HP Reorganizes Semiconductor Test Business to Increase Focus On Four Key Market Segments.

PALO ALTO, Calif.--(BUSINESS WIRE)--July 1, 1999--

Hewlett-Packard Company today announces a major reorganization of business operations within its Automated Test Group, designed to bolster its sales and service of test products, services and production-test solutions for the semiconductor industry. With the reorganization, HP said it will focus greater resources on the following four semiconductor test disciplines: system-on-a-chip (SOC) devices, radio frequency ICs (RFIC), memory ICs, and semiconductor parametric test (process monitoring).

"We recognize the growing significance of each of these areas and that they require concentrated expertise and substantial resources in devising the most efficient single-pass, production-worthy solutions," said John Scruggs, vice president and general manager of HP's Automated Test Group. "Our more concentrated and fortified business operations will help us to deliver complete solutions that more than meet the IC test challenges of the next millennium."

SOC Test

HP's newly created Silicon-Systems Test Division (SSTD) will focus on delivering solutions for the rapidly expanding SOC IC design phenomenon. SSTD combines HP's Boeblingen Semiconductor Test Division, which manufactures the industry-leading HP 83000 high-speed digital test system, and HP's Hachioji (Japan) Semiconductor Test Division, whose HP 94000 system has held a leadership position in high-performance analog IC test for years. The new division will be headquartered in Boeblingen, Germany. It will develop a series of hybrid SOC test systems, while producing and supporting both product families.

"Old ways and old methods won't fly," said Tom Newsom, vice president of sales, marketing and customer support for HP's Automated Test Group. "Heading into the next century, logic test and mixed-signal test are obsolete concepts. We've now eliminated all internal barriers to championing a single-platform SOC, which is quickly becoming the only game in town."

RFIC Test

HP's RFIC test-system product line has moved from the Microwave Communications Group to the Automated Test Group and will become HP's technology provider for integrated RF device testing. The HP 84000 RFIC test system supports the testing of wireless ICs at both wafer sort and final test for device frequencies exceeding 18GHz.

"With the proliferation of wireless appliances worldwide, we are ready to meet the RFIC high-volume production ramp," said Newsom.

Memory Test

The California Semiconductor Test Division, headquartered in Santa Clara, Calif., will continue to focus on memory-IC production-test solutions including RDRAM, PC33 and other memory technologies. This division's expertise has earned it the No. 1 market position in non-volatile memory wafer test, according to VLSI Research, and solidified its eight-year working relationship with Rambus and Rambus' licensees. The HP 95000 HSM Series, as well as HP's Versatest product line, will continue to be manufactured and supported by this division.

Semiconductor Parametric Test

The Hachioji (Japan) Semiconductor Test Division will retain its focus on semiconductor parametric test systems. The division announced a new process-monitoring system, the HP 4072A, for smaller-geometry IC design "shrink" and SOC processes at Semicon Europa in April. This coincides with HP receiving the No. 1 rating for customer service and support for "Process Monitoring Equipment" by VLSI Research for the fifth consecutive year.

Information on HP's semiconductor test solution can be found on the World Wide Web at http://www.hp.com/go/semiconductor.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP had computer-related revenue of $39.5 billion in its 1998 fiscal year.

HP plans to launch a new company consisting of its industry-leading test-and-measurement, semiconductor products, chemical-analysis and medical businesses. These businesses represented $7.6 billion of HP's total revenue in fiscal 1998. With leading positions in multiple market segments, this technology-based company will focus on opportunities such as communications and life sciences.

HP has 123,000 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.