron Silicon (JESSI). However, some remaining issues still have to be resolved, such as funding from the European Commission's ESPRIT programs, and the identity of other participants in parts of the program, which is expected to include smaller semiconductor companies, users, and suppliers from all over Europe. Products and Markets Served In 1988, SGS-Thomson's semiconductor revenue was mainly in Europe (60.0 percent) followed by the United States (21.3 percent), Asia/Pacific (17.7 percent), and Japan (1.0 percent). By end use, the split was as follows: Industrial (24 percent), computer (19 percent), consumer (19 percent), telecommunications (25 percent), automotive (10 percent), and military (3 percent). Although sales in Japan are small, that country has the same footing in the Company's organizational structure as any other region. SGS-Thomson's worldwide and European semiconductor activities are illustrated by product line in Tables 2 and 3, respectively. The Company's product range includes standard ICs, dedicated ICs, discrete products, semicustom ICs, and subsystems. Table 4 lists the Company's main product licenses and cooperation agreements with other companies. © 1989 Dataquest Incorporated June ESIS Volume III 0003912 SGS-Thomson Microelectronics Table 2 SGS-Thomson Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 19H 1985 1986 1987 1988 $545 $539 $700 $859 $1,085 Total Integrated Circuit Bipolar Digital MOS Linear N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $646 20 344 282 $ Total Discrete Transistor Diode Thyristor Other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $213 113 44 28 28 Total Semiconductor 831 20 459 352 254 142 68 44 0 Total Optoelectronic N/A := Hot Available Table 3 SGS-TlKjmson Estimated Eurcpean Semiconductcn* Revenue by Product Line (Millions of U.S. Dollars) 1984 1985 1986 1987 1988 $343 $370 $468 $537 $650 Total Integrated Circuit Bipolar Digital MOS Linear N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $397 14 209 174 $483 11 262 210 Total Discrete Transistor Diode Thyristor Other N/A N/A N/A N/A 0 N/A N/A N/A N/A 0 N/A N/A N/A N/A 0 $140 65 31 20 24 $167 85 50 32 0 Total Semiconductor Total Optoelectronic N/A = Not Available Source: ESIS Volume III 0003912 © 1989 Dataquest Incorporated June Dataquest June 1989 SGS-Thomson Microelectronics Table 4 SGS-Thomson Main Licenses and Agreements Main Technology and Product Licenses Motorola: MPUs-MCUs Zilog: MPUs-MCUs LSI-Logic; Gate arrays NSC: MCUs Lattice: GAL family Cadence: CAD Main Product Cooperation Agreements Toshiba: High-speed CMOS National Semiconductor: Telecom ISDN Philips: Power package Oki: DRAM manufacturing Source: SGS-Thomson Dataquest June 1989 OUTLOOK The corporate goal is to be a profitable and viable broad-range supplier of semiconductors and subsystems. This goal implies operating on a worldwide basis on the merchant market and growing to be, and remaining, among the top 10 suppliers in the world. The Company has a five-year expansion program, to expand to between 4 and 5 percent of the worldwide market by 1993. Sixty-five percent of the funding for this program is expected to come from internal resources, the rest is to come from further equity injections by shareholders and from the banks. SGS-Thomson grew 26.3 percent in 1988 over 1987. The Company believes there is room to grow without any new portfolios. However, in order to be among the leaders, SGS-Thomson must have DRAMs and 32-bit microprocessors. Later this year, the Company hopes to make a decision on how to incorporate DRAMs into the product portfolio (through strategic alliances or other means). As far as microprocessors are concerned, the Company hopes to have the resources through the acquisition of InMOS. To date, SGS-Thomson has signed a letter of intent to purchase InMOS. If the Company is successful in its acquisition, it would be the first step into the personal computer market. © 1989 Dataquest Incorporated June ESIS Volume III 0003912 Siemens AG Wittelsbacherplatz 2, D-800 Munich Federal Republic of Germany Telephone: Oil 49 89 234-0 Fax: 234-42 42 Dun's Number: 31-606-7164 Date Founded: 1847 CORPORATE STRATEGIC DIRECTION Informationssysteme AG had a loss of DM 348 milhon (U.S.$216 milUon) worldwide. Siemens AG provides a comprehensive range of products from electronic components to office and telecommunication systems, and from production equipment, power, and medical engineering to transportation systems and automotive electronics. Siemens has positioned itself as a global company with sales to its domestic German market accounting for 45 percent and sales to the rest of world accounting for 55 percent of total worldwide sales in fiscal 1990. Currendy, Siemens' operations in the United States exceed 10 percent of total sales. In October 1990, the activities of Dr.-Ing Rudolf Hell GmbH were transferred to Linotype AG. Siemens, which was the parent company of HeU, holds a minority interest in the company, which has been renamed Linotype-HeU AG. The two companies together will have an estimated annual revenue of approximately DM 500 miUion (U.S.$310.4 million). This makes the company one of the largest electronic prepress companies in the industry. Siemens AG is one of the world's major electrical engineering and electronics companies with 1990 sales of DM 63.1 billion (U.S.$39.2 billion). (Percentage changes refer only to DM amoimts; U.S.$ percentage changes wiU differ because of fluctuations in Dataquest exchange rates.) According to Dataquest, in 1990 semiconductor sales totaled DM 2.0 billion (U.S.$1.1 billion). This ranks Siemens as Europe's third-largest semiconductor company. Its data and information systems sales of DM 7.7 billion (U.S.$4.8 biOion) rank the company as one of the world's largest information systems vendors. And with pubhc and private telecommunication equipment sales of DM 13.8 billion (U.S.$8.6 billion), Siemens is one of the world's largest telecommunication vendors. In April 1990, Siemens acquired a majority interest of common stock in Nixdorf Computer AG. On October 1, 1990, the Data and Information Systems Group was integrated into Nixdorf to form Siemens Nixdorf Informationssysteme AG (SNI). The integration of Siemens and Nixdorf represents a major expansion of the company. Although the company plaimed to increase business volume by nearly DM 6 biUion (U.S.$3.7 billion), in April 1991, Siemens AG aimounced that Siemens Nixdorf 0011569 In October 1990, Siemens acquired 49 percent interest in Maimesmann TaUy GmbH, a computer printer manufacturer. This places Europe's printer industry in a very strong positioiL Maimesmann Tally was quick to maximize on the broadened range of products by introducing a new printer that was designed-by-Siemens AG. In November 1990, Siemens acquired a 50 percent stake in Stromberg-Carlson Corporation, a U.S. telephone exchange business from GEC Plessey Telecommunications Ltd. (GPT). Siemens merged its Siemens Private Commimication Systems Inc. with Stromberg-Carlson to create Siemens StrombergCarlson and became one of the largest U.S. public network equipment suppliers. In addition, several structural changes took place within the company. The former Peripherals and Terminals Group was dissolved as of April 1, 1990; its fields of operation were assigned to units involved in related product hnes. Currendy, Siemens AG has 13 business groups, 2 special divisions, and 1 legally independent unit. The 13 business groups include: Industrial and Building ©1991 Dataquest Incorporated November—^Reproduction Prohibited 1 Siemens AG Systems, Drives and Standard Products, Automation, Automotive Systems, Power Generation (KWU), Power Transmission and Distribution, Semiconductors, Medical Engineering, Public Communication Networks, Passive Components and Electron Tubes, Private Communication Systems, Defense Electronics, and Transportation Systems. The two special divisions are Audio and Video Systems and Electromechanical Components; the legally independent imit is Osram GmbH. Siemens' strategy is to further enhance its position in Europe in aU important sectors of electrical engineering and electronics while continuing to build a broad business base in the United States. Siemens' goal in the new German states is to achieve the same market position that it enjoys iu the western part of the country. Over the next few years, Siemens plans to invest more than DM 1 billion in the new German estates and to employ locally some 25,000 to 30,000 people in research and development, production, distribution, installation, and service. Ehiring 1990, Siemens employed 373,000 people worldwide, which is a 2 percent increase from 1989. Siemens' sales by business segment, excluding intersegment sales, were as follows for fiscal 1990: Power Generation, 5.8 percent; Power Transmission and Distribution, 5.0 percent; Industrial and Building Systems, 7.6 percent; Drives and Standard Products, 6.3 percent; Automation, 5.5 percent; Data and Information Systems, 7.7 percent; Private Communication Systems, 4.8 percent; Defense Electronics;-1.1 percent; Transportation Systems, 1.2 percent; Automotive Systems, 1.8 percent; Medical Engineering, 6.6 percent; Public Communication Networks, 9.1 percent; Semiconductors, 2.0 percent; Passive Components and Electron Tubes, 1.7 percent; Electromechanical Components, 0.8 percent; Audio and Video Systems, 0.1 percent; Osram, 2.6 percent; Hell, 1.0 percent Total revenue increased by 20.7 percent to DM 63 biUion (U.S.$39.2 bilUon) in fiscal 1990 from DM 61 billion (U.S.$32.5 billion) in fiscal 1989. Net income increased 23.5 percent to DM 1.7 billion (U.S.$1.1 billion) in fiscal 1990 from DM 1.5 bilUon (U.S.$931 miUion) in fiscal 1989. Research and development expenditure totaled DM 7.0 billion (U.S.K3 billion) in fiscal 1990, representing 6.9 percent of revenue. Capital spending totaled DM 7.0 bUHon (U.S.$4.4 billion) in fiscal 1990, representing 7.0 percent of revenue. In fiscal 1990, approximately 43,000 employees worldwide were engaged in R&D activities. About 90 percent of the R&D work was carried out by the operating groups, while the remaining 10 percent was done by the Corporate Research and Development and the Corporate Production and Logistics Division. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information is not available on revenue by distribution chaimel. Tables 3 through 7 at the end of this backgrounder present comprehensive financial information. The financial information does not include Nixdorf Computer AG because its consohdation will not be completed until the 1990 to 1991 fiscal year. BUSINESS SEGMENT STRATEGIC DIRECTION Data and Information Systems The activities of Data and Information Systems were transferred to Siemens Nixdorf Informationssysteme AG in October 1990. ^ t h a spectrum ranging ftom notebook PCs to advanced mainframes, from organizational-isolutions for offices and plants to networks for large companies with global operations, Siemens Nixdorf Iirformationssysteme AG is the largest European computer manufacturer. The Data and Information Systems segment contributed significantly to Siemens' overall growth in 1990. New orders increased 15 percent to DM 7.5 billion (U.S.$4.7 billion) and sales increased 28 percent to DM 7.7 billion (U.S.$4.8 billion) from 1989. This growth was significanfly higher than the industry average and increases were registered in both domestic and international markets. Siemens believes that a major share of this favorable business was attributable to BS2000-driven, general-purpose computers. For the third straight year, the MX300 and MX500 Sinix computer families led both German and European markets for multiuser computers using the UNIX operating system. The company's market position for special systems, such as point-of-sale terminals, also continued to grow. ©1991 Dataquest Incorporated November—^Reproduction Prohibited 0011569 Siemens AG Mainframes The 7500 Series of general-purpose computers using the BS2000 operating system offers a broad spectrum ranging in performance from 1 to 100 mips, covering desktop units to large general-purpose computers. The BS2000, with its high degree of upward compatibiUty, is seen as a main foundation for development and has been merged with BASF's plug-compatible marketing arm to fonn Coinparex. Siemens is attempting to gain more market share in the IBM mainframe market. Midrange Growth in the MX300 and MX500 Sinix computer famihes led both Grerman and European markets for multiuser computers using UNIX operating systems. The MX300 and MX500 systems can coimect up to 24 and 64 terminals, respectively. During 1990, the WX200 Sinix workstation was one of the new products introduced. Siemens suppUed one of the largest supphers of UNIX-based multiterminal systems in Europe. Personal Computers MS-DOS PC sales ahnost doubled during fiscal 1990. Growth was especially high in the high-performance category. This was, in part, the result of developing a highly regarded line of fiiUy MS-DOS-compatible PC models. The two main lines are the PC D-2, which is based on the Intel 80286 processor, and the PC D-3, which is based on the 80386 processor. Industry Standards Siemens strongly supports European data processing standards and was a founding member of the X Open group of European Companies working on development of a common appUcations environment crucial standards-making committees of the CCll'l'. It is strongly entrenched in Eiu-ope and has a solid reputation for weU-engineered and well-manufactured products. It also has developed an expertise in ISDN. Siemens plans to install 200,000 lines in the former East Germany and to acquire a large share of this market. In 1990, ROLM Systems, which develops and manufactures communications systems, was integrated into Siemens Private Commimication Systems Inc. (SPCS). ROLM Company, however, is a joint venture that is equally owned by IBM Corporation and Siemens. It distributes the communications systems in the United States manufactured by ROLM Systems. PBX In October 1990, Siemens reorganized its PBXrelated communications businesses in the United States. This created a new company called Siemens Private Communication Systems Inc. This new company includes ROLM Systems, Tel Plus Communications and Siemens' interest in ROLM Company, a 50-50 joint venture with IBM. ROLM is the third largest PBX supplier in the United States, with 14.0 percent market share, while Siemens ranks sixth witii 3.9 percent SPCS will include a PBX development division, a manufacturing plant, and the Gold Seal Dealer marketing and government sales units. Part of the new company will also include such support functions as financial controls, strategic planning, market research, and marketing communications.'During 1990, the company's business in Spain and the Netherlands developed particularly well. ISDN Although the peripherals and terminals accoimted for about one-fifth of the Peripherals and Terminals Group business in 1989, the activities were transferred to Data and Information Systems of Siemens Nixdorf Informationssysteme during 1990. The strongest growth was in personal computers, fax machines, office printers, and telephone terminals, especially digital feature phones. This btisiness is expected to grow because of the computer-aided telephony access to ISDN. Smaller systems and worldwide networking are examples of services that offer additional benefits. In an effort to avoid problems, including interoperability, that have stood in the way of the acceptance of ISDN, an agreement was made between AT&T, Northern Telecom, Inc., and Siemens Stromberg-Carlson to implement key ISDN standards. The companies hope that the service may be extended to nuUions of users by the end of 1992. Telecommunication Digital Public Telephone Switching System In the telecommunication business, Siemens has a global presence as a participant or leader in all of the Siemens entered into alliances in eastern Germany with former state-owned businesses, including a Peripherals and Terminals 0011569 ©1991 Dataquest Incorporated November—Reproduction Prohibited Siemens AG Leipzig plant that will manufacture public telephone switching systems (EWSD). The merger of Stromberg-Carlson with U.S.-based Siemens Communication Systems Inc. provided additional market share in the United States. During fiscal 1990, 107 telecommunication administrators worldwide ordered EWSD exchanges. A total of approximately 28 million lines were ordered or delivered, which is an increase of approximately 50 percent over fiscal 1989. In addition, the first contract for the installation of a digital telephone network was signed in the new German states. Defense In the defense sector, the acquisition of Plessey operations strengthened its competitive position. The integration of two British companies, Siemens Plessey Defence Systems Ltd. and Siemens Plessey Radar Ltd., provided Siemens with local production facilities in two of Europe's key regional markets—Great Britain and Germany. Higher sales volumes were generated primarily by the Patriot air defense missile system. Siemens is the general contractor in charge of adapting Patriot for German defense requirements. Current political developments are expected to cause substantial changes in the structures of NATO and the German Federal Armed Forces and will, therefore, affect previously planned development and procurement projects. Semiconductors Siemens reached a technological level equal to that of its major competitors with the Mega Project, its megabit DRAM development project Although shipments of 4Mb DRAMs doubled during 1990, revenue dropped because of falling prices. During fiscal 1990, the semiconductor business was marked by a dramatic fall in memory prices and fierce competition, precipitated by excess capacity on the world market and the declining exchange rates of the dollar and the yen. In fiscal 1990, the Semiconductor group's new orders decreased 12 percent to DM 2.1 billion (U.S.$1.2 billion) and sales decreased 12 percent to DM 2.0 biUion (U.S.$1.1 billion). Siemens attributes this drop in revenue to the dramatic fall in semiconductor prices, fierce competition, and the declining exchange rates of the dollar and the yen. In addition, IBM and Siemens signed an agreement to manufacture 16Mb DRAM chips at IBM's facility in Corbeil-Essonnes, France. Production is to begin at the end of 1991, with output set for the second half of 1992. Further Information For further information about the company's business segments, please contact the appropriate Dataquest industry service. ©1991 Dataquest Incorporated November—^Reproduction Prohibited 0011569 Siemens AG Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1986 1987 1988 1989 1990 Five-Year Revenue Percent Change 21,669.6 1.17 28,572.8 31.86 33,356.2 16.74 32,514.9 (2.52) 39,245.3 20.70 Capital Expenditure Percent of Revenue 3,155.8 6.71 2,951.7 5.74 2,927.0 4.93 4,187.4 6.85 4,388.8 6.95 R&D Expenditure Percent of Revenue 2,488.9 5.29 3,450.6 6.71 3,640.4 6.13 3,656.9 5.98 4,335.4 6.86 Number of Employees Revenue ($K)/Employee 359,000 60.36 359,000 79.59 353,000 94.49 365,000 89.08 373,000 105.22 679.3 30.71 708.3 4.28 781.5.1 10.32 838.8 7.34 1,036.0 23.51 2.17 1.80 1.78 1.88 1.61 Net Income Percent Change Exchange Rate (U.S.$1=DM) 1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue Quarterly Profit NA NA NA NA NA NA NA NA Source: Siemens AG Aimual Reports Dataquest (November 1991) NA = Not available Table 2 Revenue by Geographic Region (Percent) Region Germany International 1987 1986 45 55 _. -49. 51 1988 .. ,„ . 52 48 1989 1990 47 53 45 55 Source: Siemens AG Aimual Reports Dataquest (November 1991) 0011569 ©1991 Dataquest Incorporated November—Reproduction Prohibited Siemens AG 1990 SALES OFFICE LOCATIONS North America—^70 Europe—88 Asia^acific—^25 Japan—2 ROW—60 MANUFACTURING LOCATIONS Infonnation is not available. SUBSIDIARIES i^orih America Nixdorf Computer Corporation Siemens Automotive Ltd. (Canada) Siemens Electric Ltd. (Canada) Siemens Automotive L.P. (United States) ROLM Systems (United States) Siemens Private Communication Systems Inc. (United States) Siemens Components Inc. (United States) Siemens Energy & Automation Inc. (United States) Siemens Information Systems (United States) Siemens KWU Inc. (United States) Siemens Medical Systems Inc. (United States) Europe ATEA N.V. (Belgium) Dr.-Ing Rudolf Hell GmbH (Germany) Duewag AktiengeseUschaft Heimaim GmbH (Germany) Interatom GmbH (Germany) Nixdorf AG (Switzerland) Nixdorf Computer AG (Germany) Nixdorf Computer France S.A. (France) Nixdorf Computer Ges.m.b.H. (Austria) Nixdorf Computer Ltd. (England) Nixdorf Computer S.A (Spain) Nixdorf Computer A.G. (Switzerland) NRG Nuklearrohr-Gesellschaft GmbH (Germany) Osram GmbH (Germany) Ostram Ltd. (England) Osram S.A. (France) Osram S.A. (Spain) Osram-GEC Ltd. (United Kingdom) Osram Societa Ruinite Osram Edison-Qerici S.p.A. (Italy) Rofin-Sinar Laser GmbH (Germany) Siemens AB, Stockholm (Sweden) Siemens A.E., Elektrotechnische Projekte und Erzeugnisse (Greece) Siemens AG Osterreich (Austria) Siemens-Albis AG (Switzerland) Siemens A/S (Denmark) Siemens A/S, Oslo (Norway) Siemens Automotive S.A (France) Siemens BeteUigungen AG (Switzerland) Siemens-Elema AB (Sweden) S i e m e n s F i n a n z i e r u n g s g e s e l l s c h a f t furr Informationstechnik GmbH (Germany) Siemens Ltd., Dublin (Ireland) Siemens Ltd., London (United Kingdom) Siemens Matsushita Components GmbH & Co. (Germany) Siemens Miet- und Portfolio- GmbH &, Co. OHG, (Germany) Siemens Nederland N.V. (Netherlands) Siemens Osakeyhtio (Finland) Siemens pic (England) Siemens Plessy Electronic Systems Ltd. (England) Siemens S.A. (Belgium) Siemens S.A. (France) Siemens S.A., Lisbon (Portugal) Siemens S.A., Madrid (Spain) Siemens_Sj).A. (Italy) Siemens Telecomunicazioni S.p.A. C^taly) Siemensstadt-Gnmdstucksverwaltung GmbH & Co. (Germany) Sietec Siemens-Systemtechnik imd Portfolio GmbH & Co. (Germany) Simko Ticaret ve Sanayi (Turkey) Turk Siemens Kablo ve Elektrik Sanayii A.S. CHirkey) Vacuumschmelze GmbH (Grermany) Japan Siemens K.K. (Japan) ROW Equitel S.A. (Argentina) Osram Argentina S.A.C.I. (Argentina) Osram do Brasil-Companhia de Lampadas Electricas S.A. (Brazil) ©1991 Dataquest Incorporated November—Reproduction Prohibited 0011569 Siemens AG Osram S.A. de C.V. (Mexico) Siemens Components (Pte.) Ltd. (Singapore) Siemens Components Sdn. Bhd. (Malaysia) Siemens Ltd. (AustraUa) Siemens Ltd. (India) Siemens Pakistan Engineering Co. Ltd. (Pakistan) Siemens Ltd. (South Africa) Siemens S.A. (Columbia) Siemens S.A. (Venezuela) Siemens S.A. de C.V. (Mexico) Siemens S.A., Sao Paulo (Brazil) Siemens S.A.I.C.F.I.yM. (Argentina) Siemens Western Finance N.V. (Netherlands Antilles) Taicom Systems Ltd. (Taipei) ALLIANCES, J O I N T VENTURES, AND LICENSING AGREEMENTS 1991 Appian Technology Appian Technology signed an agreement to supply Siemens with custom VGA graphics boards for a range of personal computers. PBX will supply customers with ISDN-LAN connections. IBM Corporation IBM and Siemens signed a contract to build a factory that wiU manufacture 16Mb DRAM microprocessors at an estimated cost of $7(X) million. The facility is planned to be located in CorbeU-Essonnes. The agreement leaves room for additional partners providing the plant produces more microprocessors than the two companies need themselves. As part of the agreement Siemens will use the chips in specialized products, while IBM wiU use the chips in its own machines. Matsushita Electric Industrial Company Ltd. Matsushita and Siemens Nixdorf Informationssysteme AG signed an alliance to exchange personal computers in Europe. Siemens will sell Matsushita notebook computers under its own name, and Matsushita will seU Siemens machines under its Panasonic trade name in Europe. Under the agreement, the equipment wiU be jointly developed by both companies' R&D operations in their respective countries. Motorola Incorporated Motorola and Siemens agreed to joindy market equipment for contracts imder a $30 billion European cellular network. AT&T, Siemens Stromberg-Carlson, and Northern Telecom Inc. Nippon Telephone and Telegraph (NTT) An agreement was developed among AT&T, SieNTT selected Siemens to participate in the mens Stromberg-Carlson, and Northem Telecom development of the \^sual. Intelligent and Personal Inc. These companies will begin to implement program. Fiber optic cables and the asynchronous ISDN standards in order to extend the service to transfer mode principle will be the technological minions of users by 1992. .. . . —basis of-vaiieus services for speech, text, data, and pictures. China Great Wall Industry Siemens signed an agreement that allows two facStorage Technology Corporation tories to build the Hicom 3(K) private branch Storage Technology and Siemens Nixdorf agreed to merge their nonimpact printer operations in the exchange system. The agreement was signed with United States in a joint venture that became operaChina Great Wall Industry and permits each of the tional in January 1991. Siemens Nixdorf owns 51 factories to produce up to 100,(XX) subscriber lines percent, and Storage Technology owns 49 percent per year within 4 years. GPT Ltd. GPT Ltd. and Siemens AG merged their British PABX distribution operations to create a joint venture. GPT Sales and Service and Siemens Communications Systems are being merged to form GPT Communications Systems. Siemens will have a 50 percent ownership. Gandalf Technologies Siemens and Gandalf Technologies have agreed to jointly market Gandalf's communications server and Siemen's PBX. Under the agreement, Gandalf's Starmaster server and Siemen's Hicom 0011569 SynOptics Communications Inc. Siemens signed a three-year OEM agreement with SynOptics Communications (Santa Clara, California) in which Siemens wiU market LAN products such as concentrators, ethemet, and token-ring connections in Europe. 1990 VEB Robotron Siemens and VEB Robotron plan to enter into a joint venture. The software and computer systems company will be based in Dresden. ©1991 Dataquest Incorporated November—^Reproduction Prohibited Siemens AG BB-Data GeseUschaft Siemens and BB-Data GeseUschaft fuer ' Infonnations-und Kommumkationssysteme are to cooperate in marketing the BB-Data Domino CASE tool. The companies also will jointly market tools for Computer Reverse Engineering (CARE). Siemens will support BB-Data in the development of further Domino products. Digital Equipment Corporation, Hewlett-Packard Company, IBM Corporation, Unisys Corporation Siemens has established worldwide PBX and computer teaming alliances with Digital Equipment, Hewlett-Packard, IBM, and Unisys to provide voice/data solutions to end users. SGS-Thompson Siemens and SGS-Thompson agreed to cooperate in the field of high-performance microcontrollers. The objective is to provide a comprehensive and integrated common solution for high-end 8-bit and 16-bit MCU applications. Siemens and SGSThompson also entered into a cooperative agreement wherein both companies agreed to act as second sources for each other's high-performance microcontrollers in 8-bit and 16-bit applications. Unitrode Siemens and the Micro Networks Division of Unitrode entered into a licensing agreement. Under the agreement, Micro Networks wiU sell Siemens' high-speed flash A/D converters. The licensing agreement initially covers the purchase and repackaging of Siemens' 6-bit and 8-bit, 75-MHz to 300-MHz sampling A/Ds. Chinon Industries Inc. Siemens and Chinon Industries entered into an agreement to cooperate in the development, production, and marketing of peripherals for PCs and of communications devices. The companies also plan to cooperate in the development of facsimile machines and image scanners. VEB Numerik Karl Mark, VEB Niles, WMV International Handelgesellschaft Siemens, VEB Numerik Karl Mark, VEB NUes, and WMV International Handelgesellschaft will form a joint venture to produce electrical and electronic machine tool equipment. Analogy Inc. Siemens and Analogy entered into an OEM agreement. Under the terms of the agreement, Siemens i wiU market and support Saber as an OEM product worldwide, integrated with its SIGRAPH-EL product line. General Electric Aerospace, Thompson-CFS, Thorn EMI Siemens, General Electric Aerospace, ThompsonCFS, and Thorn EMI signed a memorandum of ' understanding establishing a consortium known as Euro-Art. The consortium will develop an advanced groimd-based weapons-locating radar for the armed forces of France, Germany, and the United Kingdom. MAP Deutschland Siemens and MAP Deutschland entered into a cross-licensing pact covering Siedcon connector and RV-100-4 transfer systems for the connectors. The products are produced by the Electromechanical Component Divisions of the respective companies with Siemens manufacturing the connectors and MAP producing the transfer system. Rational Siemens and Rational are to cooperate on the Ada programming language for computer-aided software engineering (CASE). The move is intended to help both companies expand in the CASE sector. Coming Siemens and Coming have agreed to joindy develop passive fiber-optic transmission compo—aents that will-help iMing optical communications technology to the home. 1988 to 1989 MIPS Corporation Siemens bought MIPS' design for the newest 32-bit RISC microprocessor. BASF (Comparex) BASF agreed to manage Siemens' IBMcompatible, non-Fujitsu-based mainframes. Iskra The companies are manufacturing telecom equipment (EWSD). ROLM Systems Siemens acquired this telecom product marketing and servicing company. ©1991 Dataquest Incorporated November—Reproduction Prohibited 0011569 Siemens AG Advanced Integrated Circuit Design Aids (AIDA) AIDA is developing semiconductor technology. M E R G E R S AND ACQUISITIONS AMD The companies are developing a common chipsets for ISDN. AMD second sources Siemens' 80515 and 82258 DM A controllers. JESSI Siemens participates in JESSI to develop semiconductor technology with Philips and Thomson. Megaproject Siemens is developing DRAMs and SRAMs with Philips. Open Software Foundation (OSF) Siemens joined this UNIX development standards group. 'Toshiba and General Electric The companies are participating in the development of standard cell libraries. Acer The companies have an OEM agreement to resell the mdustrial PC 16-05. Apollo The companies have an OEM agreement covering die bottom end of midrange computers. Fujitsu The companies have an OEM agreement to resell the MX500 processor and VP Series of vector processors. NEC The companies have an OEM agreement to resell die NEAX2400 PBX. Sequent The companies have an OEM agreement to resell UNIX equipment and products. Taylorix Siemens manufactures PCs for resale. Toshiba Siemens is licensed to manufacture 1.2-micFon CMOS 1Mb DRAMs. Zenith The companies have an OEM agreement to resell 80286-based laptops. 0011569 1991 Anlagenbau Teltow .. Siemens confirmed that it will buy Anlagenbau Teltow, the BerUn-based electrical components manufacturer. Cardion Electronics Inc. Siemens acquired Cardion Electronics Inc. from Ferranti International of England. The company manufactures and markets commercial and defense electronic navigation systems. The new name of the company is Cardion Inc. EG&G Inc. EG&G Inc. of Wellesley, Massachussetts, signed a letter of intent to acquire a majority interest in Heimann, subsidiary of Siemens AG. Heimann GmbH is a producer of optoelectronic devices based in Wiesbaden, Germany. Ferranti Business Communications Ferranti Business Communication was acquired by Siemens. Siemens will relocate the firm to its new site in Manchester. GPT Siemens Communications Systems and GPT Sales and Services, the largest UK telecommunications • manufacturer, have agreed to merge their British distribution companies for computerized switchboards. Siemens and GEC will each indirectiy own 17 percent of the venture directly with the remainder coming through its 40 percent stake of GPT. The venture will be financially consolidated into GPT, which wUl own 83 percent Relcon Relcon, producer of electronic drive systems, has been acquired by ASI, a Siemens division that is involved in drive and switchboard technology. \^a Relcon products, Siemens aims to increase it presence in the electronic drive systems markets in the United States and Mexico. Texas Instruments Inc. Texas Instruments Inc. signed a letter of intent to sell its Industrial Controls unit to Siemens Corp. Included in the sale are TI's products, facilities equipment, and sales/support activities. ©1991 Dataquest Incorporated November—Reproduction Prohibited Siemens AG 1990 Dr.-Ing Rudolf Hell GmbH Linotype AG acquired Dr.-Ing, parent company being Siemens. Siemens will be the largest shareholder, with 33 1/3 percent of the stock. GPT Ltd. GPT Ltd. and Siemens AG merged their ,.U.S. operations. The new company is called Siemens Stromberg-Carlson. Siemens and GPT will each own 50 percent. Mannesmann Tally GmbH Siemens acquired Mannesmann, a computer printer manufacturer, and merged it into Siemens' Office Products Division. Mannesmann is now 51 percent owned by Mannesmann AG and 49 percent by Siemens AG. Nixdorf Computer Siemens AG acquired 78 percent of Nixdorf Computer. The new company, a majority-owned subsidiary of Siemens called Siemens-Nixdorf Informationssyteme AG, combines the Siemens data and information systems activities with those of Nixdorf. 1989 ROLM Company Siemens acquired ROLM from IBM. The Plessey Company In partnership with Britain's General Electric Company (GEC), Siemens acquired The Plessey Company, an electronics firm based in Dford, Essex, England. KEY OFFICERS Karlheinz Kaske, Dr.-Ing. President and CEO Karl-Hermann Baumann, Dr.rer.oec. " Executive vice president. Corporate Finance Heinrich von Pierer, Dr. jur. Vice chairman Hermann Franz Executive vice president. Corporate Planning and Development Claus Kessler, Dr.-Ing Executive vice president. Corporate Production and Logistics Hans-Gerd Neglein Executive vice president, regional administrator Hans Baur, Dr.-Ing Executive vice president Klaus Barthelt, Dr.-Ing.E.h. Executive vice president Horst Langer, Dr.-Ing Executive vice president PRINCIPAL INVESTORS Information is not available. 1988 Allied Signal Inc. Siemens AG acquired Bendix Electronics Group from AlUed Signal Inc. to strengthen its position in the automotive electronics market 10 FOUNDERS Information is not available. ©1991 Dataquest Incorporated November—Reproduction Prohibited 0011569 Siemens AG Table 3 Balance Sheet Fiscal Year Ending September 30 (Millions of U.S. Dollars) Balance Sheet Cash* Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity* Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1=DM) *Other capital is paid-in coital. NA = Not available 0011569 1987 1988 1989 0 " • 6,644.2 NA 1,119.4 10,013.8 17,777.4 5,701.4 741.5 0 •8,141.1 NA 1,009.4 12,805.6 21,956.1 7,467.2 1,067.8 24,220.3 30,491.1 0 -8,858.4 NA 2,200.6 13,465.2 24,524.2 7,653.4 1,315.2 33,492.7 0 10,206.5 10,364.5 3,663.6 963.0 25,197.7 7,394.3 1,661.4 34.253.3 1990 00 11,907.0 9,743.1 4,542.9 2,304.8 28,497.8 8,978.9 2,554.3 40,031.1 1,914.9 11,088.0 3,955.3 16,958.2 21.3 1,085.5 2,690.0 3,465.3 7,262.0 1,958.9 14,334.1 5,139.6 21,432.6 25.7 1,324.4 3,348.0 4,360.4 9,058.5 2,193.5 16,021.7 5,370.9 23,586.1 26.0 1,349.0 3,445.4 5,086.2 9,906.6 2,248.3 16,388.5 5,747.7 24,384.4 24.6 1,299.8 3,471.6 5,072.8 9,868.9 2,520.6 19,773.7 6,831.7 29,126.0 28.7 1,591.4 4,590.7 4,694.2 10,905.1 24,220.3 30,491.1 33,492.7 34,253.3 40,031.1 2.17 1.80 1.78 1.88 1.61 1986 Source: Siemens AG Annual Reports and Fonns 10-K Dataquest (November 1991) ©1991 Dataquest Incorporated November—Reproduction Prohibited 11 Siemens AG Table 4 Consolidated Income Statement Fiscal Year Ending September 30 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Domestic International Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=DM) - 12 1986 21,669.6 10,184.3 11,485.3 25,508.3 2,488.9 9,807.1 3,155.8 1,245.6 5.75 46.00 679.3 48.0 1987 28,572.8 13,896.1 14,676.7 20,478.9 3,450.6 12,715.5 2,951.7 1,443.3 5.05 50.00 708.3 48.6 1988 33,356.2 17,278.1 16,111.8 23,552.8 3,640.4 13,397.3 2,927.0 1,390.4 4.17 44.00 718.5 48.9 1989 32,514.9 15,132.4 17,382.4 13,409.6 3,656.9 13,778.8 4,187.4 1,482.8 4.56 43.00 838.8 49.8 1990 39,245.3 17,609.9 21,635.4 16,618.0 4,335.4 16,762.8 4,388.8 1,753.5 4.47 43.00 1,036.0 52.2 14.01 5.53 143.59 2.17 13.94 6.11 177.56 1.80 15.11 6.18 193.48 1.78 15.74 6.65 190.74 1.88 18.45 8.07 199.94 1.61 Source: Siemens AG Annual Reports and Fonns 10-K Dataquest (November 1991) ©1991 Dataquest Incorporated November—Reproduction Prohibited 0011569 Siemens AG Table 5 Balance Sheet Fiscal Year Ending September 30 (Millions of Deutsche Marks) Balance Sheet Cash* Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets 1986 1987 1988 1989 1990 0 14,418.0 0 2,429.0 21,730.0 38.577.0 12,372.0 1,609.0 0 14,654.0 0 1,817.0 23,050.0 23,050.0 39,521.0 1,922.0 0 15,768.0 0 3,917.0 23,968.0 43,653.0 13,623.0 2,341.0 0 19,188.2 19,485.3 6,887.6 1,810.5 47,371.6 13,901.2 3,123.4 0 19,170.3 15,686.4 7,314.1 3,710.7 45,881.5 14,456.1 4,112.4 Total Assets 52,558.0 54,884.0 59,617.0 64,396.2 64,450.0 4,155.4 24,060.9 8,583.0 36,799.4 46.2 2,355.5 5,837.3 7,519.6 15,758.6 3,526.1 25,801.3 9,251.3 38,578.7 46.2 2,383.9 6,026.4 7,848.8 16,305.3 3,904.5 28,518.6 9,560.2 41,983.3 46.2 2,401.2 6,132.9 9,053.4 17,633.7 4,226.8 30,810.3 10,805.6 45,842.7 46.2 2,443.7 6,526.7 9,536.9 18,553.5 4,058.1 31,835.7 10,999.0 46,892.8 46.2 2,562.2 7,391.1 7,557.7 17,557.2 52,558.0 54,884.0 59,617.0 64,396.2 64,450.0 2.17 1.80 1.78 1.88 1.61 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity* Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1=DM) *OtheT capital is paid-in coital. 0011569 Souice: Siemens AO Annual Reports and Forms 10-K Dataquest (Novembor 1991) ©1991 Dataquest Incorporated November—Reproduction Prohibited 13 Siemens AG Table 6 Consolidated Income Statement Fiscal Year Ending September 30 (Millions of Deutsche Marks, except Per Share Data) Consolidated Income Statement Revenue Domestic International Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=DM) 1986 1987 1988 1989 1990 47,023.0 22,100.0 24,923.0 55,353.0 5,401.0 21,281.3 6,848.0 2,703.0 5.7 46.00 1,474.0 48.0 51,431.0 25,013.0 26,418.0 36,862.0 6,211.0 22,887.9 5,313.0 2,598.0 5.1 50.00 1,275.0 48.6 59.374.0 30,755.0 28,679.0 41,924.0 6,480.0 23,847.2 5,210.0 2,475.0 4.2 44.00 1,391.0 48.9 61,128.0 28,449.0 32,679.0 25,210.8 6,875.0 25,904.2 7,872.4 2,787.6 4.6 43.00 1,577.0 49.8 63,185.0 28,352.0 34,833.0 26,754.9 6,980.0 26,988.1 7,066.0 2,823.1 4.5 0 1,668.0 52.2 30.40 12.00 311.60 2.17 25.10 11.00 319.60 1.8 26.90 11.00 344.40 1.78 29.60 12.50 358.60 1.88 29.70 13.00 321.90 1.61 Source: Siemens AG Annual Reports and Foims 10-K Dataquest (November 1991) Table 7 Key Financial Ratios Fiscal Year Ending September 30 Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (DM K)/Employee Capital Spending % of Assets Exchange Rate (U.S.$1=DM) 1986 1987 1988 1989 9.28 333.52 26.37 233.52 11.21 336.60 21.63 236.60 11.18 338.09 22.14 238.09 11.21 347.08 22.78 247.78 11.31 367.09 23.11 26.09 0.06 0.09 3.13 0.04 0.08 2.48 0.04 0.08 2.34 0.05 0.08 2.58 0.04 0.10 2.64 11.49 14.56 359,000 130.98 28.27 12.08 10.33 359,000 143.26 17.42 2.17 10.91 8.77 353,000 168.20 15.56 1.8 11.25 12.88 365,000 167.47 22.98 1.78 11.05 11.18 373,000 169.40 17.65 1.88 1990 Source: Siemens AG Annual Reports and Forms 10-K Dataquest (November 1991) 14 ©1991 Dataquest Incorporated November—Reproduction r*rohibited 0011569 MciMst Sony Corporation 7-35, Kitashinagawa 6-chome Shinagawa-ku Tokyo 141, Japan Telephone: (03) 448-2111 Fax: (03) 448-2244 Dun's Number: 04-065-3636 Date Founded: 1946 CORPORATE STRATEGIC DIRECTION Sony Corporation, founded in Tokyo in 1946, is one of the world's leading manufacturers of video and audio equipment, televisions, displays, semiconductors, computers, computer peripherals, factory automation equipment, and engineering workstations. Sony's business philosophy is to provide innovative and attractive products to its customers worldwide. Sony is one of Japan's leaders in global marketing; it had ¥3.6 trillion (IJ.S.$25.6 billion) in revenue for the fiscal year ended March 31, 1991. Because of its strong international customer base, the company is especially susceptible to fluctuations in international trade markets. The Gulf War, which occurred during fiscal 1991, had severe repercussions in the world economy and directly affected Sony's performance. The United States entered a recession in the second half of the year, the European economy evidenced sluggish performance, and the Japanese economy faced higher interest rates. Even with this difficult environment, Sony attained the highest sales and profit figures in the company's history. Sony points to strong growth in its electronics and entertainment industries as the key factors in its growth. Sony's long-term strategy to improve product performance and meet customer expectations includes the following policies: • In consumer electronics, Sony will strive to accelerate the development and marketing of attractive and original products. Expansion will occur in such areas as high-definition television (HDTV) products and information-related equipment for the home. • In industrial electronics, Sony will seek to strengthen its operations in broadcast- and professional-use videocassette recorders and players (VTRs) and displays while addressing a varied 0012422 spectrum of market needs. Other areas of targeted growth include recording media, semiconductors, electronic components, computer systems, information processing, and telecommunications. • Sony will intensify its activities in the entertainment field by strengtiiening its music and imagebased software operations, and by creating synergy with its electronics business. Efforts will be centered on Sony Music Entertainment Inc. (known before January 1, 1991, as CBS Records Inc.) and Columbia Pictures Entertainment Inc. • Sony has committed to a companywide efficiency upgrade in aU areas of business, as well as to the promotion of more efficient allocation of the company's capital, personnel, and management resources. • Sony will seek to bring aU facets of its overseas operations, including procurement of components, R&D, production, and marketing, in closer contact with local communities. Sony's ¥3.6 tiillion (U.S.$25.6 billion) total revenue for the year ended March 31, 1991, represents an increase of 27.11 percent over the year ended March 31, 1990. The increase in sales was led by a 178.4 percent increase in filmed entertainment revenue. Television sales increased 33.2 percent, video equipment sales grew 23.7 percent, and audio equipment sales increased 23.5 percent. Growth of 30.6 percent in the other products group can be attributed to the strong growth of information-related equipment (Percentage changes refer to U.S. dollar amounts.) Sony is an international company with 26.3 percent of its sales occurring in Japan, 29.2 percent in the United States, 28.1 in Europe, and 16.4 percent in all other regions. Europe posted the highest growth rate, iucreasing sales 43.9 percent, while the United States grew 24.4 percent and other international maikets grew 37.3 percent The Japanese market grew at a significantiy lower rate of 10.9 percent ©1992 Dataquest Incorporated January—^Reproduction Prohibited I Sony Corporation Net income increased 13.7 percent to ¥116.9 billion (U.S.$829.3 million) in fiscal year 1991 from ¥102.8 billion (U.S.$654.8 million) for fiscal 1990. Sony employed approximately 112,900 people in 1990, an increase of 18.1 percent over the 1990 year-end total of 95,600 employees. R«&D expenditure increased 24.6 percent to ¥205.8 bilUon (U.S.$1.2 billion) for the year ended March 31, 1991, fi-om ¥165.2 biUion (U.S.$1.2 bilUon) in the year ended March 31, 1990. R&D represented 5.7 percent of revenue for the year ended March 31, 1991. Capital expenditure for the year ended March 31, 1991, increased 27.1 percent from the previous year's ¥323.8 billion (U.S.$2.3 bilhon) to ¥411.7 billion (U.S.$2.9 billion), representing 11.4 percent of total revenue. The increased expenditure primarily was used for expanding production facilities for semiconductors; image-based devices such as color picture tubes; magnetic products; and audio and video equipment. About 35 percent of the capital development expenses were appropriated for overseas facilities. Sony intends to maintain a high level of capital investment and expects next year's expenditure to exceed this year's figure. Sony's pohcy is to base its manufacturing operations in markets where its products are sold. By doing this, Sony brings its products closer to customers and avoids trade problems and exchange rate variations. Accordingly, Sony maintains its principal manufacturing facihties in Japan, the United States, and Europe. In January 1991, Sony Music Entertainment Inc. (SMEI) and a subsidiary of Time-Warner Inc. formed The Columbia House Company, a 50:50 partnership consisting of the former Columbia House Division of SMEI. Columbia House is a direct marketer of music and home video products in the United States and Canada. In November 1989, Sony purchased Columbia Pictures Entertainment, adding image-based software to its software business. This purchase emphasized strengthening of the company's software operations primarily through the record and video business. On January 5, 1988, Sony purchased CBS Records Inc. and now holds 100 percent of the shares. The U.S.$2 billion (¥256.5 billion) acquisition was based on Sony's beUef in the important relationship between the software and hardware sides of the consumer electronics business. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate higUights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder present comprehensive financial information. BUSINESS S E G M E N T STRATEGIC DIRECTION Lines of Business Video Equipment The video equipment product group revenue totaled ¥908 biUion (U.S.$6.4 bilhon) for die year ended March 31, 1991, or 25.1 percent of sales. Products include VTRs, video cameras, camcorder systems, videotapes, optical videodisk players, and highdefinition video systems. Audio Equipment The audio equipment product group revenue totaled ¥883 billion (U.S.$6.2 biUion) for the year ended March 31, 1991, or 24.4 percent of total sales. Products include tape recorders, audiotapes, cassette players, car stereos, amplifiers, tuners, turntables, speaker systems, CD players, digital audiotape (DAT) recorders, headphones, microphones, and compact discs. Music Entertainment Sony's music entertainment business reported revenue of ¥474 bilUon (U.S.$3.4 bUUon) for the year ended March 31, 1991, or 13.1 percent of total revenue. Performers on the Sony label include Mariah Carey, New Kids on the Block, George Michael, BiUy Joel, Michael Bolton, Gloria Estefan, the Vaughan Brothers, and Harry Connick, Jr. TV Equipment Sony's television product group reported revenue of ¥553.4 bUUon (U.S.$3.9 bilUon) for the year ended March 31, 1991, or 15.3 percent of total revenue. Key products include color TVs and monitors, projection TVs, JumboTRON, direct broadcasting sateUite reception systems, and security systems. ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012422 Sony Corporation Filmed Entertainment Sony's filmed entertainment reported revenue of ¥257 billion (U.S.$1.8 billion), or 7.1 percent of sales for the year ended March 31, 1991. Fiscal 1991 fihn releases included Total Recall, Look Who's Talking Too, Misery, Awakenings, Postcards from the Edge, and Flatliners, Other Products The groups producing other products reported revenue of ¥543 billion (U.S.$3.8 billion) for the year ended March 31, 1991. Key products include the 3.5-inch microfloppy disk systems, microcomputers, workstations, CD-ROM systems, information processing systems, semiconductor devices, electronic components, dictating machines, word processors, induction cooking ranges, telephones, telecommunications systems, factory automation systems, batteries, accessories, and audio and video software. Company Positioning Computer Storage Sony was one of the leading flexible disk drive (FDD) vendors in 1990. Dataquest estimates that Sony maintained its market leadership in the worldwide 3.5-inch FDD market with a 25 percent market share and $226.5 million ia factory revenue. We estimate that Sony shipped 5 million 3.5-inch disk drives in 1989. In the worldwide overall FDD (3.5-inch and 5.25-inch) market, Sony dropped from third in 1989 to fourth in 1990, with a market share of 13.6 percent. Sony continues to emphasize the 3.5-inch market, beginning production of 3.5-inch drives in Malaysia in May 1990. According to Dataquest estimates, Sony ranked first in the optical disk drive market in 1990 Avith $125.6 million in factory revenue and a 36.2 percent market share. Sony dominates the rewritable market in optical disk drives with 49.0 percent of the market, 39,200 units shipped, and $49 miUion in factory revenue. Sony also moved up to second in the 12-inch write-once, read-many (WORM) drive market with a 29.9 percent market share and $19.4 million in factory revenue. Sony has entered the 3.5-inch rigid disk drive market Dataquest expects Sony to offer a broad range of rigid drives with capacities between 40MB and 200MB and access times of less than 20ms. 0012422 Workstations Sony Microsystems was formed in February 1988 to market Sony's NEWS workstation, a 32-bit UNIX workstation designed primarily for software development appUcations. Dataquest estimates that Sony had 6.6 percent of the worldwide workstation market share for calendar 1989. Dataquest estimates that Sony ranked fourth in the entry-level workstation market with U.S.$137.2 million m factory revenue for 1989. Dataquest also estunates that Sony ranked third in the Japanese workstation market, with a 9.8 percent market share and $133.7 million in factory revenue. In May 1990, Sony introduced its laptop NEWS workstation to the European market and later to the Japanese market Sony had two major design goals for its new workstation, as follows: • The same level of performance and fimctionahty as the NEWS desktop workstation • Compatibility with NEWS software and hardware products The laptop workstation is priced between $10,000 and $15,000 and is targeted toward the technical user with a requirement for a transportable, fuUy functional techiucal workstation. In 1989, Sony introduced a RISC-based workstation using MIPS R3000 processors. Sony expanded its NEWS line to include lower-priced models, and highperformance 32-bit CPU versions. Sony added desktop publishing software to the NEWS line of workstations. Personal Computers In July 1991, Sony released a new PalmTop series of personal computers, featuring the abiUty to input characters witii a ligjit pen. The PTC-300, weighing in at 35Sg, offers significant improvements in portability. Sony does not market its computers in the United States and held less than 1 percent of the worldwide PC market, according to Dataquest estimates. Semiconductors Sony began marketing semiconductors in 1984 and currentiy produces a range of devices, including static random-access memory (SRAM) chips, chargecoupled devices (CCDs), and bipolar ICs for consumer audiovisual equipment In capital expansion, Sony completed a new wing at Sony Nagasaki Corporation with a clean room for the manufacture of ©1992 Dataquest Incorporated January—Reproduction Prohibited Sony Corporation SRAMs and other leading-edge semiconductor devices and a design center for large-scale integration (LSI) technologies. In addition, Sony began operations at its first overseas semiconductor manufacturing facility, Sony Semiconductor (Thailand) Company Ltd., which will center on the assembly of bipolar ICs. Sony ranks 19th in the total worldwide semiconductor market, while in Japan, Sony ranked 9th for the third year in a row, with a 4.0 percent market share. Japan represented 77.7 percent of Sony's semiconductor revenue for 1990. Computer Software In the area of research and development, Sony announced in October 1990 the successful development of the world's fastest large-scale gallium arsenide gate array. The device wiU be used in workstations, image-processing equipment, and other equipment requiring high-speed data processing capabihties. Sony Computer Science Laboratory Inc. was established by Sony Corporation to develop distributed operating systems, programming langiiages, system architectures, and user interfaces. Dataquest estimates that Sony's 1990 worldwide semiconductor market share was 1.9 percent, with U.S.$1.1 billion in revenue. Dataquest estimates that For further information about the company's business segments, please contact the appropriate Dataquest industry services. Further Information ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012422 Sony Corporation Table 1 Five-Year Corporate Highlights (Billions of U.S. Dollars) 1987 198S 1989 1990 1991 Five-Year Revenue Percent Change 3.4 -42.67 10.4 202.02 16.7 41.94 20.1 20.84 25.6 27.11 Capital Expenditure Percent of Revenue 0.6 18.55 1.0 9.33 1.7 10.05 2.3 11.25 2.9 11.38 R&D Expenditure Percent of Revenue 0.8 9.27 0.9 8.91 1.1 6.62 1.2 5.74 1.5 5.69 Number of Employees Revenue (U.S.$K)/Employee 47,583 72.15 71,000 146.04 78,900 212.01 95,600 210.76 112,900 226.84 Net Income Percent Change 0.1 -55.98 0.3 218.98 0.6 112.61 0.7 27.23 0.8 15.10 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21 1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit 5.41 0.16 6.23 0.19 7.84 0.39 6.34 0.11 Source: Sony Corporation Anmial Reports Dataquest (January 1992) Table 2 Revenue by Geographic Region (Percent) Region United States Japan Europe All Other Regions 1987 1988 1989 1990 1991 27 35 24 14 28 35 23 14 27 34 23 16 30 30 25 15 29 26 28 17 Source: Sony Corporation Annual Reports Dataquest (January 1992) (X)12422 ©1992 Dataquest Incorporated January—^Reproduction Prohibited Sony Corporation 1990 SALES OFFICE LOCATIONS (Includes sales subsidiaries only) Asia/Pacific—19 Intemational—14 MANUFACTURING LOCATIONS North America Digital Audio Disc (United States) CDs Sony Engineering and Manufacturing of America (United States) TVs, CRTs, 32-bit workstations, 3.5-inch FDDs, CD-ROM drives, monitors, audio speakers, factory automation equipment Sony Magnetic Products Inc. (United States) Magnetic tapes, flexible disks Sony Microelectronics Corporation (United States) Semiconductors Sony Music Entertainment (United States) Phonograph records, tapes, CDs Sony Professional Products Company (United States) Professional AV equipment Sony USA (United States) Electronic equipment Europe DADC Austria (Austria) CDs Sony (United Kingdom) TVs, CRTs Sony Espana (Spain) TVs, VCRs Sony France (France) CD players, video cameras, VHS video decks Sony-Wega Productions (United Kingdom) TVs Television Division Europe (France) Development, design of TVs AsialPacific Aiwa Company (Japan) High-fidelity audio systems, headphone stereos Hagiwara Electronics (Japan) TVMdeo equipment Mac Precision Products (Japan) Precision parts Miyagi \^deo-Tech (Japan) Magnetic tapes Motomiya Denshi (Japan) Trinitron gun, security systems, flat display tubes, TV parts Nakada Magnetics (Japan) Ferrites Sony Akebono Denshi (Japan) Rrinted circuit boards Sony Audio (Japan) Audio, video, camera, and optical systems Sony Bonson (Japan) Tape recorders, flat TVs, radios Sony Chemicals (Japan) Magnetic tapes, chemical products Sony Computer Science Lab (Japan) R&D of computer systems/software Sony Denshi (Japan) TVs and parts Sony Electronics (Japan) Radiocassette tape recorders Sony Ichinomiya (Japan) VCRs, color TVs Sony Inazawa (Japan) Color CRTs Sony Itakura (Japan) CD players, radiocassette recorders Sony Kisarazu (Japan) VCRs, CD players Sony Kohda (Japan) Video equipment Sony Kokubu Semiconductor (Japan) Bipolar ICs, CCDs Sony Magnescale (Japan) Electronic measuring instruments Sony Magnetic Products (Japan) Magnetic tapes, ferrites, videotapes Sony Minokama (Japan) Video equipment Sony Mizunami (Japan) Color CRTs Sony Nagasaki (Japan) Semiconductors Sony Oita (Japan) Semiconductors Sony Precision Engineering (Japan) ftecision parts for audio equipment for Sony's subsidiaries worldwide Sony Semiconductor (Japan) Bipolar ICs ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012422 Sony Corporation Sony Shiroishi Semiconductor (Japan) Semiconductors Sony Soimd Tec (Japan) Microphones, PA systems, furniture, hearing aids Sony TV-Video (Japan) Color TVs Sony Tektronix (Japan) Electronic measurements, displays, control instruments, computer graphics products Sony Video Taiwan (Taiwan) VCRs Sound Magnetics (Japan) Magnetic heads Sound System (Japan) VCRs, CD players Taron Corporation (Japan) Audio and video products Tohkai Electronics (Japan) PC boards Toyo Radio (Japan) Audio products Video Magnetics (Japan) Ferrites ROW Magneticos de Mexico (Mexico) Magnetic tapes, floppy disks Sony da Amazonia (Brazil) VCRs Sony de Venezuela (Venezuela) Color TVs Sony "V^deobras (Brazil) Video cameras, video equipment "N^deotec de Mexico (Mexico) Video equipment SUBSIDIARIES As of March 31, 1991, Sony had 625 consolidated subsidiaries. The list below gives the company's principal subsidiaries and affiliated con^anies as of April 30, 1991. North America Digital Audio Disc Corporation (United States) Materials Research Corporation (United States) Sony Corporation of America (United States) Sony Music Entertainment Inc. (United States) 0012422 Sony Sony Sony Sony of Canada Ltd. (Canada) Pictures Entertainment (United States) Trans Com Systems Division (United States) USA Inc. (United States) Europe DADC Austria GesmbH (Austria) Sony Belgium N.V. (Belgium) Sony Broadcast & Communications Limited (United IQngdom) Sony Communication Products B.V. (Netherlands) Sony Deutschland GmbH (Germany) Sony Espana S.A. (Spain) Sony Euro-Finance B.V. (Netherlands) Sony Europa GmbH (Germany) Sony France S.A. (France) Sony GesmbH (Austria) Sony Italia S.p.A. (Italy) Sony Nederland B.V. ^etiierlands) Sony Overseas S.A. (Switzerland) Sony Portugal Lda. (Portugal) Sony Scandinavia A/S (Denmark) Sony (Schweiz) A.G. (Switzerland) Sony Service Centre (Europe) N.V. (Belgium) Sony (U.K.) Limited (United Kingdom) Sony-Wega Productions GmbH (Germany) Asia/Pacific Aiwa Co. Ltd. (Japan) Akebono Electronics Inc. (Japan) CBS/Sony Group Inc. (Japan) Hasso Electronics Corporation (Japan) Korea Toyo Radio Co. Ltd. (South Korea) Max Precision Products Corporation (Japan) Motomiya Denshi Corporation (Japan) Sony (Australia) Pty. Limited (Australia) Sony Asco Inc. (Japan) Sony Bonson Corporation (Japan) Sony Broadcast Products Corporation (Japan) Sony Chemicals Corporation (Japan) Sony Corporation of Hong Kong Limited (Hong Kong) Sony Creative Products Inc. (Japan) Sony Denshi Corporation (Japan) Sony Electronics (Malaysia) Sdn. Bhd. (Malaysia) Sony Energytec Inc. (Japan) Sony Engineering Corporation (Japan) Sony Enterprise Co. Ltd. (Japan) Sony Finance International Inc. (Japan) Sony Ichinomiya Corporation (Japan) Sony Inazawa Corporation (Japan) Sony International (Singapore) Pte. Ltd. (Singapore) ©1992 Dataquest Incorporated January—Reproduction Prohibited Sony Corporation Sony Kisarazu Corporation (Japan) Sony Kohda Corporation (Japan) Sony Kokubu Semiconductor Corporation (Japan) Sony Logistics (Singapore) Pte. Ltd. (Singapore) Sony Logistics Corporation (Japan) Sony Magnescale Inc. (Japan) Sony Magnetic Products Inc. (Japan) Sony Magnetic Products (Thailand) Sony Magnetic Tape Sales Corporation (Japan) Sony Minokamo Corporation (Japan) Sony Mizunami Corporation (Japan) Sony Nagasaki Corporation (Japan) Sony Oita Corporation (Japan) Sony PCL Inc. (Japan) Sony Plaza Co. Ltd. (Japan) Sony Precision Engineering Center (Singapore) Pte. Ltd. (Singapore) Sony Procurement Service Corporation (Japan) Sony Pruco Life Insurance Co. Ltd. (Japan) Sony Service Co. Ltd. (Japan) Sony Shiroishi Semiconductor Inc. (Japan) Sony Shoji Corporation (Japan) Sony Singapore Pte. Ltd. (Singapore) Sony Sound Tec Corporation (Japan) Sony TV Video (Malaysia) Sdn. Bhd. (Malaysia) Sony Trading Corporation (Japan) Sony Tsukuba Corporation (Japan) Sony Video Taiwan Co. Ltd. (Taiwan) Sony/Tektronix Corporation (Japan) Sound System Corporation (Japan) Taron Corporation (Japan) Tohkai Electronics Corporation (Japan) ROW Magneticos de Mexico, S.A. de C.V. (Mexico) Sony CSA, S.A. (Panama) Sony Chile Ltda. (Chile) Sony Corporation of Panama S.A. (Panama) Sony da Amazonia Ltda. (Brazil) Sony de Venezuela S.A. (Venezuela) Sony Saudi Arabian Company Ltd. (Saudi Arabia) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS Apple Computer Inc. Sony wiU manufacture major portions of the laptop Macintosh computer under development by Apple. Bell Microproducts Inc. BeU added Sony's read-write optical drives to its current franchise list. Digital Equipment Corporation Digital and Sony entered an agreement through which Digital will produce optical subsystems based on Sony optical disk drives. Matsushita Electric Industrial Matsushita Electric Industrial and seven other companies (Kyushu Matsushita Electric, Sega Enterprises, Chinon Industries, Casio Computer, Ricoh, Canon, and Sanyo Electric) wiU make CDROMs based on Sony specifications. Nihon Silicon Graphics K.K. (NSG) Sony and NSG signed a marketing agreement in wliich Sony will market a high-definition computer graphics system for NSG's Iris 4-D Power "N^ion graphics workstation. Ricoh Company Ricoh will provide its Design Base Jr. threedimensional model-generation software package to Sony to be bundled with Sony's new NWB-236 processor. SGS-Thomson Microelectronics SGS-Thomson Microelectronics wiU secondsource a chip set for high-speed serial digital video transmission developed by Sony. Software Toolworks Sony and Software Toolworks signed a licensing agreement allowing Sony to use special versions of Software Toolworks' CD-ROM software with Sony's CD-ROM optical disk player. VideoLogic Inc. Sony signed an agreement with \^deoLogic allowing Sony to sell multimedia products through computer resellers and video dealers. Wave Front Technologies Wave Front wiU supply Sony with its TPV computer graphics software, to be bimdled with Sony's latest three-dimensional computer graphics board, the NWB-256. J991 Advanced Micro Devices Inc. (AMD) Sony and AMD signed a broad patent and copyright cross-licensing agreement covering wafer processes, design, and architectures for integrated circuits. 8 1990 Exabyte Corporation Exabyte renewed a supply agreement with Sony under which Sony wiU supply Exabs^te with 5.2S-inch form factor tape drives. ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012422 Sony Corporation Compression Labs Inc. Sony entered into a reseller agreement with Compression Labs under which Sony will resell Compression Labs video coder/decoders. The agreement marks Sony's entry into the U.S. videoconferencing market Texas Instruments Texas Instruments agreed to produce semiconductors in Europe for Sony on a consignment basis. NJK Ltd. NJK Ltd. signed as a distributor for Sony's NEWS workstations. Fujitsu Sony and Fujitsu jointly developed a trial common rule to develop CD-ROM XA software for their personal computers. Oracle Corporation Oracle' agreed to supply the Oracle relational database management systems and applications development software products for the Sony NEWS family of UNIX workstations. Apple Computer Inc. Sony signed a contract with Apple to supply 40MB rigid disk drives for the Macintosh. Hewlett-Packard Company (HP) Sony agreed to supply 5.25-inch rewritable optical disk storage products to HP for the new HP C17QA Optical Disk Library System. Pinnacle Micro Sony announced plans to supply $1 million (¥128.3 nuUion) worth of 5.25-inch rewritable optical disk storage products to Pinnacle Micro. Advanced Micro Devices (AMD) Sony and AMD entered a joint venture agreement for an SRAM memory product 1988 Daewoo Electronics Sony and Daewoo agreed to jointiy develop 256K SRAMs, 64K SRAMs, 8- and 16-bit MPUs, and other microchips. NoveU K.K. Novell K.K. was formed as a joint marketing venture to sell NetWare products in Japan. Novell and six partners—Canon, Fujitsu, NEC, Softbank, Sony, and Toshiba—Whelped fund the project Engineering Mechanics Research (EMR) Sony and EMR agreed to a joint venture in CAE software technology and sales. EMR is marketing Sony's engineering workstations (EWSs) that employ its software in the United States while Sony supports sales agents of EMR's software in Japan by supplying its EWS. Advanced Micro Devices (AMD) AMD agreed to enter a joint manufacturing and educational pact with Sony to manufacture SRAMs. N.V. Philips Gloeilampenfabrieken Sony and Philips agreed to a joint development of extended architecture CD-ROMs for audio use. Summus Computer Systems Summus agreed to sell, distribute, and service 4mm DAT drives from Sony. Summus agreed to be an original equipment manufacturer (OEM) of Sony and to integrate hardware and software that offers turnkey storage subsystems for the Apple Macintosh, Digital, and Sun Microsystems Inc. PC markets. 1989 Parallex Graphics Inc. Sony Microsystems agreed to incorporate Parallex's color graphics and video graphics controllers in Sony's workstations. Matsushita Philips Sony, Matsushita, and Philips agreed to develop, manufacture, and maricet interactive compact disk drives. 0012422 Motorola Inc. Sony Microsystems agreed to incorporate dual Motorola 68030 MPUs in high-end models of Sony's NEWS UNIX workstation family. Symbolics Sony and SymboUcs completed a sales agreement for Sony's workstations in the U.S. market Sony Microsystems began supplying its workstations to Symbolics in May 1988 for sale in the United States under the SymboUcs brand name. The two companies agreed to jointiy develop a new model of workstation using Symbolics' Al chips. Texas Instruments Inc. (TI) TI Japan and Sony jointly developed the CXD1144AP high-performance digital filter LSI for digital audio equipment Advanced Micro Devices (AMD) Sony and AMD agreed to a sales tie-up for Sony's workstations in South Korea. ©1992 Dataquest Incorporated January—Reproduction Prohibited Sony Corporation MERGERS AND ACQUISITIONS KEY OFFICERS 1991 Akio Morita Chairman and representative director National Broadcasting Company Sony purchased NBC's 50 percent stake in RCA/ Columbia Home \^deo, resulting in Sony's complete ownership of the company. Norio Ohga President and chief executive officer 1989 Masaaki Morita Deputy president Nobuo Kanoi Deputy president Trans Com Systems Division Sony purchased all assets and liabilities of Trans Com Systems, a division of Simdstrand Corporation. Trans Com designed, manufactured, and installed in-flight AV entertainment systems in commercial aircraft worldwide. Tsunao Hashimoto Deputy president Materials Research Corporation (MRC) Sony acquired all of the outstanding shares of common stock of MRC and its affihates. MRC manufactured and suppUed sputtering and etching equipment, high-purity metals, and ceramics. PRINCIPAL INVESTORS Columbia Pictures Entertainment Sony acquired all of the outstanding shares of common stock of Columbia Pictures, which was primarily in the filmmaking business. Guber-Peters Entertainment Company (GPEC) Sony acquired GPEC, which was in the filmmaking business. Ken Iwaki Deputy president Information is not available FOUNDERS Masaru Ilsuka AMo Morita 1988 CBS Records Inc. Sony purchased CBS Records for U.S.$2 billion (¥256.5 billion) and held 100 percent of the shares. (The acquisition was made using U.S. currency.) 10 ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012422 Sony Corporation Table 3 Balance Sheet Fiscal Year Ending March 31 (BilUons of U.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1:^ 1987* 1.0 1.6 0.8 1.9 0.5 5.8 2.2 0.9 1988 1.6 2.4 0.7 2.4 0.7 7.8 3.1 2.6 1989 2.3 3.4 0.7 3.8 1.0 11.2 4.2 3.0 1990 3.2 5.8 0.4 4.8 1.2 15.4 6.1 9.1 1991 3.1 5.8 0.2 5.2 1.5 15.8 7.4 9.4 8.8 13.5 18.4 30.6 32.6 3.7 0.9 0.5 5.0 0 0.1 0.4 3.4 3.8 6.8 1.4 0.6 8.8 0 0.2 0.4 4.1 4.7 8.7 1.7 0.8 11.2 0 0.9 1.5 4.8 7.2 14.0 4.5 2.0 20.5 0 1.9 3.3 4.9 10.1 14.9 4.9 2.3 22.1 0 2.1 2.9 5.4 10.5 8.8 13.5 18.4 30.6 32.6 159.56 138.03 128.25 142.93 141.21 *Fbr die five-month period ending Maich 31, 1987. Effective Maich 31, 1987, the paient conq)8ny and ahnost all subsidiaries and affiliates changed their fiscal yeai-end firom October 31 to Maich 31. Accordingly, (he fiscal period ended Maich 31, 1987, inclnded only 5 mondis of operations, w h « ^ other fiscal yeais consisted of 12 months. 0012422 Source: Sony Coipoiatlon Animal Reports Dataquest (Januaiy 1992) ©1992 Dataquest Incorporated January—Reproduction Prohibited 11 Sony Corporation Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Thousands Per Share Data Earnings Dividend Book Value Exchange Rate ( U . S . $ 1 ^ 1987* 3.4 1.1 2.3 2.6 0.8 0.8 0.6 0.1 4.36 58.00 0.1 231,236 1988 10.4 3.5 6.9 7.7 0.9 2.4 1.0 0.5 5.14 56.00 0.3 238,769 1989 16.7 5.7 11.0 11.5 1.1 4.4 1.7 1.3 7.71 56.00 0.6 282,603 1990 20.1 6.1 14.1 13.6 1.2 5.0 2.3 1.6 7.90 54.00 0.7 331,929 1991 25.6 6.7 18.9 17.7 1.5 6.3 2.9 1.9 7.32 51.00 0.8 338,593 0.34 0.12 16.50 159.56 1.04 0.32 19.71 138.03 1.88 0.28 25.57 128.25 2.15 0.32 30.50 142.93 2.02 0.32 30.88 141.21 *FoT the five-month period ending March 31, 1987. Effective Match 31, 1987, the parent conq>aDy and almost all subsidiaries and affiliates changed their fiscal year-end from October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included only 5 months of operations, whereas other fiscal years consisted of 12 numths. 12 Source: Sony Coiporation Annual Reports Dataquest (Jamiaiy 1992) ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012422 Sony Corporation Table 5 Balance Sheet Fiscal Year Ending March 31 (Billions of Yen) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets 1987* 152.9 256.6 132.2 302.9 77.6 922.2 343.1 145.9 1988 218.0 325.7 99.4 334.7 99.1 1,076.9 426.3 363.7 1989 297.9 433.4 91.1 483.7 127.7 1,433.8 544.7 386.2 1990 1991 451.7 832.9 54.8 693.0 169.2 2,201.6 868.1 1,300.4 442.9 815.1 33.5 731.7 211.2 2,234.4 1,046.8 1,321.2 1,411.2 1,866.9 2,364.7 4,370.1 4,602.4 Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained E^unings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 587.0 143.4 72.1 802.5 0 12.0 56.5 540.2 608.7 945.0 196.0 76.3 1,217.3 0 23.7 60.9 565.0 649.6 1,119.0 220.8 98.2 1,438.0 0 114.6 195.6 616.5 926.7 1,995.9 646.0 281.3 2,923.2 0 278.0 473.4 695.5 1,446.9 2,104.6 694.5 327.0 3,126.1 0 296.4 413.5 766.4 1,476.3 1,411.2 1,866.9 2,364.7 4,370.1 4,602.4 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21 Sonice: Sony Cotpoiation Aimual Reports Dataqoest (Jauuaiy 1992) 0012422 ©1992 Dataquest Licoiporated January—^Reproduction Prohibited 13 Sony Corporation Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of Yen, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Thousands Per Share Data Earnings Dividend Book Value Exchange Rate ( U . S . $ 1 ^ 1986 1987 1988 1989 547.8 177.5 370.3 407.8 131.2 131.0 101.6 23.6 4.36 58.00 13.3 231,236 1,431.2 479.4 951.8 1,064.6 127.5 336.3 133.5 73.5 5.14 56.00 36.7 238,769 2,145.3 731.3 1,414.0 1,475.4 142.1 565.6 215.6 165.5 7.71 56.00 72.5 282,603 2,879.9 869.5 2,010.4 1,938.0 165.2 712.0 324.0 227.4 7.90 54.00 102.8 331,929 3,616.5 952.5 2,664.0 2,505.6 205.8 887.8 411.7 264.6 7.32 51.00 116.9 338,593 54.2 18.5 0 159.56 143.8 44.6 0 138.03 219.7 40.5 0 128.25 279.0 45.5 0 142.93 285.9 45.5 0 141.21 *For the five-month period ending March 31, 1987. Effective March 31, 1987, the parent coiiq)any and almost all subsidiaries and afiSUates changed their fiscal year-end from October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included only S months of operations, whereas other fiscal years consisted of 12 months. 1990 Source: Sony Corporation Aniiual Reports Dataquest (January 1992) Table 7 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios Liquidity Current (Hmes) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (¥M)/Employee Capital Spendine % of Assets Exchange Rate (U.S.$1=*) 1987 1988 1989 1990 1991 1.57 231.85 96.44 131.84 1.14 287.39 145.47 187.39 1.28 255.17 120.75 155.17 1.10 302.03 137.94 202.03 1.06 311.75 142.56 211.75 0.94 2.19 2.43 2.24 5.83 2.56 3.43 9.20 3.38 3.05 8.66 3.57 2.23 6.96 2.84 23.95 18.55 47,583 11.51 7.20 159.56 8.91 9.33 71,000 20.16 7.15 138.03 6.62 10.05 78,900 27.19 9.12 128.25 5.74 11.25 95,600 30.12 7.41 142.93 4.57 8.96 112,900 32.03 7.04 141.21 Source: Sony Corporation Aniuial Reports Dataquest (Jamiary 1992) 14 ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012422 Telefunken Electronic GmbH BACKGROUND AND OVERVIEW AEG-Telefunken AEG-Telefunken was founded in 1893 and quickly grew to become West Germany's second-largest electrical group. Early in 1970, the Company started to face financial difficulties after it lost a nuclear power contract, and in September 1978, Siemens took over AEG-Telefunken's nuclear power activities by buying out AEG-Telefunken's stake in Kraftenwerk-Union. AEG-Telefunken's semiconductor division, based in Heilbronn, West Germany, suffered tremendously during this period. Although the division had many good designs—for example, it developed the first European microprocessor, the CP3-F—it was increasingly starved of funds from its ailing parent company. As a result, many new development programs had to be postponed or scrapped. In addition, the division was required to behave more like a captive supplier, building semiconductor devices that its parent wanted for its own end-equipment production. Many of these devices were relatively unsuccessful on the open semiconductor market. In 1979, faced with near bankruptcy, AEG-Telefunken was rescued by a group of West German banks after the West German government refused to supply it with direct aid. The prime purpose of this rescue plan was to provide the Company with protection from its creditors while it carried out a major reorganization of its activities. It was against this background, coupled with the global semiconductor recession of the early 1980s, that the semiconductor division sought to reestablish itself. This was achieved by forming an alliance with United Technologies Corporation (UTC) of Hartford, Connecticut, and its Texas-based subsidiary, Mostek Corporation. Telefunken Electronic GmbH Telefunken Electronic GmbH (TEG) was formed by an agreement in which UTC and AEG-Telefunken each hold 49 percent of the Company, while the remaining 2 percent is held by the SUdeutsche Industrie-Beteiligung GmbH, a subsidiary of the Dresdner Bank AG, AEG-Telefunken's primary creditor. Under the terms of this agreement, TEG was to continue the business activities of the former electronic components division of AEG-Telefunken and, at the same time, assume full ownership of the division's headquarters facility in Heilbronn, West Germany, and its production plants. These include the seven production plants spread throughout West Germany; one in Vocklabruck, Austria (Telefunken Electronic GesbH); and one in Manila, Philippines (Telefunken Semiconductors Philippines Inc.). Dataquest believes that UTC paid $40 million for its 49 percent share in TEG. ESIS Volume III 0001399 © 1988 Dataquest Incorporated November Telefunken Electronic GmbH In February 1983, TEG acquired 43.6 percent of Eurosil Electronics GmbH, a Munich-based producer of complementary MOS (CMOS) integrated circuits. In August 1986, UTC sold its stake in Eurosil to TEG, which now has total management responsibility for the joint venture. Eurosil and TEG are trading processing information, but neither company receives technological input from Mostek any longer. (See ESIS Volume II, Section 4, Eurosil company profile, for further details.) In 1983, its first full year of operation under new ownership, TEG returned to modest profitability. Dataquest believes that this achievement was aided by the general worldwide semiconductor recovery.