Is this LU subsidiary, SyChip, competition for DPAC?
SyChip Inc. Announces Major Contract to Jointly
Develop and Supply Chip-Scale Modules for Mobile
Phones in China
WARREN, N.J.--(BUSINESS WIRE)--Aug. 15, 2000--SyChip Inc., a Lucent Technologies (NYSE: LU - news) venture,
today announced that it has won a major contract to jointly develop and supply chip-scale modules to CEC Wireless R&D Ltd.
of Beijing, one of China's key producers of wireless handsets. The contract has the potential to be worth several millions of
dollars to SyChip over the next several years.
Lucent's New Ventures Group created SyChip in January 2000. SyChip provides highly integrated chip-scale modules for the
wireless Internet appliance market.
CEC Wireless will develop the handsets incorporating these modules. The two companies will collaborate closely on the
chip-scale modules used in the handsets. SyChip's proprietary radio-frequency (RF) passive component and chip-on-chip
technologies will be used to perform sub-system integration for CEC Wireless's mobile phones. The SyChip technology is
expected to improve the performance, lower the cost and speed the time to market of wireless mobile phones.
RF modules for mobile phones can be difficult to build because of their complexity and the variations in performance of their
conventional passive components, such as resistors, capacitors and filters. SyChip's proprietary, low-loss, high-resistivity silicon
materials and fabrication techniques enable the company to integrate between 70 and 100 high-quality passive components and
RF sub-circuits on the chip scale module.
SyChip's patented interconnection technology, based on chip-on-chip and integrated RF passive components, reduces system
space requirements, improves signal access time, and cuts power consumption.
``CEC Wireless chose SyChip as a partner to jointly develop and supply this critical subsystem because of the superiority of its
Bell Labs-developed technology,'' said Jason Sun, president & CEO of CEC Wireless R&D. ``We are committed to
incorporating these technologies in our handset designs for the next several years to help us maintain our leadership in wireless
equipment for the fast-growing mobile communications market.''
``We have been actively encouraging our domestic manufacturers to participate in the growing wireless communications
industry,'' said Pei De Lou, director, Division of Telecom Products and Systems, Ministry of Information Industry, which
oversees China's wireline and wireless communication industry. ``We expect CEC Wireless's use of SyChip's technology to
help us achieve our key milestones.''
According to industry analyst reports, China had 45 million cellular telephony subscribers in 1999, with 70 million users
expected by the end of this year. The estimated cellular handset replacement rate is 30 percent per year.
``SyChip is thrilled to receive this major contract from one of China's leading producers of wireless handsets,'' said William
Wong, SyChip's vice president of sales. ``The contract could result in orders for millions of the developed modules for SyChip
over the next few years.''
``This important vote of confidence from CEC Wireless, coming soon after the SyChip venture was formed, shows that the
fast-growing wireless appliances market needs what SyChip is offering: chip-scale modules built in a proprietary silicon
substrate with chip-on-chip technology,'' said Dennis Peasenell, SyChip's president and chief executive officer.
``We're confident that SyChip will continue to find major opportunities to offer its customers miniaturized, economical,
high-performance wireless modules with a very high level of system integration, thus allowing a faster time to market,'' he said.
SyChip Inc., headquartered in Warren, N.J., offers complex Chip-Scale Modules (CSM) that integrate memory, logic, analog,
digital, and passive functions for use in wireless Internet appliances. More information is available at the Web site
sychip.com.
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services
for next-generation communications networks for service providers and enterprises. Backed by the research and development
of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications
software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public
networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web
site at lucent.com.
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