Conexant and the Carlyle Group Establish the World's First Specialty Wafer Foundry.Business Editors/High-Tech Writers NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif. & WASHINGTON--(BUSINESS WIRE)--Feb. 25, 2002 New Company to Focus on Silicon Germanium (SiGe) A semiconductor material made from silicon and germanium. Germanium is very similar to silicon, but when one layer is grown on top of the other to form the base of the transistor, the resulting transistor can switch faster and yield higher performance. Technology for High-performance Wireless Communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and Optical Networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. Applications Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor system solutions for communications applications, and The Carlyle Group  The of this article or section may be compromised by "weasel words".You can help Wikipedia by removing weasel words. The Carlyle Group is a Washington, D.C. , a leading global private equity firm, today announced a definitive agreement to form a new specialty foundry company. The new company will manufacture semiconductor wafers using industry-leading specialty process technologies such as silicon germanium bipolar (1) See bipolar transmission. (2) One of two major categories of transistor; the other is "field effect transistor" (FET). Although the first transistors and first silicon chips were bipolar, most chips today are field effect transistors wired as CMOS logic, which CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. (SiGe BiCMOS) for customers targeting high-performance applications such as wireless communications and optical networking. Silicon germanium is a specialty process technology that enables the manufacture of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. featuring higher performance and lower power consumption while retaining the cost and integration benefits of conventional silicon. This technology is emerging as the process of choice for demanding wireless and optical networking applications. Carlyle will hold 55 percent of the equity of the new company and Conexant will own 45 percent. The Carlyle Group will appoint five members of the new company's board of directors, two will be appointed by Conexant and two directors -- the chairman and the chief executive officer -- will be selected jointly. Conexant's appointments will be Dwight W. Decker, Conexant's chairman and chief executive officer, and Donald R. Beall, chairman of the board of Rockwell Collins Rockwell Collins, Inc. (NYSE: COL) is a large United States-based international company headquartered in Cedar Rapids, Iowa, primarily providing aviation and information technology systems, solutions, and services to governmental agencies and aircraft manufacturers. and a Conexant director since 1998. Under the terms of the agreement, Carlyle will pay Conexant $20 million and will contribute $30 million in cash to the new venture. Conexant will contribute its specialty process technologies and the manufacturing equipment in its Newport Beach wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. facility. As outlined in a separate release issued today, Conexant's three businesses targeting the mobile communications, broadband access See broadband and wireless broadband. and Internet infrastructure markets will be served by the new company under long-term supply contracts. "The Carlyle Group has a global reputation for building value in strategic investments, and we are pleased to partner with them as we take a leadership role in defining the next step in the evolution of the semiconductor foundry industry," said Dwight Decker. "We believe the foundry market is now ready to expand from mainstream CMOS wafer manufacturing to include sophisticated specialty-process capabilities, and in the process enable the development of a new market segment of fabless radio-frequency-centric semiconductor product companies. We anticipate that this new company will enhance existing Conexant shareholder value as it rapidly becomes a global center of excellence for innovative specialty foundry services." Dr. Shu Li, Conexant's senior vice president of quality, platform technology and supply chain management, will join the new company as a member of the board of directors and chief executive officer. "Over the past two years, I have enjoyed the opportunity to help direct Conexant's process technology investments," Dr. Li said. "We have seen our specialty process capabilities grow in step with a clearly emerging market opportunity. In anticipation of today's strategic move, we have worked over the past six months to secure engagements for specialty foundry wafers with more than 15 semiconductor product companies. The new company will aggressively build on this early foundation by enabling our customers throughout the world to optimize the performance, power efficiency and cost of their semiconductor products as they continue to drive the communications revolution." "The Carlyle Group actively seeks to identify opportunities with significant intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. that can be leveraged through an expansion of addressed markets," said Bud Watts, managing director for The Carlyle Group. "Carlyle brings both the capital resources and the longer-term investment horizon required to maximize this opportunity. We believe the Conexant team has developed a world leadership specialty process technology, and this new company will now be able to apply this technology to a rapidly growing market through a broad set of new customers." The transaction, which does not require regulatory approvals, is expected to be completed by the end of March. Further details, including other members of the senior management team and the name of the new company, will be announced over the next 60 to 90 days. The new specialty foundry company will continue production with 0.35-micron SiGe BiCMOS processes operating at frequencies up to 70 GHz, and will focus its ongoing research and development activities on a next-generation SiGe BiCMOS technology featuring 0.18-micron geometries and operating frequencies of greater than 160 GHz. This offering, which will