- Apart from its Eurosil investment, Dataquest estimates that TEG invested approximately $20 million in capital investment in 1985, and a further $14 million in research and development (R&D) expenditure. In April 1988, AEG AG announced that it was repurchasing the 49 percent stake in TEG that it had sold to UTC in 1982 for an undisclosed sum. Tables 1 and 2, respectively, give Dataquest's estimates of TEG's European and worldwide semiconductor revenue for 1983 through 1987. Table 1 Telefunken Electronic GmbH Estimated £ur(^}ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1994 1995 1986 1987 $109 $133 $133 $164 $209 Total Integrated Circuit Bipolar Digital MOS Linear $ 35 0 7 28 $ 46 0 11 35 $ 46 35 $ 49 0 11 38 $ 78 15 14 49 Total Discrete Transistor Diode Thyristor Other $ 47 17 19 10 1 $ 54 19 21 12 2 $ 53 18 21 12 2 $ 66 20 31 11 4 $ 65 16 27 17 5 Total Optoelectronic $ 27 $ 33 $ 34 $ 49 $ 66 Source: Dataquest November 1988 Total Semiconductor © 1988 Dataquest Incorporated November 0• 11 • ESIS Volume III 0001399 Telefunken Electronic GmbH Table 2 Telefunken Electronic GmbH Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1993 1984 1985 1986 1987 $134 $161 $172 $219 $258 Total Integrated C i r c u i t Bipolar D i g i t a l MOS Linear $ 51 0 8 43 $ 63 0 13 50 $ 68 0 13 55 $ 79 0 18 61 $ 95 0 25 70 Total Discrete Transistor Diode . Thyristor Other $ 53 20 22 10 1 $ 60 22 24 12 2 $ 63 23 26 12 2 $ 82 30 37 11 4 $ 97 33 43 14 7 Total Optoelectronic $ 30 $ 38 $ 41 $ 58 $ 66 Source: Dataquest November 1988 Total Semiconductor Products and Markets Served Telefunken's electronics product range covers most of the semiconductor product categories, but its strongest areas are bipolar (linear) ICs, diodes, and transistor devices. Dataquest estimates that discrete semiconductors accounted for approximately 32 percent of TEG's worldwide revenue in 1987. Furthermore, Telefunken is well positioned with its new BICMOS process to exploit its strength in consumer ICs in the automotive segment and emerging high-growth markets for cellular telephones. Table 3 lists the main processes and potential applications in which Telefunken has key strength. Dataquest estimates that television and consumer IC products represent approximately 70 percent of Telefunken's IC sales, with the major areas being front-end tuner ICs for televisions and FM radio. They supply all noncaptive factories in Europe as well as some Far-Eastern manufacturers in Europe. In Japan, Dataquest estimates that Telefunken has sales of approximately US$15 million. ESIS Volume III 0001399 © 1988 Dataquest Incorporated November Telefunken Electronic GmbH Table 3 Key Technology and Applications Process Application BICMOS i n R&D Remote c o n t r o l l e d c a r k e y s w i t h EEPROM CMOS H-Well 2.5u PMOS 4u Entertainment ICs (TV and FM tuners) Bipolar ft 30 MHZ, 3-5A, 40V Bipolar ft 100 MHZ, 5V Automotive ECL with Dialectics 3 GHZ Cellular Radio, TV, FM, and IF Source: low-density Dataguest November 1988 OUTLOOK Dataquest believes that under TEG's new ownership, the Company is attempting to deemphasize its prior dependence on the television, hi-fi, and consumer end-user markets in favor of the higher-growth automotive and telecommunications areas. Furthermore, we believe that the Company will concentrate on special niche product areas, using predominantly bipolar technologies where there is less competition, rather than attempting to participate in the high-volume, standard product memory, and microprocessor areas. With Eurosil concentrating more on ASICs, primarily in CMOS technology, product duplication between the companies has been minimized. With its good connections to a number of West German banks and the recent increased activity by the West German government toward support of emerging high-technology industries, TEG's medium-term future seems assured. © 1988 Dataquest Incorporated November ESIS Volume III 0001399 Texas Instruments, Inc. BACKGROUND AND OVERVIEW Texas Instruments, Inc. (TI), was formed in 1951 by Erik Jonsson, Cecil Green, and Patrick Haggerty as the manufacturing division for the sophisticated electronic equipment required to further the reflection seismology activities run by Geophysical Services Inc., an organization that was started in 1930. Semiconductor interest took shape in 1952, when TI bought one of the first licenses to manufacture the transistor, which was invented at Bell Laboratories in 1949. By 1953, these devices were in production, and a year later, prices had been reduced to a level where the first transistor radio became cost-feasible. In 1958, Jack Kilby, a TI engineer, invented the first integrated circuit dC). Since that time, the Company has been considered a leader in IC technology and production. European operations began in 1957 in Bedford, the United Kingdom. This was the Company's first site outside the United States, and it has since been supplemented by the addition of many more sites worldwide. The Company is now a broad product base supplier to all sectors of industry. At the present time, there are some 21 manufacturing sites in the Americas, 7 in Europe, and 9 in the Far East. However, not all of these sites manufacture semiconductors, since TI has diversified its business base into end equipment, both professional and consumer. There are three wafer fabrication sites and six semiconductor assembly sites in Europe; these manufacture a broad range of products from discrete power transistors to advanced complex integrated circuits. Dataquest estimates that, in 1987, TI's European semiconductor revenue was $492 million as shown in Table 1, which gives Dataquest's estimate of TI's European semiconductor revenue. TI has an impressive record of industry firsts, ranging from the invention of the first IC to the development of the first microprocessor, the first microcomputer, and the first hand-held electronic calculator. In addition, TI has been a pioneer in speech synthesis. The Company's strength in semiconductors has permitted it to gain important market shares in computers, calculators, learning aids, terminals, peripherals, and programmable controllers. Table 2 shows TI's sales by business area, and Table 3 shows sales by geographic area. ESIS Volume III 0002632 © 1989 Dataquest Incorporated February Texas Instruments, Inc. Table 1 Texas Instruments, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1982 1983 19?4 1985 1986 1987 $319 $330 $522 $468 $488 $492 Total Integrated Circuit Bipolar Digital MOS Linear $260 111 89 60 $283 132 93 58 $475 204 176 95 $434 182 142 110 $448 183 157 108 $449 161 193 95 Total Discrete Transistor Diode Thyristor Other $ 36 31 3 1 1 $ 27 25 0 1 1 $ 29 27 0 1 1 $ 23 21 0 1 1 $ 27 27 0 0 0 $ 28 28 0 0 0 $ 23 $ 20 $ 18 $ 11 $ 13 $ 15 Total Semiconductor Total Optoelectronic Source: Dataquest February 1989 Table 2 Texas Instruments, Inc. Net Sales by Business Area—Year Ending December 31 (Millions of U.S. Dollars) Components Trade Intersegment Total Components Sales Defense Electronics Trade Intersegment Total Defense Sales 1985 1986 1987 $1,941 100 $1,997 fefi $2,391 52 $2,041 $2,065 $2,448 $1,458 Zl $1,698 19 $1,967 12 $1,480 $1,717 $1,979 (Continued) © 1989 Dataquest Incorporated February ESIS Volume EI 0002632 Texas Instruments, Inc. Table 2 (Continued) Texas Instruments, Inc. Net Sales by Business Area—Year Ending December 31 pillions of U.S. Dollars) 1985 Digital Products Trade Intersegment 958 42 $ $1,000 Metallurgical Materials Trade Intersegment $ Total Metallurgical Sales Services Trade $ $ 931 $ 891 145 42 $ 126 54 $ 131 27 $ 187 $ 180 $ 158 t 407 S- 2^9 $ 240 Adjustments $4,924 $4 ,974 852 as (121) (178) (191) Total Sales 1987 877 54 $ Total Digital Sales 1986 $5,595 Texas Instruments 1987 Annual Report Source: Table 3 Texas Instruments, Inc. Net Sales by Geographic Area—Year Ending December 31 (Millions of U.S. Dollars) 1986 1985 United States Europe East Asia Other Areas Adjustments $3,729 817 953 325 (900) $3,693 815 1,196 216 (946) $4^,053 967 ,548 1201 ,174 (1, $4,924 $4,974 $5,595 Source: ESIS Volume III 0002632 1987 Texas Instruments 1987 Annual Report © 1989 Dataquest Incorporated February Texas Instruments, Inc. PRODUCTS AND MARKETS SERVED TI is one of the world's broadest-range semiconductor manufacturers and offers products ranging from discrete transistors to gate arrays and advanced microprocessors. The Company is the market leader in bipolar logic integrated circuits and is also strong in linear and memory products. It is a major supplier of 256K dynamic RAMs (DRAMs). The Company is also building toward volume production of 1Mb DRAMs and added to its U.S. capacity during 1988. The Company serves all market segments, the major users being industrial, computer, and consumer goods manufacturers. Recent product developments have permitted even more involvement with the industrial and telecommunications markets, although TI has sustained its presence in the government and military end-user segments. TI is also investing in artificial intelligence (AI) and industrial automation as emerging areas of opportimity. During 1987, the Company acquired the control systems and industrial systems business of Rexnord Automation. In 1985, while many semiconductor manufacturers were pulling out of DRAM production, TI was stepping up DRAM production, and began sampling 1Mb DRAMs. However, by 1986, DRAMs were declining in relative importance, while application-specific integrated circuits (ASICs), application processors, military semiconductors, and VLSI logic emerged as the primary thrust areas. AI is a rapidly growing activity and is now TI's second biggest R&D item after VLSI. In 1986, TI introduced the TMS320C25, the first second-generation DSP chip. TI is considered the world leader in the single-chip DSP market. The same year, TI opened a $350,000 surface-mount technology center at Bedford, TI's U.K. headquarters. In February 1986, TI joined with Signetics Corporation and Philips to develop and manufacture a 1-micron advanced CMOS logic (ACL) chip family. In June 1986, the Company introduced a 2-micron CMOS family of standard cells called System Cell. In August 1986, TI introduced the TMS34010, a 32-bit CMOS graphics systems processor (GSP), which is a general-purpose processor with special capabilities for supporting high-performance computer graphics applications. In 1988, TI announced a family of 1-micron CMOS gate arrays, its TGCIOO series, which is available in gate densities of 3,200 to 8,896. TI is also releasing a military version called the TGCIOOM for operations from -55 to 125 degrees Celsius. TI has recently consolidated its worldwide memory operations within its Japanese organization. © 1989 Dataquest Incorporated February ESIS Volume HI 0002632 Texas Instruments, Inc. OUTLOOK Our research leads us to conclude that TI differs from its major Far Eastern competitors in two major ways. The first point of contrast is that TI is driven by its components business rather than by its systems business. Second is that it has been more selective about the type of business it targets. The Company's thrust is to be both a leading semiconductor supplier and a leading supplier to the military market. For many of its Far Eastern competitors, semiconductor components are a much less prominent piece of their overall business. By contrast, TI's semiconductor operations are based not on its internal requirements, which it nonetheless supports, but on its fundamental objective of becoming the leading components supplier to the U.S. market, as well as a major global market participant. So, although TI is not vertically integrated in the same fashion or to the same degree as many of its competitors, it represents a good example of vertical integration U.S.-style, and its semiconductor business represents a firm foundation on which to build or support other business activities. TI is committed to making investments of strategic importance from a corporate view, thus enhancing its ability to maximize the synergy generated by the many constituents of its business. TI's choice of investment contends that, contrary to popular belief, we are now in the information age. We are, in fact, data rich but information poor. Dataquest believes that TI exhibits the strengths necessary to compete with other vertically integrated competitors worldwide, and that, in response to the changing nature of global competition, the Company has planned well and invested wisely for the shape of things to come. ESIS Volume III 0002632 © 1989 Dataquest Incorporated February Texas Instruments, Inc. (Page intentionally left blank) © 1989 Dataquest Incorporated February ESIS Volume in 0002632 ^ Toshiba Corporation 1-1 Shibaura 1-chome Minato-ku, Tokyo 105, Japan Telephone: (03) 457-4511 Fax: (03) 456-1631 Dun's Number: 06-499-3082 Date Founded: 1875 CORPORATE STRATEGIC DIRECTION Toshiba Corporation is one of the largest electronics companies worldwide. Its main business activity is the development, manufacturing, and marketing of electrical and electronics equipment and electronic components. The business is divided into the following segments: Information/Communication Systems and Electronic Devices, which accounts for 50 percent of net sales; Heavy Electrical Apparatus, which accounts for 19 percent of net sales; and Consumer Products, which accoimts for 31 percent of net sales. Toshiba is one of two leaders of the Toshiba-IHI Group; the other is Ishikawajima-Harima Heavy Industries (IHI). These parents have close capital and business connections. Their subsidiaries are engaged in electrical and electronics products, construction, trading and finance, and shipbuilding. Total revenue for 1991 amounted to $33.3 billion,* an increase of 12 percent over 1990 revenue of $29.7 biUioa Domestic sales decreased slightly from 60.73 percent in 1990 to 54.99 percent in 1991. International sales also dropped slightly from 31.62 percent to 30.98 percent Fierce competition in the key semiconductor and computer markets led to a decrease in net income of 7.15 percent during 1991. Net income totaled $856.2 million, compared with $922.1 in 1990. Toshiba has developed a "Sixth Medium-Term Plan." This plan wiU cover the period from 1991 through 1993. The focus of this plan is group, growth, and global. Group represents Toshiba's goal to strengthen its group of companies. This will be done by building on the synergies that exist among its lines *AU dollar amounts are in U.S. dollais. 0012542 of business and by making strategic alliances. For gFowdi, Toshiba plans to increase total sales about 60 percent by 1993. This wiU be done by offering value-added products that imify the collective expertise of Toshiba's numerous divisions and group companies. In addition, the contribution of overseas sales is scheduled to rise from 35 to 39 percent of total sales. In order to meet this goal, Toshiba will need to build on its commitment to developing markets worldwide. Global represents how Toshiba will build on its global presence. Toshiba plans to raise overseas sales as a percentage of total sales by increasing overseas production and strengthening marketing operations in local markets. R&D is structured by Toshiba to incorporate both long- and short-term planning by developing projects of varying time frames. Corporate level undertakes projects with a five- to ten-year time frame, division level operates under diree-year time fr'ames, division engineering level goes by one-year time frames, and division manufacturing strives for continuous day-today improvement Therefore, Toshiba can take both long- and short-term perspectives. R&D expenditure increased 13 percent from $1.86 billion in 1990 to $2.1 billion in 1991 and represented 6.37 percent of sales in 1991. This expenditure was concentrated primarily on 16Mb and 64Mb DRAMs, large color liquid crystal displays (LCDs), new high temperature superconducting materials for future electronic devices, and various equipment for train systems. A large share of activities was also focused on information and communications systems, such as broadband ISDN (BISDN) switching equipment. Toshiba plans to raise R&D expenditure 7 percent during the 1992 fiscal year. Capital expenditure for the same period totaled $3.1 billion, a 35 percent increase over 1990, ©1992 Dataquest Incorporated January—^Reproduction Prohibited Toshiba Corporation which totaled $2,3 billioa The rise in capital spending during fiscal 1990 and 1991 was primarily the result of development and production of 4Mb and 16Mb DRAMs. Over $1.4 bilhon was invested in the semiconductor group during the fiscal year; and several new factories are either currently under construction or already completed. During fiscal 1992, capital expenditure is expected to be approximately $3.5 bUlion. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder present comprehensive financial information. BUSINESS SEGMENT STRATEGIC DIRECTION Information/Communication Systems and Electronic Devices Fiscal 1991 sales in this segment were $16.7 billion and accounted for 50 percent of company sales. A companjrwide program developed by Toshiba to strengthen its capabUities in information and communications systems contributed to the sale of notebook and laptop computers, which were up 40 percent during 1991. Although semiconductor memory sales were flat, sales of ASICs grew 6 percent in that product segment Toshiba also introduced a second generation 4Mb DRAM that features a smaller chip size and faster access time. Semiconductors second, with a 9.2 percent market share and $838 miUion in revenue, in the MOS logic semiconductor segment and third in the MOS digital semiconductor segment with $2.9 bilhon in revenue. In the analog semiconductor industry Toshiba ranked third, capturing a 5.8 percent market share, according to Dataquest In the DRAM market, Toshiba is committed to increasing 4Mb DRAM production and has responded to demand by developing and producing a wide range of products. In October 1991, Toshiba announced a new series of 4Mb DRAMs with a 512Kx9 structure. The device has the standard data capacity of 512Kx8, plus an additional 512Kxl capacity for a parity bit Dataquest believes that this is one of what will be many announcements for this type of product According to Dataquest in 1990 Toshiba remained the largest suppUer of 1Mb DRAMs to worldwide markets for the second consecutive year. It was second in the 4Mb product area, having held the top spot during 1989. However, during 1990 Toshiba adjusted to a 4Mb DRAM market shift, from a 350-mil-widedevice, the 4Mb part with which it started, to the now industry-standard 300-mil part During 1991 and 1992, file company will emphasize the 4Mb DRAM density and de-emphasize the 256K DRAMs and 1Mb DRAMs. Toshiba should remain a leader in the DRAM market for the foreseeable future and a major player in the 4Mb video RAM (VRAM) segment as that market emerges. Toshiba ranked first in tiie MOS memory semiconductor arena with $1.6 billion in revenue and a 12.4 percent market share. Dataquest ranked Toshiba third in the worldwide optoelectronic semiconductor industry, with an 11.6 percent share of the 1990 market According to Dataquest, Toshiba remained the second-largest semiconductor suppUer in 1990, with 8.3 percent of the worldwide market share and revenue of $4.8 billion. Toshiba also was the third-largest semiconductor supplier in Japan. Toshiba's diversified product portfoUo emphasizes balance among analog, discrete, bipolar, MOS logic, memory devices, and ASICs. Personal Toshiba was also the largest worldwide suppUer of discrete devices in 1988, 1989, and 1990. In 1990, Toshiba captured an 11.0 percent market share totaling $904 minion in revenue. Toshiba has stated its to remain No. 1 in disaetes. Toshiba ranked Toshiba is developing sophisticated, highperformance PC systems to position the company at the forefront of current and emerging high-growth fields. In 1990, according to Dataquest Toshiba ranked tenth worldwide and captured 3.6 percent of During fiscal 1991, Toshiba invested approximately $226 million in its LCD business. Preparations for expansion into this market included the construction of LCD manufacturing facilities for the joint venture with IBM Japan, Display Technologies Inc. Computers ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012S42 Toshiba Corporation the worldwide PC market Dataquest believes that Toshiba is now the dominant player in the world market for laptops, with a 1990 market share of 29.4 percent in the worldwide laptop/DC market and a 21.6 percent market share in the worldwide laptop/ AC market account for 85 percent of the market, and there is very little differentiation among their technologies. For 1990, according to Dataquest, Toshiba ranked fifth in the key telephone systems area in the United States with a 5.7 percent market share. Printers Workstations Toshiba markets a line of UNIX engineering workstations incorporating original hardware and Japanese-version software. This line has done well in -the Japanese market Telecommunications Equipment Under a development contract with NTT, Toshiba is developing an asynchronous transfer mode (ATM) switching system for BISDN, the next-generation telecommunications network. Also, in a joint effort with Kokusai Denshin Denwa (KDD), Japan's international telephone service corporation, Toshiba has developed thefirstsatellite communications system in Japan for installation in conmiercial airliners to enable air-to-ground telephone communication. Demand from the growing mobile portable and cordless telephone markets is being met, and an ultralight, ultracompact portable telephone that conforms to U.S. standards has been developed. According to Dataquest, in 1990 Toshiba ranked ninth in the United States intotalPBX systems with a 2.5 percent market share. Toshiba manufactures dot matrix, laser, and thermal transfer printers, with the overwhelming majority of business in the first two product areas. According to Dataquest, for 1990 Toshiba had less than a one percent share of die North America printer market Copiers Toshiba sells and manufactures plain paper copiers (PPCs) on a global scale. According to Dataquest, Toshiba is one of the top 10 PPC manufacturers in the United States, placing 51.9 thousand PPCs during 1990. Computer Storage Toshiba is one of the leading optical drive suppliers. According to Dataquest for 1990 Toshiba ranked fourth in the 12-inch worldwide write-once/readmany (WORM) market with a 10.0 percent market share. In the CD-ROM market it also ranked fourth with a 9.2 percent market share. Toshiba ranked fifth in the total optical disk drive market with a maricet share of 3.5 percent worldwide. Toshiba is a major supplier of facsimile products worldwide. Much of its success stemsfinomthe effective diversification of the product line to best suit the trends in market demand. Toshiba meets the high-end demand with products that will transmit a standard document in just 13 seconds. The products feature one-touch dialing and automatic Optical Mark Recognition (OMR) dialing. Toshiba also has models diat offer an ad^tional electronic memoiy, which adds such valuable functions as broadcasting, mailbox, and relay transmission. In addition, Toshiba offers compact, entiy-level machines with one-touch dialing. In 1990, according to Dataquest, Toshiba ranked sixth worldwide with a 5.6 percent market share. In fiscal 1991, Toshiba's Heavy Electrical Apparatus segment accounted for 19 percent of its net sales, totaling $6.4 billion compared with $618.6 million in 1990, reflecting a 14 percent increase over 1990. Domestic sales grew due to completion of large-scale nuclear power plants and high demand for electrical equipment stimiilated by brisk capital investment However, exports were down because of decreased plant dehveries. Toshiba is one of the top 10 suppliers of key telephone systems to the U.S. market These systems are ciistomer-premises telephone switching systems that allow telephones to interface to the public network without dialing access codes. Competition is stiff in this market segment because the top 10 suppliers Toshiba will continue to emphasize the development of its energy business, focusing on tiiree systems. In the nuclear power generation sector, Toshiba is continuing to develop advanced, simplified systems that incorporate improvements in safety, reliability, and operability. Th: second system is thermal power 0012542 Heavy Electrical Apparatus ©1992 Dataquest Incorporated January—Reproduction Prohibited Toshiba Corporation plants. Toshiba is developing and refining a system that includes a combined cycle that will achieve new levels of turbine efficiency. The third system is fuel cells. According to Toshiba, the fuel cells show great promise as a superior next-generation source of clean energy. Consumer Products Fiscal 1991 sales of products in this segment rose 9 percent to $10.2 billion, accounting for 31 percent of Toshiba's net sales. The high added value of products in the domestic market and smooth expansion of overseas manufacturing operations both contributed to the gain. Domestic demand centered on air conditioners, large-screen TVs incorporating broadcast satellite tuners, lighting products, and materials. The consumer products business has been restructured to reflect the continuing development of the infonnation society and the personal and household use of ioformation and communications devices. The Consumer Products Group has been separated into two business units, the \^deo & Electronics Media Group and the Airconditioners & Appliances Group. The Video & Electronics Media Group aims to position Toshiba as a major presence in multimedia. Further Information For further infonnation about the company's business segments, please contact the appropriate Dataquest industry service. ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012542 Toshiba Corporation Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars) 1987 1988 1989 1990 1991 20,734.7 36.01 25,881.3 24.82 29,636.6 14.51 29,748.8 0.38 33,251.2 11.77 Capital Expenditure Percent of Revenue 1,337,1 6.45 1,359.7 5.25 2,086.5 7.04 2.263.3 7.61 3,122.3 9.39 R&D Expenditure Percent of Revenue 1,260.7 6.08 1,575.0 6.09 1,796.5 6.06 1,860.4 6.25 2,117.4 6.37 Number of Employees Revenue ($K)/Employee 121,000 171.36 122,000 212.14 125,000 237.09 142,000 209.50 162,000 205.25 Net Income Percent Change 214.4 (20.15) 439.8 105.13 9,310.0 2,016.87 922.1 (90.10) 856.2 (7.15) Exchange Rate ( U . S . $ 1 ^ 159.56 138.03 128.25 142.93 141.21 Five-Year Revenue Percent Change 1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue Quarterly Profit NA NA NA NA NA NA NA NA NA= Not avajlatde Sowce: Toshiba CorpoTation Anmial Reports Dataquest (Jaimaiy 1992) Table 2 Revenue by Geographic Region (Percent) Region 1987 1988 1989 1990 1991 Japan Overseas 69.14 30.86 69.03 30.97 67.93 32.07 60.73 31.62 54.99 30.98 Source: Toshiba Catponttion Animal Reports Dataquest (Jannary 1992) 0012S42 ©1992 Dataquest Incorporated January—Reproduction Prohibited Toshiba Corporation 1991 SALES O F H C E LOCATIONS Europe—4 Asia/Pacific—11 Japan—67 ROW—11 MANUFACTURING LOCATIONS North America Intemational Fuel Cells A joint venture with United Technologies to produce fuel cells Microelectronics Center Semiconductors Toshiba America Inc. TVs, microwave ovens, VCRs, toners, telephones, medical equipment Toshiba Intemational Motors, circuit boards, control equipment Toshiba Westinghouse Electronics A joint venture to produce color CRTs Europe Compagnie Europeen Pour La Fabrication D'Enceintes A Micro-Ondes (France) A joint venture with Thomson of France to produce microwave ovens Toshiba Consumer Products GmbH (Germany) VCRs, TVs Toshiba Consumer Products Ltd. (United Kingdom) TVs, VCRs, microwave ovens Toshiba Consumer Products S.A. (France) Lamps for copiers Toshiba Semiconductor GmbH (Germany) Semiconductors Toshiba Systemes S.A. (France) A joint venture with ROHM Poulanc to produce plain paper copiers AsicUPacific Amori Taic (Japan) Radio cassette recorders, record players, component stereos 6 Buzen Toshiba Electronics Co. Ltd. (Japan) Semiconductors Hankook Tungsten (South Korea) Tungsten, molybdenum wires and parts Harison Denki (Japan) Electric lamps Himeji Toshiba Electronics (Japan) ICs, lead frames for semiconductors Hokuto Electronics (Japan) CRTs Iwate Toshiba Electronics Co. Ltd. (Japan) Semiconductors Kaga Toshiba Electronics (Japan) Semiconductors Kitashiba Electric Co. Ltd. (Japan) Transformers, electric motors Kitsuki Toshiba Electronics (Japan) Semiconductors Korea Electronics (South Korea) Semiconductors, TVs Kumdong Lighting (South Korea) Fluorescent lamps Leechun Electric Mfg. (South Korea) Generators, motors, transformers, pumps Marcon Electronics Co. Ltd. (Japan) Capacitors, hybrid ICs Nishishiba Electric Co. Ltd. (Japan) Electric marine equipment Nougata Toshiba Electronics (Japan) Semiconductors Olivetti Corporation of Japan (Japan) Data communications equipment, computers, word processing systems, Qrpewriters Onkyo Corporation (Japan) Audio equipment and parts Shibauia Engineering Works Co. Ltd. (Japan) Motors, electric tools Sold Computer (Japan) Microcomputer and peripherals Tatung Co. (Taiwan) TVs, reMgerators, transformers Thai Toshiba Electric Industries Co. Ltd. (Thailand) A joint venture with Siam Cement of Thailand to produce TVs, reMgerators, electric fans, electric rice cookers, motors Thai Toshiba Fluorescent Lamp Co. Ltd. (Thailand) Glass tubes for fluorescent lanq>s Thai Toshiba Lighting Co. Ltd. (Thailand) Fluorescent lamps Tohoku Semiconductor (Japan) Semiconductors Toki Electric Industrial (Japan) Electric lamps, lighting equipment ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012342 Toshiba Corporation Tokyo Electric Co. Ltd. (Japan) Business machines, lighting equipment, home appliances Tokyo Electronic Industry Co. Ltd. (Japan) Industrial video equipment, control equipment Tokyo Optical (Japan) Optical uistruments Toshiba Battery (Japan) Dry batteries, battery applied products Toshiba Ceramics (Japan) Ceramics Toshiba Chemical Corporation (Japan) Plastic products, insulating materials Toshiba Cold Chain (Japan) Freezers, vending machines Toshiba Components Co. Ltd. (Japan) Semiconductors Toshiba Electric Equipment Co. Ltd. (Japan) Lighting fixtures Toshiba Electronics Malaysia Sdn. Bhd. (Malaysia) IC memories Toshiba Electronic Systems Co. Ltd. (Japan) A joint venture with General Electric to produce and market electronic equipment Toshiba Engineering & Construction Co. Ltd. (Japan) Electric facilities Toshiba Glass Co. Ltd. (Japan) Glass products Toshiba Heating Appliances (Japan) Oil heating equipment Toshiba Kiki (Japan) Lighting equipment, etc. Toshiba Machine (Japan) Machinery, machine tools Toshiba Medical Systems Co. Ltd. (Japan) Medical electronic equipment Toshiba Seiki (Japan) Automatic precision apparatus Toshiba Singapore Pte. Ltd. (Singapore) Color TVs, TV parts, audio equipment Toshiba Steel Tube Co. Ltd. (Japan) Steel tubes, electric conduit tubes Toshiba 'I\mgaloy (Japan) Special alloy tools ROW Industria Mexicana Toshiba S.A. (Mexico) Semiconductors Semp Toshiba Amazonas S.A. (Brazil) TVs, audio equipment Toshiba Electromex S.A. de C.V. (Mexico) Color TV parts for Toshiba America 0012S4Z SUBSIDIARIES North America GE Toshiba Lighting Corporation (United States) Ottawa Design Center (Canada) Toshiba America Consumer Products Inc. (United States) Toshiba America Electronic Components Inc. (United States) Toshiba America, Inc. (United States) Toshiba America Information Systems Inc. (United States) Toshiba America Medical Systems Inc. (United States) Toshiba Display Devices Inc. (United States) Toshiba Hawaii Inc. (United States) Toshiba International Corporation (United States) Toshiba of Canada Ltd. (Canada) Europe Compagnie European Pour La Fabrication D'Enceintes A Micro-Ondes (France) Toshiba AG (Switzerland) Toshiba Consumer Products GmbH (Germany) Toshiba Consumer Products Ltd. (United Kingdom) Toshiba Consumer Products S.A. (France) Toshiba Deutschland GmbH (Germany) Toshiba Electronics Espana S.A. (Spain) Toshiba Electronics Europe GmbH (Germany) Toshiba Electronics Italiana S.R.L. (Italy) Toshiba Electronics Ltd. (United Kingdom) Toshiba Electronics Scandinavia AB (Sweden) Toshiba Europa GmbH (Germany) Toshiba Information Systems (Belgium) Toshiba Information Systems Ltd. (United Kingdom) Toshiba Information Systems S.A. (Spain) Toshiba Information Systems S.p.A. (Italy) Toshiba Informationssyteme GmbH (Germany) Toshiba International (Europe) Ltd. (United Kingdom) Toshiba International Finance B.V. (Netherlands) Toshiba International Finance Ltd. (United Kingdom) Toshiba Ltd. (United Kingdom) Toshiba Medical Systems Europe B.V. (Netherlands) Toshiba Semiconductor GmbH (Germany) Toshiba Systemes S.A. (France) Asia/Pacific Iwate Toshiba Electronics Co. Ltd. (Japan) Kitashiba Electric Co. Ltd. (Japan) ©1992 Dataquest Incorporated January—Reproduction Prohibited Toshiba Corporation Kyodo Building Corporation (Japan) Man On Toshiba Ltd. (Hong Kong) Maroon Electronics Co. Ltd. (Japan) Minato Building Co. Ltd. (Japan) Nikko Jitsdugyo Co. Ltd. (Japan) Nishishiba Electric Co. Ltd. (Japan) Onkyo Corporation (Japan) Shibaura Engineering Works Co. Ltd. (Japan) TDH, Inc. (Japan) Thai Toshiba Electric Industries Co. Ltd. (Thailand) Tokyo Electric Co. Ltd. (Japan) Toshiba Automation Co. Ltd. (Japan) Toshiba Battery Co. Ltd. (Japan) Toshiba Builders Appliance Co. Ltd. (Japan) Toshiba Building Corporation (Japan) Toshiba Ceramics Co. Ltd. (Japan) Toshiba Chemical Corporation (Japan) Toshiba Components Co. Ltd. (Japan) Toshiba Consumer Products Co. Ltd. (Thailand) Toshiba Credit Corporation (Japan) Toshiba Display Devices Co. Ltd. (Thailand) Toshiba Electric Appliances Co. Ltd. (Japan) Toshiba Electric Equipment Corp. (Japan) Toshiba Electronic Systems Co. Ltd. (Japan) Toshiba Electronics Asia, Ltd. (Hong Kong) Toshiba Electronics Malaysia Sdn. Bhd. (Malaysia) Toshiba Electronics Taiwan Corporation (Taiwan) Toshiba Elevator & Escalator Service Co. Ltd. (Japan) Toshiba Engineering & Construction Co. Ltd. (Japan) Toshiba Engineering Co. Ltd. (Japan) Toshiba Glass Co. Ltd. (Japan) Toshiba Heating Appliances Co. Ltd. (Japan) Toshiba Higashinihon Consumer Electronics Co. Ltd. (Japan) Toshiba Information Equipment Co. Ltd. (Japan) Toshiba International Corporation Pty. Ltd. (Australia) Toshiba Li^tec Corporation (Japan) Toshiba Medical Systems Co. Ltd. (Japan) Toshiba Physical Distribution Co. Ltd. (Japan) Toshiba Pty. Ltd. (Australia) Toshiba Sdes and Services Sdn. Bhd. (Malaysia) Toshiba Silicone Co. Ltd. (Japan) Toshiba Singapore Pte. Ltd. (Singapore) Toshiba Steel Tube Co. Ltd. (Japan) Toshiba Thailand Co. Ltd. (Thailand) ROW Industria Mexicana Toshiba S.A. (Mexico) Semp Toshiba Amazonas S.A. (Brazil) T and S Servicos Industrias S/C Ltda. (Brazil) Toshiba Toshiba Toshiba Toshiba de Brasil S.A. (Brazil) de Panama S.A. (Panama) Electromex S.A. de C.V. (Mexico) Medical de Brasil Ltda. (Brazil) ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1991 Motorola Inc. Motorola Inc.'s semiconductor products sector signed a joint-development agreement with Toshiba to design a MUSE (Miiltiple Sub-nyquist Encoding) decoder chip set for HDTV systems used in JapaiL The chips are expected to be completed by the middle of 1992. Sun Microsystems Inc. Sun Microsystems Inc. and Toshiba will jointly develop the technology required to commercialize multimedia workstations, which will be compatible with the BISDN telecommunications service. Synergy Semiconductor Toshiba has acquired approximately a 10 percent minority stake in Synergy Semiconductor. This strategic alliance will provide for a jointdevelopment effort to build libraries of higih-speed ECL and E-BiCMOS ASIC designs. Under the agreement, Toshiba will buUd 6-inch submicron production lines in Japan for the to-be-designed ECL and E-BiCMOS ASICs. Echelon Corporation Echelon has licensed to Toshiba and Motorola the Neuron chip fEimily, its local operating network (LON) product lines. The chip family comprises of two members: the 3210 and 3150. TEC Electronics Toshiba has licensed TEC Electronics, a subsidiary of its Tokyo Electric Corp. affiliate, to market its Dynabook notebook personal computers, along with the point-of-sale terminals that Toshiba manufactures. Bull Micral of America Toshiba entered into the PC logic chip set business with a chip set for 486-based Micro Chaimel systems licensed from Bull Micral of America, an affiliate of Groupe Bull. ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012542 Toshiba Corporation Texas Instruments Inc. Texas Instruments Inc. and Toshiba signed a 10-year patent cross-licensing agreement Toshiba wiU pay Texas Instruments royalties for using the patented chip technology. generation of intelligent power-controller chips being developed by Echelon Systems. Under the terms of the agreement, Toshiba's Semiconductor Group will manufacture and market the Echelondesigned ICs. The agreement also permits Toshiba to design, manufacture, and market enhanced versions of the chips. 1990 IBM Japan Ltd. Toshiba and IBM Japan are jointly constructing a plant that will have a production capability of 50,000 LCD panels a year. Motorola Inc. Toshiba and Motorola reportedly plan to sign an agreement to exchange gate array technology to allow the companies to act as mumal second sources. In the United States, Motorola will produce gate arrays designed and developed by Toshiba, which Motorola intends to market for use in workstations. In Japan, Tohoku Semiconductor Inc., a joint venture of the two companies, will produce gate arrays based on Motorola technology for supply to local companies. Toshiba and Motorola also plan to expand their technological cooi>eration to include discrete semiconductors. Businessland Businessland Japan will be formed by Businessland, Canon, Fujitsu, software distributor Softbank, Sony, and Toshiba to provide systems integration services for international firms. Businessland will have a 54 percent stake in the joint venture, Softbank will have 26 percent, and the otherfirmswill have 5 percent each. Spectrum Cellular Corp. Toshiba will market Dallas-based Spectrum Cellular's new cellular/landline modem with its laptop computers as the T24D/X, and Spectrum will also develop five separate versions of its new SmartCable product for sale by Toshiba. General Electric (GE) GE and Toshiba have entered into a joint marketing agreement covering the sale of GE's CompuScene PT2000 in Japan. The visual simulation system and other Compu-Scene products will be distributed by Toshiba Electronics Systems, a GE/Toshiba joint venture company. Echelon Systems Corp. Motorola and Toshiba have become the first semiconductor makers to license the rights to a new 0012542 1989 EDA Systems Inc. EDA signed a purchase agreement with Toshiba for its Powerframe product, a design management framework that integrates third-party CAD/CAE tools and speeds the overall electronic design process. IBM Corporation The two companies agreed to the joint development of a color fiat panel display for computers that is larger and clearer than any demonstrated previously. Digital Equipment Corporation The companies have a technology exchange agreement that will ensure the integration of Toshiba's laptop personal computers into Digital's networking environment Weitek Corporation Under a joint development agreement, Weitek wUl manufacture some of its semiconductors in Toshiba's plant; Toshiba wiU gain access to some of Weitek's floating-point product technology. McDonnell Douglas McDonnell Douglas has agreed to port its PRO-IV appUcation development language to minicomputers manufactured by Toshiba. Cummins Engine Co. The companies have undertaken a joint venture to market silicon nitride ceramic components in North America. Sun Microsystems Inc. The companies signed a worldwide licensing agreement to bundle the SPARC MPU architecture, the SunOS operating system, and the Open Look Graphics interface into a series of smallfootprint, low-cost computers. Siemens The companies extended their long-standing alliance in ASICs. ©1992 Dataquest Incorporated January—^Reproduction Prohibited Toshiba Corporation 1988 Zoran The companies agreed to a technology and manufacturing alliance. Motorola Inc. Under a joint venture, the companies formed Tohoku Semiconductor. Tohoku is using Toshiba's marketing channels to market Motorola's 68000 series MRUs in Japan. Advanced Silicon Corporation Toshiba agreed to provide Advanced Silicon Corporation with 6-inch CMOS wafers and jointly develop ASIC software. Siemens and G£ The companies agreed to joindy develop a common cell library. SGS-Thomson The companies extended a six-year agreement to patent cross-licensing related to semiconductor technology. 1987 GRiD Toshiba agreed to supply GRiD with an IBM PC AT-compatible kneetop computer. Mitsui Petrochemical The companies imdertook the joint development of a magnetic tape emulator. Viewlogic Systems \^ewlogic Systems is the principal worldwide supplier of CAE software for Toshiba. Aida Corporation Toshiba agreed to provide Aida with its TC17G gate array library models. Toshiba is gaining access to Aida's semicustom IC design equipment SGS-ATES The companies made afive-yeartechnical collaboration agreement allowing Toshiba to use SGSATES' semiconductor sales network in Europe and allowing SGS-ATES to receive LSI fab technology and technical training for its engineers from Toshiba. SDA Systems The companies undertook afive-yearjoiat venture to cooperatively develop CAD systems for IC design. 10 MERGERS AND ACQUISITIONS 1991 UNIX System Laboratories AT&T sold one-fifth of its UNIX System Laboratories to eleven computer companies, includiag Toshiba. The other computer companies involved are Motorola Inc., Novell Inc., Sun Microsystems Inc., NEC America Inc., England's ICL, Ing. C. Olivetti & Co. of Italy, the Institute for Information Industry of Taiwan, Fujitsu Ltd., and Old Electric Industries Co. Ltd. Vertex Semiconductor Corporation Toshiba America Electronic Components Inc. acquired Vertex Semiconductor Corporation for approximately $20 million. Vertex is a designer and manufacturer of high-performance, multichip ASICs for high gate cotmt, performance-driven electronic systems. Toshiba had already owned a 14 percent equity stake under a three-year agreement signed in 1989. 1990 Toshiba Display Devices Inc. and Toshiba America Electronic Components Inc. These two Toshiba subsidiaries have been merged to complete the consolidation of all of Toshiba's North American components marketing, sales, and manufacturing operations. Power and Design Toshiba has acquired Power and Design, a Belgian distributor for Toshiba. The new subsidiary will be renamed Toshiba Information Systems and will deal with marketing and sales for Toshiba-made printers, photocopiers, personal computers, and fax machines. The subsidiary is the seventh sales outlet for Toshiba communications and information equipment in Europe. Integrated CMOS Systems Inc. (ICS) Toshiba has acquired equity stake in ICS. The acquisition will enable Toshiba to use the U.S. firm's design tools with existing customers, and, under its own name, Toshiba will market a new array family that will be developed using submicron CMOS technology. (Note: ICS subsequendy changed its name to Vertex Semiconductor Corporation.) ©1992 Dataquest Incorporated January—Reproduction Prohibited 0012542 Toshiba Corporation KEY OFFICERS PRINCIPAL INVESTORS Joichi Aoi President and chief executive officer The Dai-ichi Mutual Life Insurance Company—4.3 percent Nippon Life Insurance Company—3.6 percent The Mitsubishi Trust & Banking Corporation—^3.1 percent The Mitsui Bank Limited—3.1 percent Tsuyoshi Kawanishi Senior executive vice president Keiichi Komlya Senior executive vice president Kinichi Kadono Senior executive vice president FOUNDERS Fumio Sato Senior executive vice president Information is not publicly available. 0012542 ©1992 Dataquest Incorporated January—Reproduction Prohibited 11 Toshiba Corporation Table 3 Consolidated Balance Sheet Fiscal Year Ending in March (Millions of U.S. Dollars) Balance Sheet Cash Receivables Marketable Securities Inventory Other Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Other Equity Retained Eiumings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate ( U . S . $ 1 ^ 1987 1990 1,279.5 4212.6 1,284.5 3,363.8 1,153.5 12,347.7 4,666.5 3.573.2 20,587.4 1988 3,681.8 5,223.5 1,409.8 5,308.7 1,333.8 17,030.4 5,346.6 4,399.8 26,776.8 1989 4,964.5 6,885.8 1,334.1 6,434.3 1,613.3 21,232.0 6,158.3 5,402.7 32,793.0 7,127.3 7,131.5 1,323.7 6,716.6 1,784.8 24,083.8 6,336.0 5,830.8 36,250.6 1991 5,998.9 8,288.4 1,373.8 7,808.2 1,882.3 25,351.6 7,915.2 5,896.9 39,163.7 11,500.1 4,570.0 800.5 16,870.6 951.6 935.3 1,829.7 3,716.8 15,018.5 5,642.3 915.0 21,575.8 1,424.3 1,489.5 2,287.2 5,201.0 19,002.7 6,007.0 918.6 25,928.3 1,791.0 1,894.0 3,180.0 6.864.7 19,287.1 8,429.3 937.5 28,653.9 1,831.0 2,359.2 3,406.6 7,596.7 20,713.1 9,112.7 991.4 30,817.2 1,924.8 2,475.7 3,945.9 8,346.4 20,587.4 159.56 26,776.8 138.03 32,793.0 128.25 36,250.6 142.93 39,163.7 141.21 Source: Toshiba Coipoiation Animal Rq>otts Dataquest (Januaty 1992) 12 ©1992 Dataquest Incorporated January—^Reproduction Prohibited 0012542 Toshiba Corporation Table 4 Consolidated Income Statement Fiscal Year Ending in March (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=¥) 1987 1988 1989 1990 1991 20.734.7 14,336.8 6,397.9 15,223.8 1,260.7 5,187.4 1,337.1 489.0 2.36 58.00 214.4 2,732.5 25,881.3 17,865.7 8,015.6 18,640.2 1,575.0 6,443.5 1,359.7 909.2 3.51 56.00 439.8 2,939.4 29,636.6 20,133.3 9,503.3 20,150.0 1,796.5 7,553.2 2,086.5 1,830.8 6.18 56.00 922.1 3,074.6 29,748.8 18,065.5 9.405.3 20,037.8 1,860.4 7,500.9 2,263.3 1,886.9 6.3 54.0 922.1 3,172.5 33,251.2 18,285.5 10,302.4 22,509.0 2,117.4 8,886.1 3,122.3 1,833.4 5.5 51.0 856.2 3,206.1 0.07 0.05 1.36 159.56 0.15 0.06 1.77 138.03 0.29 0.06 2.23 128.25 0.28 0.07 1.68 142.93 0.25 0.07 1.82 141.21 Source: Tosbiba Coipoiation Aiiiiual Reports Dataquest (Januaiy 1992) 0012S42 ©1992 Dataquest Incorporated January—Reproduction Proliibited 13 Toshiba Corporation Table 5 Consolidated Balance Sheet Fiscal Year Ending in March (BUlions of Yen) Balance Sheet Cash Receivables Marketable Securities Inventory Otiier Current Assets Total Current Assets Net Property, Plants Other Assets Total Assets Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Converted Preferred Stock Common Stock Other Equity Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Exchange Rate (U.S.$1=¥) 1987 204.1 671.9 204.9 536.6 184.0 1,969.7 744.5 569.9 1988 508.2 721.0 194.6 742.7 184.1 2,350.7 737.9 607.4 1989 636.7 883.1 171.1 825.2 206.9 2,723.0 789.8 692.9 1990 1,018.7 1,019.3 189.2 960.0 255.1 3,442.3 905.6 833.4 1991 847.1 1,170.4 194.0 1,102.6 265.8 3,579.9 1,117.7 832.7 3,284.1 3,696.0 4,205.7 5,181.3 5,530.3 1,834.5 729.0 127.7 2,691.2 0 151.8 149.2 291.9 2,073.0 778.8 126.3 2,978.1 0 196.6 205.6 315.7 2,437.1 770.4 117.8 3,325.3 0 229.7 242.9 407.8 2,756.7 1,204.8 134.0 4,095.5 0 261.7 337.2 486.9 2,924.9 1,286.8 140.0 4,351.7 0 271.8 349.6 557.2 592.9 717.9 880.4 1,085.8 1,178.6 3.284.1 159.56 3,696.0 138.03 4,205.7 128.25 5,181.3 142.93 5,530.3 141.21 SooTce: Toshiba Coipoiation Annual Rq)arts Dataquest (Januaiy 1992) 14 ©1992 Dataquest Incorporated Januaiy—Reproduction Prohibited 0012542 Toshiba Corporation Table 6 Consolidated Income Statement Fiscal Year Ending in March (Billions of Yen, except Per Share Data) Consolidated Income Statement Revenue Japanese Revenue Non-Japanese Revenue Cost of Sales R&D Expense SG&A Expense Capital Expense Pretax Income Pretax Margin (%) Effective Tax Rate (%) Net Income Shares Outstanding, Millions Per Share Data Earnings Dividend Book Value Exchange Rate (U.S.$1=¥) 1987 1988 1989 1990 1991 3,307.6 2,287.0 1,020.6 2,428.5 201.1 827.5 213.3 78.0 2.4 58.0 34.2 2,732.5 3,572.4 2,466.0 1,106.4 2,572.9 217.4 889.4 187.7 125.5 3.5 56.0 60.7 2,939.4 3,800.9 2,582.1 1,218.8 2,584.2 230.4 968.7 267.6 234.8 6.2 56.0 119.4 3,074.6 4,252.0 2,582.1 1,344.3 2,864.0 265.9 1,072.1 323.5 269.7 6.3 54.0 131.8 3,172.5 4.695.4 2,582.1 1,454.8 3,178.5 299.0 1,254.8 440.9 258.9 5.5 51.0 120.9 3,206.1 11.86 8.00 216.98 159.56 20.37 8.00 244.23 138.03 37.27 8.00 286.35 128.25 40.11 10.00 342.3 142.93 35.72 10.00 367.6 141.21 Soiuce: Toshiba Coiporation Annual Reports Dataquest (Jamiaiy 1992) Table 7 Key Financial Ratios Fiscal Year Ending in March Key Financial Ratios Liquidity Current (Times) Total Assets/Equity (%) Current Liabilities/Equity (%) Total Liabilities/Equity (%) Profitability (%) Return on Assets Return on Equity Profit Margin Other Key Ratios R&D Spending % of Revenue Capital Spending % of Revenue Employees Revenue (¥M)/Employee Capital Spending % of Assets Exchange Rate (U.S.$1=¥) 1987 1988 1989 1990 1991 1.07 553.90 309.41 453.90 1.13 514.83 288.76 414.83 1.12 477.70 276.82 377.70 1.25 477.19 253.89 377.19 1.22 469.23 248.17 369.23 1.04 5.77 1.03 1.64 8.46 1.70 2.84 13.56 3.14 2.54 12.14 3.10 2.19 10.26 2.57 6.08 6.45 121,000 27.34 6.49 159.56 6.09 5.25 122,000 29.28 5.08 138.03 6.06 7.04 125,000 30.41 6.36 128.25 6.25 7.61 142,000 29.94 6.24 142.93 6.37 9.39 162,000 28.98 7.97 141.21 Source: Ibsbiba Coiporation Annual Reports Dataquest (January 1992) 0012542 ©1992 Dataquest Incorporated January—Reproduction Prohibited 15 TRW, Inc. BACKGROUND AND OVERVIEW TRW, Inc., originally known as Thompson Ramo Wooldridge, Inc., adopted its present name in 1965. The Company was formed in 1958 with the merger of Thompson Products, founded as the Cleveland Cap Screw Company on January 2, 1901, and the Ramo Wooldridge Corporation, which had been launched in 1953 with the financial support of Thompson Products. The Cleveland Cap Screw Company, as Thompson Products, became the leading producer of automotive and aircraft valves in the United States. The Ramo Wooldridge Corporation, specializing in the concept of systems engineering, was named as systems engineer and technical advisor to the U.S. Air Force in early 1955. In this role, Ramo Wooldridge was overseeing 220 prime contractors and thousands of subcontractors involved in a $17 billion crash effort for the U.S. ballistic missile program by 1957. This took TRW, Inc., into the aerospace industry and enabled the Company to become an early leader in the design and manufacture of unmanned spacecraft. Today, TRW employs some 80,000 people worldwide. The Company provides products and services with a high-technological or engineering content to the space, defense, information systems, automotive, and energy markets. Recently, TRW has disposed of almost all its electronic components operations except for LSI products. This former division is now a full subsidiary called TRW LSI Products Inc. Contrary to recent press statements, TRW LSI Products is a merchant market supplier (less than 0.5 percent of its turnover is captive). TRW LSI Products' European headquarters is in Munich, West Germany. It also has European marketing and sales sites in Guildford, United Kingdom, and Paris, France. All LSI products are now manufactured in the United States and imported into Europe. Table 1 shows Dataquest's estimate of TRW's European semiconductor revenue. ESIS Volume III 0002631 © 1989 Dataquest Incorporated February TRW, Inc. Table 1 TRW, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987 $ 17 $ 21 $ 21 $ 20 $ 11 Total Integrated Circuit Bipolar Digital MOS Linear $ 8 4 0 4 $ 10 4 0 6 $ 9 4 0 5 $ 8 4 1 3 0 0 0 0 Total Discrete Transistor Diode Thyristor Other $ 5 4 1 0 0 $ 6 5 1 0 0 $ 4 4 0 0 0 $ 4 4 0 0 0 $ 2 2 0 0 0 $ 5 $ 8 $ 8 $ 9 Total Semiconductor Total Optoelectronic Source: Dataquest February 1989 PRODUCTS AND MARKETS SERVED TRW LSI Products manufactures ICs, hybrids, and printed circuit boards in the area of data conversion, and linear, arithmetic, and signal processing products for imaging, test equipment, military, telecommunications, and instrumentation equipment. OUTLOOK The Company is concentrating on producing higher-performance, higher-resolution data conversion especially in hybrids, as well as more complete DSP functions on a single chip. © 1989 Dataquest Incorporated February ESIS Volume III 0002631 ^ Zilog, Inc. BACKGROUND AND OVERVIEW Zilog, Inc., was founded in November 1974 by F. Faggin and R. Ungermann, both previously with Intel Corporation. The Company was established to manufacture and sell microprocessor products. In June 1975, Exxon Enterprises, Inc., the oil company, showed an interest in the newly formed company and offered capital assistance. Zilog is now an affiliate of Exxon Enterprises. In October 1976, Zilog's headquarters were established in Cupertino, California. Over the next few years, widespread recognition for the Z80, Zilog's improved second-generation version of Intel's highly successful 8080 8-bit microprocessor, brought rapid growth and expansion for the Company. Zilog opened its first in-house component manufacturing facility, designed to employ the latest state-of-the-art technology, in Campbell, California. In addition, a systems manufacturing facility was also opened in Cupertino, and a component assembly plant in Manila, the Philippines. Zilog also opened its first domestic facility outside California, a manufacturing plant in Nampa, Idaho. The addition of this facility considerably increased Zilog's wafer fabrication potential. In November 1984, Dr. Ed Sack took over as president and chief executive. He began reorganizing the Company from one driven by technology to one led by market needs. Zilog has always had a reputation for technological excellence, but in the past it did not have good sales and earnings. Dr. Sack became actively involved in every aspect of the Company's operations and geared it to perceiving customers' needs. This resulted in Zilog moving into profit in 1986, and increasing sales still further in 1987. Table 1 shows Zilog's European semiconductor revenue by technology. ESIS Volume III © 1988 Dataquest Incorporated February Zilog, Inc. Table 1 Zilog, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) Total Semiconductor Total Integrated Circuit Bipolar Digital MOS Linear Total Discrete Transistor Diode Thyristor Other 2M2 1983 $9 $10 $9 0 9 0 0 0 0 0 0 1984 1985 1986 $13 $9 $12 $10 0 10 0 $13 0 13 0 $9 0 9 0 $12 0 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Optoelectronic Source: Dataquest February 1988 PRODUCTS AND MARKETS SERVED Zilog developed the Z80 microprocessor in 1976 and has since added a broad line of peripheral devices. The Company introduced the first members of two new families, the Z8, a single-chip, 8-bit microcomputer aimed at high-performance, cost-sensitive applications, and the Z8000, a 16-bit microcomputer that took Zilog into the high-end microcomputer market. Zilog has a wide product range in the systems area, including development systems, a complete line of Z80-based microcomputer boards and general-purpose microcomputer systems, and a vast array of software support. As regards the Z80000 family, Zilog was sampling the Z80000 microprocessor throughout 1986. Production began in March 1987, and small quantities of the device are currently available. Full production is scheduled for early this year. © 1988 Dataquest Incorporated February ESIS Volume III Zilog, Inc. Zilog has several 32-bit devices aimed at more specialized markets. The latest in this family is the Z320 microprocessor launched in November 1987. With its $26 price tag, it is aimed at starting a trend toward lower-price 32-bit processors. The device is supported by the range of hardware design and software development tools already available for the Z8000 family. In 1988, Zilog plans to include ADA compilers for embedded control, an IBM PC AT single-board computer, evaluation board ATZ80K, and a real-time operating system. The Company has agreements with other suppliers including AT&T, Catalyst, Hitachi, NEC, Sharp, Toshiba, and VLSI Technology. OUTLOOK Dr. Sack sees four main trends in the processor market: • The 8-bit market still has plenty of life left because designers are still working with 8-bit microcomputers. • The processor market has three camps—the Intel devices driving IBM personal computers and compatibles, the "UNIX engine" market dominated by Motorola, and the embedded processor and microcomputer market where standards are less of an issue. • There is a trend toward higher levels of chip integration. • ASIC devices have fueled the processor market, so companies with proprietary processor architectures become valuable to the ASIC supplier. Zilog's main future thrust will be in the direction of superintegration, with 8-bit processor cores well placed to form the heart of superintegrated solutions. The Company is pursuing the superintegration goal through two routes. The first is to increase the integration level of its own proprietary processors; the second is to work closely with selected customers to develop standard devices tailored for specific applications (cable TV decoders and modems, for example). ESIS Volume III © 1988 Dataquest Incorporated February Zilog, Inc. (Page intentionally left blank) © 1988 Dataquest Incorporated February ESIS Volume m Market Share Executive Summary 1987 EUROPEAN MARKET SHARE ESTIMATES The following table summarizes the data in our "Market Share" service section, which is located in Volume HI, "Companies," of the European Semiconductor Industry Service notebooks (directly following this section). The European revenue shown in the table is given by product and supplier bases. All figures are reported in millions of dollars. ESIS Volume HI 0001391 © 1988 Dataquest Incorporated September Market Share Executive Summary European Revenue—^Market Share Executive Summary (Millions of Dollars) 1981 198? 1983 1984 1985 1986 1997 Total Semiconductor European Companies U.S. Companies Japanese Companies Rest of World Companies $3,041 $3,167 $3,370 $4,805 $4,720 $5,532 $6,355 1,285 1,297 1,358 1,721 1,809 2,323 2,714 1,596 1,656 1,680 2,475 2,377 2,539 2,746 160 214 332 609 534 664 845 0 0 0 0 0 6 50 Total Integrated Circuit European Companies U.S. Companies Japanese Companies Rest of World Companies $1,892 $1,988 $2,323 $3,634 $3,556 $4,088 $4,693 649 641 751 1,059 1,115 1,447 1,697 1,103 1,157 1,270 2,003 1,953 2,043 2,196 140 190 302 572 488 592 750 0 0 0 0 0 6 50 Total Bipolar Digital European Companies U.S. Companies Japanese Companies Rest of World Companies $ 454 $ 434 $ 483 $ 157 138 123 287 285 342 10 11 18 0 0 0 Total Bipolar TTL European Companies U.S. Companies Japanese Companies Rest of World Companies $ 413 $ 141 262 10 0 Total Bipolar ECL European Companies U.S. Companies Japanese Companies Rest of World Companies $ 41 $ 16 25 0 0 40 $ 14 26 0 0 37 $ 13 24 0 0 $ 454 $ 157 287 10 0 434 $ 138 285 11 0 483 $ 123 342 . 18 0 Total Bipolar Digital (recap) European Companies U.S. Companies Japanese Companies Rest of World Companies 724 $ 709 $ 180 194 526 491 18 24 0 0 782 $ 725 219 243 529 439 34 43 0 0 394 $ 446 $ 659 $ 641 $ 705 $ 564 124 110 161 168 192 147 259 318 480 449 486 389 11 18 18 24 27 28 0 0 0 0 0 0 65 $ 19 46 0 0 . 68 $ 26 42 0 0 724 $ 709 $ 180 194 526 491 18 24 0 0 77 $ 27 43 7 0 161 96 50 15 0 782 $ 725 219 243 529 439 34 43 0 0 (Continued) ® 1988 Dataquest Incorporated September ESIS Volume m 0001391 Market Share Executive Summary Eur(^)ean Revenue—^Market Share Executive Summary (Millions of Dollars) laSl 19S2 1983 100 $ 17 78 5 0 1984 1965 1986 1987 Total Bipolar Memory European Companies U.S. Companies Japanese Companies Rest of World Companies $ 103 $ 18 80 5 0 107 $ 149 $ 157 $ 172 $ 24 33 41 42 76 107 103 108 7 9 13 22 0 0 0 0 Total Bipolar Logic European Companies U.S. Companies Japanese Companies Rest of World Companies $ 351 $ 334 $ 376 $ 575 $ 552 $ 610 $ 640 139 121 99 147 153 177 222 207 207 266 419 388 421 388 5 6 11 9 11 12 30 0 0 0 0 0 0 0 Total MOS Digital European Companies U.S. Companies Japanese Companies Rest of World Companies $ 882 $ 948 $1,227 $2,092 $1,953 $2,280 $2,753 210 206 319 523 531 722 825 551 572 639 1,034 975 1,014 1,221 121 170 269 535 447 538 657 0 0 0 0 0 6 50 Total MMDS European Companies U.S. Companies Japanese Companies Rest of World Companies $ 607 $ 650 $ 824 $1,443 $1,232 $1,294 $1,434 117 103 186 329 298 381 366 392 410 425 724 624 567 716 98 137 213 390 310 346 343 0 0 0 0 0 0 9 Total CMOS European Companies U.S. Companies Japanese Companies Rest of World Companies $ 189 $ 45 121 23 0 214 $ 57 124 33 0 353 $ 116 181 56 0 Total Hi-CMOS European Companies U.S. Companies Japanese Companies Rest of World Companies $ 0 $ 0 0 0 0 0 $ 0 0 0 0 0 $ 0 0 0 0 85 21 51 13 0 617 $ 702 $ 976 $1,284 181 226 338 443 291 339 440 490 145 137 192 310 0 0 6 41 0 $ 0 0 0 0 0 $ 0 0 0 0 0 $ 0 0 0 0 24 14 7 3 0 (Continued) ESIS Volume HI 0001391 © 1988 Dataquest Incorporated September Market Share Executive Summary Eurcq)ean Revenue—^Market Share Executive Summary (Millions of Dollars) 1981 IS31 86 $ 48 38 0 0 Total Other MOS European Companies U.S. Companies Japanese Companies Rest of World Companies 1983 84 $ 46 38 0 0 1984 50 17 33 0 0 1985 32 13 19 0 0 1986 1987 10 $ 3 7 0 0 19 7 12 0 0 11 2 8 1 0 Total MOS Digital (recap) European Companies U.S. Companies Japanese Companies Rest of World Companies $ 882 $ 210 551 121 0 948 $1,227 $2,092 $1,953 $2,280 $2,753 206 319 523 531 722 825 572 639 1,034 975 1,014 1,221 170 269 535 447 538 657 0 0 0 0 6 50 Total MOS Memory European Companies U.S. Companies Japanese Companies Rest of World Companies $ 426 $ 33 289 104 0 469 $ 45 281 143 0 581 $ 86 278 217 0 995 $ 137 457 401 0 750 $ 107 346 297 0 Total MOS Microcomponent European Companies U.S. Companies Japanese Companies Rest of World Companies $ 149 $ 17 119 13 0 168 $ 27 123 18 0 239 $ 41 161 37 0 465 $ 86 278 101 0 485 $ 578 $ 794 97 147 168 277 307 448 111 124 178 0 0 0 Total MOS Logic European Companies U.S. Companies Japanese Companies Rest of World Companies $ 307 $ 160 143 4 0 311 $ 134 168 9 0 407 $ 192 200 15 0 632 $ 300 299 33 0 718 $ 880 $1,121 327 444 543 352 385 488 39 51 85 0 0 5 Total Linear European Companies U.S. Companies Japanese Companies Rest of World Companies $ 556 $ 606 $ 613 $ 818 $ 894 $1,026 $1,215 282 297 309 356 390 506 629 265 300 289 443 487 500 536 9 9 15 19 17 20 50 0 0 0 0 0 0 0 822 $ 838 131 114 322 285 363 394 6 45 (Continued) ® 1988 Dataquest Incorporated September ESIS Volume m 0001391 Market Share Executive Summary Eurc^>ean Revenue—^Market Share Executive Summary (Millions of Dollars) 1981 3-982 2M1 1984 1985 1M& 1M2 Total Discrete European Companies U.S. Companies Japanese Companies Rest o£ World Companies $ 995 $1,011 $ 866 $ 963 $ 571 579 518 560 407 412 325 375 17 20 23 28 0 0 0 0 954 $1,153 $1,384 575 711 839 346 395 478 33 47 67 0 0 0 Total Transistor European Companies U.S. Companies Japanese Companies Rest of World Companies $ 463 $ 262 190 11 0 468 $ 261 194 13 0 408 $ 238 154 16 0 450 $ 260 173 17 0 463 $ 276 169 18 0 540 $ 655 303 357 207 252 30 46 0 0 Total Small Signal Transistor European Companies U.S. Companies Japanese Companies Rest of World Companies 251 $ 141 100 10 0 247 $ 136 99 12 0 210 $ 118 76 16 0 223 $ 125 82 16 0 207 $ 121 71 15 0 247 135 89 23 0 0 H/A K/A N/X H/A Total Power Transistor European Companies U.S. Companies Japanese Companies Rest of World Companies 212 $ 121 90 1 0 221 $ 125 95 1 0 198 $ 120 78 0 0 227 $ 135 91 1 0 256 $ 155 98 3 0 293 168 118 7 0 0 H/A N/A H/A H/A 384 $ 210 172 2 0 391 $ 213 176 2 0 327 $ 181 144 2 0 358 $ 186 170 2 0 342 $ 186 150 6 0 432 $ 431 265 252 157 175 10 4 0 0 157 $ 99 57 1 0 154 $ 98 55 1 0 125 $ 78 46 1 0 132 $ 77 54 1 0 119 $ 77 40 2 0 145 101 36 8 0 Total Diode European Companies U.S. Companies Japanese Companies Rest of World Companies Total Small Signal Diode European Companies U.S. Companies Japanese Companies Rest of World Companies $ 0 H/A H/A H/A H/A (Contixmsd) ESIS Volume ffl 0001391 ® 1988 Dataquest Incorporated September Market Share Executive Summary European Revenue—^Market Share Executive Summary (Millions of Dollars) IMl Total Power Diode European Companies U.S. Companies Japanese Companies Rest of World Companies Total Zener Diode European Companies U.S. Companies Japanese Companies Rest of World Companies Total Thyristor European Companies U.S. Companies Japanese Companies Rest of World Companies $ JMl laM 192 $ 202 $ 89 93 102 108 1 1 0 0 35 $ 22 13 0 0 103 73 29 1 0 liM 133^ 174 $ 193 $ 83 87 90 105 1 1 0 0 12M ISSl 189 $ 247 90 139 96 106 3 2 0 0 0 N/A N/A M/A N/A 0 N/A H/A M/A N/A 35 $ 22 13 0 0 28 $ 20 8 0 0 33 $ 22 11 0 1 0 34 $ 19 14 40 25 15 0 0 105 $ 77 27 1 0 91 $ 70 20 1 0 103 $ 75 25 3 0 100 $ 77 20 3 0 125 $ 102 19 4 0 183 152 28 3 0 Total Other Discrete European Companies U.S. Companies Japanese Companies Rest of World Companies 45 $ 26 16 3 0 47 $ 28 15 4 0 40 $ 29 7 4 0 52 $ 39 7 6 0 49 $ 36 7 6 0 56 $ 41 12 3 0 115 78 23 14 0 Total Optoelectronic European Companies U.S. Companies Japanese Companies Rest of World Companies 154 $ 65 86 3 0 168 $ 77 87 4 0 181 $ 89 85 7 0 208 $ 102 97 9 0 210 $ 119 78 13 0 291 $ 165 101 25 0 278 178 72 28 0 Total LED Lamp European Companies U.S. Companies Japanese Companies Rest of World Companies 41 $ 21 20 0 0 44 $ 24 20 0 0 45 $ 27 18 0 0 55 33 21 1 0 55 36 16 3 0 76 44 24 8 0 0 N/A N/A N/A N/A (Continued) © 1988 Dataquest Incorporated September ESIS Volume m 0001391 Market Share Executive Summary Eurc^>ean Revenue—^Market Share Executive Summary (Millions of Dollars) 1981 1982 1983 1984 1985 1986 1987 Total LED Display European Companies U.S. Companies Japanese Companies Rest of World Companies 57 $ 18 39 0 0 65 26 39 0 0 66 27 39 0 0 70 30 40 0 0 62 33 28 1 0 87 47 34 6 0 0 N/A M/A N/A H/A Total Optical Coupler European Companies U.S. Companies Japanese Companies Rest of World Companies 27 $ 14 13 0 0 28 $ 14 14 0 0 32 17 15 0 0 40 17 23 0 0 41 $ 22 18 1 0 56 27 28 1 0 0 N/A N/A N/A H/A Total Other Optoelectronic European Companies U.S. Companies Japanese Companies Rest of World Companies 29 12 14 3 0 31 $ 13 14 4 0 38 $ 18 13 7 0 43 $ 22 13 8 0 52 28 16 8 0 72 47 15 10 0 0 N/A N/A N/A N/A Source: ESIS Volume ffl 0001391 ® 1988 Dataquest Incorporated September Dataquest September 1988 Market Share Executive Summary (Page intentionally left blank) 8 © 1988 Dataquest Incorporated September ESIS Volume m 0001391 Appendix B—Market Share Estimates An integral part of Dataquest's European Semiconductor Industry Service data base is the analysis of semiconductor markets through estimation of market share by manufacturer. This analysis provides insights into the semiconductor markets and reinforces estimates of consumption, shipments, and company revenue that were made using other data. The tables are grouped in two parts: the first part gives worldwide market shares for European semiconductor companies, and the second part shows European market shares for all major European, U.S., and Japanese semiconductor companies. The tables included in Appendix B are as follows: • Tables B-1 through B-7—Worldwide market shares of European semiconductor companies by product line • Tables B-8 through B-23—European market shares of all major European, U.S., Japanese, and Rest of World semiconductor companies by product line A full index of the tables is included for easy reference. The totals given for the companies reflect worldwide production. For example, Texas Instruments, Inc., manufactures semiconductors in many parts of the world, but its entire production is included under the U.S. companies' market share section. Where a company has a subsidiary, the subsidiary's revenue is included in the worldwide revenue of the parent company. DEFINITIONS AND CONVENTIONS Dataquest uses a common manufacturer base for all data tables. This base includes all noncaptive suppliers to the semiconductor market. It excludes captive suppliers, such as IBM, that manufacture devices solely for the benefit of the parent company, but it includes companies that actively market their semiconductor devices to industry as well as to other divisions of their own companies. For these companies, both external shipments and internal consumption are included. Devices that are used internally are valued at current market prices. All estimates given in these tables have been converted to U.S. dollars to make the tables useful in comparing companies based in different countries. The dollar was chosen as the common currency because of the U.S. producers' large presence in European markets and because much of the source data are expressed in U.S. dollars. Construction of the tables involves combining data from many countries, each of which has different and changing exchange rates. Dataquest uses International Monetary Fund average exchange rates for each year, and, as far as possible, the estimates are prepared in terms of local currencies before conversion to U.S. dollars. ESIS Volume ni 0000567 © 1988 Dataquest Incorporated September Appendix B—Market Share Estimates NEED FOR CAREFUL INTERPRETATION Despite the care taken in gathering and analyzing the available data and in attempting to categorize those data in a meaningful way, careful attention must be paid to the definitions and assumptions used here when interpreting the estimates presented in these tables. Various companies, government agencies, and trade associations may use slightly different definitions of product categories and regional groupings, or they may include different companies in their summaries. These differences should be kept in mind when making comparisons between these data and those provided by other sources. © 1988 Dataquest Incorporated September ESIS Volume III 0000567 Appendix B—Market Share Estimates INDEX OF TABLES Product Segment Table Worldwide Market Shares of European Semiconductor Companies by Product Line: Total Semiconductor Integrated Circuit Bipolar Digital MOS Linear Discrete Optoelectronic European Market Shares of Major Semiconductor Companies by Product Line: Total Semiconductor Integrated Circuit Bipolar Digital Bipolar Memory Bipolar Logic MOS Digital MOS Memory MOS Microcomponent MOS Logic Linear Discrete Transistor Diode Thyristor Other Discrete Optoelectronic ESIS Volume III 0000567 © 1988 Dataquest Incorporated September B-1 B-2 B-3 B-4 B-5 B-6 B-7 B-8 B-9 B-10 B-11 B-12 B-13 B-14 B-15 B-16 B-17 B-18 B-19 B-20 B-21 B-22 B-23 Appendix B—Market Share Estimates Table B-1 Worldwide Semiconductor Market Share Estimates of Eurc^an Companies (Millions of U.S. Dollars) ;al ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others 1981 1982 19B3 1984 1985 1986 1987 $1,903 1,929 2,215 3,183 2,850 3,446 4,201 10 0 24 0 15 48 4 6 19 0 828 49 7 29 160 337 0 21 138 180 28 13 0 24 0 15 82 26 13 21 0 797 53 7 34 175 329 0 21 143 148 28 14 0 20 0 15 85 58 13 25 0 917 61 7 36 230 333 34 17 134 195 21 22 0 25 0 20 105 146 41 31 0 1,325 82 11 40 335 450 40 20 161 301 28 28 0 29 0 21 98 85 42 35 0 1,068 99 12 48 300 420 17 18 170 324 36 35 0 35 0 30 95 80 47 39 0 1,356 112 12 72 370 429 18 18 219 436 43 103 32 0 7 25 102 91 48 47 32 1,603 120 41 79 859 657 12 21 273 0 49 *This table is to be read in conjunction with footnotes given at the end of this section. Source: © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume HI 0000567 Appendix B—Market Share Estimates Table B-2 Worldwide Integrated Circuit Market Share Estimates of European Companies (Millions of U.S. Dollars) Total ASEA. Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others 1981 1982 1983 1984 1985 1986 1987 $1,080 1,150 1,470 2,273 1,911 2,348 2,846 5 0 0 0 15 34 4 6 8 0 590 46 7 0 110 155 0 0 38 59 3 7 0 0 0 15 68 26 13 9 0 570 50 7 0 126 160 0 0 36 60 3 7 0 0 0 15 68 58 13 12 0 694 58 7 0 177 178 30 0 51 99 3 13 0 0 0 20 85 146 41 16 0 1,090 75 11 0 263 230 38 0 63 174 8 18 0 0 0 21 78 85 42 20 0 808 89 12 0 240 205 16 0 68 197 12 22 0 0 0 30 78 80 47 22 0 1,041 98 12 0 291 216 18 0 82 293 18 26 32 0 7 25 80 91 48 27 32 1,187 103 39 0 646 354 12 0 110 0 27 *This table is to be read in conjunction with footnotes given at the end of this section. Source: DatagueSt September 1988 0588-07 ESIS Volume III 0000567 © 1988 Dataquest Incorporated September Appendix B—Market Share Estimates Table B-3 Worldwide Bipolar Digital Market Share Estimates of Eun4>ean Companies (Millions of U.S. Dollars) Total ASEA Brovm Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others 1981 1992 1983 1994 199$ 1986 1997 $405 $404 $464 $752 $556 $573 $595 0 0 0 0 0 14 0 0 0 0 298 18 6 0 14 52 0 0 0 2 1 0 0 0 0 0 32 0 0 0 0 278 19 6 0 5 56 0 0 0 7 1 0 0 0 0 0 36 0 0 0 0 344 21 6 0 10 36 0 0 0 10 1 0 0 0 0 0 46 0 4 0 0 589 27 9 0 20 35 0 0 0 21 1 0 0 0 0 0 49 0 4 0 0 372 30 9 0 26 41 0 0 0 24 1 0 0 0 0 0 43 0 1 0 0 427 30 5 0 20 36 0 0 0 10 1 0 0 0 0 0 37 0 3 0 0 406 31 12 0 20 63 0 0 15 0 8 *This table is to be read in conjunction with footnotes given at the end of this section. Source: © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-4 Worldwide MOS Market Share Estimates of Eurcq>ean Companies (Millions of U.S. Dollars) Total A.SEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Ininos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others 19?1 19?2 ^9?3 1994 1985 1996 1997 $294 $335 $528 $912 $778 1,022 1,250 7 0 0 0 15 13 26 13 9 0 99 14 1 0 45 64 0 0 5 23 1 7 0 0 0 15 11 58 13 12 0 155 19 1 0 68 80 30 0 8 50 1 13 0 0 0 20 12 146 33 16 0 266 26 2 0 102 126 38 0 13 93 6 18 0 0 0 21 6 85 36 20 0 228 35 3 0 88 92 16 0 13 107 10 22 0 0 0 30 11 80 44 22 0 314 39 4 0 106 89 18 0 19 210 14 26 29 0 7 25 12 91 43 27 32 342 39 11 0 344 171 12 0 23 0 16 5 0 0 0 15 4 4 6 8 0 100 11 10 33 65 0 0 11 30 1 *This table is to be read in conjunction with footnotes given at the end of this section. Source: ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 Appendix B—Market Share Estimates Table B-5 Worldwide Linear Market Share Estimates of Eurqpean Companies (Millions of U.S. Dollars) Total ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others laai 1982 1983 1984 1985 1980 1987 $381 $411 $478 $609 $577 $753 1,001 0 0 0 0 0 16 0 0 0 0 192 17 0 0 63 38 0 0 27 27 1 0 0 0 0 0 23 0 0 0 0 193 17 0 0 76 40 0 0 31 30 1 0 0 0 0 0 21 0 0 0 0 195 18 0 0 99 62 0 0 43 39 1 0 0 0 0 0 27 0 4 0 0 235 22 0 0 141 69 0 0 50 60 1 0 0 0 0 0 23 0 2 0 0 208 24 0 0 126 72 0 0 55 66 1 0 0 0 0 0 24 0 2 0 0 300 29 3 0 165 91 0 0 63 73 3 0 3 0 0 0 31 0 2 0 0 439 33 16 0 282 120 0 0 72 0 3 *This table is to be read in conjunction with footnotes given at the end of this section. Source: © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume III 0000567 Appendix B—Market Share Estimates Table B-6 Worldwide Discrete Market Share Estimates of £un^>ean Companies (Millions of U.S. Dollars) Total ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others i9n 1982 19S3 1984 1995 ).9?$ ).987 $741 $686 $642 $764 $770 $904 1,125 4 0 24 0 0 14 0 0 11 0 219 0 0 29 50 146 0 21 82 121 20 5 0 24 0 0 14 0 0 12 0 208 0 0 34 49 131 0 21 82 88 18 4 0 20 0 0 17 0 0 13 0 204 0 0 36 53 114 4 17 53 96 11 5 0 25 0 0 20 0 0 15 0 217 0 0 40 72 150 2 20 60 127 11 5 0 29 0 0 20 0 0 15 0 235 0 0 48 60 140 1 18 61 123 15 7 0 35 0 0 17 0 0 17 0 288 0 0 72 79 133 0 18 84 138 16 69 0 0 0 0 22 0 0 20 0 390 0 0 79 213 218 0 21 86 0 7 *This table is to be read in conjunction with footnotes given at the end of this section. Source: ESIS Volume III 0000567 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 Appendix B—Market Share Estimates Table B-7 Worldwide Optoelectronic Market Share Estimates of Eurc^iean Companies (Millions of U.S. Dollars) Total ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Sifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others 1981 1982 1983 1984 1985 1986 Ififil $82 $93 $103 $146 $169 $194 $230 3 0 0 0 0 0 0 0 0 0 19 3 0 0 0 41 0 0 30 0 7 4 0 0 0 0 0 0 0 0 0 18 7 0 0 0 70 0 0 38 0 9 5 0 0 0 0 0 0 0 0 0 25 10 0 0 0 75 0 0 41 4 9 6 0 0 0 0 0 0 0 0 0 27 14 0 0 0 80 0 0 53 5 9 8 0 0 0 0 0 0 0 0 0 26 17 2 0 0 85 0 0 77 0 15 1 0 0 0 0 0 0 0 0 0 19 3 0 0 0 36 0 0 18 0 5 1 0 0 0 0 0 0 0 0 0 19 3 0 0 0 38 0 0 25 0 7 . *This table is to be read in conjunction with footnotes given at the end of this section. Source: 10 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume in 0000567 Appendix B—Market Share Estimates Table B-8 Total European Semiconductor Nfarket Share Estimates (Millions of U.S. Dollars) Total 1991 1982 2M1 1984 1985 1996 1997 $3,041 3,167 3,370 4,805 4,720 5,532 6,355 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $1,285 1,297 1,358 1,721 1,809 2,323 2,714 91 32 25 21 14 13 10 32 0 0 0 0 0 0 0 26 24 22 18 22 22 6 0 0 0 0 0 0 14 11 10 10 8 8 8 67 66 67 54 65 30 45 20 16 18 25 4 1 9 35 40 37 36 12 12 5 37 32 30 26 21 18 16 32 0 0 0 0 0 0 930 820 457 596 546 454 436 84 78 66 51 38 34 35 34 13 11 11 7 7 7 27 49 43 30 25 24 22 537 244 201 180 120 116 115 475 370 270 252 280 241 249 5 13 12 27 24 0 0 16 14 12 16 14 17 17 209 164 133 133 109 128 125 0 302 240 157 210 144 133 44 30 32 22 36 31 30 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $1,596 46 26 112 41 52 25 31 139 25 131 0 25 1,656 58 27 111 41 50 26 32 140 26 135 0 27 1,680 83 28 95 38 44 28 31 140 24 126 0 30 2,475 170 44 110 43 50 40 41 225 30 171 0 36 2,377 174 51 105 34 42 31 39 212 31 185 0 42 2,539 172 65 102 34 37 39 46 214 37 215 0 48 2,746 235 77 0 122 40 40 17 283 53 243 40 0 (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 11 Appendix B—Market Share Estimates Table B-8 (Continued) Total European Semiconductor Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconiz Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 2M1 1983 ISM 1985 1M4 2M1 238 131 12 56 19 314 16 0 19 138 $160 10 61 6 4 54 2 18 5 252 149 12 58 20 318 17 0 9 148 $214 21 71 6 6 76 4 25 5 280 159 9 60 20 330 17 0 10 128 $332 33 110 7 15 109 15 39 4 385 237 10 88 25 522 21 0 13 214 $609 58 201 9 21 203 28 82 7 389 218 10 80 24 468 21 0 9 212 $534 64 169 9 17 174 22 72 7 425 236 12 85 33 488 20 0 12 219 $664 74 177 9 33 229 25 110 7 478 345 19 0 38 492 11 22 17 174 $845 110 157 26 53 249 41 188 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $6 2 3 1 $50 11 35 4 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 12 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-9 Total Eur(^)ean Integrated Circuit Market Share Estimates (Millions of U.S. Dollars) Total European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brovm Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Ri£a Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* 1981 1982 1983 1984 1985 1986 ISSl $1,892 1,988 2,323 3,634 3,556 4,088 4,693 $649 5 0 0 0 8 21 1 5 7 0 264 33 7 0 77 124 0 0 35 59 3 $641 7 0 0 0 8 35 4 12 8 0 252 34 7 0 80 100 0 0 33 58 3 $1,103 46 26 86 16 27 25 0 139 0 58 0 25 1,157 58 27 86 15 24 26 0 140 0 60 0 27 $751 1,059 1,115 1,447 1,697 23 19 15 12 7 32 0 0 0 0 0 0 0 0 0 6 0 0 0 0 11 14 10 10 8 51 52 50 52 42 20 16 18 25 9 35 40 36 37 12 21 17 19 15 11 32 0 0 0 0 618 557 384 351 273 69 65 58 45 37 32 11 11 11 7 0 0 0 0 0 397 193 153 137 86 244 186 145 122 160 5 13 11 25 20 0 0 0 0 0 78 49 46 46 35 0 203 147 125 79 23 12 12 8 3 1,270 83 28 78 16 23 28 0 140 0 61 0 30 2,003 170 44 97 20 28 40 0 225 0 87 0 36 1,953 174 51 95 19 21 31 0 212 0 95 0 42 2,043 172 65 95 21 12 39 0 214 0 116 0 48 2,196 235 77 0 92 13 40 0 283 0 132 40 0 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 13 Appendix B—Market Share Estimates Table B-9 (Continued) Total Eurcq)ean Integrated Circuit Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 1982 1983 1984 1985 1986 1987 135 119 0 26 10 239 5 0 19 102 $140 9 56 2 4 51 2 15 1 142 138 0 28 11 256 5 0 9 105 $190 20 66 2 5 70 4 22 1 179 151 0 46 12 281 8 0 10 96 $302 32 104 2 14 103 15 31 1 265 233 0 73 14 475 10 0 13 173 $572 58 193 3 20 198 28 71 1 265 215 0 64 17 434 9 0 9 200 $488 64 161 3 15 169 22 53 1 279 232 0 64 22 448 8 0 12 196 $592 74 168 5 28 211 25 80 1 302 335 0 0 25 449 0 22 17 134 $750 110 146 8 48 243 41 142 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $6 2 3 1 $50 11 35 4 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 14 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume IH 0000567 Appendix B—Market Share Estimates Table B-10 Total Eur(^>ean Bipolar Digital Market Share Estimates (Millions of U.S. Dollars) 1991 1952 1983 1984 1985 1986 1987 al $454 $434 $483 $724 $709 $782 $725 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $157 0 0 0 0 0 10 0 0 0 0 71 10 6 0 14 43 0 0 0 2 1 $138 0 0 0 0 0 14 0 0 0 0 61 8 6 0 4 38 0 0 0 6 1 $123 0 0 0 0 0 22 0 0 0 0 52 8 6 0 2 24 0 0 0 8 1 $180 0 0 0 0 0 26 0 4 0 0 82 9 9 0 11 24 0 0 0 14 1 $194 0 0 0 0 0 28 0 4 0 0 86 13 9 0 12 24 0 0 0 17 1 $219 0 0 0 0 0 29 0 3 0 0 106 16 5 0 14 33 0 0 0 10 3 $243 0 0 0 0 0 26 0 3 0 0 97 15 5 0 14 61 0 0 15 0 7 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $287 23 0 49 2 0 12 0 8 0 0 0 22 $285 27 0 48 1 0 12 0 7 0 0 0 22 $342 37 0 52 2 0 14 0 4 0 0 0 24 $526 55 0 62 0 0 20 0 20 0 0 0 29 $491 56 0 61 0 0 18 0 10 0 0 0 39 $529 65 0 67 0 0 7 0 13 0 0 0 46 $439 109 0 0 0 0 0 0 8 0 0 0 0 (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 15 Appendix B—Market Share Estimates Table B-10 (Continued) Total Eurqpean Bipolar Digital Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba ROW Companies Others Goldstar* Samsung* Others 1981 1962 29 38 0 0 0 101 2 0 0 1 $10 0 8 0 0 2 0 0 0 0 0 0 31 35 0 0 0 99 2 0 0 1 $11 2 8 0 0 1 0 0 0 0 0 0 1983 38 42 0 0 0 123 4 0 0 2 $18 5 11 0 0 2 0 0 0 0 0 0 1984 1965 199g ISSl 69 58 0 0 0 204 4 0 0 5 $18 5 10 0 0 3 0 0 0 0 0 0 67 41 0 0 0 182 4 0 0 13 $24 9 10 0 1 4 0 0 0 0 0 0 74' 48 0 0 0 189 4 0 0 16 $34 16 11 0 2 5 0 0 0 0 0 0 53 94 0 0 0 161 0 0 0 14 $43 26 5 2 3 5 2 0 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 16 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume HI 0000567 Appendix B—Market Share Estimates Table B-ll £urc^)ean Bipolar Memory Market Share Estimates (Millions of U.S. Dollars) 1981 199? 19?3 1984 1985 liM 1987 $103 $100 $107 $149 $157 $172 $85 European Companies XSEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Ri£a Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $18 0 0 0 0 0 0 0 0 0 0 14 0 0 0 0 2 0 0 0 2 0 $17 0 0 0 0 0 0 0 0 0 0 12 0 0 0 0 1 0 0 0 4 0 $24 0 0 0 0 0 0 0 0 0 0 18 0 0 0 0 1 0 0 0 5 0 $33 0 0 0 0 0 0 0 4 0 0 19 0 0 0 0 2 0 0 0 8 0 $41 0 0 0 0 0 0 0 4 0 0 23 0 0 0 0 4 0 0 0 10 0 $42 0 0 0 0 0 0 0 3 0 0 27 0 0 0 0 6 0 0 0 5 1 $21 0 0 0 0 0 0 0 3 0 0 14 0 0 0 0 3 0 0 0 0 1 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instriunent Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $80 8 0 14 2 0 10 0 7 0 0 0 19 $78 10 0 14 1 0 9 0 6 0 0 0 19 $76 13 0 10 2 0 10 0 4 0 0 0 18 $107 23 0 17 0 0 15 0 1 0 0 0 19 $103 21 0 15 0 0 14 0 0 0 0 0 22 $108 24 0 19 0 0 5 0 0 0 0 0 15 $51 26 0 0 0 0 0 0 0 0 0 0 0 al (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 17 Appendix B—Market Share Estimates Table B-11 (Continued) European Bipolar Memory Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerez* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 1982 1983 1984 1985 1986 1987 7 3 0 0 0 9 0 0 0 1 $5 0 3 0 0 2 0 0 0 9 3 0 0 0 6 0 0 0 7 3 0 0 0 8 0 0 0 9 5 0 0 0 16 0 0 0 1 $5 1 3 0 0 1 0 0 0 3 9 0 0 0 24 0 0 0 9 $22 12 5 0 0 5 0 0 0 1 9 0 0 0 10 0 0 0 5 $13 8 2 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $7 2 3 0 0 2 0 0 0 $9 3 3 0 0 3 0 0 0 2 4 0 0 0 20 0 0 0 5 $13 5 4 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 18 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-12 European Bipolar Logic Market Share Estimates (Millions of U.S. Dollars) 1991 199? 1983 1984 1985 1986 1987 al $351 $334 $376 $575 $552 $610 $640 European Companies A.SEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $139 0 0 0 0 0 10 0 0 0 0 57 10 6 0 14 41 0 0 0 0 1 $121 0 0 0 0 0 14 0 0 0 0 49 8 6 0 4 37 0 0 0 2 1 $99 0 0 0 0 0 22 0 0 0 0 34 8 6 0 2 23 0 0 0 3 1 $147 0 0 0 0 0 26 0 0 0 0 63 9 9 0 11 22 0 0 0 6 1 $153 0 0 0 0 0 28 0 0 0 0 63 13 9 0 12 20 0 0 0 7 1 $177 0 0 0 0 0 29 0 0 0 0 79 16 5 0 14 27 0 0 0 5 2 $222 0 0 0 0 0 26 0 0 0 0 83 15 5 0 14 58 0 0 15 0 6 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $207 15 0 35 0 0 2 0 1 0 0 0 3 $207 17 0 34 0 0 3 0 1 0 0 0 3 $266 24 0 42 0 0 4 0 0 0 0 0 6 $419 32 0 45 0 0 5 0 19 0 0 0 10 $388 35 0 46 0 0 4 0 10 0 0 0 17 $421 41 0 48 0 0 2 0 13 0 0 0 31 $388 83 0 0 0 0 0 0 8 0 0 0 0 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 19 Appendix B—Market Share Estimates Table B-12 European Bipolar Logic Market Share Estimates pillions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconiz Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsiibishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1985 19B2 19?? 1984 22 35 0 0 0 92 2 0 0 0 $5 0 5 0 0 0 0 0 0 22 32 0 0 0 93 2 0 0 0 $6 1 5 0 0 0 0 0 0 31 39 0 0 0 115 4 0 0 1 $11 3 8 0 0 0 0 0 0 60 53 0 0 0 188 4 0 0 3 $9 2 7 0 0 0 0 0 0 65 37 0 0 0 162 4 0 0 8 $11 4 6 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X99; 1997 ;99$ 71 39 0 0 0 165 4 0 0 7 $12 4 6 0 2 0 0 0 0, 52 85 0 0 0 151 0 0 0 9 $30 18 3 2 3 2 2 0 0 0 0 0 0 0 0 0 0 ^This table is to be read in conjunction with footnotes given at the end of this section. Source: 20 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-13 Total European MOS Digital Market Share Estimates (Millions of U.S. Dollars) Total European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Xnmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* 1981 1982 1983 1984 1985 1986 1987 $882 $948 1,227 2,092 1,953 2,280 2,753 $210 5 0 0 0 8 2 1 5 7 0 58 10 1 0 23 49 0 0 10 30 1 $551 18 0 11 6 24 8 0 131 0 33 0 0 $206 7 0 0 0 8 7 4 12 8 0 56 13 1 0 27 36 0 0 4 22 1 $572 24 0 10 4 21 9 0 133 0 33 0 0 $319 7 0 0 0 8 8 9 12 11 0 91 17 1 0 36 55 20 0 7 36 1 $639 40 0 10 5 20 10 0 136 0 33 0 0 $523 12 0 0 0 10 8 25 29 15 0 147 23 2 0 62 88 25 0 11 60 6 1,034 108 0 12 2 24 14 0 205 0 53 0 0 $531 15 0 0 0 10 4 18 30 19 0 162 29 2 0 65 70 11 0 11 75 10 $975 101 0 13 4 17 8 0 202 0 57 0 3 $722 19 0 0 0 14 4 16 35 17 0 255 30 3 0 81 81 13 0 11 135 8 1,014 94 0 10 7 10 14 0 201 0 70 0 2 $825 23 29 0 6 11 4 20 30 21 32 262 31 11 0 209 103 5 0 14 0 14 1,221 116 0 0 64 11 14 0 275 0 99 40 0 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September iit Appendix B—Market Share Estimates Table B-13 (Continued) Total Eurcv>ean MOS Digital Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi KEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 1982 1983 1984 1985 1M£ USl 66 35 0 14 1 86 0 0 19 99 $121 9 46 0 4 46 2 13 1 67 44 0 16 1 100 0 0 9 101 $170 18 55 0 5 65 4 22 1 95 50 0 35 2 102 0 0 10 91 $269 27 90 0 13 93 15 30 1 135 75 0 58 2 176 0 0 13 157 $535 53 179 0 19 187 28 68 1 133 70 0 51 0 142 0 0 9 165 $447 55 147 0 14 157 22 51 1 130 93 0 53 6 155 1 0 12 156 $538 58 153 1 26 199 25 75 1 163 121 0 0 8 193 0 22 17 78 $657 84 136 1 45 215 39 125 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $6 2 3 1 $50 11 35 4 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 22 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-14 Total European MOS Memory Market Share Estimates (Millions of U.S. Dollars) 1991 1982 1983 1984 J995 1986 1987 $426 $469 $581 $995 $750 $822 $838 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $33 0 0 0 0 2 0 1 4 0 0 5 0 0 0 9 8 0 0 0 4 0 $45 0 0 0 0 1 0 4 8 0 0 2 0 0 0 7 17 0 0 0 6 0 $86 0 0 0 0 1 0 9 9 0 0 2 0 0 0 8 25 16 0 0 16 0 $137 0 0 0 0 0 0 25 15 0 0 4 0 0 0 13 38 18 0 0 24 0 $107 0 0 0 0 0 0 17 13 0 0 10 0 0 0 15 24 4 0 0 24 0 $131 0 0 0 0 0 0 10 15 2 0 7 0 0 0 16 30 6 0 44 1 $114 0 2 0 0 0 0 7 9 1 0 8 0 0 0 53 33 0 0 0 0 1 U.S. Companies AMD* Analog Devices Pairchild* GE Solid State* General Instriunent Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $289 15 0 3 4 4 5 0 73 0 12 0 0 $281 16 0 2 2 5 5 0 70 0 12 0 0 $278 20 0 2 1 3 5 0 71 0 0 0 0 $457 56 0 2 1 3 7 0 95 0 0 0 0 $346 45 0 2 1 2 2 0 85 0 0 0 0 $322 38 0 2 2 0 10 0 89 0 0 0 0 $285 27 0 0 7 0 6 0 98 0 0 0 0 al o" (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 2S Appendix B—Market Share Estimates Table B-14 (Continued) Total European MOS Memory Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 1982 1983 1984 1985 MM 1M2 33 20 0 2 0 70 0 0 0 48 $104 7 42 0 4 38 2 11 0 33 19 0 3 0 70 0 0 0 44 $143 14 48 0 5 54 4 18 0 42 13 0 6 0 72 0 0 0 43 $217 18 74 0 12 76 12 25 0 45 17 0 9 0 136 0 0 0 86 $401 49 143 0 16 111 23 59 0 27 14 0 12 0 109 0 0 0 47 $297 46 109 0 11 77 16 38 0 11 14 0 7 0 116 0 0 0 33 $363 50 115 1 22 106 13 56 0 12 12 0 0 0 108 0 1 0 14 $394 68 83 1 39 100 26 77 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $6 2 3 1 $45 9 32 4 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 24 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume ffl 0000567 Appendix B—Market Share Estimates Table B-15 Total European MOS Microcomponent Market Share Estimates (Millions of U.S. Dollars) 19?1 13M 1993 J.9?4 1985 1986 1987 $149 $168 $239 $465 $485 $578 $794 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $17 0 0 0 0 0 0 0 1 0 0 3 0 0 0 6 3 0 0 0 4 0 $27 0 0 0 0 1 2 0 4 0 0 4 0 0 0 8 2 0 0 0 6 0 $41 0 0 0 0 1 2 0 1 0 0 14 0 0 0 10 5 0 0 0 8 0 $86 0 0 0 0 1 1 0 9 0 0 30 0 0 0 16 14 0 0 0 15 0 $98 0 0 0 0 1 0 2 11 0 0 33 0 0 0 13 13 0 0 0 25 0 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $119 2 0 4 0 5 0 0 52 0 1 0 0 $123 5 0 4 0 4 0 0 55 0 2 0 0 $161 15 0 3 0 3 0 0 56 0 3 0 0 $278 43 0 4 1 4 0 0 96 0 5 0 0 $276 30 0 3 3 3 0 0 105 0 10 0 0 al $168 $147 0 0 0 0 0 0 0 0 2 2 0 0 13 6 15 14 1 0 0 0 54 50 0 0 0 0 0 0 60 16 23 17 0 0 0 0' 0 0 0 42 0 0 $307 28 0 1 4 2 4 0 100 0 12 0 0 $448 36 0 0 12 2 8 0 162 0 10 0 0 (Cont:Lnued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 25 Appendix B—Market Share Estimates Table B-15 (Continued) Total Eur(q>ean MOS Microcomponent Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instrxunents TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1991 19?Z l,Sg3 1994 1985 1986 19?7 13 5 0 1 0 7 0 0 19 10 $13 2 3 0 0 6 0 1 1 14 10 0 1 0 10 0 0 9 9 $18 3 4 0 0 8 0 2 1 21 20 0 8 0 11 0 0 10 11 $37 6 11 0 1 12 3 3 1 38 30 0 16 0 15 0 0 13 13 $101 1 27 0 3 60 5 4 1 47 29 0 8 0 13 0 0 9 16 $111 1 29 0 3 64 6 7 1 59 39 0 16 0 17 0 0 12 13 $124 2 31 0 4 70 8 8 1 98 54 0 0 0 38 0 0 17 11 $178 4 44 0 6 90 12 21 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *This table i s to be read in conjunction with footnotes given at the end of t h i s section. Source: 26 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume HI 0000567 Appendix B—Market Share Estimates Table B-16 European MOS Logic Market Share Estimates (Millions of U.S. Dollars) 1981 198? 1983 1984 1985 1986 1987 ;al $307 $311 $407 $632 $718 $880 1,121 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Ixunos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* $160 $134 $192 $300 $327 $444 $543 TAG Telefunken Electronic* Thomson* Others U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* 5 0 0 0 6 2 0 0 7 0 50 10 1 0 8 38 0 0 10 22 1 7 0 0 0 6 5 0 0 8 0 50 13 1 0 12 17 0 0 4 10 1 7 0 0 0 6 6 0 2 11 0 75 17 1 0 18 25 4 0 7 12 1 12 0 0 0 9 7 0 5 15 0 113 23 2 0 33 36 7 0 11 21 6 15 0 0 0 9 4 0 6 19 0 119 29 2 0 37 33 7 0 11 26 10 19 0 0 0 12 4 0 6 15 0 198 30 3 0 49 34 7 0 11 49 7 23 27 0 6 9 4 0 6 19 32 200 31 11 0 96 47 5 0 14 0 13 $143 $168 $200 $299 $352 $385 $488 1 0 4 2 15 3 0 6 0 20 0 0 3 0 4 2 12 4 0 8 0 19 0 0 5 0 5 4 14 5 0 9 0 30 0 0 9 0 6 0 17 7 0 14 0 48 0 0 26 0 7 0 12 6 0 12 0 47 0 3 28 0 7 1 8 0 0 12 0 58 0 2 53 0 0 45 9 0 0 15 0 89 40 0 (Continued) ESIS Volume m 0000567 © 1988 Dataquest Incorporated September 27 Appendix B—Market Share Estimates Table B-16 (Continued) European MOS Logic Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba ROW Companies Others Goldstar* Samsung* Others 1981 1962 20 10 0 11 1 9 0 0 0 41 $4 0 1 0 0 2 0 1 0 0 0 0 20 15 0 12 1 20 0 0 0 48 $9 1 3 0 0 3 0 2 0 0 0 0 1983 1984 1985 1986 32 17 0 21 2 19 0 0 0 37 $15 3 5 0 0 5 0 2 0 0 0 0 52 28 0 33 2 25 0 0 0 58 $33 3 9 0 0 16 0 5 0 0 0 0 59 27 0 31 0 20 0 0 0 102 $39 8 9 0 0 16 0 6 0 0 0 0 60 40 0 30 6 22 1987 53 55 0 0 8 47 1 0 0 21 0 0 110 53 $51 $85 6 12 7 9 0 0 0 0 23 25 4 1 11 27 $5 0 11 0 2 0 3 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 28 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-17 Total European Linear Market Share Estimates (Millions of U.S. Dollars) 1951 1992 1993 1984 1995 1986 1987 :al $556 $606 $613 $818 $894 1,026 1,215 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $282 0 0 0 0 0 9 0 0 0 0 135 13 0 0 40 32 0 0 25 27 1 $297 0 0 0 0 0 14 0 0 0 0 135 13 0 0 49 26 0 0 29 30 1 $309 0 0 0 0 0 12 0 0 0 0 130 12 0 0 48 43 0 0 28 35 1 $356 0 0 0 0 0 18 0 4 0 0 122 13 0 0 64 48 0 0 35 51 1 $390 0 0 0 0 0 18 0 2 0 0 136 16 0 0 76 51 0 0 35 55 1 $506 0 0 0 0 0 19 0 2 0 0 196 19 3 0 98 72 0 0 38 58 1 $629 0 3 0 0 0 21 0 2 0 0 259 23 16 0 174 80 0 0 49 0 2 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $265 5 26 26 8 3 5 0 0 0 25 0 3 $300 7 27 28 10 3 5 0 0 0 27 0 5 $289 6 28 16 9 3 4 0 0 0 28 0 6 $443 7 44 23 18 4 6 0 0 0 34 0 7 $487 17 51 21 15 4 5 0 0 0 38 0 0 $500 13 65 18 14 2 18 0 0 0 46 0 0 $536 10 77 0 28 2 26 0 0 0 33 0 0 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 29 Appendix B—Market Share Estimates Table B-17 (Continued) Total Eurcqjean Linear Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* others 1981 1962 12fil 1984 1985 19B6 1987 40 46 0 12 9 52 3 0 0 2 $9 0 2 2 0 3 0 2 0 44 59 0 12 10 57 3 0 0 3 $9 0 3 2 0 4 0 0 0 46 59 0 11 10 56 4 0 0 3 $15 0 3 2 - 1 8 0 1 0 61 100 0 15 12 95 6 0 0 11 $19 0 4 3 1 0 3 0 65 104 0 13 17 110 5 0 0 22 $17 0 4 3 0 8 0 2 0 75 91 0 11 16 104 3 0 0 24 $20 0 4 4 0 7 0 5 0 86 120 0 0 17 95 0 0 0 42 $50 0 5 5 0 23 0 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a *This table is to be read in conjunction with footnotes given at the end of this section. Source: 30 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-18 Total European Discrete Market Share Estimates Opinions of U.S. Dollars) 1991 1982 1983 1994 3.985 1986 1987 al $995 1,011 $866 $963 $954 1,153 1,384 European Companies XSEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron S6S Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $571 4 0 22 0 0 9 0 0 9 0 176 0 0 22 39 92 0 17 74 85 22 $579 5 0 22 0 0 10 0 0 10 0 167 0 0 24 35 118 0 17 75 75 21 $518 4 0 18 0 0 12 0 0 10 0 164 0 0 25 34 96 4 14 47 78 12 $560 5 0 22 0 0 15 0 0 11 0 179 0 0 27 43 85 2 16 54 85 16 $575 5 0 24 0 0 15 0 0 11 0 189 0 0 30 48 85 1 12 53 91 11 $711 7 0 26 0 0 14 0 0 15 0 231 0 0 43 50 138 0 14. 66 95 12 $839 63 0 0 0 0 16 0 0 16 0 290 0 0 49 140 178 0 16 65 0 6 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $407 0 0 20 22 17 0 8 0 25 72 0 0 $412 0 0 20 23 17 0 9 0 26 75 0 0 $325 0 0 10 19 13 0 6 0 24 65 0 0 $375 0 0 10 13 13 0 7 0 30 84 0 0 $346 0 0 7 9 12 0 5 0 31 90 0 0 $395 0 0 7 6 15 0 6 0 37 99 0 0 $478 0 0 0 23 16 0 7 0 53 111 0 0 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 31 Appendix B—Market Share Estimates Table B-18 (Continued) Total European Discrete Market Share Estimates Opinions of U.S. Dollars) U . S . Companies ( C o n t i n u e d ) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI T e c h n o l o g y * Zilog Others J a p a n e s e Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others 1981 1982 1331 19B4 1985 100 10 12 29 9 51 106 8 12 29 9 39 97 6 9 13 8 29 117 3 10 14 11 29 121 2 10 13 7 23 141 2 12 15 11 25 7 7 5 6 4 4 2 0 0 25 $17 1 4 3 0 3 0 2 4 0 0 32 $20 1 4 3 1 5 0 2 4 0 0 21 $23 1 4 3 1 5 0 6 3 0 0 28 $28 4 0 8 5 0 0 12 $33 0 6 4 1 4 0 13 5 0 0 15 $47 0 6 2 2 17 0 19 0 0 26 $67 0 8 15 2 5 0 33 1 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 4 1 ISM IMl 170 10 19 0 13 28 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 32 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-19 European Transistor Market Share Estimates (Millions of U.S. Dollars) 1981 1982 1983 1984 1985 1986 1987 $463 $468 $408 $450 $463 $540 $655 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $262 0 0 7 0 0 4 0 0 2 0 103 0 0 0 39 40 0 0 24 32 11 $261 0 0 6 0 0 5 0 0 2 0 100 0 0 0 35 55 0 0 26 23 9 $238 0 0 6 0 0 6 0 0 2 0 99 0 0 0 34 43 0 0 17 25 6 $260 0 0 7 0 0 8 0 0 2 0 107 0 0 0 43 40 0 0 19 27 7 $276 0 0 8 0 0 8 0 0 2 0 115 0 0 0 48 41 0 0 18 29 7 $303 0 0 0 0 0 5 0 0 3 0 131 0 0 0 50 58 0 0 20 29 7 $357 1 0 0 0 0 6 0 0 4 0 175 0 0 0 65 88 0 0 16 0 2 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $190 0 0 10 8 0 0 5 0 4 13 0 0 $194 0 0 11 8 0 0 5 0 4 15 0 0 $154 0 0 5 7 0 0 3 0 5 15 0 0 $173 0 0 5 4 0 0 4 0 7 19 0 0 $169 0 0 3 3 0 0 3 0 9 22 0 0 $207 0 0 3 4 0 0 3 0 11 33 0 0 $252 0 0 0 15 0 0 2 0 16 39 0 0 Total (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 33 Appendix B—Market Share Estimates Table B-19 (Continued) Eun^^ean Transistor Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconiz Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* others 19B1 19fl2 19B3 1984 1985 1986 1987 56 10 1 23 9 35 5 0 0 11 $11 1 2 2 0 2 0 2 2 62 8 1 23 9 34 5 0 0 9 $13 1 2 2 0 4 0 2 2 58 6 1 9 8 27 4 0 0 6 $16 1 2 2 0 4 0 6 1 70 3 1 10 11 27 5 0 0 7 $17 0 2 2 0 3 0 8 2 79 2 1 9 7 21 4 0 0 6 $18 0 2 2 0 3 0 9 2 92 2 1 11 11 25 4 0 0 7 $30 0 1 1 2 12 0 13 1 112 7 6 0 13 28 2 0 0 12 $46 0 1 14 2 3 0 22 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 34 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume m 0000567 Appendix B—Market Share Estimates Table B-20 Eur(^)ean Diode Market Share Estimates (Millions of U.S. Dollars) 1991 1982 1983 3.984 X985 1986 1987 :al $384 $391 $327 $358 $342 $432 $431 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $210 0 0 9 0 0 5 0 0 2 0 67 0 0 8 0 36 0 0 36 42 5 $213 0 0 10 0 0 5 0 0 3 0 62 0 0 9 0 45 0 0 35 38 6 $181 0 0 7 0 0 6 0 0 3 0 60 0 0 9 0 36 0 0 19 39 2 $186 0 0 8 0 0 7 0 0 3 0 65 0 0 10 0 29 0 0 21 41 2 $186 0 0 8 0 0 7 0 0 3 0 65 0 0 11 0 27 0 0 21 42 2 $265 0 0 10 0 0 9 0 0 4 0 91 0 0 17 0 53 0 0 31 47 3 $252 13 0 0 0 0 10 0 0 4 0 98 0 0 19 31 48 0 0 27 0 2 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $172 0 0 10 6 17 0 3 0 18 50 0 0 $176 0 0 9 8 17 0 4 0 19 53 0 0 $144 0 0 5 6 13 0 3 0 17 50 0 0 $170 0 0 5 3 13 0 3 0 20 65 0 0 $150 0 0 4 2 12 0 2 0 19 68 0 0 $157 0 0 4 0 15 0 3 0 15 66 0 0 $175 0 0 0 1 16 0 5 0 18 72 0 0 (Continued) ESIS Volume in 0000567 © 1988 Dataquest Incorporated September 35 Appendix B—Market Share Estimates Table B-20 (Continued) European Diode Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconix Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* others 1981 1982 1983 1984 1985 36 0 5 0 0 14 2 0 0 11 $2 0 0 0 0 1 0 0 1 0 0 0 0 37 0 5 0 0 3 2 0 0 19 $2 0 0 0 0 1 0 0 10 0 0 0 33 0 4 0 0 0 1 0 0 12 $2 0 0 0 0 39 0 5 0 0 0 1 0 0 0 16 $2 0 0 0 0 1 1 0 0 1 0 1 0 0 0 32 0 5 0 0 0 1 0 0 1 0 0 0 0 0 0 6 $6 0 0 0 0 0 4 0 0 0 0 1986 2M1 38 0 7 43 3 3 1 0 0 0 0 0 0 0 0 0 0 0 8 14 $10 $4 0 0 0 0 1 1 0 0 5 1 0 0 4 2 0 0 0 0 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 36 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume ID 0000567 Appendix B—Market Share Estimates Table B-21 European Thyristor Market Share Estimates (Millions of U.S. Dollars) 1991 19?? 1993 1994 1985 199? 1997 $103 $105 $91 $103 $100 $125 $183 European Companies ASEX Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $73 2 0 3 0 0 0 0 0 3 0 5 0 0 8 0 14 0 15 12 10 1 $77 3 0 3 0 0 0 0 0 3 0 4 0 0 9 0 15 0 16 12 11 1 $70 2 0 3 0 0 0 0 0 3 0 4 0 0 10 0 14 0 13 10 10 1 $75 2 0 4 0 0 0 0 0 3 0 5 0 0 10 0 13 0 14 12 11 1 $77 2 0 5 0 0 0 0 0 3 0 6 0 0 11 0 13 0 12 12 12 1 $102 3 0 14 0 0 0 0 0 8 0 6 0 0 13 0 19 0 14 11 13 1 $152 41 0 0 0 0 0 0 0 8 0 8 0 0 15 20 26 0 16 17 0 1 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $29 0 0 0 6 0 0 0 0 3 0 0 0 $27 0 0 0 5 0 0 0 0 3 0 0 0 $20 0 0 0 4 0 0 0 0 2 0 0 0 $25 0 0 0 4 0 0 0 0 3 0 0 0 $20 0 0 0 3 0 0 0 0 3 0 0 0 $19 0 0 0 0 0 0 0 0 6 0 0 0 $28 0 0 0 1 0 0 0 0 10 0 0 0 Total (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 37 Appendix B—Market Share Estimates Table B-21 (Continued) Eurc4>ean Thyristor Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconiz Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba ROW Companies Others Goldstar* Samsung* others 1981 1982 1983 1984 1985 ^99^ IMl 6 0 6 6 0 1 0 0 0 1 $1 0 1 0 0 0 0 0 0 0 0 0 5 0 6 6 0 1 0 0 0 1 $1 0 1 0 0 0 0 0 0 0 0 0 4 0 4 4 0 5 0 4 4 0 5 0 4 4 0 6 0 4 3 0 7 0 10 0 0 0 0 0 0 0 $3 0 3 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 0 0 4 $1 0 1 $3 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 $3 0 2 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 $4 0 2 0 0 0 0 2 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 38 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume III 0000567 Appendix B—Market Share Estimates Table B-22 Eun^>ean Other Discrete Market Share Estimates (Millions of U.S. Dollars) 1S31 m2 1983 1984 1995 1986 1997 :al $45 $47 $40 $52 $49 $56 $115 European Companies A.SEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $26 2 0 3 0 0 0 0 0 2 0 1 0 0 6 0 2 0 2 2 1 5 $28 2 0 3 0 0 0 0 0 2 0 1 0 0 6 0 3 0 1 2 3 5 $29 2 0 2 0 0 0 0 0 2 0 1 0 0 6 0 3 4 1 1 4 3 $39 3 0 3 0 0 0 0 0 3 0 2 0 0 7 0 3 2 2 2 6 6 $36 3 0 3 0 0 0 0 0 3 0 3 0 0 8 0 4 1 0 2 8 1 $41 4 0 2 0 0 0 0 0 0 0 3 0 0 13 0 8 0 0 4 6 1 $78 8 0 0 0 0 0 0 0 0 0 9 0 0 15 24 16 0 0 5 0 1 U.S. Companies AMD* Analog Devices Fairchild* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $16 0 0 0 2 0 0 0 0 0 9 0 0 $15 0 0 0 2 0 0 0 0 0 7 0 0 $7 0 0 0 2 0 0 0 0 0 0 0 0 $7 0 0 0 2 0 0 0 0 0 0 0 0 $7 0 0 0 1 0 0 0 0 0 0 0 0 $12 0 0 0 2 0 0 0 0 5 0 0 0 $23 0 0 0 6 0 0 0 0 9 0 0 0 (Continued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 39 Appendix B—Market Share Estimates Table B-22 Eim^>ean Other Discrete Market Share Estimates (Millions of U.S. Dollars) U.S. Companies (Continued) Motorola National Semiconductor* Powerex* RCA* Siliconiz Texas Instruments TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba others ROW Companies Goldstar* Samsung* others 1981 1982 1983 1984 1985 1986 1997 2 0 0 0 0 1 0 0 0 2 $3 0 1 1 0 0 0 0 1 2 0 0 0 0 1 0 0 0 3 $4 0 1 1 1 0 0 0 1 2 0 0 0 0 1 0 0 0 2 $4 0 1 1 1 0 0 0 1 3 0 0 0 0 1 0 0 0 1 $6 0 2 2 1 0 0 0 1 5 0 0 0 0 1 0 0 0 0 $6 0 2 2 1 0 0 0 1 5 0 0 0 0 0 0 0 0 0 $3 0 3 0 0 0 0 0 0 8 0 0 0 0 0 0 0 0 0 $14 0 4 0 0 1 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 40 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume ID 0000567 Appendix B—Market Share Estimates Table B-23 Eurc^}ean Optoelectronic Market Share Estimates (Millions of U.S. Dollars) 1981 1992 1993 1984 1985 I9?e 1997 $154 $168 $181 $208 $210 $291 $278 European Companies ASEA Brown Boveri* Austria Mikro Systeme* Brown Boveri* ES2* Eurosil Ferranti Inmos Matra-Harris MEDL Mietec* Philips* Plessey Rifa Semikron SGS Thomson* Siemens* STC (Stantel)* TAG Telefunken Electronic* Thomson* Others $65 1 0 0 0 0 0 0 0 0 0 17 1 0 0 0 25 0 0 16 0 5 $77 1 0 0 0 0 0 0 0 0 0 17 1 0 0 0 31 0 0 20 0 7 $89 3 0 0 0 0 0 0 0 0 0 17 1 0 0 0 34 0 0 27 0 7 $102 4 0 0 0 0 0 0 0 0 0 16 6 0 0 0 35 0 0 33 0 8 $119 5 0 0 0 0 0 0 0 0 0 23 8 0 0 0 40 0 0 34 2 7 $165 6 0 0 0 0 0 0 0 0 0 32 13 2 0 1 46 0 0 49 4 12 $178 5 0 0 0 0 0 0 0 0 0 22 15 2 0 0 53 0 0 66 0 15 U.S. Companies AMD* Analog Devices FairChiId* GE Solid State* General Instrument Harris Hewlett-Packard Intel International Rectifier ITT* LSI Logic* Monolithic Memories* $86 0 0 6 3 8 0 23 0 0 1 0 0 $87 0 0 5 3 9 0 23 0 0 0 0 0 $85 0 0 7 3 8 0 25 0 0 0 0 0 $97 0 0 3 10 9 0 34 0 0 0 0 0 $78 0 0 3 6 9 0 34 0 0 0 0 0 $101 0 0 0 7 10 0 40 0 0 0 0 0 $72 0 0 0 7 11 0 10 0 0 0 0 0 al (Cont:Lnued) ESIS Volume HI 0000567 © 1988 Dataquest Incorporated September 41 Appendix B—Market Share Estimates Table B-23 (Continued) Eurc^>ean Optoelectronic Market Share Estimates (Millions of U.S. Dollars) 1981 U.S. Companies (Continued) Motorola National Semiconductor* Powerez* RCA* Siliconix Texas Instriunents TRW VLSI Technology* Zilog Others Japanese Companies Fujitsu Hitachi Matsushita Mitsubishi NEC Oki Toshiba Others ROW Companies Goldstar* Samsung* Others ISM 1983 1984 1985 1986 1987 3 2 0 1 0 24 4 0 0 11 $3 0 1 1 0 0 0 1 0 4 3 0 1 0 23 5 0 0 11 $4 0 1 1 0 1 0 1 0 4 2 0 1 0 20 4 0 0 11 $7 0 2 2 0 1 0 2 0 3 1 0 1 0 18 5 0 0 13 $9 0 2 2 0 1 0 3 1 3 1 0 3 0 11 8 0 0 0 $13 0 2 2 1 1 0 6 1 5 2 0 6 0 15 8 0 0 8 $25 0 3 2 3 1 0 11 5 6 0 0 0 0 15 9 0 0 14 $28 0 3 3 3 1 0 13 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *This table is to be read in conjunction with footnotes given at the end of this section. Source: 42 © 1988 Dataquest Incorporated September Dataquest September 1988 0588-07 ESIS Volume III 0000567 Appendix B—Market Share Estimates FOOTNOTES 1. ASEA Brown Boveri revenue includes Brown Boveri revenue from 1987 onward 2. Austria Mikro Systems revenue up to 1986 included in U.S. Others 3. Brown Boveri revenue included in ASEA Brown Boveri revenue from 1987 onward 4. European Silicon Structures Others 5. Mietec revenue up to 1986 included in European Others 6. Philips revenue includes Signetics Corporation revenue 7. SGS Thomson revenue includes Thomson revenue from 1987 onward 8. Siemens revenue includes Litroniz revenue from 1983 onward 9. STC revenue included in ITT revenue from 1977 through 1982 revenue up to 1986 included in European 10. Telefunken Electronic formerly known as AEG-Telefunken 11. Thomson revenue included in SGS Thomson revenue from 1987 onward. Also, Thomson revenue includes revenue from Thomson-CSF, Thomson-EFCIS, and Eurotechnigue groups onward, and includes Mostek revenue from 1986 onward 12. AMD revenue includes Monolithic Memories revenue from 1987 onward 13. Fairchild revenue included in National Semiconductor revenue from 1987 onward 14. GE Solid State revenue includes RCA revenue from 1987 onward 15. ITT revenue includes STC revenue from 1977 through 1982 16. LSI Logic revenue up to 1986 included in U.S. Others 17. Monolithic Memories revenue included in AMD revenue from 1987 onward 18. National onward 19. Powerez revenue includes Westinghouse revenue from 1986 onward Semiconductor revenue includes Fairchild revenue from 1987 (Continued) ESIS Volume III 0000567 © 1988 Dataquest Incorporated September 43 Appendix B—Market Share Estimates FOOTNOTES (Continued) 20. RCA revenue included in GE Solid State revenue from 1987 onward 21. VLSI Technology revenue up to 1986 included in U.S. Others 22. Goldstar revenue up to 1986 included in Total Rest of World 23. Samsung revenue up to 1986 included in Total Rest of World 44 © 1988 Dataquest Incorporated September ESIS Volume in 0000567 Dataquest LLuropean Semiconductor Market Share Estimates Final 1989 » Final 1989 European Semiconductor Market Share Estimates European Components Group ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June Final 1989 European Semiconductor Marliet Siiare Estimates INTRODUCTION This booklet contains final estimates of semiconductor market shares in the European market for calendar year 1989. It is intended as reference material, with more detailed analysis to follow in the form of Research Newsletters. SUMMARY Figure 1 shows the European semiconductor market share by vendor base from 1978 to 1989. The North American vendors' share of the semiconductor market in Europe has been declining, while the Japanese vendors' share is rising year on year. The European vendors maintained a steady market share in their own home territory until 1987, but they too are beginning to lose their grip. This is in part due to the fact that, with the exception of Siemens, the European vendors (Philips, SGS-Thomson, plus the next sixteen largest) have no significant DRAM revenue. Since 1986 we have also seen Korean, and now Taiwanese, companies beginning to make an impact on the competitive scene in Europe. Figure 2 shows the worldwide semiconductor market share by vendor base for the same period. It was a watershed year in 1989 in the European semiconductor market. Philips, which has held number 1 position over the past decade, was almost toppled by Siemens. Contrary to popular belief, Siemens' growth did not come from DRAMs alone; high growth also occurred in its MOS logic, analog and discrete sales. Siemens rose from position 5 to position 2 and hence displaced SGS-Thomson, Motorola, and Texas Instruments into third, fourth and fifth places respectively. Another fundamental change was the brand new entry in the top 10 of Hitachi. Yet again the contributory factors behind this growth are DRAMs in part, but also the fact that the Japanese have been diversifying away from memory products. NEC managed to regain its position over Toshiba in Europe, this time due to declining prices of DRAMs which affected Toshiba more than NEC. In integrated circuits, the most spectacular result is that Siemens in 1989 moved up seven positions to become Europe's number 1 integrated circuit vendor, displacing Philips into second position. Texas Instruments was the third largest IC supplier, followed by SGS-Thomson. The rest of the vendor positioning remained the same, all falling by one position due to displacement by Siemens. The exceptions were Toshiba and AMD, which held their ninth and tenth positions in the IC rankings. With an average market growth of 17 percent the only other rising star was SGS-Thomson with 18.4 percent growth; this, however, was mainly due to its acquisition of Inmos. In bipolar technology both AMD and National Semiconductor moved their position up by one, although Texas Instruments is still the clear leader. In MOS technology, Intel remained in the number 1 slot with its leadership in MOS microprocessors. In MOS memory, Siemens became a clear leader, displacing TI into second position, and Samsung became the fifth largest vendor. In analog ICs, Philips, SGS-Thomson and National Semiconductor remained as the three leading suppliers, followed by Siemens. In discrete there was no change in the top five vendors, with Philips holding the number 1 position followed by Motorola, SGS-Thomson, Siemens and ITT. International Rectifier moved up two positions to number 6. In optoelectronics Hewlett-Packard took over the number 1 slot from Telefunken Electronic, which fell two places to number 3; Siemens remained at number 2. ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates TABLE OF CONTENTS Figure European Semiconductor Market Share by Vendor Base Figure Worldwide Semiconductor Market Share by Vendor Base European Companies Worldwide Semiconductor Market Share Rankings Table 1 European Semiconductor Market Share Rankings Table 2 European Integrated Circuit Market Share Rankings Table 3 European Bipolar Digital IC Market Share Rankings Table 4 European Bipolar TTL Market Share Rankings Table 5 European Bipolar ECL Market Share Rankings Table 6 European Bipolar Memory Market Share Rankings 7 Table European Bipolar Logic Circuit Market Share Rankings 8 Table European Bipolar ASIC Market Share Rankings Table 9 European Bipolar Standard Logic Market Share Rankings Table 10 European Bipolar Other Logic Market Share Rankings Table 11 European Digital MOS IC Market Share Rankings Table 12 European NMOS IC Market Share Rankings Table 13 European CMOS IC Market Share Rankings Table 14 European BiCMOS IC Market Share Rankings Table 15 European Other MOS IC Market Share Rankings Table 16 European MOS Memory Market Share Rankings Table 17 Eiuropean MOS Microcomponent Market Share Rankings Table 18 European MOS Logic Market Share Rankings Table 19 European MOS ASIC Market Share Rankings Table 20 European MOS Standard Logic Market Share Rankings Table 21 European Other MOS Logic Market Share Rankings Table 22 European Total Analog Market Share Rankings Table 23 European Monolithic Analog Market Share Rankings Table 24 European Hybrid Analog Market Share Rankings Table 25 European Total Discrete Market Share Rankings Table 26 European Transistor Market Share Rankings Table 27 European Diode Market Share Rankings Table 28 European Thyristor Market Share Rankings Table 29 European Other Discrete Market Share Rankings Table 30 European Optoelectronic Market Share Rimkings Table 31 to the Tables Footnotes Page 4 4 5 6 8 10 11 12 13 14 15 16 17 18 20 21 23 24 25 26 27 29 30 31 32 34 36 37 39 40 41 42 43 44 Notes to theTables Column Column Column Colimin Column Column Column Column Column Column 1 2 3 4 5 6 7 8 9 10 shows market share ranking position in 1988 shows market share ranking position in 1989 shows the change in ranked position between 1988 and 1989 shows ranked company's name shows company's 1988 revenue shows company's 1989 revenue shows annual growth in revenue in 1989 from 1988 shows cumulative market share revenue in 1989 shows percentage market share of TAM in 1989 shows cumulative percentage market share of TAM in 1989 Each of the tables also gives a summary showing the sum of all revenues split by vendor regional base. This gives a final estimate for the TAM in each featured product category. TAM = Toal Available Market ESIS Volume 0006080 ©1990 Dataquest Europe Limited June Final 1989 European Semiconductor Market Share Estimates Figure 1 European Semiconductor Market Share by Vendor Base Percent of Market 60 50 40 _.. ., 30 20 " ,,„,- — - • . • • 10 0 European North American Japanese Asia/PadlkVROW Total Market $M Sum of Percent 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 45.5 52 ZS 0 2.339 100 43.3 53.7 3 0 3,018 100 40.4 55.7 3.9 0 3,686 100 42.2 52.5 5.3 0 3,041 100 40.9 52.3 6.8 0 3,167 100 40.3 49.8 9.9 0 3,370 100 35.8 51.5 12.7 0 4,805 100 38.3 50.4 11.3 0 4.720 100 42 45.9 12 0.1 5.532 100 42.7 43.2 13.3 0.8 6,355 100 37.6 43.2 17.3 1.9 8,491 100 36.5 41.3 19.8 2.4 9,755 100 European North American Japanese Asla/PadHc/ROW Source: Dataquest (June 1990) Figure 2 Worldwide Semiconductor Market Share by Vendor Base Percent of Market 30 • 1978 European North American Japanese Aaia/PadTK^ROW Total Maricat$li4 16.1 55.3 2a4 0.2 8.963 1979 1980 19S1 1962 1983 1984 1985 1986 1987 1988 1989 16.1 15.2 12.9 12.6 11.3 11.1 11.7 11.2 9.7 9.5 11 57.9 57.2 51.4 51.4 49 48.4 45.4 41.5 36.5 34.9 39 25.8 27.4 35.4 35.3 38.8 39.7 41.7 45.9 51 52.1 48.2 0.2 0.2 0.3 0.7 0.9 0.8 1.2 1.4 3.5 1.8 11,106 14.098 14.801 15,231 19,537 28,825 24,341 30,834 38,251 50,859 57,213 za European North American Japanese Asla/PadRc/ROW Source: Dataquest (June 1990) ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 1 1989 European Companies Worldwide Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988 Rank 1989 Rank Change in Rank 10 12 20 31 32 62 67 72 79 71 81 143 117 53 92 97 100 101 107 55 10 13 16 30 34 59 64 68 71 73 77 79 82 88 98 100 109 115 116 0 0 (1) 4 1 (2) 3 3 4 8 (2) 4 64 35 (35) (6) (3) (9) (14) (9) Ranked Companies 1988 Sales ($M) 1989 Sales ($M) 1988-89 Annual Growth (Percent) 1989 Market Share (Percent) Philips SGS-Thomson Siemens Telefiinken Electronic Plessey Semiconductors Semikron Matra MHS MEDL Austria Mikro Systeme Ericsson Components Mietec ABB-EXYS TMS ABB-HAFO Eurosil Electronic Fagor Electrotecnica TAG STC Components European Silicon Structures Inmos 1,738 1,087 784 289 284 91 71 51 44 52 42 0 0 113 29 27 23 22 13 110 1,716 1,301 1,194 299 240 95 85 60 56 54 52 50 45 37 30 29 22 19 18 0 (1) 20 52 3 (15) 4 20 18 27 4 24 NA NA (67) 3 7 (4) (14) 38 (100) 3.0 2.3 2.1 0.5 0.4 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June Final 1989 European Semiconductor Market Share Estimates Table 2 1989 European Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988 1989 ilank Rank 1 5 2 4 3 6 8 7 9 12 10 11 13 16 20 17 41 14 25 19 27 22 26 21 23 64 28 24 36 30 39 32 34 31 NA 29 NA 35 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Change in Rank 0 3 (1) 0 (2) 0 1 (1) 0 2 (1) (1) 0 2 5 1 24 (4) 6 (1) 6 0 3 (3) (2) 38 1 (4) 7 0 8 0 1 (3) (7) (3) 1 Ranked Companies Philips Siemens SGS-Thomson* Motorola Texas Instruments Intel NEC Toshiba National Semiconductor Hitachi AMD nr Telefiinken Electronic Samsimg Mitsubishi Fujitsu Harris* Plessey Semiconductors* Hewlett-Packard Analog Devices Matsushita (Panasonic) LSI Logic Matra MHS* International Rectifier Oki Electric Micron Technology* Austria Mikro Systeme Semikron VLSI Technology Mietec NMB* Maiconi Electronic Devices Ericsson Components Siliconix ABB-DCYS* Burr-Brown TMS* IDT Powerex 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 1,018 569 652 616 647 485 387 390 386 246 277 246 217 140 87 135 28 198 53 96 46 60 52 66 58 2 44 56 36 42 30 41 40 41 43 39 28 964 937 751 658 648 530 429 423 381 291 287 250 215 201 201 198 145 138 96 95 95 73 73 71 69 60 56 55 55 52 51 45 42 41 40 39 38 36 33 (5.3) 64.7 15.2 6.8 0.2 9.3 10.9 8.5 (1.3) 18.3 3.6 1.6 (0.9) 43.6 131.0 46.7 417.9 (30.3) 81.1 (1.0) 106.5 21.7 40.4 7.6 19.0 2,900.0 27.3 (1.8) 52.8 23.8 70.0 9.8 5.0 0.0 (9.3) (7.7) 17.9 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 964 1,901 2,652 3,310 3,958 4,488 4,917 5,340 5,721 6,012 6,299 6,549 6,764 6,965 7,166 7364 7,509 7,647 7,743 7,838 7,933 8,006 8,079 8,150 8,219 8,279 8,335 8390 8,445 8,497 8,548 8393 8,635 8,676 8,716 8,755 8,793 8,829 8,862 9.9 9.6 7.7 6.7 6.6 5.4 4.4 4.3 3.9 3.0 2.9 2.6 2.2 2.1 2.1 2.0 1.5 1.4 1.0 1.0 1.0 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.3 9.9 19.5 27.2 33.9 40.6 46.0 50.4 54.7 58.6 61.6 64.6 67.1 69.3 71.4 73.5 75.5 77.0 78.4 79.4 80.3 81.3 82.1 82.8 83.5 84.3 84.9 85.4 86.0 86.6 87.1 87.6 88.1 88.5 88.9 89.3 89.7 90.1 90.5 90.8 (Continued) ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 2 (Continued) 1989 European Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 50 37 61 18 44 38 59 52 43 55 42 54 47 51 60 45 49 48 53 57 58 63 46 15 33 56 62 Change in Rank 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 NA NA NA NA 10 (4) 19 (25) 0 (7) 13 5 (5) 6 (8) 3 (5) (2) 6 (10) (7) (9) (5) (2) (2) 2 (16) Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) General Instrument Sprague* Sony* ABB-HAFO* Cypress* Precision Monolithics Sharp* Western Digital Fagor Electrotecnica Rohm Electronics* STC Components Unitrode* TAG AT&T* European Silicon Structures Zilog Rockwell* Sanyo* Raytheon* Mitel Semiconductor* Eurosil Electronic Goldstar Seiko Epson GE Solid State* Inmos* Honeywell Solid State* TRW* 18 32 9 100 21 30 12 17 21 16 21 16 18 18 12 19 18 18 17 14 13 4 19 141 40 15 8 33 32 31 30 30 29 27 23 22 22 19 19 17 17 17 16 16 15 14 14 14 9 8 83.3 0.0 244.4 (70.0) 42.9 (3.3) 125.0 35.3 4.8 37.5 (9.5) 18.8 (5.6) (5.6) 41.7 (15.8) (11.1) (16.7) (17.6) 0.0 7.7 125.0 (57.9) (100.0) (100.0) (100.0) (100.0) 8,895 8,927 8,958 8,988 9,018 9,047 9,074 9,097 9,119 9,141 9,160 9,179 9,196 9,213 9,230 9,246 9,262 9,277 9,291 9,305 9,319 9,328 9,336 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 91.2 91.5 91.8 92.1 92.4 92.7 93.0 93.3 93.5 93.7 93.9 94.1 94.3 94.4 94.6 94.8 94.9 95.1 95.2 95.4 95.5 95.6 95.7 European Others North American Others Japanese Others Rest of World Others 42 131 13 21 37 291 64 27 (11.9) 122.1 392.3 28.6 9,373 9,664 9,728 9,755 0.4 3.0 0.7 0.3 96.1 99.1 99.7 100.0 8,491 3,196 3,664 1,466 165 9,755 3,562 4,032 1,924 237 14.9 11.5 10.0 31.2 43.6 Total Total Total Total Total All Companies European North American Japanese Rest of World • See Footnotes (page 44) NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 0006080 1989 1989 1989 Market Cum. Cum. Share Sum Sum ($M) (Percent) (Percent) ©1990 Dataquest Europe Limited June 100.0 36.5 41.3 19.7 2.4 Final 1989 European Semiconductor Market Share Estimates Table 3 1989 European Integrated Circuit Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 8 1 2 3 4 5 6 7 9 10 11 14 19 15 13 12 34 17 18 20 22 30 21 56 23 29 25 33 27 24 28 37 52 NA 32 36 31 43 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Change in Rank 7 (1) (1) (1) (1) (1) (1) (1) 0 0 0 2 6 1 (2) (4) 17 (1) (1) 0 1 8 (2) 32 (2) 3 (2) 5 (2) (6) (3) 5 19 (3) 0 (6) 5 12 Ranked Companies Siemens Philips Texas Instruments SGS-Thomson Intel Motorola NEC National Semiconductor Toshiba AMD Hitachi Samsung Mitsubishi Fujitsu m Plessey Semiconductors Harris Analog Devices Telefunken Electronic LSI Logic Matra MHS Matsushita (Panasonic) Old Electric Micron Technology Austria Mikro Systeme VLSI Technology Mietec NMB Ericsson Components Burr-Brown IDT Cypress Sony TMS Precision Monolithics Marccmi Electronic Devices Sprague Westem Digital Sharp 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 373 683 602 485 485 415 381 381 321 277 233 139 79 135 143 160 28 96 86 60 52 31 57 2 44 36 42 30 40 43 39 21 9 30 23 30 17 11 707 649 610 574 530 460 410 376 358 287 278 198 181 170 145 138 117 95 82 73 73 72 69 60 56 55 52 51 42 39 36 30 30 30 29 28 25 23 23 89.5 (5.0) 1.3 18.4 9.3 10.8 7.6 (1.3) 11.5 3.6 19.3 42.4 129.1 25.9 1.4 (13.8) 317.9 (1.0) (4.7) 21.7 40.4 132.3 21.1 2,900.0 27.3 52.8 23.8 70.0 5.0 (9.3) (7.7) 42.9 233.3 (3.3) 21.7 (16.7) 35.3 109.1 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 707 1,356 1,966 2,540 3,070 3,530 3,940 4,316 4,674 4,961 5,239 5,437 5,618 5,788 5,933 6,071 6,188 6,283 6,365 6,438 6,511 6,583 6,652 6,712 6,768 6,823 6,875 6,926 6,968 7,007 7,043 7,073 7,103 7,133 7,162 7,190 7,215 7,238 7.261 9.1 8.3 7.8 7.4 6.8 5.9 5.3 4.8 4.6 3.7 3.6 2.5 2.3 2.2 1.9 1.8 1.5 1.2 1.1 0.9 0.9 0.9 0.9 0.8 0.7 0.7 0.7 0.7 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 9.1 17.4 25.2 32.6 39.4 45.3 50.6 55.4 60.0 63.7 67.2 69.8 72.1 74.3 76.1 77.9 79.4 80.6 81.7 82.6 83.5 84.5 85.3 86.1 86.8 87.5 88.2 88.9 89.4 89.9 90.4 90.7 91.1 91.5 91.9 92.3 92.6 92.9 93.2 (Cont inued) ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 m Final 1989 European Semiconductor Marltet Share Estimates Table 3 (Continued) 1989 European Integrated Circuit Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 35 38 50 39 42 41 44 48 49 45 46 55 40 53 54 NA 16 26 47 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 NA NA NA Change in Rank (5) (3) 8 (4) (2) (4) (2) 1 1 (4) (4) 4 (12) 0 0 Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) 106 40 15 European Others North American Others Japanese Others Rest of World Others 28 116 6 17 23 237 47 25 (17.9) 104.3 683.3 47.1 6,669 2,126 3,050 1,333 160 7,794 2,523 3,325 1,714 232 16.9 18.7 9.0 28.6 45.0 Total Total Total Total Total All Companies European North American Japanese Rest of World 25 20 12 19 18 18 17 14 13 16 15 4 19 6 6 21 17 17 16 16 16 14 14 14 13 9 9 8 8 8 1 (16.0) (15.0) 41.7 (15.8) (11.1) (11.1) (17.6) 0.0 7.7 (18.8) (40.0) 125.0 (57.9) 33.3 33.3 ABB-HAFO STC Components Eiuopean Silicon Structures Zilog Rockwell SiUconix AT&T Mitel Semiconductor Eurosil Electronic Raytheon Sanyo Goldstar Seiko Epson Unitrode Rohm Electronics International Rectifier GE Solid State Inmos Honeywell Solid State 0006080 7,282 7,299 7,316 7,332 7,348 7,364 7,378 7,392 7,406 7,419 7,428 7.437 7,445 7,453 7,461 7,462 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.0 93.4 93.6 93.9 94.1 94.3 94.5 94.7 94.8 95.0 95.2 95.3 95.4 95.5 95.6 95.7 95.7 7,485 7,722 7,769 7,794 0.3 3.0 0.6 0.3 96.0 99.1 99.7 100.0 (100.0) (100.0) (100.0) NA = Not ,\pidicable Souice: Dataquest (June 1990) ESIS Volume 3 1989 1989 1989 Cum. Cum. Market Sum Share Sum ($M) (Percent) (Percent) ©1990 Dataquest Europe Limited June 100.0 32.4 42.7 22.0 3.0 Final 1989 European Semiconductor Market Share Estimates Table 4 1989 European Bipolar Digital IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 3 4 2 5 7 6 14 9 15 12 NA 8 10 13 17 19 NA 18 11 16 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NA NA 0 1 1 (2) 0 1 (1) 6 0 5 1 (5) (4) (2) 1 2 (1) Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) Texas Instruments AMD National Semiconductor Philips Plessey Semiconductors Siemens Motorola NEC Fujitsu Hitachi Raytheon Mitsubishi Telefunken Electronic SGS-Thomson STC Components Toshiba Goldstar AT&T Matsushita (Panasonic) Intel Honeywell Solid State 189 112 110 117 60 28 55 6 12 6 9 European Others North American Others 8 1 4 4 (50.0) 300.0 772 250 491 30 1 640 200 379 59 2 (17.1) (20.0) (22.8) 96.7 100.0 Total Total Total Total Total All Companies European North American Japanese Rest of Worid 19 11 7 3 1 3 10 5 142 97 79 66 66 51 48 28 13 8 7 7 5 4 4 2 2 2 1 (24.9) (13.4) (28.2) (43.6) 10.0 82.1 (12.7) 366.7 8.3 33.3 (22.2) (73.7) (63.6) (42.9) (33.3) 100.0 (66.7) (100.0) (100.0) 1989 1989 1989 Cum. Market Cum. Sum Sum Share ($M) (Percent) (Percent) 142 239 318 384 450 501 549 577 590 598 605 612 617 621 625 627 629 631 632 22.2 15.2 12.3 10.3 10.3 8.0 7.5 4.4 2.0 1.3 1.1 1.1 0.8 0.6 0.6 0.3 0.3 0.3 0.2 22.2 37.3 49.7 60.0 70.3 78.3 85.8 90.2 92.2 93.4 94.5 95.6 96.4 97.0 97.7 98.0 98.3 98.6 98.8 636 640 0.6 0.6 99.4 100.0 100.0 31.3 59.2 9.2 0.3 NA = Not AppUcaUe Soiuce: Datan^st (June 1990) 10 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 5 1989 European Bipolar TTL Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 4 3 10 5 13 14 11 NA 9 12 6 7 16 NA 15 NA 8 Change in Rank 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 NA 0 0 1 (1) 5 (1) 6 6 2 (2) 0 (7) (7) 1 (2) Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 142 85 62 58 47 24 24 14 7 7 6 6 5 4 2 2 1 1 Texas Instruments AMD National Semiconductor Philips Plessey Semiconductors Motorola NEC Siemens Hitachi Mitsubishi Raytheon Fujitsu Telefunken Electronic SGS-Thomson Goldstar AT&T Matsushita (Panasonic) Toshiba Intel 189 111 95 105 7 38 5 4 6 European Others North American Others 5 1 3 1 (40.0) 0.0 624 151 452 20 1 501 131 322 46 2 (19.7) (13.2) (28.8) 130.0 100.0 Total Total Total Total Total All Companies European North American Japanese Rest of World 8 6 19 11 1 3 (24.9) (23.4) (34.7) (44.8) 571.4 (36.8) 380.0 250.0 16.7 (25.0) 0.0 (73.7) (63.6) 100.0 (66.7) 1989 1989 1989 Cum. Cum. Market Sum Share Sum ($M) (Percent) (Percent) 142 227 289 347 394 418 442 456 463 470 476 482 487 491 493 495 496 497 28.3 17.0 12.4 11.6 9.4 4.8 4.8 2.8 1.4 1.4 1.2 1.2 1.0 0.8 0.4 0.4 0.2 0.2 28.3 45.3 57.7 69.3 78.6 83.4 88.2 91.0 92.4 93.8 95.0 96.2 97.2 98.0 98.4 98.8 99.0 99.2 500 501 0.6 0.2 99.8 100.0 (100.0) 10 100.0 26.1 64.3 9.2 0.4 NA = Not Applicable , Source: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 11 Final 1989 European Semiconductor Market Share Estimates Table 6 1989 European Bipolar ECL Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 2 3 1 4 12 5 7 6 11 9 10 NA 8 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 NA 1 1 (2) 0 7 (1) 0 (2) 2 (1) (1) Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) Siemens Motorola Plessey Semiconductors National Semiconductor AMD Philips Fujitsu STC Components NEC Toshiba Raytheon Hitachi Honeywell Solid State 24 17 53 15 1 12 6 7 1 3 1 European Others North American Others 3 1 3 (66.7) 148 99 39 10 139 69 57 13 (6.1) (30.3) 46.2 30.0 Total Total Total Total AU Companies European North American Japanese 37 24 19 17 12 8 7 4 4 1 1 1 5 54.2 41.2 (64.2) 13.3 1,100.0 (33.3) 16.7 (42.9) 300.0 (66.7) 0.0 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 37 61 80 97 109 117 124 128 132 133 134 135 26.6 17.3 13.7 12.2 8.6 5.8 5.0 2.9 2.9 0.7 0.7 0.7 26.6 43.9 57.6 69.8 78.4 84.2 89.2 92.1 95.0 95.7 96.4 97.1 136 139 0.7 2.2 97.8 100.0 (100.0) 100.0 49.6 41.0 9.4 NA = Not Applicable Souice: DaUquest (June 1990) 12 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 7 1989 European Bipolar Memory Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Change Rank Rank in Rank 1 3 2 4 6 8 7 5 9 1 2 3 4 5 6 7 NA NA 0 1 (1) 0 1 2 0 Ranked Companies AMD National Semiconductor Philips Fujitsu NEC Hitachi Raytheon Texas Instruments Motorola European Others Total Total Total Total All Companies European North American Japanese 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 29 10 14 7 3 2 2 5 1 27 15 12 7 7 3 1 1 74 15 47 12 (6.9) 50.0 (14.3) 0.0 133.3 50.0 (50.0) (100.0) (100.0) 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 27 42 54 61 68 71 72 37.5 20.8 16.7 9.7 9.7 4.2 1.4 37.5 58.3 75.0 84.7 94.4 98.6 100.0 (100.0) 72 12 43 17 (2.7) (20.0) (8.5) 41.7 100.0 16.7 59.7 23.6 NA = Not Applicable Source: Dataquest (luce 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 13 Final 1989 European Semiconductor Market Share Estimates Table 8 1989 European Bipolar Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 [lank Rank Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NA NA 0 2 2 (1) (3) 1 (1) 9 1 4 5 3 2 7 6 17 NA 12 14 8 15 9 11 16 19 NA 18 10 13 2 3 (4) 2 (5) (4) 0 2 (1) Ranked Companies 1988-89 1988 1989 Annual Growth Sales Sales ($M) ($M) (Percent) Texas Instruments AMD Plessey Semiconductors National Semiconductor Philips Siemens Motorola NEC Mitsubishi Raytheon Fujitsu Telefunken Electronic Hitachi SGS-Thomson STC Components Toshiba Goldstar AT&T Matsushita (Panasonic) Intel Honeywell Solid State 184 83 60 100 103 28 54 3 European Others North American Others 7 1 4 4 (42.9) 300.0 698 235 444 18 1 568 188 336 42 2 (18.6) (20.0) (24.3) 133.3 100.0 Total Total Total Total Total All Companies European North American Japanese Rest of World 7 5 19 4 11 7 3 1 3 10 5 142 70 66 64 54 51 48 21 7 6 6 5 5 4 4 2 2 2 1 (22.8) (15.7) 10.0 (36.0) (47.6) 82.1 (11.1) 600.0 (14.3) 20.0 (73.7) 25.0 (63.6) (42.9) (33.3) 100.0 (66.7) (100.0) (100.0) 1989 1989 1989 Cum. Market Cum. Sum Sum Share ($M) (Percent) (Percent) 142 212 278 342 396 447 495 516 523 529 535 540 545 549 553 555 557 559 560 25.0 12.3 11.6 11.3 9.5 9.0 8.5 3.7 1.2 1.1 1.1 0.9 0.9 0.7 0.7 0.4 0.4 0.4 0.2 25.0 37.3 48.9 60.2 69.7 78.7 87.1 90.8 92.1 93.1 94.2 95.1 96.0 96.7 97.4 97.7 98.1 98.4 98.6 564 568 0.7 0.7 99.3 100.0 100.0 33.1 59.2 7.4 0.4 NA - Not Applicable Sotnce: Dataquest (June 1990) 14 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 9 1989 European Bipolar ASIC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 2 3 1 NA 10 4 7 5 9 6 12 8 13 NA NA NA 11 14 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NA NA 1 1 (2) 5 (2) 0 (3) 0 (4) 1 (4) 0 Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 54 51 49 20 15 14 12 11 6 5 5 4 2 2 2 1 25.6 82.1 (12.5) Plessey Semiconductors Siemens AMD NEC Motorola Philips Texas Instruments National Semiconductor Raytheon Telefunken Electronic Fujitsu STC Components Toshiba Mitsubishi AT&T Hitachi Honeywell Solid State SGS-Thomson 43 28 56 European Others North American Others 4 3 4 0.0 260 241 126 108 7 260 132 98 30 7.9 4.8 (9.3) 328.6 Total Total Total Total All Companies European North American Japanese 5 24 15 20 7 19 4 7 3 5 1 200.0 (41.7) (20.0) (45.0) (14.3) (73.7) 25.0 (42.9) (33.3) 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 54 105 154 174 189 203 215 226 232 237 242 246 248 250 252 253 20.8 19.6 18.8 7.7 5.8 5.4 4.6 4.2 2.3 1.9 1.9 1.5 0.8 0.8 0.8 0.4 20.8 40.4 59.2 66.9 72.7 78.1 82.7 86.9 89.2 91.2 93.1 94.6 95.4 96.2 96.9 97.3 257 1.2 1.5 100.0 98.8 (100.0) (100.0) 100.0 50.8 37.7 11.5 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 3 0OO6080 ©1990 Dataquest Europe Limited June 15 Final 1989 European Semiconductor Market Share Estimates Table 10 1989 European Bipolar Standard Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 3 4 5 6 8 NA 11 7 9 10 12 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 0 0 0 0 0 0 1 2 (3) (2) (2) (1) Ranked Companies Texas Instruments National Semiconductor Philips Motorola AMD SGS-Thomson Hitachi Mitsubishi Goldstar Plessey Semiconductors NEC Matsushita (Panasonic) Fujitsu European Others Total Total Total Total Total AU Companies European North American Japanese Rest of World 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) 169 76 52 49 17 10 4 1 6 3 3 1 130 53 37 33 11 4 4 4 2 1 1 1 1 3 394 71 311 11 1 (23.1) (30.3) (28.8) (32.7) (35.3) (60.0) 0.0 100.0 (83.3) (66.7) (66.7) 0.0 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 130 183 220 253 264 268 272 276 278 279 280 281 282 46.1 18.8 13.1 11.7 3.9 1.4 1.4 1.4 0.7 0.4 0.4 0.4 0.4 46.1 64.9 78.0 89.7 93.6 95.0 96.5 97.9 98.6 98.9 99.3 99.6 100.0 (100.0) 282 42 227 11 2 (28.4) (40.8) (27.0) 0.0 100.0 100.0 14.9 80.5 3.9 0.7 NA = Not Applicable Souice: Dataquest (Juivi 1990) 16 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 11 1989 European Bipolar Other Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank Change in Rank 1 2 3 4 NA NA 1 2 (2) 2 4 1 NA 3 5 Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 11 10 3 1 0.0 0.0 (88.9) Plessey Semiconductors AMD Philips Mitsubishi Intel National Semiconductor 11 10 27 North American Others 1 1 0.0 63 38 25 26 14 11 1 (58.7) (63.2) (56.0) Total Total Total Total AH Companies European North American Japanese 10 4 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 11 21 24 25 42.3 38.5 11.5 3.8 42.3 80.8 92.3 96.2 26 3.8 100.0 (100.0) (100.0) 100.0 53.8 42.3 3.8 NA = Not Applicable Souice: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 17 Final 1989 European Semiconductor Market Share Estimates Table 12 1989 European Digital MOS IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 ^ank Rank 1 8 2 3 6 4 7 5 9 11 10 15 13 12 14 17 19 42 18 29 49 25 20 21 26 23 24 30 28 46 34 40 NA 27 39 31 35 37 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Change in Rank 0 6 (1) (1) 1 (2) 0 (3) 0 1 (1) 3 0 (2) (1) 1 2 24 (1) 9 28 3 (3) (3) 1 (3) (3) 2 (1) 16 3 8 (7) 4 (5) (2) (1) (3) Ranked Companies Intel Siemens NEC Texas Instruments SGS-Thomson Toshiba Motorola Philips Hitachi Samsung AMD Mitsubishi Fujitsu National Semiconductor ITT LSI Logic Matra MHS Harris Oki Electric Matsushita (Panasonic) Micron Technology VLSI Technology Plessey Semiconductors Mietec NMB Austria Mikro Systeme IDT Cypress Marconi Electronic Devices Sony Western Digital Sharp TMS ABB-HAFO European SUicon Structures ZUog Telefunken Electronic Eurosil Electronic AT&T 1988-89 1988 1989 Annual Growth Sales Sales {$M) ($M) (Percent) 475 243 372 308 264 301 255 285 221 137 148 79 123 131 102 60 52 10 57 22 2 36 51 42 30 40 39 21 23 5 17 11 25 12 19 15 13 15 530 522 378 368 344 334 313 267 264 188 168 153 148 137 118 73 73 70 69 67 60 55 54 52 51 47 36 30 26 26 23 23 23 21 17 16 15 14 12 11.6 114.8 1.6 19.5 30.3 11.0 22.7 (6.3) 19.5 37.2 13.5 93.7 20.3 4.6 15.7 21.7 40.4 600.0 21.1 204.5 2,900.0 52.8 5.9 23.8 70.0 17.5 (7.7) 42.9 13.0 420.0 35.3 109.1 (16.0) 41.7 (15.8) 0.0 7.7 (20.0) 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 530 1,052 1,430 1,798 2,142 2,476 2,789 3,056 3,320 3,508 3,676 3,829 3,977 4,114 4,232 4,305 4,378 4,448 4,517 4,584 4,644 4,699 4,753 4,805 4,856 4,903 4,939 4,969 4,995 5,021 5,044 5,067 5,090 5,111 5,128 5,144 5,159 5,173 5,185 9.7 9.6 6.9 6.7 6.3 6.1 5.7 4.9 4.8 3.4 3.1 2.8 2.7 2.5 2.2 1.3 1.3 1.3 1.3 1.2 1.1 1.0 1.0 1.0 0.9 0.9 0.7 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.2 9.7 19.3 26.2 32.9 39.2 45.4 51.1 56.0 60.8 64.3 67.4 70.2 72.9 75.4 77.5 78.9 80.2 81.5 82.8 84.0 85.1 86.1 87.1 88.0 89.0 89.8 90.5 91.0 91.5 92.0 92.4 92.8 93.3 93.6 94.0 94.2 94.5 94.8 95.0 (Continued) ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Sliare Estimates Table 12 (Continued) 1989 European Digital MOS IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 33 43 47 32 44 45 48 38 16 22 41 Change In Rank 40 41 42 43 44 45 46 47 NA NA NA (7) 2 5 (11) 0 0 2 (9) Ranked Companies 1988-89 Annual 1988 1989 Sales Sales Growth ($M) ($M) (Percent) 1989 1989 1989 Cum. Cum. Market Sum Share Sum ($M) (Percent) (Percent) Rockwell STC Components Sprague Seiko Epson Ericsson Components Analog Devices Goldstar Sanyo GE Solid State Inmos Honeywell Solid State 18 9 3 18 6 6 3 12 73 40 10 9 8 8 7 7 6 6 4 (50.0) (11.1) 166.7 (61.1) 16.7 0.0 100.0 (66.7) (100.0) (100.0) (100.0) 5,194 5,202 5,210 5,217 5,224 5,230 5,236 5,240 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 95.2 95.3 95.5 95.6 95.7 95.8 95.9 96.0 European Others North American Others Japanese Others Rest of Worid Otiiers 18 66 4 17 17 136 40 25 (5.6) 106.1 900.0 47.1 5,257 5,393 5,433 5,458 0.3 2.5 0.7 0.5 96.3 98.8 99.5 100.0 4,364 1,138 1,814 1,255 157 5,458 1,507 2,168 1,564 219 25.1 32.4 19.5 24.6 39.5 Total Total Total Total Total All Companies European North American Japanese Rest of Worid 100.0 27.6 39.7 28.7 4,0 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 19 Final 1989 European Semiconductor Market Share Estimates Table 13 1989 European NMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 3 2 4 10 6 5 15 7 9 11 12 26 13 8 14 NA 16 18 22 21 20 17 19 23 NA 28 NA 24 25 27 29 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27. 28 NA NA NA NA 0 1 (1) 0 5 0 (2) 7 (2) (1) 0 0 13 (1) (7) (2) (2) (1) 2 0 (2) (6) (5) (2) 1 Ranked Companies 1988-89 Annual 1988 1989 Sales Sales Growth ($M) ($M) (Percent) Intel Siemens Texas Instruments SGS-Thomson Hitachi NEC AMD Mitsubishi Philips Toshiba Samsung ITT Micron Technology Fujitsu Motorola National Semiconductor Matsushita (Panasonic) Oki Electric Telefunken Electronic Sharp Austria Mikro Systeme Plessey Semiconductors ZUog Rockwell Mietec TMS STC Components Goldstar Sanyo Matra MHS Inmos Sprague 257 177 194 137 73 124 127 26 117 80 62 47 2 44 108 40 European Others North American Others Japanese Others Rest of World Others 6 27 1 3 Total Total Total Total Total All Companies European North American Japanese Rest of Worid 22 15 7 8 10 15 11 7 1 282 233 223 152 128 122 100 94 88 87 52 52 52 47 39 30 29 26 15 15 11 10 9 9 7 5 2 2 9.7 31.6 14.9 10.9 75.3 (1.6) (21.3) 261.5 (24.8) 8.8 (16.1) 10.6 2,500.0 6.8 (63.9) (25.0) 18.2 0.0 114.3 37.5 0.0 (40.0) (18.2) 0.0 100.0 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 282 515 738 890 1,018 1,140 1,240 1,334 1,422 1,509 1,561 1,613 1,665 1,712 1,751 1,781 1,810 1,836 1,851 1,866 1,877 1,887 1,896 1,905 1,912 1,917 1,919 1,921 14.2 11.7 11.2 7.7 6.5 6.2 5.0 4.7 4.4 4.4 2.6 2.6 2.6 2.4 2.0 1.5 1.5 1.3 0.8 0.8 0.6 0.5 0.5 0.5 0.4 0.3 0.1 0.1 14.2 26.0 37.2 44.9 51.3 57.5 62.5 67.3 71.7 76.1 78.7 81.3 84.0 86.3 88.3 89.8 91.3 92.6 93.3 94.1 94.7 95.2 95.6 96.1 96.4 96.7 96.8 96.9 1,927 1,965 1,983 0.3 1.9 0.9 97.2 99.1 100.0 (100.0) (100.0) (100.0) (100.0) 5 3 2 1 6 38 18 0.0 40.7 1,700.0 (100.0) 1,759 1,983 483 529 834 829 382 566 54 65 12.7 9.5 0.6 48.2 (16.9) 100.0 26.7 42.1 28.5 2.7 NA = Not .Applicable Source: Dataquest (June 1990) 20 ©1990 Dataquest Europe Limited Jime ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 14 1989 European CMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 12 3 (2) (1) (3) 0 (3) (1) 2 (2) (2) (2) 3 0 22 13 0 (3) 2 4 (3) 0 4 (5) (2) 2 (1) 15 2 2 (6) 13 5 1 3 2 6 4 7 11 8 9 10 16 14 37 29 17 15 21 24 18 22 27 19 23 28 26 43 31 32 25 NA 35 34 33 45 NA 30 41 2 0 (2) 9 (8) 2 Ranked Companies Siemens Motorola NEC Intel Toshiba SGS-Thomson Philips Texas Instruments Samsung Hitachi National Semiconductor Fujitsu Matra MHS LSI Logic Harris AMD ITT Mitsubishi VLSI Technology NMB Plessey Semiconductors Oki Electric Matsushita (Panasonic) IDT Austria Mikro Systeme Cypress Marconi Electronic Devices Sony Western Digital Mietec ABB-HAFO TMS European Silicon Structures Eurosil Electronic AT&T Sharp Micron Technology Seiko Epson Ericsson Components 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 65 147 230 218 221 127 168 108 73 99 90 79 49 59 10 21 48 53 36 30 40 35 22 39 32 21 23 5 17 17 25 12 13 15 4 18 6 289 274 256 248 246 184 179 142 136 135 103 98 73 72 70 68 63 59 55 51 44 43 38 36 36 30 26 26 23 22 21 18 17 14 12 8 8 7 7 344.6 86.4 11.3 13.8 11.3 44.9 6.5 31.5 86.3 36.4 14,4 24.1 49.0 22.0 600.0 223.8 31.3 11.3 52.8 70.0 10.0 22.9 72.7 (7.7) 12.5 42.9 13.0 420.0 35.3 29.4 (16.0) 41.7 7.7 (20.0) 100.0 (61.1) 16.7 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 289 563 819 1,067 1,313 1,497 1,676 1,818 1,954 2,089 2,192 2,290 2,363 2,435 2,505 2,573 2,636 2,695 2,750 2,801 2,845 2,888 2,926 2,962 2,998 3,028 3,054 3,080 3,103 3,125 3,146 3,164 3,181 3,195 3,207 3,215 3,223 3,230 3,237 8.5 8.0 7.5 7.3 7.2 5.4 5.2 4.2 4.0 4.0 3.0 2.9 2.1 2.1 2.1 2.0 1.8 1.7 1.6 1.5 1.3 1.3 1.1 1.1 1.1 0.9 0.8 0.8 0.7 0.6 0.6 0.5 0.5 0.4 0.4 0.2 0.2 0.2 0.2 8.5 16.5 24.0 31.3 38.5 43.9 49.1 53.3 57.3 61.2 64.2 67.1 69.3 71.4 73.4 75.4 77.3 79.0 80.6 82.1 83.4 84.6 85.8 86.8 87.9 88.7 89.5 90.3 90.9 91.6 92.2 92.7 93.2 93.6 94.0 94.2 94.5 94.7 94.9 (Continued) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 21 Final 1989 European Semiconductor Market Share Estimates Table 14 1989 European CMOS IC Market Share Rankings (Miilions of U.S. Dollars) (Continued) 1988 1989 Rank Rank 44 42 38 46 39 12 20 36 40 47 Change in Rank 40 41 42 43 44 NA NA NA NA NA 4 1 (4) 3 (5) Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) 1989 1989 1989 Cum. Cum, Market Sum Share Sum ($M) (Percent) (Percent) ZUog Analog Devices Sanyo Goldstar STC Components GE Solid State Inmos Honeywell Solid State Rockwell Sprague 4 6 7 3 6 66 38 10 6 2 7 6 4 4 3 75.0 0.0 (42.9) 33.3 (50.0) (100.0) (100.0) (100.0) (100.0) (100.0) 3,244 3,250 3,254 3,258 3,261 0.2 0.2 0.1 0.1 0.1 95.1 95.3 95.4 95.5 95.6 European Others North American Others Japanese Others Rest of World Others 12 39 3 14 11 93 22 25 (8.3) 138.5 633.3 78.6 3,272 3,365 3,387 3,412 0.3 2.7 0.6 0.7 95.9 98.6 99.3 100.0 2,491 3,412 944 633 962 1,310 806 993 90 165 37.0 49.1 36.2 23.2 83.3 Total Total Total Total Total All Companies European North American Japanese Rest of World 100.0 27.7 38.4 29.1 4.8 NA = Not Applicable . Source: Dataquest (June 1990) 22 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 15 1989 European BiCMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 2 NA NA 7 5 6 NA 3 8 NA 1 4 Change in Rank 1 2 3 4 5 6 7 8 9 10 NA NA 1 3 0 0 (5) (1) Ranked Companies Mietec SGS-Thomson Sprague National Semiconductor Texas Instruments STC Components Fujitsu Hitachi LSI Logic Toshiba NEC GE SoUd State 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 18 1 2 2 7 1 18 7 All Companies European North American Japanese 27.8 300.0 50.0 50.0 (85.7) 0.0 56 20 11 25 23 31 39 43 46 49 52 53 54 55 38.3 13.3 13.3 6.7 5.0 5.0 5.0 1.7 1.7 1.7 38.3 51.7 65.0 71.7 76.7 81.7 86.7 88.3 90.0 91.7 60 8.3 100.0 (100.0) (100.0) 5 North American Others Total Total Total Total 23 8 8 4 3 3 3 1 1 1 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 60 34 21 5 7.1 70.0 90.9 (80.0) 100.0 56.7 35.0 8.3 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 23 Final 1989 European Semiconductor Market Share Estimates Table 16 1989 European Other MOS IC Market Share Rankings (MiUions of U.S. Dollars) 1988 1989 Rank Rank 2 1 3 4 5 6 7 Change in Rank 1 NA NA NA NA NA NA 1 Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) ITT Hitachi Texas Instruments Samsung Siemens Rockwell Plessey Semiconductors 7 42 4 2 1 1 1 3 (57.1) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) Total Total Total Total Total 58 2 12 42 2 3 (94.8) (100.0) (75.0) (100.0) (100.0) All Companies European North American Japanese Rest of World 3 1989 1989 1989 Cum, Market Cum. Sum Share Sum ($M) (Percent) (Percent) 3 100.0 100.0 100.0 100.0 NA = Not Applicable Source; Dataquest (Jui»s 1990) 24 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 17 1989 European MOS Memory Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 5 3 1 2 6 4 9 7 10 8 11 17 16 29 13 12 14 18 25 15 23 20 21 NA 32 31 NA 27 26 NA 19 22 24 28 30 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NA NA NA NA NA 4 1 (2) (2) 1 (2) 2 (1) 1 (2) 0 3 3 15 (2) (4) (3) 0 6 (5) 2 (2) (2) 7 5 (1) (3) Ranked Companies Siemens Texas Instruments Toshiba NEC Samsung Hitachi SGS-Thomson Fujitsu Mitsubishi Intel AMD Matsushita (Panasonic) Motorola Micron Technology NMB Oki Electric National Semiconductor Matra MHS Sony IDT Sharp CypiBss Philips ITT Goldstar Marconi Electronic Devices Plessey Semiconductors Harris VLSI Technology Sanyo Inmos Seiko Epson GE Solid State Austria Mikro Systeme STC Components European Others North American Others Japanese Others Rest of World Others Total Total Total Total Total AU Companies European North American Japanese Rest of World 1988 Sales ($M) 1989 Sales ($M) 130 216 228 223 128 138 84 102 71 97 56 22 25 2 30 38 30 20 5 27 10 16 14 338 250 247 232 186 172 129 120 104 102 71 67 60 60 51 48 30 28 26 24 22 21 20 9 4 3 2 1 1 1 19 1 1 4 4 1988-89 Annual Growth (Percent) 1989 Cum. Sum ($M) 1989 Market Share (Percent) 1989 Cum. Sum (Percent) 160.0 15.7 8.3 4.0 45.3 24.6 53.6 17.6 46.5 5.2 26.8 204.5 140.0 2,900.0 70.0 26.3 0.0 40.0 420.0 (11.1) 120.0 31.3 42.9 338 588 835 1,067 1,253 1,425 1,554 1,674 1.778 1,880 1,951 2,018 2,078 2,138 2,189 2,237 2,267 2,295 2,321 2345 2367 2388 2,408 2,417 2,421 2,424 2,426 2,427 2,428 2,429 (100.0) 13.3 9.8 9.7 9.1 7.3 6.8 5.1 4.7 4.1 4.0 2.8 2.6 2.4 2.4 2.0 1.9 1.2 1.1 1.0 0.9 0.9 0.8 0.8 0.4 0.2 0.1 0.1 0.0 0.0 0.0 13.3 23.1 32.8 41.9 49.2 55.9 61.0 65.7 69.8 73.8 76.6 79.2 81.6 83.9 85.9 87.8 89.0 90.1 91.1 92.0 92.9 93.7 94.5 94.9 95.0 95.1 95.2 95.3 95.3 95.3 2,490 2,529 2,548 2.4 1.5 0.7 97.7 99.3 100.0 300.0 200.0 (75.0) (75.0) (100.0) (100.0) (100.0) (100.0) 11 8 4 1 2 18 1 11 61 39 19 (100.0) 238.9 3,800.0 72.7 1,797 275 503 879 140 2,548 520 690 1,129 209 41.8 89.1 37.2 28.4 49.3 100.0 20.4 27.1 44.3 8.2 NA = Not Applicable Source: OaUquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 25 Final 1989 European Semiconductor Market Share Estimates Table 18 1989 European MOS Microcomponent Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 3 4 5 7 6 8 21 9 11 10 14 24 17 15 22 26 13 NA 20 19 25 NA 31 23 30 NA 18 28 29 27 12 16 Change in Rank i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NA NA 0 0 0 0 0 1 (1) 0 12 (1) 0 (2) 1 10 2 (1) 5 8 (6) (1) (3) 2 6 (3) 3 (11) (2) (2) (5) Ranked Companies Intel Motorola NEC SGS-Thomson Hitachi Siemens Philips Texas Instniments Mitsubishi National Semiconductor Toshiba AMD Westem Digital Harris Matra MHS Oki Electric ITT VLSI Technology Zilog TMS Fujitsu Rockwell Analog Devices LSI Logic AT&T IDT Cypress Plessey Semiconductors Sanyo Marconi Electronic Devices Eurosil Electronic Sharp Inmos GE Solid State North American Others Rest of World Others Total Total Total Total Total AU Companies European North American Japatiese Rest of World 1988 Sales ($M) 1989 Sales {$M) 351 150 109 77 71 51 55 48 8 40 27 33 17 6 14 16 7 5 19 416 179 122 101 75 67 62 60 48 45 35 34 23 21 20 18 18 17 16 11 10 9 6 6 4 3 2 2 1 1 1 1 9 11 6 1 6 1 12 1 1 1 21 15 1988-89 Annual Growth (Percent) 1989 Cum. Sum ($M) 1989 Market Share (Percent) 1989 Cum. Sum (Percent) 18.5 19.3 11.9 31.2 5.6 31.4 12.7 25.0 500.0 12.5 29.6 3.0 35.3 250.0 42.9 125 157.1 240.0 (15.8) 416 595 717 818 893 960 1,022 1,082 1,130 1,175 1,210 1,244 1,267 1,288 1,308 1,326 1,344 1,361 1,377 1,388 1,398 1,407 1,413 1,419 1,423 1,426 1,428 1,430 1,431 1,432 1,433 1,434 28.3 12.2 8.3 6.9 5.1 4.6 4.2 4.1 3.3 3.1 2.4 2.3 1.6 1.4 1.4 1.2 1.2 1.2 1.1 0.7 0.7 0.6 0.4 0.4 0.3 0.2 0.1 0.1 0.1 0.1 0.1 0.1 28.3 40.5 48.8 55.7 60.8 65.4 69.6 73.7 76.9 80.0 82.4 84.7 86.2 87.7 89.0 90.3 91.5 92.6 93.7 94.5 95.2 95.8 96.2 96.6 96.9 97.1 97.2 97.3 97.4 97.5 97.5 97.6 1,465 1,469 2.1 0.3 99.7 100.0 11.1 (18.2) 0.0 300.0 (50.0) 100.0 (91.7) 0.0 0.0 0.0 (100.0) (100.0) 19 4 31 4 63.2 0.0 1^212 220 735 253 4 1,469 265 890 310 4 21.2 20.5 21.1 22.5 0.0 100.0 18.0 60.6 21.1 0.3 NA = Not Applicable Source: Dataquest (June 1990) 26 ©1990 Dataquest Europe Limited Jmie ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Stiare Estimates Table 19 1989 European MOS Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 [(ank Rank 1 5 2 3 4 7 8 6 12 11 13 9 NA 15 16 20 14 19 18 24 26 23 21 25 17 NA 32 22 29 35 30 33 34 