Microchip Technology Forms Digital Signal Controller Division.

Business Editors/High-Tech Writers

CHANDLER, Ariz.--(BUSINESS WIRE)--Nov. 16, 2000

Microchip Technology Inc. (Nasdaq: MCHP) Thursday announced it has formed the Digital Signal Controller Division to design, develop and launch the 16-bit dsPIC(TM) family of digital signal controllers, which combine the control advantages of a microcontroller with the high computation speed of a digital signal processor (DSP) to create a single-chip solution for embedded systems designs.

In a separate announcement today, Microchip defines the digital signal controller market and comments on the expansion of its PICmicro(R) architecture with DSP functionality and 16-bit microcontrollers.

"Microchip has been extremely successful in creating a market at the low end of the 8-bit microcontroller arena and providing users a migration path to higher performance solutions," said Steve Sanghi, chief executive officer and president.

"We are looking to apply the same proven strategy by creating a digital signal control market along with a comprehensive migration path to meet application requirements.

"The digital signal controller provides a higher performance solution for Microchip's 30,000+ customer designs worldwide while exposing our current product portfolio to a new and very large segment of embedded designers, significantly increasing our total served market."

Sumit Mitra, an 18-year industry veteran, was recently named vice president of the Digital Signal Controller Division. Prior to his new role, Mitra was vice president of Worldwide Applications and Systems. He was responsible for managing Microchip's worldwide field and corporate applications engineers with a focus on design creation.

He also managed and continues to manage the Development Systems Business, including design, production, marketing and support of software and hardware tools. Mitra's prior experience as architect and VLSI design engineer includes 8- and 16-bit microcontrollers and DSP processors. Microchip is ramping engineering staff to support the new division.

"The dsPIC family provides DSP functionality in the familiar PICmicro microcontroller design environment, offering an easy-to-implement solution to embedded engineers contemplating using DSPs," said Mitra.

"Many engineers find DSP devices are too unfamiliar and their tools and terminology are too restrictive. Also, anyone considering 16-bit microcontrollers for their next design can certainly benefit from the dsPIC solution."

The dsPIC architecture is expected to be announced publicly mid-2001 with beta sampling planned for end of 2001. Volume production, product samples and related development tools are expected for early 2002. For more information, contact any Microchip sales representative or authorized worldwide distributor.

The statement contained in this release relating to the expected start of volume production of Microchip's dsPIC products is a forward-looking statement.

This statement involves risks and uncertainties that could cause actual results to differ materially, including but not limited to, future demand for Microchip's products, timely completion and introduction of the dsPIC product line, development of support tools and collateral literature for the dsPIC product line, market acceptance of the dsPIC product line and general economic conditions.

Other important risks related to our business are detailed in our Form 10-Q for the quarter ended June 30, 2000 and our Form 10-K for the fiscal year ended March 31, 2000 as filed with the Securities and Exchange Commission.

Microchip Technology Inc. manufactures the widely popular PICmicro(R) RISC microcontrollers which serve 8- and 16-bit embedded control applications.

Specializing in field-programmable and mixed-signal solutions, the company also offers complementary microperipheral products including stand-alone analog, interface and microID(TM) RFID devices; serial EEPROMs; and the patented KEELOQ(R) security devices.

This synergistic product portfolio targets thousands of applications and a growing demand for high-performance designs in the automotive, communications, computing, consumer and industrial control markets. The company's quality systems are ISO 9001 (1994 version) and QS9000 (1998 version) certified.

Microchip is headquartered near Phoenix in Chandler, Ariz., with semiconductor fabrication facilities in Arizona and Washington; and assembly and test operations near Bangkok, Thailand. Microchip employs approximately 3,100 people worldwide and has sales offices throughout Asia, Europe, Japan and the Americas. More information on the company can be found at www.microchip.com

Note: The Microchip name and logo, PIC, PICmicro, and KEELOQ are registered trademarks of Microchip Technology Inc. in the United States and other countries. dsPIC and microID are trademarks of Microchip Technology Inc. in the United States and other countries. All other trademarks are the property of their respective owners.