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Zilog Opens State-of-the-Art Research Lab to Increase Fab Capacity.

CAMPBELL, Calif.--(BUSINESS WIRE)--March 25, 1996--Zilog Inc. (NYSE:ZLG), today announced that it has authorized the investment of $50M in a new process research facility which will result in additional production yield and more cost-effective manufacturing for its eight-inch fabrication facilities.

This new research facility will be used to develop the latest fabrication techniques in order to optimize mixed mode product features and to lower unit production costs.

"In the past, we used our on-line manufacturing equipment as a development lab to conduct experiments and develop new processes," commented Dick Moore, Zilog's vice president of technology. "Since we need all of our current capacity to meet our revenue demands, a dedicated process development module will enable us to explore process research without interrupting production.

"We anticipate additional yield of three times our current die generation as we reduce our feature sizes. The development module is outfitted with new equipment that allows us to design to a .35 um feature size."

"Leading-edge chip technology requires mixed signal capability for analog to digital conversion and non-volatile memory for portable products," said Jack Berg, vice president of technology development for Zilog. "The new research facility gives us the ability to accelerate our product migration using finer feature sizes for better cost-effective performance."

Zilog is an innovator in the development, design and manufacture of application specific standard products (ASSPs) for the data communications, peripherals and consumer products markets. ASSPs are very large scale integrated circuits designed for a particular market application rather than a single customer.

The company utilizes its Superintegration(TM) design methodology to combine cores and cells from the company's extensive library of customer-familiar microprocessors, microcontrollers, memory and logic circuits to meet the design, cost and time-to-market requirements of its customers.

Zilog has its headquarters in Campbell, Calif. and had 1995 revenues of $265.1 million. It employs approximately 1,575 people and has 26 direct sales offices and more than 120 distributor and rep locations worldwide. -0-

Note to Editors: Superintegration is a trademark of Zilog, Inc.

CONTACT: Zilog Inc., Campbell

Chris Bradley, 408/370-8246
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Publication:Business Wire
Date:Mar 25, 1996
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