Fairchild Semiconductor Expands Reach As Top Global Provider in $12 Billion Power Components Industry
Asset Caption: Matthew Towse, Vice President and Treasurer, Fairchild Semiconductor
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Business/Technology Editors
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BALTIMORE--Nov. 12, 2001--
Sets Sights on Additional Markets, Products and Applications
Requiring Power Control and Management
Fairchild Semiconductor International , the global leader in multi-market semiconductors, today announced that the company is expanding its reach as the leading worldwide provider in the rapidly growing power components industry, according to data from Venture Development and Worldwide Semiconductor Sales Statistics (WSTS).
Fairchild Vice President and Treasurer Matthew Towse reviewed the study with key financial analysts as part of his presentation at the Deutsche Banc Alex Brown 2001 Technology Conference, being held today through Thursday in Baltimore, Maryland. He also outlined Fairchild's aggressive plans to widen its worldwide leadership by identifying and providing best-in-class solutions for untapped markets, products and applications that need power regulation and management.
"There are power semiconductor opportunities in virtually every electronics-related market in the world, which matches well to our multi-market strengths," Towse said. "Fairchild's strategy is to expand our addressable markets and sell more power semiconductors into each application. Once we have increased our silicon content in one market, we utilize our access to customers around the globe to quickly reuse and resell that technology into many other end markets. This has been one key to our market share gains."
Power components are used for a variety of applications in a wide range of industries. These include power management to manage battery power for wireless, handheld and any type of portable equipment; power distribution by switching, converting, and distributing power within computing applications and powering starter/alternator capabilities within automobiles; and power minimization by utilizing low power products to extend battery and power efficiencies. Exceeding $12 billion in 2000, according to Venture Development Corporation and Worldwide Semiconductor Sales Statistics (WSTS), power markets are expected to perform better than the overall semiconductor market in 2001, and are forecast to resume mid-teen compound annual growth rates beginning in early 2002.
"We have built our competencies in power design and manufacturing by augmenting our strategic acquisitions with our own focused product development efforts," Towse explained. "Since nearly every power application requires both analog and discrete products, we're able to leverage our strengths in each area and grow our total market share. When we began as an independent company in 1997, power products represented less than 10% of our trade sales. During the third quarter of 2001, power products topped 55% of our trade revenues.
"For example, Fairchild's recent acquisition of the Intersil Discrete Power Products business gave us entree into the automotive power market," Towse continued. "This is a sector valued at approximately $800 million and we're penetrating it today with our ignition control IGBTs. Additionally, our analog power switch business has expanded our reach into all battery charger applications, which are used in cellular handsets, notebook computers, and portable consumer devices. Fairchild can now capitalize on the opportunity to ship $9 to $12 of our silicon into a desktop PC, notebook computer, Internet server, or cell phone handset because of our full line of power MOSFETs, linear regulators, PWM controllers, power switches, optocouplers, TinyLogicTM and interface products."
Fairchild has completed seven acquisitions since 1997 that have added critical strategic product lines to help build its leading power market position. Those acquisitions include Raytheon Semiconductor, Samsung's Power Device Division, KOTA Microcircuits, Micro Linear's Power Management business, and QT Optoelectronics. The company's most recent acquisition, Impala Linear Corporation, helped build Fairchild's fast growing analog power management line, consisting of battery management, linear regulators, switching regulators, power factor correction, AC/DC voltage regulation and power analog controllers. Fairchild's acquisition of Intersil's Discrete Power Products group, along with the Samsung Power Device acquisition, contributed high voltage power MOSFETs and IGBTs to the company's leading low voltage power MOSFET line making Fairchild one of the top power discrete suppliers.
About Fairchild Semiconductor International:
Fairchild Semiconductor International is a leading global supplier of high performance products for multiple end markets. With a focus on developing leading edge power and interface solutions to enable the electronics of today and tomorrow, Fairchild's components are used in computing, communications, consumer, industrial, automotive and aerospace applications. Fairchild's 10,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.
Special Note on Forward Looking Statements:
The statements in the preceding paragraph are forward-looking statements that are based on management's assumptions and expectations and that involve risk and uncertainty. Other forward-looking statements may also be found in this news release. Forward-looking statements usually, but do not always, contain forward-looking terminology such as "we believe," "we expect," or "we anticipate," or refer to management's expectations about Fairchild's future performance. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are the following: changes in overall global or regional economic conditions; changes in demand for our products; changes in inventories at our customers and distributors; technological and product development risks; availability of manufacturing capacity; availability of raw materials; competitors' actions; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields or output; and significant litigation. Other risk factors are listed in the company's quarterly report on Form 10-Q for the quarter ended September 30, 2001 (see the Business Risks section of Management's Discussion and Analysis or Financial Condition and Results of Operations); available at the Investor Relations section of Fairchild Semiconductor's web site at investor.fairchildsemi.com or the Securities and Exchange Commission's web site at www.sec.gov.
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