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Technology Stocks : Vitesse Semiconductor

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To: Tim Michaels who wrote (829)8/13/1997 6:52:00 PM
From: Tom Kerr   of 4710
 
I am not sure what the exact functions the chips perform in the Mot Digital phones. The following is a discription of their markets per the Annual Report that just came out.

Business Description: Designs and manufactures RF (radio frequency), microwave and millimeter wave integrated circuits in Gallium Arsenide (GaAs), discrete surface mount semiconductors in both GaAs and silicon, and ceramic products used for signal selection
and filtering essential to processing communications signals.

Markets addressed:

GaAs IC's: Cellular and PCS digital handsets, base stations and digital radio links, wireless cable TV, Satellite Communications and defense related systems.

Discrete GaAs and silicon surface mount semiconductors: Same markets as above and addditionally: Pagers, Global Positioning Systems (GPS) and cordless telephones.

Ceramic Products: PCS base station and digital radio links, wireless cable TV (specifically: filters crucial for the frequency tuning in DBS), defense related systems (specifically: military radar, missile and electronic warfare), pagers,
Global Positioning Systems (specifically: miniature ceramic antennas for handheld GPS units), and cordless telephones.

Major market growth opportunities:
1. Digital cellular and PCS handsets and base stations
2. Upgrading of cable networks from one way analog systems to two way digital systems (cable modems and internet access)
3. Satellite communications (Iridium, Globalstar, Teledesic, DBS).

The annual report also noted that they have made the transition to 4 inch GaAs wafers.
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