Fairchild Semiconductor Highlights the Growing Demand for Multi-Market Semiconductors to Enable 'System-on-a-Chip' Environments.

Business/Technology Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 12, 2001

Fairchild's W.T. Greer Cites Key Time to Market and Cost Issues That

Require Multi-Market Component Support for "One-Chip" Solutions

Fairchild Semiconductor International (NYSE:FCS) today stressed that system-on-a-chip or one-chip applications will continue to require high-performance multi-market semiconductors. W.T. Greer, Fairchild's senior vice president and general manager, Interface and Logic Group, made the comments at the Semico Summit 2001. Semico Research Corporation is a leader in providing semiconductor market research and custom consulting.

"The time to market and cost issues will likely prohibit system-on-a-chip (SoC) applications from ever becoming truly integrated on one chip," said Greer. "Key functions such as power management, interface and controls all are handled by high-performance multi-market components. Upgrading device applications can be easily handled without making changes to the system on a chip, enabling suppliers of many products including video games, cell phones, DVD players and servers to competitively enhance their products quickly and cost effectively.

"There will always be a need to isolate the SoC from the rest of the world due to ESD and EMI issues," Greer said. "Fairchild's products distribute the EMI and insulate the SoC from the outside environment that does not change. Fairchild is the leader in high-performance multi-market semiconductors, shipping more than 40 million components a day. The growing SoC market will fuel demand for Fairchild components."

According to Semico Research Corporation the demand for consumer devices, telecom equipment, servers, workstations, PC's, handheld and portable products are the drivers for SoC growth. Over the next five years Semico is projecting average annual growth of 13% in the PC market, 21.5% in servers and workstations and 11.6% in telecom equipment.

"For every system-on-a-chip within a design there are also anywhere from six to fifteen multi-market semiconductors and together they enable high-performance applications. There are many key issues that drive the growth of multi-market components in SoC environments. Smaller geometries, faster speeds, design changes and investment costs all demand that a design be distributed across multiple devices, not just a single chip," continued Greer. " In fact we are seeing the use of distributed components increasing as companies accelerate their time to market, while controlling costs. Fairchild's devices are sophisticated and able to solve multiple issues for a variety of applications. Fairchild identified and established the multi-market model and we continue to enjoy the leadership position."

Fairchild's major product segments include analog, interface and logic and discrete power components directed at end applications deployed into communications, computing, industrial and consumer markets. Recently Fairchild announced its agreement to acquire the discrete power business of Intersil Corporation, which would move Fairchild into the number two position in the $3 billion power MOSFET market.

Fairchild Semiconductor International (www.fairchildsemi.com) is a global company solely focused on designing, manufacturing and marketing high performance semiconductors for multiple end market uses. Fairchild's multi-market components are used in computer, telecommunications, automotive, consumer and industrial applications. Supplying power, analog & mixed signal, interface, logic, and optoelectronics products, Fairchild is filling the gap in the global supply of building block semiconductors. The company is headquartered in South Portland, Maine, USA, with 10,000 employees worldwide. Additional manufacturing facilities are located in Utah, South Korea, China, Singapore, Malaysia and the Philippines, with regional sales offices throughout the world.

Special Note on Forward Looking Statements:

This press release includes forward-looking statements that are based on management's assumptions and expectations and that involve risk and uncertainty. Forward-looking statements usually, but do not always, contain forward-looking terminology such as "we believe," "we expect," "we plan," or "we anticipate," or refer to management's expectations about Fairchild's future performance. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are the following: changes in overall economic conditions; changes in demand for our products; changes in inventories at our customers and distributors; technological and product development risks; availability of manufacturing capacity; availability of raw materials; competitors' actions; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields or output; and significant litigation. These and other risk factors are listed in the company's quarterly and annual reports filed with the SEC (see the Outlook and Business Risks subsection of Management's Discussion and Analysis of Financial Condition and Results of Operations in the quarterly report on Form 10-Q for the quarter ended October 1, 2000).