Analog Technology broken into 2 business divisions

September 17, 2001 – Taipei, Taiwan – Analog Technology Inc., a manufacturer of various ICs, has split into two business divisions, one for IC products and the other for providing wafer foundry services, beginning this month.

The split is a preparatory step for the two business divisions to be spun off as two independent companies, Analog’s president James Ni said.

The division for IC products is mainly responsible for IC design and testing while the other one is responsible for IC production on a commission basis. The former has staff of 180 and the latter has 300 employees at present.

The revenue generated by the business division of wafer foundry services will account for 25% of the company’s total revenue until the end of this year, but is expected to gradually climb to take up 50%, Ni pointed out. The business division currently turns out 8,000 to 9,000 biopolar wafers and 13,000 – 15,000 CMOS wafers/month.

Through the help of the Yulon Group, a large shareholder of the company, Analog is negotiating for wafer foundry services orders with three Japanese companies and a few US companies. Since certification for wafer foundry services will take half a year, new orders will not contribute revenue until mid-2002, Ni noted.


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