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Dataquest Ranks Siemens Semiconductors Among Top Ten Chip Manufacturers Worldwide for First Time; Group Boosts Sales More Than 12% in 1998 Despite Slumping Market.


MUNICH, Germany--(BUSINESS WIRE)--Jan. 12, 1999--Based on sales revenue for the 1998 calendar year, Siemens' Semiconductor Group advanced to 10th place worldwide among semiconductor manufacturers. Achieving an increase in sales of more than 12% - despite a depressed market Depressed market

Market in which supply overwhelms demand, leading to weak and lower prices.
 (-9%) - the Group moved up from 12th place in 1997 to make the top-ten list last year. In Europe, Siemens Semiconductors again consolidated its number-two position despite high market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market
penetration - the act of entering into or through something; "the penetration of upper management by women"
. This evaluation is based on the "Preliminary 1998 Semiconductor Ranking" published earlier this month by Dataquest, a leading market research organization.

"Since 1993, we have advanced from 19th to 10th place. We are now playing in the same league as the strongest global players, and this confirms our ambitious expansion strategy. A strong market position is a prerequisite pre·req·ui·site  
adj.
Required or necessary as a prior condition: Competence is prerequisite to promotion.

n.
 for improved earnings in the future and for further high-quality growth. This is the best possible way to prepare for a public offering of Semiconductors," explained Dr. Ulrich Schumacher, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  and President of Siemens Semiconductors and member of the Managing Board of Siemens AG Siemens AG

German electrical-equipment manufacturer. The first Siemens company, Siemens & Halske, was founded in Berlin in 1847 to build telegraph installations.
.

Among the top-20 performers, Siemens Semiconductors showed the highest growth rates Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Notes:
Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
 and was the only competitor with a strong presence in the DRAM (Dynamic Random Access Memory Dynamic random access memory (DRAM) is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit. Since real capacitors leak charge, the information eventually fades unless the capacitor charge is refreshed periodically. ) market that succeeded in boosting sales. In this sector, which was particularly hard-hit by overcapacity o·ver·ca·pac·i·ty  
n.
Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. 
, the Semiconductor Group managed to maintain sales at the previous year's level; nonetheless, the Group suffered high losses due to the collapse of memory chip prices. In its non-memory-related businesses - specifically, system chips for communication applications, power semiconductors for automotive electronics, high-frequency ICs and optoelectronic Refers to devices that function due to the interaction of light and electronics. For example, an electronic signal is the input to a laser diode, which generates light pulses that are transmitted through an optical fiber.  components Semiconductors outpaced the market and turned a profit. The Group's total sales were approximately US$3.9 billion, or DM6.8 billion (adjusted for the calendar year). Siemens Semiconductors, Intel and Samsung showed the fastest growth over the last 10 years.

Further information is available at: http://www.siemens.de/semiconductor/index.htm

Dataquest Website: http://gartner12.gartnerweb.com/dq/static/about/press/pr-b9858.html -0-

Revenue of Top 20 Companies Worldwide from Shipments of Semiconductors
to the World (Millions of U.S. Dollars)

1997    1998                             Final   Estimated  Growth (%)
Rank    Rank     Company                Revenue   Revenue   1997-1998
                                         1997       1998

 1       1       Intel                  21,746    22,675       4.3
 2       2       NEC                    10,222     8,271     -19.1
 3       3       Motorola                8,067     6,918     -14.2
 5       4       Toshiba                 7,253     6,055     -16.5
 4       5       Texas Instruments       7,352     6,000     -18.4
 7       6       Samsung                 5,856     4,752     -18.9
 6       7       Hitachi                 6,298     4,649     -26.2
 9       8       Philips                 4,440     4,502       1.4
10       9       STMicroelectronics N.V. 4,019     4,300       7.0
12       10      Siemens                 3,441     3,866      12.4
 8       10      Fujitsu                 4,622     3,866     -16.4
11       12      Mitsubishi              3,925     3,733      -4.9
13       13      IBM                     3,391     3,245      -4.3
15       14      Lucent Technologies     2,762     3,100      12.2
14       15      Matsushita              2,847     2,645      -7.1
18       16      Advanced Micro Devices  2,341     2,364       1.0
16       17      National Semiconductor  2,759     2,226     -19.3
17       18      SANYO                   2,471     2,225     -10.0
20       19      Rohm                    2,053     1,967      -4.2
21       20      Sony                    1,974     1,829      -7.3
Source: Dataquest (December 1998)

-0-


About Siemens

Siemens' Semiconductor Group is a leading worldwide provider 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.
, memory products, RF components, smart card chips, discrete and power semiconductors, sensors and fiber optic components. The comprehensive product line of Siemens Semiconductors serves a wide range of customers active in telecommunications telecommunications, automotive and consumer electronics, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a  and automation. Siemens Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power.  is its U.S. affiliate. In fiscal 1997/98, the Semiconductor Group achieved sales of $3.8 billion (DM 6.7 billion) and employed 25,000 people worldwide. The group plans to go public.

For more information, contact Siemens Microelectronics, Inc., 10950 N. Tantau Avenue, Cupertino, CA 95014; (800) 77-SIEMENS; 408-777-4500; or see http://www.smi. siemens.com.
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Publication:Business Wire
Geographic Code:4EUGE
Date:Jan 12, 1999
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