Fairchild Semiconductor expands markets

November 13, 2001 – Baltimore, MD – Fairchild Semiconductor International plans to widen its worldwide presence by identifying and providing solutions for untapped markets, products and applications that need power regulation and management, according to VP and Treasurer, Matthew Towse.

“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.”

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. 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.”


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