Davicom Semiconductor introduces industry's most-integrated fast ethernet management device; DM9101 blends key fast ethernet functions into one device; switch, router, server, adapter makers selecting chip for 10/100 products.

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 30, 1997--Davicom Semiconductor, Inc. today announced the industry's most-integrated single-chip Fast Ethernet management device, enabling manufacturers to reduce the part count -- and thus the cost -- of their Ethernet and Fast Ethernet switches, routers, servers and network interface adapters.

Davicom, a leading developer of integrated circuits for the internetworking and communications markets, within weeks will ship in volume the DM9101, the first product in its new Galaxy Series of Fast Ethernet chips. The DM9101, priced under $10 in volume quantities, is currently designed into several manufacturers' Fast Ethernet products.

"CNet USA selected the DM9101 for our new Pro110 Fast Ethernet adapter line because of the chip's integration, high speed and low cost, enabling us to provide our customers the benefits of 100Mbs Ethernet at the lowest-possible cost," said Len Palmer, vice president of sales and marketing at CNet USA, a Milpitas, Calif.-based company that designs, manufactures, and markets high-speed networking products. "As Ethernet advances toward even greater performance, such as Gigabit Ethernet, Davicom's Galaxy Series should be an important element in manufacturers' Fast Ethernet product strategies."

"Davicom's goal in developing the Galaxy Series was to help Ethernet-product manufacturers make high-performance, cost-effective products in highly competitive markets," said Tony Ho, vice president of the LAN business unit at Davicom. "The DM9101 reflects this goal, as it allows our customers to take advantage of the latest networking technology while keeping down part counts and reducing the overall per-port cost of their Ethernet and Fast Ethernet products."

PHYSICAL LAYER AND TRANSCEIVER IN ONE CHIP

The DM9101, using high-performance CMOS technology, employs a unique architecture which blends two key functions that were traditionally the domain of separate Fast Ethernet chips: the analog transceiver and the digital physical layer.

Combining these elements into a single chip delivers a more streamlined Fast Ethernet operation and lowers the overall cost of 10Mbps and 100Mbps Ethernet products.

Among the DM9101's key features are:

-- Integrated design, reducing chip count and cost of 10/100

Ethernet products -- MII interface support, allowing for flexible product design -- Auto-negotiation, enabling automatic speed or network-link change -- Built-in 10BaseT and 100BaseTX filter, reducing design complexity

and cost -- CMOS design, making mass production of chip simple and economical -- Analog algorithm design, yielding stable operation in varying

temperatures and network-cable length

HIGHLY COMPETITIVE MARKET EXPANDING RAPIDLY

The DM9101's integration and resulting low cost for manufacturers are rendered all the more important in a rapidly growing, highly competitive Fast Ethernet market, where multiple players have put price pressure on the entire scope of Fast Ethernet products. Industry analysts project that the market for Fast Ethernet network interface cards (NIC) will grow at 100 percent per year and reach more than 12 million units in 1997. And sales of Fast Ethernet switches, the "control center" for networks, is expected to reach 3.2 million ports in 1997.

"The demand for a single-chip Fast Ethernet physical layer solution is exploding, as the multi-chip approach becomes obsolete this year," said Greg Sheppard, chief analyst at Dataquest. "Davicom is introducing the right part at the right time."

Equally important to networking-product manufacturers is the assurance of the DM9101's availability in volume. Most chip companies without their own semiconductor foundry are dependent on -- and often adversely impacted by -- the limited supply of their products manufactured by third-party contractors. Davicom, in contrast, is closely aligned with United Microelectronics Corp., a multi-billion-dollar semiconductor manufacturer with millions of square feet of foundry space. Davicom, through its acquisition of UMC's Communication Products Division, has numerous intellectual properties and licensing agreements with UMC. This alliance helps guarantee Davicom manufacturing capacity and assures its customers availability of the DM9101 as well as any other Davicom semiconductors the company designs.

PRICING AND AVAILABILITY

Volume shipments of the DM9101 begin in July at under $10. The chip is offered in either a 100-pin quad-flat pack (QFP) and optional Low-profile (LQFP) package.

Davicom Semiconductor, Inc. (www.davicom8.com) develops data, audio, video and Internet/Intranet communications integrated circuits for the global market. The company currently markets V.34 modem and Fast Ethernet chips and has other advanced communications products in development. Additionally, Davicom is working on advanced communications and networking products, including 56K and Gigabit Ethernet chips.

CONTACT: Davicom Semiconductor, Inc.

Tony Ho, 415/967-3071

[e-mail]

or

Commonground Communications

Jerry Steach, 408/736-8600 ext. 225

[e-mail]