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Change in Rank 0 3 (1) (1) (1) 1 1 (2) 3 1 2 (3) 1 1 4 (3) 1 (1) 4 5 1 (2) 1 (8) 5 (6) 0 5 (1) 1 1 2 Ranked Companies Philips Siemens SGS-Thomson rrx Motorola LSI Logic AMD National Semiconductor Texas Instruments Toshiba Mietec Plessey Semiconductors Harris Austria Mikro Systeme VLSI Technology Matra MHS NEC Marconi Electronic Devices ABB-HAFO Fujitsu European Silicon Structures Hitachi Telefunken Electronic Eurosil Electronic Intel TMS IDT AT&T STC Components Sprague Seiko Epson Ericsson Components Cypress Oki Electric 1988-89 Annual 1988 1989 Sales Sales Growth ($M) ($M) (Percent) 216 62 103 95 80 60 59 61 44 46 42 51 36 27 18 40 21 25 12 12 12 15 12 27 6 14 8 3 7 6 4 3 185 117 114 91 74 67 63 62 58 52 52 50 48 47 37 25 24 22 21 18 17 17 15 13 12 12 9 8 8 8 7 7 7 3 (14.4) 88.7 10.7 (4.2) (7.5) 11.7 6.8 1.6 31.8 13.0 23.8 (2.0) 30.6 37.0 38.9 (40.0) 4.8 (16.0) 50.0 41.7 41.7 0.0 8.3 (55.6) 50.0 (42.9) 0.0 166.7 0.0 16.7 75.0 0.0 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 185 302 416 507 581 648 711 773 831 883 935 985 1,033 1,080 1,117 1,142 1,166 1,188 1,209 1,227 1,244 1,261 1,276 1,289 1,301 1,313 1,322 1,330 1,338 1,346 1,353 1,360 1,367 1,370 12.8 8.1 7.9 6.3 5.1 4.6 4.4 4.3 4.0 3.6 3.6 3.5 3.3 3.3 2.6 1.7 1.7 1.5 1.5 1.2 1.2 1.2 1.0 0.9 0.8 0.8 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.2 12.8 21.0 28.9 35.2 40.3 45.0 49.3 53.6 57.7 61.3 64.9 68.4 71.7 74.9 77.5 79.3 80.9 82.4 83.9 85.1 86.3 87.5 88.5 89.5 90.3 91.1 91.7 92.3 92.9 93.4 93.9 94.4 94.9 95.1 (Continued) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 27 Final 1989 European Semiconductor Market Share Estimates Table 19 1989 European MOS Logic Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988 1989 Rank Rank 28 37 NA NA 10 27 31 Change in Rank 35 36 37 38 NA NA NA (7) 1 Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) Samsung Goldstar Sanyo Mitsubishi GE Solid State Honeywell Solid State Rockwell 50 10 7 European Others North American Others Japanese Others Rest of World Others 16 29 3 2 Total Total Total Total Total All Companies European North American Japanese Rest of World 2 2 2 1 9 2 (77.8) 0.0 1989 1989 1989 Cum. Market Cum. Sum Sum Share ($M) (Percent) (Percent) 1,372 1,374 1,376 1,377 0.1 0.1 0.1 0.1 95.2 95.4 95.5 95.6 1,394 1.438 1,439 1,441 1.2 3.1 0.1 0.1 96.7 99.8 99.9 100.0 (100.0) (100.0) (100.0) 17 44 1 2 6.3 51.7 (66.7) 0.0 1,355 1,441 722 643 576 588 123 125 6 13 6.3 12.3 2.1 1.6 (53.8) 100.0 50.1 40.8 8.7 0.4 NA = Not Applicable Source: Dataquest (June 1990) 28 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Finai 1989 European Semiconductor Market Share Estimates Table 20 1989 European MOS ASIC Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NA NA 0 0 6 (1) (1) (1) 0 (2) 1 1 (3) 1 (1) 4 2 (1) 1 2 9 3 4 5 7 6 10 11 8 13 12 18 17 15 NA 19 21 14 20 NA 27 22 25 31 26 29 30 28 33 16 32 NA 23 24 1 2 (6) (1) 4 (2) 0 5 (1) 1 1 (2) 2 (16) (1) Ranked Companies nr LSI Logic Siemens Mietec Toshiba Plessey Semiconductors Austria Mikro Systeme SGS-Thomson VLSI Technology Texas Instruments National Semiconductor NEC ABB-HAFO Marconi Electronic Devices Matra MHS Philips Harris Fujitsu European Silicon Structures Telefiinken Electronic Euiosil Electronic TMS Hitachi Intel AT&T Sprague Seiko Epson Ericsson Components Cypress STC Components AMD Motorola Oki Electric Goldstar GE Solid State Honeywell Solid State European Others North American Others Japanese Others Total Total Total Total Total All Companies European North American Japanese Rest of World 1988 Sales {$M) 1989 Sales ($M) 95 59 28 42 41 35 33 34 25 25 30 23 25 14 14 14 91 67 55 52 50 49 47 40 37 35 30 24 21 21 20 19 19 18 17 15 13 12 11 10 8 8 7 7 7 5 5 4 3 1 12 12 15 12 7 11 9 3 7 6 4 6 2 14 3 1988-89 Annual Growth (Percent) 1989 Cum. Sum ($M) 1989 Market Share (Percent) 1989 Cum. Sum (Percent) (4.2) 13.6 96.4 23.8 22.0 40.0 42.4 17.6 48.0 40.0 0.0 4.3 (16.0) 50.0 42.9 35.7 91 158 213 265 315 364 411 451 488 523 553 577 598 619 639 658 677 695 712 727 740 752 763 773 781 789 796 803 810 815 820 824 827 828 10.4 7.6 6.3 5.9 5.7 5.6 5.4 4.6 4.2 4.0 3.4 2.7 2.4 2.4 2.3 2.2 2.2 2.1 1.9 1.7 1.5 1.4 1.3 1.1 0.9 0.9 0.8 0.8 0.8 0.6 0.6 0.5 0.3 0.1 10.4 18.0 24.3 30.2 35.9 41.5 46.9 51.4 55.6 59.6 63.1 65.8 68.2 70.6 72.9 75.0 77.2 79.2 81.2 82.9 84.4 85.7 87.0 88.1 89.1 90.0 90.8 91.6 92.4 -92^ 93.5 94.0 94.3 94.4 838 877 1.1 4.4 95.6 100.0 50.0 41.7 0.0 8.3 57.1 (9.1) (11.1) 166.7 0.0 16.7 75.0 (16.7) 150.0 (71.4) 0.0 (100.0) (100.0) 11 10 10 19 1 10 39 0.0 105.3 (100.0) 711 300 317 94 877 403 360 113 1 23.3 34.3 13.6 20.2 100.0 46.0 41.0 12.9 0.1 NA = Not Applicable Source: Dataqiiest (June 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited Jime 29 Final 1989 European Semiconductor Market Share Estimates Table 21 1989 European MOS Standard Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 3 NA 5 6 7 9 11 13 8 10 14 NA 4 12 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 NA NA 0 0 0 0 0 0 1 2 3 (3) (2) 1 Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) AMD PhiUps Motorola Harris National Semiconductor Texas Instruments SGS-Thomson BDT Hitachi STC Components Samsung Toshiba Goldstar Mitsubishi GE Solid State AT&T 39 5 European Others North American Others Rest of Worid Others 6 3 2 7 3 2 16.7 0.0 0.0 287 74 190 10 13 263 74 175 9 5 (8.4) 0.0 (7.9) (10.0) (61.5) Total Total Total Total Total AU Companies European North American Japanese Rest of Worid 57 48 40 21 19 18 6 5 2 9 5 2 58 46 33 29 22 21 18 9 6 3 2 2 1 1 1.8 (4.2) (17.5) 4.8 10.5 0.0 50.0 20.0 50.0 (77.8) (60.0) (50.0) 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 58 104 137 166 188 209 227 236 242 245 247 249 250 251 22.1 17.5 12.5 11.0 8.4 8.0 6.8 3.4 2.3 1.1 0.8 0.8 0.4 0.4 22.1 39.5 52.1 63.1 71.5 79.5 86.3 89.7 92.0 93.2 93.9 94.7 95.1 95.4 258 261 263 2.7 1.1 0.8 98.1 99.2 100.0 (100.0) (100.0) 100.0 28.1 66.5 3.4 1.9 NA = Not Applicable Souic«: Dataquest (7un)i 1990) 30 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 22 1989 European Other MOS Logic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 3 2 4 8 11 7 NA NA 6 10 5 9 12 13 14 Change in Rank 1 2 3 4 5 6 7 g 9 10 11 NA NA NA NA NA 0 1 (1) 0 3 5 0 (4) (1) Ranked Companies Philips Siemens SGS-Thomson Motorola National Semiconductor Matra MHS Intel Sanyo Texas Instruments Plessey Semiconductors Marconi Electronic Devices NEC Rockwell Austria Mikro Systeme VLSI Technology LSI Logic North American Others Japanese Others Total Total Total Total All Companies European North American Japanese 1988-89 Annual 1988 1989 Sales Sales Growth ($M) ($M) (Percent) 154 34 51 26 10 4 16 16 7 17 7 3 2 1 120 62 56 37 10 5 2 2 2 1 1 (22.1) 82.4 9.8 42.3 0.0 25.0 (87.5) (93.8) (85.7) (100.0) (100.0) (100.0) (100.0) (100.0) 7 2 2 1 (71.4) (50.0) 357 269 69 19 301 245 53 3 (15.7) (8.9) (23.2) (84.2) 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 120 182 238 275 285 290 292 294 296 297 298 39.9 20.6 18.6 12.3 3.3 1.7 0.7 0.7 0.7 0.3 0.3 39.9 60.5 79.1 91.4 94.7 96.3 97.0 97.7 98.3 98.7 99.0 300 301 0.7 0.3 99.7 100.0 lOO.O 81.4 17.6 1.0 NA = Not Api^cable Source: Dataquest (Juoe 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 31 Final 1989 European Semiconductor Market Share Estimates Table 23 1989 E u r o p e a n Total Analog M a r k e t S h a r e Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 3 6 4 5 7 8 17 10 12 14 11 18 19 NA 9 15 16 20 31 28 NA 23 22 NA NA 21 25 26 29 24 27 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Change in Rank 0 0 0 2 (1) (1) 0 0 8 0 1 2 (2) 4 4 (8) (3) (3) 0 10 6 (1) (3) (7) (4) (4) (2) (8) (6) (4) Ranked Companies Philips SGS-Thomson National Semiconductor Siemens Texas Instruments Motorola Analog Devices Telefunken Electronic Harris Burr-Brown Ericsson Components Precision Monolithics ITT Toshiba AMD Mitsubishi Plessey Semiconductors Sprague Siliconix Mitel Semiconductor Samsung Austria Mikro Systeme Fujitsu Rolim Electronics Unitrode TMS Rockwell Raytheon Hitachi STC Components Sanyo Matsushita (Panasonic) ScMiy NEC 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 281 210 140 102 105 105 90 52 18 43 34 30 41 17 17 49 27 18 14 2 4 6 6 7 6 4 3 6 4 3 316 226 160 134 100 99 89 62 47 39 35 29 27 22 22 21 18 17 16 14 10 9 9 8 8 7 7 6 6 5 5 4 4 4 12.5 7.6 14.3 31.4 (4.8) (5.7) (1.1) 19.2 161.1 (9.3) 2.9 (3.3) (34.1) 29.4 29.4 (63.3) (37.0) (11.1) 0.0 400.0 125.0 33.3 33.3 (14.3) 0.0 25.0 66.7 (33.3) 0.0 33.3 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 316 542 702 836 936 1,035 1,124 1,186 1,233 1,272 1,307 1,336 1,363 1,385 1,407 1,428 1,446 1,463 1,479 1,493 1,503 1,512 1,521 1,529 1,537 1,544 1,551 1,557 1,563 1,568 1,573 1,577 1,581 1,585 18.6 13.3 9.4 7.9 5.9 5.8 5.2 3.7 2.8 2.3 2.1 1.7 1.6 1.3 1.3 1.2 1.1 1.0 0.9 0.8 0.6 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.2 0.2 0.2 18.6 32.0 41.4 49.3 55.2 61.0 66.3 69.9 72.7 75.0 77.1 78.8 80.4 81.7 83.0 84.2 85.3 86.3 87.2 88.0 88.6 89.2 89.7 90.2 90.6 91.0 91.5 91.8 92.2 92.5 92.7 93.0 93.2 93.5 (Continued) 32 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 23 1989 European Total Analog Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988 1989 Rank Rank NA 33 NA NA 13 32 Change in Rank 35 36 37 38 NA NA (3) Ranked Companies 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) Marconi Electronic Devices Seiko Epson Goldstar International Rectifier GE Solid State AT&T 33 2 European Others North American Others Japanese Others 2 49 2 Total Total Total Total Total All Companies European North American Japanese Rest of World 1 2 1 1 1 0.0 1989 1989 1989 Cum. Cum. Market Sum Share Sum ($M) (Percent) (Percent) 1,587 1,588 1,589 1,590 0.1 0.1 0.1 0.1 93.6 93.6 93.7 93.8 1.592 1,689 1.696 0.1 5.7 0.4 93.9 99.6 100.0 (100.0) (100.0) 2 97 7 0.0 98.0 250.0 1,533 1,696 738 816 745 778 91 48 11 2 10.6 10.6 4.4 89.6 450.0 100.0 48.1 45.9 5.4 0.6 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 33 Final 1989 European Semiconductor Market Share Estimates Table 24 1989 European Monolithic Analog Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Hank Rank 1 2 3 5 4 6 7 8 16 11 13 10 17 19 15 NA 9 14 18 31 20 26 24 NA NA 21 23 NA 22 25 27 28 30 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Change in Rank 0 0 0 1 (1) 0 0 0 7 1 2 (2) 4 5 0 (8) (4) (1) 11 (1) 4 1 (5) (4) (7) (5) (4) (4) (3) (5) Ranked Companies Philips SGS-Thomson National Semiconductor Siemens Texas Instruments Motorola Analog Devices Telefunken Electronic Harris Ericsson Components Precision Monolithics ITT Toshiba AMD Burr-Brown Mitsubishi Plessey Semiconductors Sprague SUiconix Samsung Mitel Semiconductor Austria Mikro Systeme Unitrode TMS Rockwell Raytheon Hitachi Fujitsu Matsushita (Panasonic) Rohm Electronics STC Components NEC Sanyo Sraiy 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 247 210 140 94 105 87 73 49 18 34 30 41 17 17 23 48 27 17 2 10 4 5 6 6 6 4 3 3 2 2 276 226 160 125 100 81 72 59 45 35 29 27 22 22 21 20 18 17 16 10 9 9 7 7 7 6 6 6 4 4 4 4 4 2 11.7 7.6 14.3 33.0 (4.8) (6.9) (1.4) 20.4 150.0 2.9 (3.3) (34.1) 29.4 29.4 (8.7) (62.5) (37.0) (5.9) 400.0 (10.0) 125.0 40.0 0.0 0.0 (33.3) 0.0 33.3 33.3 100.0 0.0 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 276 502 662 787 887 968 1,040 1.099 1,144 1,179 1,208 1,235 1,257 1,279 1,300 1,320 1,338 1,355 1,371 1,381 1,390 1,399 1,406 1,413 1,420 1,426 1,432 1,438 1,442 1,446 1,450 1,454 1,458 1,460 17.7 14.5 10.3 8.0 6.4 5.2 4.6 3.8 2.9 2.2 1.9 1.7 1.4 1.4 1.3 1.3 1.2 1.1 1.0 0.6 0.6 0.6 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.1 17.7 32.2 42.4 50.4 56.9 62.1 66.7 70.4 73.3 75.6 77.4 79.2 80.6 82.0 83.3 84.6 85.8 86.9 87.9 88.5 89.1 89.7 90.1 90.6 91.0 91.4 91.8 92.2 92.4 92.7 92.9 93.2 93.5 93.6 (CcMitinued) 34 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 24 1989 European Monolithic Analog Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988 1989 Rank Rank NA NA NA 12 32 Change in Rank 35 36 37 NA NA Ranked Companies Marconi Electronic Devices International Rectifier Goldstar GE Solid State AT&T European Others North American Others Japanese Others Total Total Total Total Total All Companies European North American Japanese Rest of World 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) 2 1 1 1,462 1,463 1,464 0.1 0.1 0.1 93.7 93.8 93.8 1,466 1,559 1,560 0.1 6.0 0.1 94.0 99.9 100.0 (100.0) (100.0) 33 2 2 93 1 0.0 89.8 1,416 1,560 763 691 683 713 40 73 2 11 10.2 10.4 4.4 82.5 450.0 2 49 1989 1989 1989 Cum. Market Cum. Sum Sum Share ($M) (Percent) (Percent) 100.0 48.9 45.7 4.7 0.7 NA = Not Applicable Souice: dataquest (June: 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 35 Final 1989 European Semiconductor Market Share Estimates Table 25 1989 European Hybrid Analog Market Share Rankings (Millions of U.S. Dollars) 1988 1989 ^ank Rank 1 2 3 4 5 6 9 7 NA 8 NA 11 10 14 13 NA 12 16 15 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NA NA NA 0 0 0 0 0 0 2 (1) (2) (1) (3) 0 (2) Ranked Companies Philips Burr-Brown Motorola Analog Devices Siemens Mitel Semiconductor Rohm Electronics Telefunken Electronic Fujitsu Sony Harris STC Components Unitrode Sanyo Seiko Epson Mitsubishi Siliconix Plessey Semiconductors Raytheon North American Others Japanese Others Total Total Total Total All Companies European North American Japanese 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 34 20 18 17 8 4 2 3 2 40 18 18 17 9 5 4 3 3 2 2 17.6 (10.0) 0.0 0.0 12.5 25.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 40 58 76 93 102 107 111 114 117 119 121 122 123 124 125 126 29.4 13.2 13.2 12.5 6.6 3.7 2.9 2.2 2.2 1.5 1.5 0.7 0.7 0.7 0.7 0.7 29.4 42.6 55.9 68.4 75.0 78.7 81.6 83.8 86.0 87.5 89.0 89.7 90.4 91.2 91.9 92.6 130 136 2.9 4.4 95.6 100.0 (100.0) (100.0) (100.0) 2 4 6 200.0 117 47 62 8 136 53 65 18 16.2 12.8 4.8 125.0 100.0 39.0 47.8 13.2 NA = Not Applicable Source: Dataquest (June 1990) 36 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates T a b l e 26 1989 E u r o p e a n Total Discrete M a r k e t S h a r e (Millions of U . S . D o l l a r s ) 1988 1989 Rank Rank 1 2 3 4 5 8 7 9 10 NA 11 19 14 NA 13 15 NA 20 24 18 16 27 22 25 21 23 28 26 30 6 31 29 NA 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Change in Rank 0 0 0 0 0 2 0 1 1 0 7 1 (2) (1) 2 5 (2) (5) 5 (1) 1 (4) (3) 1 (2) 1 (24) 0 (3) (2) Ranked Companies Philips Motorola SGS-Thomson Siemens ITT International Rectifier Telefiinken Electronic Semikron Toshiba ABB-DCYS Powerex General Instrument Siliconix Harris Texas Instruments Fagor Electrotecnica Fujitsu Matsushita (Panasonic) Mitsubishi Marconi Electronic Devices TAG Hewlett-Packard Rohm Electronics NEC Unitrode Hitachi Sprague National Semiconductor Sanyo ABB-HAFO Samsung STC Components TMS Raytheon Rankings 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 313 196 167 135 103 66 66 56 52 294 193 177 162 105 70 66 55 46 40 33 28 33 18 25 23 24 23 25 22 21 22 21 13 20 6 17 18 17 18 17 4 14 10 14 5 11 10 9 9 7 2 5 5 4 1 3 69 3 1 2 1 2 1 1 (6.1) (1.5) 6.0 20.0 1.9 6.1 0.0 (1.8) (11.5) 17.9 83.3 8.7 (8.0) 4.8 61.5 233.3 (5.6) (5.6) 325.0 40.0 180.0 10.0 0.0 250.0 0.0 300.0 (95.7) 200.0 100.0 0.0 1989 1989 Cum. Market Sum Share ($M) (Percent) 294 487 664 826 931 1.001 1,067 1,122 1,168 1,208 1,241 1,274 1,299 1,323 1,346 1,368 1,390 1,411 1,431 1,448 1,465 1,482 1,496 1,510 1,521 1,530 1,537 1,542 1,546 1,549 1,552 1,554 1,556 1.557 1989 Cum. Sum (Percent) 18.4 12.1 11.1 10.2 6.6 4.4 4.1 3.5 2.9 2.5 2.1 2.1 1.6 1.5 1.4 1.4 1.4 1.3 1.3 1.1 1.1 1.1 0.9 0.9 0.7 0.6 0.4 0.3 0.3 0.2 0.2 0.1 0.1 0.1 18.4 30.6 41.7 51.8 58.4 62.8 66.9 70.4 73.3 75.8 77.9 79.9 81.5 83.0 84.4 85.8 87.2 88.5 89.8 90.8 91.9 93.0 93.9 94.7 95.4 96.0 96.4 96.7 97.0 97.2 97.4 97.5 97.6 97.7 (Continued) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 37 Final 1989 European Semiconductor Market Share Estimates Table 26 1989 European Total Discrete Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988 1989 Rank Rank NA 12 17 33 Change in Rank 35 NA NA NA Ranked Companies 1988-89 Annual 1988 1989 Growth Sales Sales ($M) ($M) (Percent) Sony GE Solid State Plessey Semiconductors AT&T 27 18 1 European Others North American Others Japanese Others Rest of World Others 6 11 7 4 Total Total Total Total Total All Companies European North American Japanese Rest of World 1 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 1,558 0.1 97.7 1,564 1,575 1,592 1,594 0.4 0.7 1.1 0.1 98. 98.8 99.9 100.0 (100.0) (100.0) (100.0) 6 11 17 2 0.0 0.0 142.9 (50.0) 1,516 1,594 888 863 520 558 103 168 5 5 5.1 (2.8) 7.3 63.1 0.0 100.0 54.1 35.0 10.5 0.3 NA =: Not Applicable Source: Dauquest (June 1990) 38 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 27 1989 European TVansistor M a r k e t Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 2 3 4 5 6 8 7 9 NA 13 11 NA 12 19 14 17 16 NA 23 20 24 18 21 26 22 25 NA NA 10 15 27 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NA NA NA 0 0 0 0 0 0 1 (1) 0 2 (1) (2) 4 (2) 0 (2) 3 (1) 2 (5) (3) 1 (4) (2) Ranked Companies Philips Motorola SGS-Thomson Siemens Toshiba rrr Siliconix Texas Instruments International Rectifier Fujitsu Powerex Telefunken Electronic Harris Matsushita (Panasonic) NEC Rohm Electronics Mitsubishi Marconi Electronic Devices ABB-KYS Sanyo National Semiconductor Samsung Hewlett-Packard Sprague Hitachi Semikron Raytheon TMS Sony GE Solid State Plessey Semiconductors ABB-HAFO European Others North American Others Japanese Others Rest of World Others Total Total Total Total Total All Companies European North American Japanese Rest of World 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 185 124 85 66 36 32 23 25 20 8 16 12 3 7 4 5 1 3 1 4 2 1 1 1 180 127 90 77 34 32 25 23 23 22 18 17 17 14 11 10 10 5 5 4 3 3 2 2 20 7 1 (2.7) 2.4 5.9 16.7 (5.6) 0.0 8.7 (8.0) 15.0 125.0 6.3 16.7 266.7 42.9 150.0 0.0 300.0 0.0 200.0 (50.0) 0.0 0.0 0.0 0.0 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 180 307 397 474 508 540 565 588 611 633 651 668 685 699 710 720 730 735 740 744 747 750 752 754 755 756 757 758 759 23.0 16.2 11.5 9.8 4.3 4.1 3.2 2.9 2.9 2.8 2.3 2.2 2.2 1.8 1.4 1.3 1.3 0.6 0.6 0.5 0.4 0.4 0.3 0.3 0.1 0.1 0.1 0.1 0.1 23.0 39.3 50.8 60.6 65.0 69.1 72.3 75.2 78.1 80.9 83.2 85.4 87.6 89.4 90.8 92.1 93.4 94.0 94.6 95.1 95.5 95.9 96.2 96.4 96.5 96.7 96.8 96.9 97.1 761 770 780 782 0.3 1.2 1.3 0.3 97.3 98.5 99.7 100.0 (100.0) (100.0) (100.0) 2 7 3 4 2 9 10 2 0.0 28.6 233.3 (50.0) 709 368 269 67 5 782 378 282 117 5 10.3 2.7 4.8 74.6 0.0 100.0 48.3 36.1 15.0 0,6 NA = Not Applicable Soiuce: Oataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 39 Final 1989 European Semiconductor Market Share Estimates Table 28 1989 European Diode Market Share Rankings (Millions of U.S. Dollars) 1988 1989 [lank Rank 1 2 3 4 5 10 6 7 9 8 NA NA 13 21 15 17 14 16 18 19 20 NA 11 12 23 22 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NA NA NA NA 0 0 0 0 0 4 (1) (1) 0 (2) 0 7 0 1 (3) (2) (1) (1) (1) Ranked Companies Philips Motorola SGS-Thomson ITT Siemens General Instrument Telefunken Electronic International Rectifier Fagor Electrotecnica Semikron Hewlett-Packard ABB-EXYS Unitrode Matsushita (Panasonic) Marconi Electronic Devices Rohm Electronics Powerex Toshiba National Semiconductor STC Components NEC TMS ABB-HAFO Plessey Semiconductors AT&T GE Solid State European Others North American Others Japanese Others Tcrtal Total Total Total All Companies European North American Japanese 1988-89 Annual 1988 1989 Sales Sates Growth ($M) ($M) (Percent) 111 59 50 47 35 18 26 23 21 21 8 1 4 3 5 3 2 1 1 1 14 11 1 1 95 55 54 47 40 33 26 22 22 21 15 11 9 7 4 4 3 3 2 2 1 (14.4) (6.8) 8.0 0.0 14.3 83.3 0.0 (4.3) 4.8 0.0 12.5 600.0 0.0 33.3 (40.0) 0.0 0.0 100.0 0.0 477 (100.0) (100.0) (100.0) (100.0) 2 4 1 2 2 6 0.0 (50.0) 500.0 473 296 168 9 487 278 188 21 3.0 (6.1) 11.9 133.3 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 95 150 204 251 291 324 350 372 394 415 430 441 450 457 461 465 468 471 473 475 476 0.2 19.5 11.3 11.1 9.7 8.2 6.8 5.3 4.5 4.5 4.3 3.1 2.3 1.8 1.4 0.8 0.8 0.6 0.6 0.4 0.4 0.2 97.9 19.5 30.8 41.9 51.5 59.8 66.5 71.9 76.4 80.9 85.2 88.3 90.6 92.4 93.8 94.7 95.5 96.1 96.7 97.1 97.5 97.7 479 481 487 0.4 0.4 1.2 98.4 98.8 100.0 100.0 57.1 38.6 4.3 NA = Not Applicable Souice: Dataquest (June 1990) 40 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 29 1989 European Thyristor Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 2 3 NA 4 5 6 8 7 9 10 11 12 13 14 NA 1 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NA 1 1 0 0 0 1 (1) 0 0 0 0 0 0 Ranked Companies SGS-Thomson Siemens ABB-IXYS TAG Telefunken Electronic Semikron International Rectifier Powerex Philips Marconi Electronic Devices Motorola Hitachi Mitsubishi Unitrode NEC ABB-HAFO European Others Total Total Total Total All Companies European North American Japanese 1988-89 1988 1989 Annual Growth Sales Sales ($M) ($M) (Percent) 32 19 18 17 17 13 15 9 9 8 3 2 1 33 23 23 17 16 16 13 12 9 8 6 3 3 1 1 46 3.1 21.1 (5.6) (5.9) (5.9) 0.0 (20.0) 0.0 (11.1) (25.0) 0.0 50.0 0.0 1989 1989 1989 Cum. Cum. Market Sum Sum Share ($M) (Percent) (Percent) 33 56 79 96 112 128 141 153 162 170 176 179 182 183 184 17.8 12.4 12.4 9.2 8.6 8.6 7.0 6.5 4.9 4.3 3.2 1.6 1.6 0.5 0.5 17.8 30.3 42.7 51.9 60.5 69.2 76.2 82.7 87.6 91.9 95.1 96.8 98.4 98.9 99.5 185 0.5 100.0 (100.0) 1 1 0.0 210 168 37 5 185 146 32 7 (11.9) (13.1) (13.5) 40.0 100.0 78.9 17.3 3.8 NA = Not Applicable Source: Dataquest (June 1990) ESIS Volume 0006080 ©1990 Dataquest Europe Limited June 41 Final 1989 European Semiconductor Market Share Estimates Table 30 1989 European Other Discrete Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank 1 3 2 5 6 4 8 NA NA 10 11 NA 7 12 13 NA 9 Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NA 0 1 (1) 1 1 (2) 1 0 0 (6) (2) (2) Ranked Companies ITT Siemens Semikron International Rectifier Philips Toshiba Telefunken Electronic Harris Mitsubishi Motorola Hitachi Sprague ABB-HAFO Unitrode NEC ABB-EXYS GE Solid State European Others Japanese Others Total Total Total Total All Companies European North American Japanese 1988-89 1988 1989 Annual Sales Sales Growth ($M) ($M) (Percent) 24 15 17 10 8 13 7 5 5 8 1 1 26 22 17 12 10 9 7 7 7 5 5 5 3 1 1 1 8.3 46.7 0.0 20.0 25.0 (30.8) 0.0 0.0 0.0 (62.5) 0.0 0.0 1989 1989 1989 Cum. Market Cum. Sum Share Sum ($M) (Percent) (Percent) 26 48 65 77 87 96 103 110 117 122 127 132 135 136 137 138 18.6 15.7 12.1 8.6 7.1 6.4 5.0 5.0 5.0 3.6 3.6 3.6 2.1 0.7 0.7 0.7 18.6 34.3 46.4 55.0 62.1 68.6 73.6 78.6 83.6 87.1 90.7 94.3 96.4 97.1 97.9 98.6 139 140 0.7 0.7 99.3 100.0 (100.0) 6 1 3 1 1 0.0 (66.7) 124 56 46 22 140 61 56 23 12.9 8.9 21.7 4.5 100.0 43.6 40.0 16.4 NA = Not Applicable Source: Dataquest (June 1990) 42 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 Final 1989 European Semiconductor Market Share Estimates Table 31 1989 European Optoelectronic Market Share Rankings (Millions of U.S. Dollars) 1988 1989 Rank Rank Change in Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 NA NA NA NA NA 2 0 (2) 0 2 (1) 3 3 2 1 4 7 5 10 NA NA 11 18 12 16 NA NA 13 15 6 9 8 14 17 1 7 0 3 (3) (2) Ranked Companies 1988-89 Annual 1988 1989 Sales Sales Growth ($M) ($M) (Percent) 49 61 65 22 17 20 6 European Others North American Others 8 4 8 43 0.0 975.0 306 182 94 30 367 176 149 42 19.9 (3.3) 58.5 40.0 Total Total Total Total All Companies European North American Japanese 5 1 4 1 4 2 2 20 8 8 2 1 79 68 67 21 19 15 6 6 6 5 5 4 4 61.2 11.5 3.1 (4.5) 11.8 (25.0) 0.0 Hewlett-Packard Siemens Telefunken Electronic Philips Toshiba Texas Instruments ABB-HAFO Fujitsu TMS Motorola NEC Hitachi Sharp Harris AT&T Sanyo Matsushita (Panasonic) Plessey Semiconductors GE Solid State TRW Mitsubishi Oki Electric 3 2 2 0.0 400.0 0.0 300.0 309 0.0 0.0 (100.0) (100.0) (100.0) (100.0) (100.0) 1989 1989 1989 Cum. Cum. Market Share Sum Sum ($M) (Percent) (Percent) 79 147 214 235 254 269 275 281 287 292 297 301 305 1.1 312 314 316 21.5 18.5 18.3 5.7 5.2 4.1 1.6 1.6 1.6 1.4 1.4 1.1 1.1 84.2 0.8 0.5 0.5 21.5 40.1 58.3 64.0 69.2 73.3 74.9 76.6 78.2 79.6 80.9 82.0 83.1 324 367 2.2 11.7 88.3 100.0 85.0 85.6 86.1 100.0 48.0 40.6 11.4 NA = Not .Aj^licable Source: Dataquest (Jum! 1990) ESIS Volume 3 0006080 ©1990 Dataquest Europe Limited June 43 Final 1989 European Semiconductor Market Share Estimates FOOTNOTES TO THE TABLES European Companies ABB-HAFO ABB-HAFO was formerly known as Asea Brown Boveri. ABB-DCYS ABB-IXYS was formerly the West German-based power semiconductor division of Asea Brown Boveri. Inmos hmios revenue is included in SGS-Thomson revenue from 1989 onward. Matra MHS Matra MHS was formerly known as Matra-Harris Semiconducteurs. SGS-Thomson SGS-Thomson revenue includes Inmos revenue from 1989 onward. TMS Thomson Composants Militaires et Spatiaux (TMS) revenue was formerly included in SGS-Thomson (30 percent) and the European Others category (70 percent). North American Companies AT&T AT&T revenue was formerly included in the North American Others category. Cypress Cypress revenue was formerly included in the North American Others category. Harris Harris revenue includes GE Solid State revenue from 1989 onward. Micron Technology Micron Technology revenue was formerly included in the North American Others category. Mitel Semiconductor Mitel Semiconductor revenue was formerly included in the North American Others category. Raytheon Raytheon revenue was formerly included in the North American Others category. Rockwell Rockwell revenue was formerly included in the North American Others category. Sprague Sprague revenue was formerly included in the North American Others category. Unitrode Unitrode revenue was formerly included in the North American Others category. Japanese Companies NMB Nippon Miniature Bearings (NMB) revenue was formerly included in the Japanese Others category. Rohm Electronics Rohm Electronics revenue was formerly included in the Japanese Others category. Sanyo Sanyo revenue was formerly included in the Japanese Others category. Sharp Sharp revenue was formerly included in the Japanese Others category. Sony Sony revenue was formerly included in the Japanese Others category. 44 ©1990 Dataquest Europe Limited June ESIS Volume 3 0006080 - ^ ^ ^ ^ ^ ^ ' 1.. DataQuest 'nVft ^Homp^invoj MwMM 1 lie 111 If iKiJiMdblrcel Corporation '^^^^^^^^^H^^^^K^T" ^^^^^^^^^^^^^^^^^^^^^^^^Ui' DaiaquesI Research and Sales Offices: ^^^^^^^^^^^^1 Dutaqucst Incorporated I2<I0 Ridder Park Drive San Jose. Califurnia 95131-2398 Phone: (4(18) 437-K[XK) Tdex: I7J973 f-ax: 1408) 437-0292 Technology Producls Group Phone: (800) 624-3280 " ^ ^ ^ ^ ^ ^ ^ ^ ^^ ^ ^ ^ ^ ^ ^ ^ ^ ^ |^^^^^^^^^^^ ' ^ ^ ^ ^ ^ ^ H^^^^^^^^^^^^H ^ ^ ^ ^ ^ ^ ^ ^ ^ 1^^^^^^^^^^m ^ ^ ^ ^ ^ H^^^^^^^^^^^M Dataquest Japan Limited Taiyo Gin?a Buildiiig/2nd Floor Chuo-ku Tokyo 1(M Japan Phone: (03) ^^^^H ^^^^^^^^^H Bra; (03) 54«-3198 Dataqucsl Incorporated Rtcus Research Divi^on 10 Executive Drive Paniiingiiin, Omnecticur 06032 Phone: (203) 676-3200 Fax: (203) 676-1656 Dataquest Incorpraated Invitational Computer Conferences Division 3151 Airway Avenue, C-2 Cosia Mesa, California 92626 Phone: (7!4) 9.'i7-fll71 Teles: 5101002189 iCCDQ Fax: 1714) 957-0903 Dataquest Australia Suile 1. Cemury Plaza 80 Berry Slreel North Sydney, NSW" 2060 Ausualiu Phone: (02) 959 4544 Telex: 2i468 Fas: (02) 939 0635 ^ ^ ^ ^ H ^^^^^^^H Dataquest Korea Daeheun^ Bldg.. Room 505 648-23 Yeoksani-dong Kangiuim-gu Seoul. Korea Phone: {02) 552-2332 Fax: (02) 552-266! I^^^^H ^^^^^^ ^ ^ ^ ^ |^^^^^^^^^^^1 ^ ^ ^ ^ H j^^^^^H ^ ^ ^ H^ ^ ^ ^ ^ ^ ^ ^ ^ ^ B ^ ^ ^ H Dataquest Europe SA Tour Gallicni 2 36. avenue Gallieni 93175 Bagnoiel Cedex France Phone: (1)43 97 3100 Telex: 233 263 Fax: (1) 48 97 34 22 ~^^^^^| ^ ^ ^ ^ ^ H^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ H ^ ^ ^ ^ ^ H^ ^ ^ ^ ^ ^ ^ ^ ^ ^ B ^ ^ ^ H^^^^^^^^^^^m ^^^^^H | ^ ^ ^ H ^ ^ ^ H^^^^^^^^^^^^^^^^ ^ ^ H ^ ^ ^ H ^^^^^^^^^^^^^V ^^H ^ H ^ H ^ H^^^^^^^^^^^^B ^ H ^M ^M ^^^^^^^^^H ^^^^^^^^^H ^^^^^^^^^^ft ^^^^^^^^B ^^^^^^^H ^^^^^^^^^H ^^^^^^^^^H Dataquest Singapore 4012 Ang Mo Kio Indusrrial Park 1 Ave. 10. #03-10 to i!i03-12 -Singapore 2056 Phone: 4597181 Itlex: 38257 Pax: 4563129 Dataquest l^iwm Room 80l/8th Floor Ever Spring Building 147, Seet. 2. Chien Kuo N. Rd. Taipei. 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MA 02173 Phone: (617) 862-8500 Fax: 1617) 862-8207 • ^^^^^^^^^^^^^r ^^^^^^^^^H l^^^^^^^^^^ft V Ciataqyest huropean Semiconductor Market Share Estimates Preliminary 1988 Preliminary 1988 European Semiconductor Market Share Estimates European Components Group INTRODUCTION This booklet contains preliminary estimates of semiconductor market shares in the European market for the 1988 calendar year. For reference purposes, corresponding finalized 1987 estimates are also given. European semiconductor market shares for 1988 will be finalized by June 1989. A table of contents is given overleaf. ESIS © 1989 Dataquest Incorporated April TABLE OF CONTENTS PAGE Figure 1. Worldwide Semiconductor Market Shares by Vendor Base Figure 2. European Semiconductor Market Shares by Vendor Base Table 1. Worldwide Total Semiconductor Rankings Table 2. European Total Semiconductor Rankings Table 3. European Total Integrated Circuit Rankings Table 4. European Total Bipolar Digital IC Rankings Table 5. European Bipolar TTL IC Rankings Table 6. European Bipolar ECL IC Rankings Table 7. European Bipolar Memory IC Rankings Table 8. European Bipolar Logic IC Rankings Table 9. European MOS Digital IC Rankings Table 10. European NMOS Digital IC Rankings Table 11. European CMOS Digital IC Rankings Table 12. European BiCMOS Digital IC Rankings Table 13. European Other MOS Digital IC Rankings Table 14. European MOS Memory IC Rankings Table 15. European MOS Microcomponent IC Rankings Table 16. European MOS Logic IC Rankings Table 17. European Analog (Linear) IC Rankings Table 18. European Total Discrete Rankings Table 19. European Total Transistor Rankings Table 20. European Total Diode Rankings Table 21. European Thyristor Rankings Table 22. European Other Discrete Rankings Table 23. European Total Optoelectronic Rankings Table 24. Footnotes to the Tables NOTES TO THE TABLES 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 The semiconductor market share rankings have been presented to show maximum analysis for each product category. shows market share ranking position in 1987 shows market share ranking position in 1988 shows ranked company's name shows market share in 1987 shows market share in 1988 shows shows market share growth 1987 to 1988 shows cumulative market share in 1988 shows percent market share of TAM in 1988 cumulative percent market share of TAM in 1988 Each of these tables also contains a summary showing the sum of all revenues split by vendor regional base. This gives a final estimate for the TAM in each featured product category. Some 1987 totals do not add because they include companies which no longer feature in the 1988 ranking. Column Column Column Column Column Column Column Column Column 1 2 3 4 5 6 7 8 9 TAM = Total Available Market 2 © 1989 Dataquest Incorporated April ESIS Figure 1 Worldwide Seimconductor Market Shares by Vendor Base Percent of Total Meirket 80 - A - . . U , S , Vendors. .European Vendors Japanese Vendors 0©1978 -e- -Q— 1980 -©- -©- -©= =& 1982 RestofWorld =@= rB= 1984 :S: • ^ 1988 1986 Source: Dataquest April 1989 Figure 2 European Semiconductor Market Shares by Vendor Base Percent of Total Market 70 60 European Vandws U.S. Vendors Japan^e^Bndors Rest of Vtforld 30 - 20 - 1978 1980 19S2 1986 t9e4 1988 Source: Dataquest April 1989 ESIS 1989 Dataquest Incorporated April Table 1 Preliminary 1988 Worldwide Semiconductor Market Share Rankings Semiconductor Category: Total Semiconductor (Millions of U.S. Dollars) 1987 Rank 1988 Rank 7 13 16 27 32 53 50 58 68 76 69 80 81 86 93 102 10 13 20 31 32 47 55 61 67 70 71 79 81 90 98 100 103 106 107 Ranked Companies Philips* SGS-THOMSON* Siemens Telefunken Plessey Electronic Inmos ASEA Brown Boveri Semi kron Matra Harris Ericsson MEDL Austria Mikro Systeme Mietec Eurosil TAG STC 1987 $1,602 $1,764 859 1,085 657 273 222 91 103 79 48 41 47 32 32 25 21 12 Fagor ES2 1988 7 784 302 284 137 113 91 71 52 51 43 42 29 23 22 20 14 Annual Growth % 10.1 26.3 19.3 10.6 27.9 50.5 9.7 15.2 47.9 26.8 8.5 34.4 31.3 16.0 9.5 83.3 100.0 *This table to be read in conjunction with Footnotes page © 1989 Dataquest Incorporated April ESIS Table 2 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Semiconductor (Millions of U.S. Dollars) 1988 1987 Rank 1988 Ranked Rank Companies 1987 1988 1 2 3 4 5 7 6 8 12 10 .13 9 11 14 15 29 16 17 18 20 19 25 22 21 37 28 35 33 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NA $930 $1,002 7.7 537 492 478 475 283 650 636 616 571 485 390 370 349 279 246 246 230 198 141 134 131 100 96 86 66 64 58 56 53 52 50 46 43 43 43 42 41 41 39 36 21.0 29.3 30 32 27 26 34 24 36 44 38 23 39 43 40 41 42 Philips* SGS-THOMSON* Texas Instruments Motorola Siemens* Intel National Semiconduc;tor NEC Toshiba AMD* Hitachi ITT* Telefunken* Plessey* GE Solid State* Samsung* Fujitsu ASEA Brown Boveri* Analog Mitsubishi International Recti fier LSI Logic* Oki Semikron Hewlett-Packard Matra-Harris Inmos Matsushita Austria Mikro Systeme* Burr Brown Ericsson* Mietec* MEDL Siliconix IDT* VLSI Technology* Precision Monolithic* Harris Powerex* STC* Fagor* Seiko Epson* Zilog General Instrument AG Western Digital* ES2* Eurosil* Sony* Goldstar* TRW European Others U.S. Dthers ( Japan(Bse Others Rest (of World Others Total Total Total Total Total ESIS All Companies Europe U.S. Japanese Rest of World 345 249 188 235 157 243 209 151 122 35 110 91 77 53 53 40 41 49 17 35 20 26 32 34 32 37 38 22 Annual Growth % 8.9 20.2 71.4 13.0 48.6 85.6 18.7 56.7 1.2 10.0 31.1 15.6 282.9 19.1 9.9 24.7 62.3 24.5 60.0 41.5 14.3 211.8 48.6 150.0 76.9 34.4 26.5 31.3 10.8 7.9 63.6 30 40 19 5 19 17 40 16 6 n 11 11 28 22 21 20 11.8 19 18 (55.0) 12.5 18 17 13 116.7 18.2 13 9 4 (63.6) 0 (100.0) $44 174 21 4 $52 335 102 22 $6,355 2,714 2,746 $8,491 3,215 3.700 1,416 845 50 (30.0) 15.8 320.0 160 18.2 2.5 385.7 450.0 33.6 18.5 34.7 67.6 220.0 Cum Sum 1988 1988 Market Cum Sum Share % % $1,002 1,652 2,288 2,904 3,475 3,960 4,350 4,720 5,069 5,348 5.594 5,840 6.070 6,268 6,409 6,543 6,674 6,774 6,870 6,956 7.022 7.086 7.144 7,200 7.253 7,305 7.355 7.401 7.444 7.487 7,530 7,572 7,613 7,654 7,693 7,729 1,759 7,787 7,809 7,830 7,850 7,869 7,888 7,906 7.924 7.941 7.954 7,967 7.976 7.980 7.980 11.8 $8,032 8.367 8,469 8,491 0.6 4.0 1.2 0.3 7.7 7.5 7.3 6.7 5.7 4.6 4.4 4.1 3.3 2.9 2.9 2.7 2.3 1.7 1.6 1.5 1.2 1.1 1.0 0.8 0.8 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.0 100.0 37.9 43.6 16.7 1.9 *This table to be read in conjunction with Footnotes page © 1989 Dataquest Incorporated April 11.8 19.5 27.0 34.2 40.9 46.6 51.2 55.6 59.7 63.0 65.9 68.8 71.5 73.8 5.5 77.1 78.6 79.8 80.9 81.9 82.7 83.5 84.1 84.8 85.4 86.0 86.6 87.2 87.7 88.2 88.7 89.2 89.7 90.1 90.6 91.0 91.4 91.7 92.0 92.2 92.4 92.7 92.9 93.1 93.3 93.5 93.7 93.8 93.9 94.0 94.0 94.6 98.5 99.7 100.0 Table 3 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Integrated Circuit (Millions of U.S. Dollars) 1988 1987 Rank 1 2 6 3 5 4 7 8 n9 10 13 12 23 14 15 17 16 18 21 19 22 31 24 26 25 29 36 20 28 30 38 32 27 37 34 35 1988 Rank Ranked Companies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Philips* $618 Texas Instruments 449 Intel 283 SGS-THOMSON* 397 Motorola 302 National Semiconductor* 335 Siemens* 244 1987 1988 1988 Market Share Cum Sum % 10.4 11 9.0 7.3 7.3 6.3 5.8 5.7 5.5 4.2 4.2 3.5 2.4 2.2 2.0 2.0 1.6 1.5 1.3 1.2 1.0 0.9 0.8 0.8 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.1 0.1 10.4 19.4 26.7 34.0 40.3 46.2 51.8 57.3 61.6 65.8 69.3 71.8 73.9 75.9 77.9 79.5 81.0 82.2 83.4 84.4 85.2 86.0 86.8 87.4 88.1 88.7 89.4 89.9 90.5 91.0 91.4 91.8 92.2 92.6 92.9 93.2 93.4 93.7 94.0 94.2 94.4 94.5 94.6 $23 134 12 4 $28 262 46 22 21.7 95.5 283.3 450.0 $6,274 6,536 6,582 6,604 0.4 4.0 0.7 0.3 95.0 99.0 99.7 100.0 $4,693 $6,604 1,697 2,137 2,196 3.061 750 1.248 40.7 25.9 39.4 66.4 216.0 Oki Matra-Harris Inmos Austria Mikro Systeme* Burr Brown* Mietec* Ericsson* IDT* VLSI Technology* Matsushita Precision Monolithic* Harris ASEA Brown Boveri* MEDL STC* Seiko Epson* Zilog Siliconix Western Digital* ES2* Eurosil* Sony* Goldstar* All Companies Europe U.S. Japanese Rest of World Cum Sum $685 1,281 1,766 2,249 2,664 3.049 3.424 3,788 4,068 4,347 4,580 4,740 8.3 4,883 5,015 277.1 5,146 19.1 5,252 15.2 24.7 5,348 7.7 5,432 5,510 62.5 5,574 60.0 5.631 39.0 5.683 48.6 5.733 150.0 34.4 5,776 5,819 5,861 31.3 5,902 28.1 5,941 5.977 63.6 6.008 287.5 6.038 (30.0) 6.066 8.7 6.091 9.5 6.114 6.134 300.0 6,153 6,172 11.8 (28.0) 6,190 6,207 6,220 116.7 6,233 18.2 6,242 (63.6) 6,246 Toshiba AMD* Hitachi Plessey* ITT* Samsung* Fujitsu GE Solid State* Analog Telefunken* Mitsubishi LSI Logic* Total Total Total Total Total Annual Growth % 596 485 483 415 385 375 364 280 279 233 160 143 132 131 106 96 84 78 64 57 52 50 43 43 42 41 39 36 31 30 28 25 23 20 19 19 18 17 13 13 9 4 NEC European Others U.S. Others Japanese Others Rest of World Others 1988 243 142 235 146 120 132 35 110 92 77 78 48 40 41 35 20 32 32 32 22 8 40 23 21 5 17 25 6 11 50 $685 158 10.8 32.7 71.4 21.7 37.4 14.9 53.7 49.8 97.2 18.7 59.6 33.3 100.0 32.4 46.4 18.9 2.4 ^This table to be read in conjunction with Footnotes page © 1989 Dataquest Incorporated April ESIS Table 4 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Bipolar Digital IC (Millions of U.S. Dollars) 1988 1987 Rank 1 2 3 4 7 6 5 9 8 10 11 13 14 12 17 1988 Rank Ranked Companies 1 2 3 4 5 6 7 8 9 Texas Instruments AMD* Philips* National Semiconductor* Plessey* Motorola Siemens* Telefunken* Fujitsu 10 . SGS-THOMSON* 11 Intel 12 STC* 13 Hitachi 14 15 16 17 18 NEC Ericsson* Goldstar* Matsushita Toshiba European Others U.S. Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1987 $161 109 97 94 41 53 61 15 26 14 8 5 5 5 2 1988 Annual Growth % Cum Sum $204 26.7 $204 119 119 110 60 55 28 17 13 11 10 7 6 6 5 3 3 3 9.2 323 442 552 612 667 695 712 725 736 746 753 759 765 770 773 776 779 22.7 17.0 46.3 3.8 (54.1) 13.3 (50.0) (21.4) 25.0 20.0 20.0 0.0 50.0 $7 14 $8 28 14.3 100.0 $725 $815 12.4 243 439 43 255 526 4.9 9.8 31 3 (27.9) $787 815 1988 Market Share % 25.0 14.6 14.6 13.5 7.4 6.8 3.4 2.1 1.6 1.4 1.2 0.9 0.7 0.7 0.6 0.4 0.4 0.4 © 1989 Dataquest Incorporated April Cum Sum % 25.0 39.6 54.2 67.7 75.1 81.8 85.3 87.4 89.0 90.3 91.6 92.4 93.2 93.9 94.5 94.9 95.2 95.6 1.0 96.6 3.4 100.0 100.0 31.3 64.5 3.8 0.4 *This table to be read in conjunction with Footnotes page ESIS 1988 Table 5 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar TTL IC (Millions of U.S. Dollars) 1987 Rank 1988 Rank 1 2 3 4 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 . 5 6 7 13 8 12 n 14 9 17 Ranked Companies 1987 $ Texas Instruments 161 Philips* 91 AMD* 90 National Semiconducto r* 75 Motorola 41 Telefunken* 15 SGS-THOMSON* 14 Plessey* 5 Fujitsu 12 Hitachi 5 Ericsson* 5 NEC Siemens* Goldstar* Matsushita European Others U.S. Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1988 $ 2 204 107 95 95 38 17 11 7 6 6 5 5 4 3 3 5 14 5 28 564 147 389 28 649 156 470 4 9 20 3 Annual Growth % Cum 26.7 17.6 204 311 406 501 539 556 567 584 590 596 601 606 610 613 616 5.6 26.7 (7.3) 13.3 (21.4) 40.0 (50.0) 20.0 0.0 25.0 (55.6) 50.0 0.0 100.0 15.1 6.1 20.8 (28.6) Sum $ 621 649 Market Share % Cum 31.4 16.5 14.6 14.6 31.4 47.9 62.6 77.2 83.1 85.7 88.9 90.0 90.9 91.8 92.6 93.4 94.0 94.5 94.9 5.9 2.6 1.1 0.9 0.9 0.8 0.8 0.6 0.5 0.5 Sum % 0.8 95.7 4.3 100.0 100.0 24.0 72.4 3.1 0.5 *This table to be read in conjunction with Footnotes page © 1989 Dataquest Incorporated April ESIS Table 6 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar ECL IC (Millions of U.S. Dollars) 1988 1987 Rank 2 3 1 6 4 7 5 8 1988 Rank 1 2 3 4 5 6 7 8 9 10 Ranked Companies 1987 1988 Annual Growth % $36 $53 Plessey* AMD* 19 24 Siemens* 52 24 Motorola 12 17 National Semiconductoir* 19 15 Philips* 6 12 Fujitsu 7 14 STC* 7 Toshiba 3 NEC European Others Total Total Total Total All Companies Europe U.S. Japanese Cum Sum 1 1 0.0 $53 77 101 118 133 145 152 159 162 163 $2 $3 50.0 $166 $161 $166 3.1 3.1 96 50 15 99 56 11 47.2 26.3 (53.8) 41.7 (21.1) 100.0 (50.0) 12.0 (26.7) 1988 Market Share % 1988 Cum Sum % 31.9 14.5 14.5 10.2 9.0 7,2 4.2 4.2 1.8 0.6 31.9 46.4 60.9 71.1 80.1 87.4 91.6 95.8 97.6 98.2 1.8 100.0 100.0 59.6 33.7 6.6 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April $ Table 7 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar Memory IC (Millions of U.S. Dollars) 1988 Market Share % 1988 $30 45 57 67 75 78 80 81 82 32.6 16.3 13.0 10.9 8.7 3.3 2.2 1.1 1.1 32.6 48.9 62.0 72.8 81.5 84.8 87.0 88.0 89.1 $83 92 1.1 9.8 90.2 100.0 1988 1987 Rank 1 2 3 4 5 7 9 10 8 1988 Rank 1 2 3 4 5 6 7 8 9 Ranked Companies AMD* Philips* Texas Instruments National Semiconductor* Fujitsu NEC Hitachi Motorola Siemens* European Others U.S. Others Total Total Total Total All Companies Europe U.S. Japanese 1987 1988 Annual Growth % Cum Sum 15.4 $26 14 10 9 8 3 2 1 3 $30 15 12 10 8 3 2 1 1 (66.7) $1 5 $1 9 80.0 $85 21 51 13 $92 17 62 13 (19.0) 21.6 7.1 20.0 11.1 0.0 0.0 0.0 0.0 0.0 8.2 0.0 Cum Sum % 100.0 18.5 67.4 14.1 ^This table to be read in conjunction with Footnotes page 10 © 1989 Dataquest Incorporated April ESIS Table 8 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar Logic IC (Millions of U.S. Dollars) 1988 1987 1988 Rank Rank Ranked Companies 1987 1 4 2 3 7 6 5 9 10 Texas Instruments Philips* National Semiconductor* AMD* Plessey* Motorola Siemens* Telefunken* SGS-THOMSON* Intel STC* Ericsson* Fujitsu Hitachi Goldstar* Matsushita $151 $192 83 85 83 41 52 58 15 14 8 104 100 89 60 54 27 17 11 10 7 5 5 4 3 3 3 3 n 12 8 13 15 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 NEC 5 18 3 2 2 Toshiba European Others U.S. Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1988 Annual Growth % Cum Sum 27.2 25.3 17.6 $192 7.2 46.3 3.8 (53.4) 13.3 (21.4) 25.0 0.0 (72.2) 33.3 50.0 50.0 $6 9 $7 19 16.7 ni.i $640 $723 13.0 222 388 30 238 464 7.2 18 3 19.6 (40.0) 296 396 485 545 599 626 643 654 664 671 676 681 685 688 691 694 697 $704 723 1988 Market Share % 1988 26.6 14.4 13.8 12.3 26.6 40.9 54.8 67.1 75.4 82.9 86.6 88.9 90.5 91.8 92.8 93.5 94.2 94.7 95.1 95.5 96.0 96.4 8.3 7.5 3.7 2.4 1.5 1.4 1.0 0.7 0.7 0.6 0.4 0.4 0.4 0.4 Cum Sum % 1.0 97.3 2.6 100.0 100.0 32.9 64.2 2.5 0.4 "This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 11 Table 9 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total MOS Digital IC (Millions of U.S. Dollars) 1988 Market Share % 1988 $475 10.9 830 1,117 1,393 1,655 1,915 2,170 2,415 2,636 2,782 2,912 3,037 3.155 3,257 3.335 3.408 3.472 3.529 3,581 3,632 3,682 3,724 3,763 3,802 3,838 3,863 3.886 3,908 3.927 3.945 3.962 3.977 3.991 4.004 4.017 4.027 4,036 4.042 4.047 4,048 8.2 6.6 6.4 6.0 6.0 5.9 5.6 5.1 3.4 3.0 2.9 2.7 2.4 1.8 1.7 1.5 1.3 1.2 1.2 1.2 1.0 0.9 0.9 0.8 0.6 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.0 10.9 19.1 25.7 32.1 38.1 44.1 50.0 55.6 60.7 64.1 67.1 70.0 72.7 75.0 76.8 78.5 80.0 81.3 82.5 83.7 84.8 85.8 86.7 87.6 88.4 89.0 89.5 90.0 90.5 90.9 91.3 91.6 91.9 92.2 92.5 92.8 93.0 93.1 93.2 93.3 $4,066 4,273 4,319 4,341 0.4 4.8 1.1 0.5 93.7 98.4 99.5 100.0 1988 1987 Rank 1 3 5 2 4 8 6 n7 10 9 19 13 12 15 14 16 17 21 18 26 20 22 24 23 25 37 27 29 30 35 31 28 36 33 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Ranked Companies 1987 Intel $275 NEC Texas Instruments Philips* SGS-THOMSON* Toshiba Motorola Siemens* Hitachi AMD* National Semiconductor * Samsung* Fujitsu ITT* Mitsubishi GE Solid State* LSI Logic* Oki Matra-Harris Plessey* Inmos Mietec* Austria Mikro Systeme' IDT* VLSI Technology* ASEA Brown Boveri* MEDL Matsushita Zilog Seiko Epson* Western Digital* Telefunken* Ericsson* ES2* Eurosil* Harris STC* Analog Sony* Goldstar* European Others U.S. Others Japanese Others Rest of World Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 215 193 262 209 125 163 103 136 116 121 35 84 99 45 64 40 39 30 35 20 32 29 22 23 21 1 17 14 n6 11 14 5 11 $14 78 12 4 1988 $475 Annual Growth % 72.7 65.1 355 48.7 287 5.3 276 25.4 262 108.0 260 56.4 255 137.9 245 62.5 221 25.9 146 7.4 130 257.1 125 40.5 118 3.0 102 73.3 78 14.1 73 60.0 64 46.2 57 73.3 52 45.7 51 150.0 50 31.3 42 34.5 39 39 63.6 36 8.7 25 9.5 23 22 2.100.0 11.8 19 18 17 7.1 15 27.3 14 116.7 13 18.2 13 (28.6) 10 80.0 9 6 5 (90.9) 1 $18 207 46 22 28.6 165.4 283.3 450.0 $2,753 $4,341 825 1,147 1,221 1,866 657 1,180 57.7 39.0 52.8 79.6 196.0 50 148 Cum Sum Cum Sum % 100.0 26.4 43.0 27.2 3.4 *This table to be read in conjunction with Footnotes page 12 © 1989 Dataquest Incorporated April ESIS Table 10 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: NMOS Digital IC (Millions of U.S. Dollars) 1987 Rank 1 3 7 5 6 2 4 10 13 8 19 12 11 9 14 15 16 17 20 21 22 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Ranked Companies 1987 Intel Texas Instruments Siemens* SGS-THOMSON* AMD* NEC Philips* Motorola Toshiba Hitachi Samsung* Fujitsu ITT* National Semiconductor* Mitsubishi Oki Telefunken* Zilog Plessey* Austria Mikro Systeme' Inmos Mietec* Matra Harris STC* European Others U.S. Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1988 $229 $257 136 96 117 111 165 118 58 37 63 9 37 52 194 179 137 129 124 114 108 80 73 60 47 47 40 26 22 15 15 10 8 7 7 3 1 62 25 16 14 14 7 6 4 0.3 4.0 96.0 100.0 7.1 7.1 42.9 33.3 75.0 24.1 33.1 20.3 487 861 372 60 $1,709 1,780 451 630 767 896 4.0 $1,434 $•1,780 366 716 343 9 1.020 1.134 1,242 1,322 1,395 1,455 1,502 1,549 1,589 1,615 1,637 1,652 1,667 1,677 1,685 1,692 1,699 1,702 1,703 7.7 7.3 7.0 6.4 6.1 4.5 4.1 3.4 2.6 2.6 2.3 1.5 1.2 0.8 0.8 0.6 0.5 0.4 0.4 0.2 0.1 14.4 25.3 35.4 43.1 50.4 57.3 63.7 69.8 74.3 78.4 81.8 84.4 87.0 89.3 90.7 92.0 92.8 93.7 94.2 94.7 95.1 95.5 95.6 95.7 $257 37.5 50.0 65.1 Sum % % 12.2 42.6 86.5 17.1 16.2 (24.8) (3.4) 86.2 116.2 15.9 566.7 27.0 (9.6) (35.5) $6 71 $4 43 Cum Cum Market Sum Share Annual Growth % 14.4 10.9 10.1 8.5 100.0 27.4 48.4 20.9 566.7 3.4 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 13 Table 11 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: CMOS Digital IC (Millions of U.S. Dollars) 1988 1987 Rank n 9 4 1 2 3 5 6 8 10 7 16 31 13 22 14 12 24 15 20 19 18 17 21 36 32 23 26 30 27 25 33 34 28 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 1987 Ranked Companies Intel $ 46 NEC Toshiba Philips* Motorola SGS-THOMSON* Hitachi National Semiconductor* Texas Instruments Fujitsu GE Solid State* Samsung* Siemens* LSI Logic* Mitsubishi Matra-Harris ITT* Inmos Plessey* IDT* VLSI Technology* Oki Austria Mikro Systeme* ASEA Brown Boveri* MEDL Matsushita Seiko Epson* AMD* Mietec* Western Digital* Ericsson* ES2* Eurosil* Harris Analog STC* Sony* Zilog Goldstar* European Others U.S. Others Japanese Others Rest of World Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 50 88 144 104 92 70 59 52 46 58 26 6 40 20 30 45 16 27 22 23 23 23 21 1 5 18 11 6 11 14 5 3 11 1988 $218 Annual Growth % 373.9 326.0 213 104.5 180 12.5 162 41.3 147 35.9 125 41.4 99 50.8 89 67.3 87 54.3 71 13.8 66 150.0 65 983.3 65 57.5 63 160.0 52 63.3 49 6.7 48 168.8 43 48.1 40 39 63.6 36 52.2 35 34.8 31 8.7 25 9.5 23 22 2,100.0 18 240.0 17 (5.6) 17 17 27.3 14 116.7 13 18.2 13 (28.6) 10 6 20.0 6 5 33.3 4 (90.9) 1 $12 134 46 22 20.0 294.1 283.3 450.0 $11,284 $2,448 90.7 44.0 100.2 139.0 114.6 $10 34 12 4 443 490 310 41 638 981 741 88 1988 Cum Market Sum Share $218 431 611 773 920 1.045 1,144 1,233 1,320 1,391 1,457 1,522 1,587 1,650 1.702 1,751 1,799 1,842 1.882 1.921 1.957 1.992 2,023 2,048 2,071 2,093 2,111 2,128 2,145 2.162 2.176 2,189 2,202 2,212 2,218 2,224 2,229 2,233 2,234 $2,246 2,380 2,426 2.448 © 1989 Dataquest Incorporated April Cum % Sum % 8.9 8.7 7.4 6.6 6.0 5.1 4.0 3.6 3.6 2.9 2.7 2.7 2.7 2.6 2.1 2.0 2.0 1.8 1.6 1.6 1.5 1.4 1.3 1.0 0.9 0.9 0.7 0.7 0.7 0.7 0.6 0.5 0.5 0.4 0.3 0.3 0.2 0.2 0.0 17.6 25.0 31.6 37.6 42.7 46.7 50.4 53.9 56.8 59.5 62.2 64.8 67.4 69.5 71.5 73.5 75.3 76.9 78.5 79.9 81.4 82.6 83.7 84.6 85.5 86.2 86.9 87.6 88.3 88.9 89.4 89.9 90.3 90.6 90.8 91.0 91.2 91.2 8.9 0.5 91.7 5.5 97.2 1.9 99.1 0.9 100.0 100.0 26.1 40.1 30.3 3.6 "This table to be read in conjunction with Footnotes page 14 1988 ESIS Table 12 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: BiCMOS Digital IC (Millions of U.S. Dollars) 1987 Rank 1988 Rank Ranked Companies 1987 1988 Annual Growth Cum Sum % 1 2 3 1 2 3 4 5 6 7 8 Mietec* NEC GE Solid State* Hitachi STC* Texas Instruments LSI Logic* r* National Semiconductoi Total A l l Companies Total Europe Total U.S. Total Japanese $14 6 3 $24 14 7 3 $18 18 7 7 2 2 1 1 $56 20 11 25 28.6 16.7 133.3 $18 36 43 50 52 54 55 56 133.3 42.9 57.1 733.3 Market Share % 32.1 32.1 12.5 12.5 3.6 3.6 1.8 1.8 100.0 35.7 19.6 44.6 Cum Sum % 32.1 64.3 76.8 89.3 92.9 96.4 98.2 100.0 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 15 Table 13 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Other MOS IC (Millions of U.S. Dollars) 1987 Rank 1988 Rank N/A 2 1 4 5 2 3 4 5 ^ Ranked Companies Hitachi ITT* Texas Instruments Plessey* Siemens* U.S. Others Total All Companies Total Europe Total U.S. Total Japanese 1987 1988 $2 5 1 1 1 $42 7 4 1 1 2 $11 2 8 1 $57 2 13 42 Annual Growth % 250.0 (20.0) 0.0 0.0 100.0 418.2 0.0 62.5 4,100.0 1988 Cum Sum 1988 Market Share % 1988 Cum Sum % $42 49 53 54 55 57 73.7 12.3 7.0 1.8 1.8 3.5 73.7 86.0 93.0 94.7 96.5 100.0 100.0 3.5 22.8 73.7 *This table to be read in conjunction with Footnotes page 16 © 1989 Dataquest Incorporated April ESIS Table 14 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: MOS Memory IC (Millions of U.S. Dollars) 1988 1987 Rank 2 1 5 4 9 10 6 3 7 8 n 12 14 13 19 22 16 17 18 20 24 21 23 - 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Ranked Companies NEC $100 Texas Instruments Toshiba Hi tachi Siemens* Samsung* Fujitsu Intel SGS-THOMSON* Mitsubishi AMD* Oki National Semiconductor* IDT* Motorola Inmos Matsushita Matra-Harri s Philips* Seiko Epson* GE Solid State* Sony* Harris VLSI Technology* Austria Mikro Systeme* MEDL STC* European Others U.S. Others Rest of World Others Total Total Total Total Total 1987 All Companies Europe U.S. Japanese Rest of World 108 77 83 33 32 68 98 53 39 27 26 12 12 7 1 9 8 7 6 1 2 1 $1 14 4 1988 $206 $2 13 22 $838 $•1,649 114 285 394 45 276 457 774 142 1988 Cum Sum % % 106.0 80.6 195 142.9 187 66.3 138 293.9 130 275.0 120 42.6 97 (1.0) 97 54.7 82 79.5 70 100.0 54 46.2 38 150.0 30 27 108.3 25 228.6 23 22 2,100.0 122.2 20 75.0 14 11 14.3 8 5 (33.3) 4 300.0 4 50.0 3 0.0 1 1 1988 Cum Market Sum Share Annual Growth % $206 401 588 726 856 976 1,073 1,170 1,252 1,322 1,376 1,414 1,444 1,471 1,496 1,519 1,541 1,551 1,575 1,586 1,594 1,599 1,603 1,607 1,610 1,611 1,612 100.0 $1,614 (7.1) 1,627 1,649 450.0 96.8 142.1 60.4 96.4 215.6 12.5 11.8 11.3 8.4 7.9 7.3 5.9 5.9 5.0 4.2 3.3 2.3 1.8 1.6 1.5 1.4 1.3 1.2 0.9 0.7 0.5 0.3 0.2 0.2 0.2 0.1 0.1 12.5 24.3 35.7 44.0 51.9 59.2 65.1 71.0 75.9 80.2 83.4 85.7 87.5 89.2 90.7 92.1 93.4 94.6 95.5 96.2 96.6 96.9 97.2 97.4 97.6 97.7 97.7 0.1 97.8 0.8 98.6 1.3 100.0 100.0 16.7 27.7 46.9 8.6 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 17 Table 15 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: MOS MIcrocomponent IC (Millions of U.S. Dollars) 1988 1987 Rank 1 2 3 4 7 6 10 8 5 9 14 11 12 16 15 13 20 19 17 18 21 23 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Ranked Companies Intel Motorola NEC SGS-THOMSON* Hitachi Philips* Siemens* Texas Instruments National Semiconductor* AMD* Inmos Toshiba Zilog Western Digital* Oki GE Solid State* Matra-Harris Fujitsu Mitsubishi ITT* Analog Harris IDT* VLSI Technology* Eurosil* MEDL U.S. Others Japanese Others Total Total Total Total All Companies Europe U.S. Japanese 1987 $162 98 90 60 44 54 23 38 54 36 13 21 17 1988 $351 Annual Growth % 0.0 1.013 1,040 1,059 1,076 1,092 1,107 1,121 1,130 1.138 1,145 1,151 1,157 1,163 1,168 1,169 1.170 $1,252 1,262 6.5 0.8 99.2 100.0 11 1 82 10 645.5 900.0 $794 $1,262 58.9 34.5 75.4 40.4 168 448 178 226 786 250 Sum % % 8.6 6.1 5.6 4.4 4.0 3.8 3.2 2.7 2.1 2.1 1.5 1.4 1.3 1.2 1.1 0.7 0.6 0.6 0.5 0.5 0.5 0.4 0.1 0.1 2 1 8 Cum 27.8 39.7 48.3 54.4 60.1 64.5 68.5 72.3 75.4 78.1 80.3 82.4 83.9 85.3 86.5 87.7 88.8 89.5 90.2 90.7 91.2 91.7 92.2 92.6 92.7 92.7 116.7 53.1 21.1 28.3 61.4 150 109 77 71 56 50 48 40 34 27 27 19 17 16 15 14 9 8 7 6 6 6 5 1 1 12 12 15 4 6 10 1988 1988 Cum Market Sum Share $351 501 610 687 758 3.7 • 814 864 912 952 986 117.4 26.3 (25.9) (5.6) 107.7 28.6 11.8 33.3 25.0 (6.7) 125.0 33.3 (30.0) (25.0) (50.0) 27.8 11.9 100.0 17.9 62.3 19.8 "This table to be read in conjunction with Footnotes page 18 © 1989 Dataquest Incorporated April ESIS Table 16 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: MOS Logic IC (Millions of U.S. Dollars) 1987 Rank 1 2 3 6 7 10 4 5 n.9 14 8 12 15 13 19 17 16 18 28 20 22 27 23 21 25 29 30 32 31 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Ranked Companies Philips* SGS-THOMSON* ITT* Motorola Siemens* LSI Logic* National Semiconductor* AMD* Plessey* GE Solid State* Toshiba Texas Instruments Mietec* NEC Austria Mikro Systeme* Intel VLSI Technology* ASEA Brown Boveri* MEDL Matra Harris Telefunken* Ericsson* ES2* Eurosil* Fujitsu Hitachi STC* Seiko Epson* IDT* Samsung* Oki Goldstar* European Others U.S. Others Japanese Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1987 $200 96 89 53 47 40 55 53 35 45 27 47 32 25 27 15 21 23 19 6 14 11 6 9 12 9 5 3 1 2 1988 3.0 7.3 103 6.7 95 50.9 80 38.3 65 60.0 64 9.1 60 9.4 58 45.7 51 11.1 50 70.4 46 (6.4) 44 31.3 42 60.0 40 33.3 36 80.0 27 28.6 27 8.7 25 10.5 21 18 200.0 7.1 15 27.3 14 13 116.7 33.3 12 0.0 12 33.3 12 60.0 8 7 ^ 6 66.7 5 3 200.0 1 (50.0) 23.1 111.3 227.3 $1,121 $1,430 27.6 18.8 27.7 83.5 20.0 543 488 85 5 645 623 156 6 Sum % % $206 $16 112 36 $13 53 11 Cum Cum Market Sum Share Annual Growth % $206 14.4 309 404 484 549 613 673 731 782 832 878 922 964 7.2 6.6 5.6 4.6 4.5 4.2 4.1 3.6 3.5 3.2 3.1 2.9 2.8 2.5 1.9 1.9 1.8 1.5 1.3 1.1 1.0 0.9 0.8 0.8 0.8 0.6 0.5 0.4 0.4 0.2 0.1 1.004 1,040 1.067 1.094 1.119 1.140 1.158 1.173 1.187 1.200 1.212 1.224 1.236 1.244 1.251 1.257 1,262 1.265 1.266 $1,282 1.394 1.430 14.4 21.6 28.3 33.8 38.4 42.9 47.1 51.1 54.7 58.2 61.4 64.5 67.4 70.2 72.8 74.7 76.5 78.3 79.8 81.0 82.1 83.1 84.0 84.8 85.6 86.5 87.0 87.5 88.0 88.3 88.5 88.6 1.1 89.7 7.8 97.5 2.5 100.1 100.0 45.1 43.6 10.9 0.4 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 19 Table 17 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Analog (Linear) IC (Millions of U.S. Dollars) 1988 1987 Rank 1988 Rank 1 2 3 5 4 6 7 8 9 1 2 3 4 5 6 7 8 9 10 10 11 n 12 16 12 14 15 17 18 19 20 13 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Ranked Companies Philips* SGS-THOMSON« National Semiconductor* Motorola Texas Instruments Siemens* Analog Telefunken* Plessey* Burr Brown* ITT* GE Solid State* Precision Monolithic* Ericsson* Harris Siliconix Toshiba AMD* Samsung* Hitachi Matsushita Austria Mikro Systeme* Sony* STC* 1987 $259 174 120 86 95 80 77 49 44 33 28 16 26 17 17 10 5 5 3 23 NEC Seiko Epson* European Others U.S. Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World $2 42 1988 $290 210 145 105 105 102 90 52 49 43 41 33 30 22 18 18 17 14 7 6 6 4 4 4 3 1 $2 27 $1,215 $1,448 629 536 50 735 669 37 7 Annual Growth % 12.0 20.7 20.8 22.1 10.5 27.5 16.9 $290 500 645 750 855 957 1,047 1,099 11.4 1.148 1,191 1,232 24.2 1,265 17.9 1,295 1,317 37.5 (30.8) 1,335 5.9 1,353 1,370 0.0 1,384 40.0 1,391 1,397 20.0 1,403 20.0 1,407 33.3 1,411 1,415 (87.0) 1,418 1,419 0.0 $1,421 19.2 16.9 24.8 (26.0) Cum Sum % % 6.1 (35.7) 1988 1988 Cum Market Sum Share 1,448 7.3 7.3 7.0 6.2 3.6 3.4 3.0 2.8 2.3 2.1 1.5 1.2 1.2 1.2 1.0 0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.1 20.0 34.5 44.5 51.8 59.0 66.1 72.3 75.9 79.3 82.2 85.1 87.4 89.4 90.9 92.2 93.4 94.6 95.6 96.0 96.4 96.9 97.1 97.4 97.7 97.9 98.0 0.1 1.9 98.1 100.0 20.0 14.5 10.0 100.0 50.8 46.2 2.6 0.5 ^This table to be read in conjunction with Footnotes page 20 © 1989 Dataquest Incorporated April ESIS Table 18 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Discrete (Millions of U.S. Dollars) 1988 1987 Rank 1 3 4 2 5 6 7 8 9 10 12 11 19 13 14 15 16 17 18 21 24 20 23 22 1988 Rank Ranked Companies 1 2 3 4 5 6 7 8 9 10 11 Philips* Motorola SGS-THOMSON* Siemens* ITT* Telefunken* ASEA Brown Boveri* International Rectifier Semikron Toshiba GE Solid State* 12 , Texas Instruments Siliconix 13 Powerex* 14 Fagor* 15 General Instrument 16 MEDL 17 Plessey* 18 19 20 21 22 23 24 25 26 27 TAG Matsushita Hitachi Mi tsubishi National Semiconductor* NEC Hewlett-Packard Samsung* STC* European Others U.S. Others Japanese Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1987 $290 $294 170 140 178 111 65 63 53 49 33 23 28 13 19 196 167 135 103 73 69 66 56 52 27 25 23 22 20 18 18 18 18 13 9 6 5 5 4 2 1 16 16 16 16 15 8 2 10 5 7 $6 26 4 $294 490 657 792 895 968 12.5 12.5 12.5 12.5 (13.3) 12.5 200.0 (50.0) 0.0 (42.9) 1,037 1,103 1,159 1,211 1,238 1,263 1,286 1,308 1,328 1,346 1,364 1,382 1,400 1,413 1,422 1,428 1,433 1,438 1,442 1,444 1.445 0.0 $1,451 $6 1,495 44 69.2 1,521 26 550.0 $1,384 $•1,521 839 478 67 1.4 9.5 875 533 111 2 1988 Cum Sum % % 15.3 19.3 (24.2) (7.2) 12.3 24.5 14.3 57.6 17.4 (10.7) 76.9 15.8 1988 Cum Market Sum Share 1988 Annual Growth % 9.9 4.3 11.5 65.7 19.3 12.9 11.0 8.9 6.8 4.8 4.5 4.3 3.7 3.4 1.8 1.6 1.5 1.5 1.3 1.2 1.2 1.2 1.2 0.9 0.6 0.4 0.3 0.3 0.3 0.1 0.1 19.3 32.2 43.2 52.1 58.9 63.7 68.2 72.5 76.2 79.6 81.4 83.1 84.6 86.0 87.3 88.5 89.7 90.9 92.0 92.9 93.5 93.9 94.2 94.5 94.8 94.9 95.0 0.4 95.4 2.9 98.3 1.7 100.0 100.0 57.5 35.0 7.3 0.1 "This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 21, Table 19 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Transistor (Millions of U.S. Dollars) 1988 1987 Rank 1 2 4 3 7 5 6 12 10 8 9 11 16 15 17 19 20 14 18 22 23 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Ranked Companies Philips* Motorola SGS-THOMSON* Siemens* Toshiba ITT* Texas Instruments Siliconix GE Solid State* International Rectifier Telefunken* Matsushita Powerex* Plessey* MEDL Hewlett-Packard Mitsubishi National Semiconductor* NEC Samsung* ASEA Brown Boveri* Hitachi Semikron European Others U.S. Others Japanese Others Total Total Total Total Total All Companies Europe U.S. Japanese Rest of World 1987 1988 $175 $175 112 65 88 22 39 28 13 15 16 16 14 6 6 4 2 2 7 3 124 85 66 36 32 25 23 20 20 18 12 8 7 5 4 4 3 3 2 1 1 1 1 1 $2 12 4 $2 15 26 $663 $718 357 260 46 360 274 82 2 Annual Growth % 0.0 10.7 30.8 (25.0) 63.6 (17.9) (10.7) 76.9 33.3 25.0 12.5 (14.3) 33.3 16.7 25.0 100.0 100.0 (57.1) 0.0 0.0 0.0 $175 299 384 450 486 518 543 566 586 606 624 636 644 651 656 660 664 667 670 672 673 674 675 0.0 $677 692 718 78.3 Cum Sum % % 25.0 550.0 8.3 0.8 5.4 1988 1988 Cum Market Sum Share 9.2 5.0 4.5 3.5 3.2 2.8 2.8 2.5 1.7 1.1 1.0 0.7 0.6 0.6 0.4 0.4 0.3 0.1 0.1 0.1 24.4 41.6 53.5 62.7 67.7 72.1 75.6 78.8 81.6 84.4 86.9 88.6 89.7 90.7 91.4 91.9 92.5 92.9 93.3 93.6 93.7 93.9 94.0 0.3 2.1 3.6 94.3 96.4 100.0 24.4 17.3 11.8 100.0 50.1 38.2 11.4 0.3 *This table to be read in conjunction with Footnotes page 22 © 1989 Dataquest Incorporated April ESIS Table 20 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Diode (Millions of U.S. Dollars) 1988 1987 Rank 1 4 5 2 3 6 8 7 n9 10 13 15 16 14 17 18 19 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Ranked Companies Philips* Motorola SGS-THOMSON* ITT* Siemens* Telefunken* International Rectifier Semikron Fagor* General Instrument ASEA Brown Boveri* Plessey* MEDL Powerex* Toshiba National Semiconductor* GE Solid State* Matsushita NEC STC* European Others U.S. Others Total Total Total Total All Companies Europe U.S. Japanese 1987 1988 $98 $109 59 43 50 31 47 72 35 48 29 27 23 18 21 19 20 18 8 14 13 11 10 4 4 3 3 3 2 2 3 1 1 1 1 1 1 1 Annual Growth % 11.2 37.2 61.3 (34.7) (27.1) 7.4 27.8 10.5 125.0 7.7 10.0 0.0 0.0 50.0 (33.3) 0.0 0.0 0.0 1988 1988 Cum Market Sum Share Cum Sum % % $109 168 218 265 300 329 352 373 393 411 425 436 440 443 446 448 449 450 451 452 $2 14 $2 29 0.0 $454 107.1 483 $423 $483 252 167 4 296 182 5 14.2 17.5 22.6 12.2 10.4 9.7 7.3 6.0 4.8 4.4 4.1 3.7 2.9 2.3 0.8 0.6 0.6 0.4 0.2 0.2 0.2 0.2 22.6 34.8 45.1 54.9 62.1 68.1 72.9 77.2 81.4 85.1 88.0 90.3 91.1 91.7 92.4 92.8 93.0 93.2 93.4 93.6 0.4 94.0 6.0 100.0 9.0 100.0 61.3 37.7 25.0 1.0 "This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 23 Table 21 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Thyristor (Millions of U.S. Dollars) 1988 1987 Rank 1 3 2 4 5 6 7 8 9 10 n 12 1988 Rank Ranked Companies 1 2 3 4 5 6 7 8 9 ASEA Brown Boveri* SGS-THOMSON* Siemens* Telefunken* TAG ' Semikron International Rectifier Powerex* MEDL 10 • Philips* Motorola 11 Hitachi 12 Mitsubishi 13 European Others Total Total Total Total All Companies Europe U.S. Japanese 1987 1988 1988 1988 Annual Growth % Cum Market Sum Share 12.2 60.0 (26.9) 11.8 12.5 13.3 30.0 10.0 12.5 12.5 14.3 $46 78 97 116 134 151 164 175 184 193 201 204 206 22.2 15.5 9.2 9.2 8.7 8.2 6.3 5.3 4.4 4.4 3.9 1.5 1.0 22.2 37.7 46.9 56.0 64.7 73.0 79.2 84.5 88.9 93.2 97.1 98.6 99.5 $207 0.5 100.0 $41 20 26 17 16 15 10 10 8 8 7 3 $46 32 19 19 18 17 13 11 9 9 8 3 2 $1 $1 0.0 $183 $207 152 28 3 170 32 5 13.1 11.8 14.3 66.7 0.0 Cum Sum % % 100.0 82.1 15.5 2.4 *This table to be read in conjunction with Footnotes page 24 © 1989 Dataquest Incorporated April ESIS Table 22 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Other Discrete (Millions of U.S. Dollars) 1988 1987 Rank 3 2 6 4 7 10 9 n8 12 5 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 Ranked Companies 1987 1988 Philips* 16 9 9 8 5 6 4 8 1 9 $24 17 15 13 10 8 7 6 5 5 1 1 European Others $1 $1 $115 $113 78 23 14 49 45 19 ITT* Semikron Siemens* Toshiba International Rectifier ASEA Brown Boveri* Telefunken* GE Solid State* Hitachi Motorola NEC Total Total Total Total All Companies Europe U.S. Japanese $15 Annual Growth % 1988 1988 Cum Market Sum Share Cum Sum % % 21.2 15.0 13.3 11.5 (88.9) $24 41 56 69 79 87 94 100 105 110 111 112 8.9 7.1 6.2 5.3 4.4 4.4 0.9 0.9 21.2 36.3 49.6 61.1 69.9 77.0 83.2 88.5 92.9 97.3 98.2 99.1 0.0 $113 0.9 100.0 13.3 (5.3) 44.4 11.1 0.0 40.0 0.0 25.0 (37.5) 0.0 (1.7) (37.2) 95.7 35.7 100.0 43.4 39.8 16.8 *This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April 25 Table 23 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Optoelectronic (Millions of U.S. Dollars) 1988 1987 Rank 1 2 8 3 4 6 5 10 12 11 13 16 14 15 17 1988 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Ranked Companies Telefunken* Siemens* Hewlett-Packard Philips* Plessey* Toshiba Texas Instruments GE Solid State* ASEA Brown Boveri* Motorola Hitachi Ericsson* Matsushita Mitsubishi NEC Oki European Others U.S. Others Japanese Others Total Total Total Total All Companies Europe U.S. Japanese 1987 1988 Annual Growth % 1988 1988 Cum Market Sum Share Cum Sum % % $73 134 183 4.5 206 33.3 226 30.8 243 0.0 258 14.3 266 20.0 272 (16.7) 277 33.3 281 0.0 283 (33.3) 285 (33.3) 287 0.0 288 289 20.0 16.7 13.4 6.3 5.5 4.6 4.1 2.2 1.6 1.4 1.1 0.6 0.6 0.6 0.3 0.3 20.0 36.6 50.0 56.3 61.8 66.4 70.5 72.7 74.3 75.7 76.8 77.3 77.9 78.4 78.7 79.0 $307 4.9 7.9 8.2 83.9 91.8 100.0 $66 53 10 22 15 13 15 7 5 6 3 2 3 3 1 $73 61 49 23 20 17 15 8 6 5 4 2 2 2 1 1 10.6 15.1 390.0 $15 14 5 $18 29 30 20.0 107.1 500.0 $278 $366 178 72 28 203 106 57 31.7 14.0 47.2 103.6 336 366 100.0 55.5 29.0 15.6 *This table to be read in conjunction with Footnotes page 26 © 1989 Dataquest Incorporated April ESIS Table 24 Footnotes to the Tables ASEA Brown Boveri ASEA Brown Boveri revenue includes Brown Boveri revenue from 1987 onwards. Austria Mikro Systeme Austria Mikro Systeme revenue up to 1986 included in U.S. Others. Ericsson Ericsson Components AB known as Rifa prior to 1 March 1988. ES2 European Silicon Structures revenue up to 1986 included in European Others. Fagor Fagor revenue up to 1987 included in European Others. Mietec Mietec revenue up to 1986 included in European Others. Philips Philips revenue includes Signetics Corporation revenue. Plessey Plessey revenue includes Ferranti revenue from 1987 onwards. SGS-THOMSON SGS Thomson revenue includes Thomson revenue from 1987 onwards. Siemens Siemens revenue includes Litronix revenue from 1983 onwards. STC (Stantel) STC revenue included in ITT revenue from 1977 through Telefunken Electronic 1982. Telefunken Electronic formerly known as AEG-Telefunken. AMD AMD revenue includes Monolithic Memories revenue from 1987 onwards. Burr Brown Burr Brown revenue up to 1987 included in U.S. Others. GE Solid State GE Solid State revenue includes RCA revenue from 1987 IDT onwards. ITT IDT revenue up to 1987 included in U.S. Others. LSI Logic ITT revenue includes STC revenue from 1977 through 1982. National Semiconductor LSI Logic revenue up to 1986 included in U.S. Others. National Semiconductor revenue includes Fairchild Powerex revenue from 1987 onwards. Powerex revenue includes Westinghouse revenue from 1986 Precision Monolithic onwards. Precision Monolithic Revenue up to 1987 included in VLSI Technology U.S. Others. VLSI Technology revenue up to 1986 included in U.S. Western Digital Others. Western Digital revenue up to 1987 included in U.S. Seiko Epson Others. Seiko Epson revenue up to 1987 included in Japanese Sony Goldstar Others. Sony revenue up to 1987 included in Japanese Others. Samsung Goldstar revenue up to 1986 included in Total Rest of World. Sfimsung revenue up to 1986 included in Total Rest of World. ESIS © 1989 Dataquest Incorporated April 27 DataQuest acompanyof The Dun KlSradstreet Coq>oration Dataquest Incorporated 1290 Ridder Park Drive San Jose, California 95131-2398 (408) 437-8000 Telex: 171973 Fax: (408) 437-0292 Dataquest Boston 1740 Massachusetts Avenue Boxborough, MA 01719-2209 (508) 264-4373 Telex: 171973 Fax: (508) 635-0183 Dataquest International Offices: Dataquest GmbH Rosenkavaiierplatz 17 D-8000 Munich 81 West Germany Phone: (089)91 10 64 Telex: 5218070 Fax: (089)91 21 89 Dataquest Japan Limited Taiyo Ginza Building/2nd Floor 7-14-16 Ginza, Chuo-ku Tokyo 104 Japan Phone: (03)546-3191 Telex: 32768 Fax: (03)546-3198 Dataquest UK Limited 13th Floor, Centrepoint 103 New Oxford Street London WCIA IDD England Phone: (01)379-6257 Telex: 266195 Fax: (01)240-3653 Dataquest SARL Tour Gallieni 2 36, avenue Gallieni 93175 Bagnolet Cedex France Phone: (1)48 97 31 00 Telex: 233 263 Fax: (1)48 97 34 00 Dataquest Taiwan Rm. 801, 8th Fl., Ever Spring Bldg. 147, Sec. 2, Chien Kuo N. Road Taipei, Taiwan, R. O. C. 104 P. O. Box 52-25, Tienmou 111 Phone: (02)501-7960/501-5592 Telex: 27459 Fax: (02)505-4265 Exchange Rate Tables Dataquest's European exchange rate tables include data from all Western European countries, each of which has different and variable exchange rates against the US dollar. Where applicable, Dataquest estimates are prepared in terms of local currencies before conversion (where necessary) to US dollars. Dataquest uses exchange rates taken from the Wall Street Journal, which are in turn taken from the Bankers Trust Co. All exchange rates previous to 1990 were sourced from the International Monetary Fund (IMF). All forecasts are prepared using fixed exchange rates based on the last complete historical quarter (currently the fomth quarter of 1990). To maintain consistency across all its analyses, Dataquest makes ongoing adjustments to its forecasts for these currency changes during the year. As a result of this policy, forecast growth rates can become distorted when comparing dollar growth rates with European currency growths. Table 1 provides a summary of yearly average exchange rates in local currency per US dollar for each European region and Japan from 1979 to 1990. Included in Table 1 is the European Currency Unit (ECU). This unit, which was established in March 1979, is the weighted average of the currencies of all member countries of the European Conununity (EC). It is calculated by the IMF from each country's gross national product (GNP) and foreign trade. Table 2 shows the quarterly exchange rate for 1990 for each of these regions. Also included is the Semiconductor Industry Weighted Average (SIWA). This unit is based on the semiconductor consumption of each European country featured here (EC and non-EC members) and uses the base year 1980 equal to 100 as a reference point. The SIWA is useful for interpreting the effect of European currency fluctuations with respect to the US dollar, specifically for the European semiconductor industry. Dataquest's European local currency forecasts and historical data has previously been recorded using the SIWA as a measure of local currency. Since September 1990 we have changed to using ECUs. As it is becoming increasingly common for companies to pubUsh their annual reports in ECUs, all future local currency forecasts prepared by Dataquest wUl be published in ECUs. ESIS Volume n 00083S0 ©1991 Dataquest Europe Limited March Exchange Rate Tables Table 1 European Currencies—1979 to 1990 (Local Currency per US Dollar) Region 1979 1980 1981 1982 1983 1984 Austria Belgium Denmark Finland France Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Germany 13.37 29.32 5.26 3.90 4.25 0.49 830.90 29.32 2.01 5.06 48.92 67.13 4.29 1.66 0.47 1.83 12.94 29.25 5.64 3.73 4.23 0.49 856.50 29.24 1.99 4.94 50.07 71.70 4.23 1.67 0.43 1.82 15.93 37.13 7.13 4.31 5.43 0.62 1,136.80 37.13 2.49 5.74 61.55 92.31 5.06 1.96 0.49 2.26 17.06 45.69 8.33 4.82 6.57 0.70 1,352.50 45.69 2.67 6.45 79.48 109.86 6.28 2.03 0.57 2.43 17.97 51.13 9.15 5.57 7.62 0.80 1,518.90 51.13 2.85 7.29 110.78 143.43 7.67 2.10 0.66 2.55 20.00 57.78 10.36 6.01 8.74 0.92 1,757.00 62.34 3.21 8.16 146.39 160.76 8.27 2.35 0.75 2.85 0.69 0.76 0.92 1.02 1.12 1.27 Japan 219.14 226.75 220.54 249.05 237.52 237.44 SIWA (Base 1980 = 100) 101.66 100.00 123.69 141.30 157.59 178.06 ECU (CcHitinued) ©1991 Dataquest Europe Limited March ESIS Volume 11 0008350 Exchange Rate Tables Table 1 (Continued) European Currencies—1979 to 1990 (Local Currency per US Dollar) 1985 1986 1987 1988 1989 1990 20.69 59.41 10.60 6.20 8.98 0.94 1,909.50 59.38 3.32 8.60 170.40 170.05 8.60 2.46 0.77 2.94 15.26 44.66 8.09 5.07 6.92 0.75 1,490.00 44.66 2.45 7.39 149.54 139.97 7.12 1.80 0.68 2.17 12.64 37.34 0.84 4.40 6.01 0.67 1,296.10 37.34 2.03 6.74 140.88 123.56 6.34 1.49 0.61 1.80 12.35 36.77 6.73 4.18 5.96 0.66 1,301.00 36.77 1.98 6.52 143.96 116.49 6.13 1.46 0.56 1.76 13.24 39.44 7.32 4.30 6.39 0.71 1,373.60 39.44 2.12 6.91 157.62 118.55 6.45 1.64 0.61 1.88 11.36 33.41 6.18 3.82 5.44 0.60 1,197.22 33.41 1.82 6.25 142.40 102.03 5.92 1.39 0.56 1.62 ECU 1.31 1.02 0.87 0.84 0.92 0.79 Japan 238.54 168.49 144.43 128.11 138.07 144.71 SIWA (Base 1980 = 100) 184.70 145.89 125.52 121.46 130.20 113.78 Region Austria Belgium Denmark Finland France Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Germany Souce: Dataquest (Match 1991) ESIS Volume H 0008350 ©1991 Dataquest Europe Limited March Exchange Rate Tables Table 2 1990 Quarterly European Currencies (Local Currency per US Dollar) 1Q90 2Q90 3Q90 4Q90 1990 11.90 35.29 6.52 3.99 5.74 0.64 1,254.66 35.29 1.91 6.53 148.86 109.08 6.15 1.51 0.61 1.69 11.80 34.60 6.39 3.96 5.64 0.63 1,231.66 34.60 1.89 6.49 147.90 105.60 6.08 1.44 0.60 1.68 11.21 32.81 6.08 3.75 5.34 0.59 1,176.27 32.81 1.80 6.15 140.62 98.60 5.86 1.33 0.54 1.59 10.54 30.93 5.74 3.59 5.05 0.56 1,126.28 30.93 1.69 5.85 132.22 94.85 5.60 1.27 0.51 1.50 11.36 33.41 6.18 3.82 5.44 0.60 1,197.22 33.41 1.82 6.25 142.40 102.03 5.92 1.39 0.56 1.62 ECU 0.83 0.82 0.77 0.73 0.79 Japan 147.92 155.35 145.07 130.50 144.71 SIWA (Base 1980 = 100) 120.18 118.61 111.06 105.26 113.78 Region Austria Belgium Denmark Finland France Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom West Germany Source: Dataquest (Match 1991) ©1991 Dataquest Europe Limited March ESIS Volume n 000S350 DataQuest ^^m ^^P i m a company of I f MI The Dun &Bradstreet Corporation 2 March 1990 EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE FILING INSTRUCTIONS f TITLE: Title Page PAGES: 1 page each FILING INSTRUCTIONS; Pile in front of each volume immediately in front of the Introduction tab. 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AUTHOR: Jennifer Berg y 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292 * Page 2 Newsletters 1990 tab TITLE: PAGES : / . . --^h FILING INSTRUCTIONS: File in Newsletters binder, behind page 10 of the Newsletter Index. AUTHOR: Jennifer Berg Newsletters Cover and Spine rCOVERS AND SPINES:- Enclosed you will find a new cover and spine for "your Newsletters 1988-1989 binder. Remove the old cover and spine from the Newsletters 1988-1989 binder and replace them with the new Newsletter cover and spine. Please remove all 1988 newsletters. ? JJ ^•l-T^ it;- :i^ -,*>r^,.a.. •S-i •iv- f Dataquest n n a company of MMMB The Dun ScBradstreet Corporation 12 March 1990 EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE FILING INSTRUCTIONS TITLE: MEMC Electronic Materials SpA PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: B"^ -. File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 af the LTX Corporation'^E^ofiil^. This profile replaces the DNS SpA dated April 1^88, which should now be discarded. H'. AUTHOR: '*^' ^^I^nnifer Berg TITLE: ' Me'fcR' Group fJTT- PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 of the new MEMC Electronic Materials SpA. This profile replaces the Merck Group dated February 1989, which should now be discarded. AUTHOR: Jennifer Berg TITLE: Plasma Technology, Ltd. PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 of The Perkin- Elmer Corporation profile. This profile replaces the Plasma Technology, Ltd. dated April 1988, which should now be discarded. AUTHOR: Jennifer Berg 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292 fafge 2 TITLE: Tegadyne, Inc. PUBLICATION TYPE: Service Section PAGES.: S FILING INSfRUCfIONS; File in Volume II, behind the 5. Services and: Suppliers tab, directly behind page 6 of the new Plasma Technology, Ltd profile. This profile replaces the Teradyne, Inc. dafcfd November 1988, which should now he di£MSlieded. AUTHOR: Jennifer B«Eg TITLE: VG Instruments PLC PUBLICATION 'JtPBj Service Section PAGES: 6 FILING INST»tJC^t<JRS; File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 oi the new Teradyne, Inc. profile. This profile replaces the VG Instruments PLC dated April 1988, which should now be discarded. AUTHOR: Jennifer Berg TITLE: Toshiba Corporation PUBLICATION TYPE: Service Section PAGES: 8 FtLING INSTRUCTIONS; File in Volume III, bfihind the S-T tab, directly behind page 6 of the Texas Instruments, Inc. profile. This profile replaces the Toshiba Corporation dated April 1988, which should now be discarded. AOfaOR: Jennifer Berg UX ^ ^ ^ ^ ^ ^ " ^ -^-^^^ J^J-'U