SAN JOSE, Calif.--(BUSINESS WIRE)--June 18, 1999--Xilinx, Inc.
(NASDAQ:XLNX) today announced it has signed a letter of intent with
Philips Semiconductors to acquire Philips Semiconductors' line of
low-power complex programmable logic devices (CPLDs).
Under the terms of the agreement, Xilinx would purchase the
Philips Semiconductors' CoolRunner(TM) CPLD technology as well as the
Philips Semiconductors' XPLA(TM) Professional suite of design tools.
The companies did not disclose financial terms of the proposed
purchase agreement. Xilinx said the acquisition is not expected to
dilute the company's financial performance.
Xilinx intends to retain approximately 40 Philips employees
associated with CoolRunner product development, including an IC
development team in Albuquerque, N.M., and a software tools team in
Sunnyvale, Calif. The acquisition is subject to the negotiation of
definitive agreements, normal regulatory and final board approvals,
and other closing conditions.
Under the proposed agreement, Philips Semiconductors would retain
the right to incorporate the Fast Zero Power(TM) technology used in
the CoolRunner CPLDs in embedded applications such as system-on-chip
designs. The CoolRunner products would continue to be made at Philips
Semiconductors wafer fabs in Europe and at Taiwan Semiconductor
Manufacturing Corporation in Taiwan. Xilinx intends to market the
products under the current CoolRunner XPLA product name.
The CoolRunner line is the first family of CPLD products to
combine very low power with high speed, high density and high I/O
counts in a single device. The CoolRunner line features Fast Zero
Power technology, allowing the devices to draw virtually no power in
standby mode, making them ideal for the fast growing market for
battery operated portable electronic equipment such as laptop PCs,
telephone handsets, personal digital assistants and electronic games.
The CoolRunner CPLDs also use far less dynamic power during
actual operation compared to conventional CPLDs, an important feature
for high performance, heat sensitive equipment such as telecom
switches, video conferencing systems, simulators, high end testers and
emulators.
"Our current family of XC9500 CPLDs has given Xilinx a
competitive advantage in speed and price," said Evert Wolsheimer, vice
president and general manager of the Xilinx CPLD Business Unit. "With
the CoolRunner devices in our portfolio, we also would have a
commanding position in the areas of low power and high density CPLDs.
As a programmable logic supplier, Xilinx would now be able to offer
everything from 22V10s and CPLDs to million-gate FPGAs. This
acquisition also would provide Xilinx with an additional talented
engineering team to help us continue to develop advanced products for
our customers."
"This agreement allows Philips Semiconductors to better focus its
efforts in the company's core areas such as consumer,
telecommunications and automotive markets, as well as in the discrete,
logic, and microcontroller product line," said Arthur van der Poel,
Chairman and CEO of Philips Semiconductors. "Additionally, we look
forward to working with Xilinx on future joint developments such as
system-on-chip designs."
The CoolRunner line offers the largest CPLD available today, the
CoolRunner PZ3960 device with 960 macrocells. The CoolRunner devices
are available in 3.3-volt and 5-volt versions with densities ranging
from 32 to 960 macrocells. The offering also includes 3.3-volt and
5-volt 22V10 CoolRunner devices.
About Philips Semiconductors
Philips Semiconductors, a division of Royal Philips Electronics,
headquartered in Eindhoven, The Netherlands, is the eighth largest
semiconductor supplier in the world. Philips Semiconductors'
innovations in digital audio, video, and mobile technology position
the company as a leader in the consumer, multimedia and wireless
communications markets. Sales offices are located in all major markets
around the world and are supported by systems labs. Additional
information on Philips Semiconductors can be obtained by accessing its
home page at semiconductors.philips.com.
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