Largest-Ever Single Order Confirms Success of VLSI/Samsung Partnership
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SAN JOSE, Calif., March 29 /PRNewswire/ -- VLSI Technology (NASDAQ:VLSI)
today announced that it received from electronics giant Samsung its
largest-ever single order. The order for VLSI GSM chipsets used in Samsung's
current and future generations of GSM phones is valued at approximately
$34 million, with the majority of the order expected to be delivered in the
third quarter of this year.
VLSI and Samsung have cooperated for more than three years in the
development of market-leading GSM solutions. Most recently, Samsung's SGH-600
GSM handset, based on VLSI's silicon, has been well-received in the GSM market
and has been the subject of enthusiastic reviews since its introduction in
October 1998. New Samsung GSM phones, such as the SGH-800 and SGH-2100
launched this month at the CeBIT consumer electronics fair, will also use the
VLSI silicon solutions.
"Samsung's consumer-electronics know-how, combined with VLSI's system
level silicon, is a world-beating combination," said Ki Tae Lee, Samsung's
Executive Vice President & General Manager, Wireless Terminals Division,
Information & Communication Business. "We are well on our way to a leadership
position in the GSM handset market, and VLSI chips are an integral part of
that success. We look forward to continued collaboration in pursuit of
greater success."
The latest order comes after several years of intense joint development
activity involving VLSI's Communication Products Group in Europe, VLSI
engineers in Korea, and Samsung development teams in Korea and the UK.
"We're delighted to support Samsung's success in this intensely
competitive marketplace," said Thierry Laurent, Senior Vice President and
General Manager of VLSI's Communication Products Group. "Our goal is to work
very closely with a limited number of market leaders, and Samsung's latest
order not only demonstrates the success of this approach, but also confirms
that our GSM chipsets lead the market."
About Samsung's GSM phones
Weighing in at just 95g, the feature-rich SGH-600 handset from Samsung was
introduced in October 1998 and has already brought Samsung into a leading
position in the GSM marketplace. Based on VLSI's GSM chipset, the SGH-600
delivers features such as voice dialing, voice memo and data modem. In
addition to the SGH-800 and SGH-2100 announced at CeBIT, Samsung is currently
developing next-generation models based on VLSI's OneC GSM solution.
About VLSI Communication Products Group
VLSI Technology's Communication Products Group delivers decisive
advantages for customers in GSM, CDMA and DECT, as well as multi-mode and
proprietary systems. Its wireless offerings are based on architectures such
as the flexible dual-processor Velocity(TM) Standard Communication
Platform(TM). This approach gives handset manufacturers a single platform
solution for all major wireless standards as well as future third-generation
standards.
About VLSI Technology
VLSI Technology, Inc. designs and manufactures System-Level Silicon(TM)
integrated circuits based on its FSB(TM) functional system blocks(TM) library.
Targeting its offerings toward the wireless communications, networking,
consumer digital entertainment and computing markets, the company offers its
customers advanced system-level integration capabilities. The company is
based in San Jose, California, with 1998 revenues from continuing operations
of $547.8 million, and approximately 2,200 employees worldwide. Visit VLSI's
homepage at vlsi.com.
About Samsung
Samsung Electronics Co., Ltd., a US $17 billion (1998) flagship company of
Korean-based Samsung Group, is a world leader in electronics, with operations
in more than 50 countries and 60,000 employees worldwide. For more
information on Samsung Electronics, please visit the Samsung Electronics
website: samsungelectronics.com.
The information contained in this press release includes forward-looking
statements. