Siemens Microelectronics Computer Peripherals Group Maps Plan to
Target DVD Applications
SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 9, 1999--Siemens Microelectronics, Inc.'s (SMI) Computer
Peripherals (CP) division today launched new initiatives to transfer market experience and technology
expertise gained in its successful engagement in the hard disk drive segment to the rapidly growing DVD
sector.
SMI's market entry blueprint calls for delivering complete DVD drive development solutions to help
customers efficiently create and deploy a wide range of DVD end products ranging from consumer video
playback machines up to high-performance DVD-ROM computer peripherals.
Ruediger Stroh, vice president and general manager, of SMI's Computer Peripherals division commented:
"Our strategy in the DVD market is based on three propositions. First, as the DVD market grows,
applications are segmenting into a wide spectrum of price-performance niches, creating demand for
unified sources of solutions covering entire DVD product lines. Second, the expertise we've built up in the
hard-disk drive market can be successfully transferred to DVD applications. Third, the demand for
complete DVD product development solutions requires orchestrating silicon, firmware, reference platforms,
design services and intellectual property drawn from Siemens and outside strategic partners. With these
factors in place, we will act as a system technology catalyst to give our customers competitive advantage
in DVD end-product pricing, functionality and time-to-market."
"We are moving on multiple fronts to ensure success for our DVD programs," said James Riola, director,
business development, in the SMI Computer Peripherals division. "We start with a strong hand to play in
drive-control IC microprocessor, DSP, read channel and embedded memory technologies. As we roll out
specific DVD offerings, we're going to extend these advantages by working with leading edge partners to
provide complete solutions for DVD design, development and implementation. Furthermore, SMI's global
sales & marketing reach can deliver these solutions to DVD manufacturers worldwide."
DVD Market Growth and Segmentation
Dale Ford, principal analyst, semiconductor application markets at Dataquest, confirms robust growth
projections for DVD: "We expect DVD worldwide production to reach 27 million units and $3.6 billion in
sales by 2002. With this growth, we're going to see DVD develop to fulfill a number of roles in consumer
electronics, data storage and multimedia PC applications--each with its own price/performance
parameters."
SMI DVD Initiative Background
The SMI DVD initiatives will be driven out of the company's Computer Peripherals division. The business
unit applies SMI Super-Integration(tm) technologies to create silicon solutions for hard disk drive control
and has played a significant role in boosting the capacity and retrieval speed of today's hard disk drives at
lower end-user prices. Siemens' Super-Integration core technologies used in data storage products
include 8-, 16- and 32-bit microcontroller cores, embedded DRAM and Flash memories, power ICs, read
channel and preamp technology.
To prepare for entry into the DVD market, SMI CP Division has formed multidisciplinary technical
marketing organization tasked with developing technologies and corporate alliances required for
successful engagement with DVD end-product manufacturers. Siemens CP has also become a member
of the DVD Forum, the international association dedicated to developing DVD formats and promoting wide
acceptance of this versatile technology.
The company's initial DVD offerings will focus on front-end drive control solutions. Technical objectives
include reducing chip counts and making it possible for customers to field wide selection of drive end
products utilizing a standardized technology base. The company looks forward to formal introduction of
products, capabilities and partnerships later in the first half of 1999.
About Siemens
Siemens' Semiconductor Group, based in Munich, Germany, is the 10th largest semiconductor
manufacturer worldwide and is a leading provider of integrated circuits, memory products, RF
components, chip card ICs, discrete and power semiconductors, sensors and fiber optic components. The
comprehensive product line of Siemens Semiconductors serves a wide range of customers active in
telecommunications, automotive and consumer electronics, data processing and automation. Siemens
Microelectronics is its U.S. affiliate. In fiscal 1997/98, the Semiconductor Group achieved sales of US$3.8
billion (DM 6.7 billion) and employed 25,000 people worldwide. The group plans to go public.
For more information, contact Siemens Microelectronics, Inc., 10950 N. Tantau Avenue, Cupertino, CA
95014; (800) 77-SIEMENS; 408-777-4500; or see smi.siemens.com.
Super-Integration is a trademark of Siemens. Other trademarks and registered trademarks are property of
their respective owners.
CONTACT: Siemens Microelectronics Inc., Cupertino
Martin Chorich, 408/777-4585
martin.chorich@smi.siemens.com
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