consume approximately half the power of competing technologies, is scheduled for production release in the second calendar quarter of this year. In addition, the new company will complete the development of a further enhanced 200 GHz SiGe BiCMOS process technology that will bring the cost advantages of silicon to a broad range of highly integrated optical networking devices, and provide low noise, low power and improved linearity benefits for wireless communications devices. About the New Specialty Foundry Company Headquarters: Newport Beach, Calif. Headcount: Approximately 650 employees Revenues: Approximately $150 million in the first full year of operation Cleanroom: 100,000 square feet of Class 1 cleanroom space Capacity: 20,000 eight-inch wafer starts per month Process Technologies: Bipolar, BiCMOS, silicon germanium, analog and mixed signal CMOS Chief Executive Officer: Dr. Shu Li. Dr. Li joined Conexant in January 2000 as senior vice president of platform technology, quality, and supply chain management, and led the company's fabless initiatives in addition to his other responsibilities. Prior to joining Conexant, Dr. Li spent six years with AlliedSignal/Honeywell, serving most recently as divisional vice president and general manager of semiconductor packaging. Before that, Dr. Li held positions of divisional vice president and general manager of commercial spares and logistics services, vice president of operations, and vice president of engineering. Dr. Li also worked in senior operations and R&D positions with Motorola and Intel. He received his doctorate in operations research operations research Application of scientific methods to management and administration of military, government, commercial, and industrial systems. It began during World War II in Britain when teams of scientists worked with the Royal Air Force to improve radar detection of from Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. , earned his master's degree master's degree n. An academic degree conferred by a college or university upon those who complete at least one year of prescribed study beyond the bachelor's degree. Noun 1. in electrical engineering electrical engineering: see engineering. electrical engineering Branch of engineering concerned with the practical applications of electricity in all its forms, including those of electronics. and computer sciences from the University of Illinois University of Illinois may refer to:
About Conexant Conexant Systems, Inc. is a worldwide leader in semiconductor system solutions for communications applications. Conexant leverages its expertise in mixed-signal processing to deliver integrated systems and semiconductor products through three separate businesses that address the wireless communications, broadband access and Internet infrastructure markets. Conexant's wireless communications business is focused on providing power amplifiers Power amplifier The final stage in multistage amplifiers, such as audio amplifiers and radio transmitters, designed to deliver appreciable power to the load. , radio-frequency subsystems and complete systems solutions. The broadband access business develops and delivers integrated solutions that enable digital entertainment and information networks for the home and small office. Mindspeed Technologies, the company's Internet infrastructure business, designs, develops and sells a complete portfolio of semiconductor networking solutions that facilitate the aggregation, transmission and switching of data, video and voice from the edge of the Internet to linked metropolitan area networks and long-haul networks. Conexant, headquartered in Newport Beach, Calif., delivered revenues of $1.1 billion for fiscal 2001, and has approximately 6,900 employees worldwide. The company is a member of the S&P 500 and Nasdaq-100 indices. To learn more, visit us at www.conexant.com or www.mindspeed.com. About The Carlyle Group The Carlyle Group is a global private equity firm with more than $12.5 billion under management. Carlyle's mission is to generate extraordinary returns by employing a conservative, proven, and disciplined approach to investing. Carlyle invests in buy-outs, real estate, high-yield, and venture in the U.S., Europe, Japan, and Asia, focusing on aerospace and defense, consumer and industrial, energy, healthcare, technology, real estate, and telecommunications and media. Since 1987, the firm has invested $6.4 billion and achieved a realized internal rate of return of 36 percent. The Carlyle Group has more than 500 employees in 24 offices in 13 countries. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results of Conexant (including certain projections and business trends) that are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: global economic and market conditions, such as the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; the availability and extent of utilization of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; fluctuations in manufacturing yields; product obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. ; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the successful planned disposition of certain assets; the successful separation of the company's broadband access and Internet infrastructure businesses; the successful merger of the company's wireless communications business with Alpha Industries Alpha Industries is a clothing manufacturer founded in 1959 in Knoxville, Tennessee. The company makes items such as flight jackets and vests, and has made jackets for the military of the United States like the M65 Jacket. Two models are the MA-1 and CWU-45/P pilot jackets. , Inc.; the ability to attract and retain qualified personnel; labor relations of the company, its customers and suppliers; and the uncertainties of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , as well as other risks and uncertainties, including but not limited to the security and safety risks of our employees and of company facilities and those risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Note to Editors: Conexant and Mindspeed are trademarks of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners. |
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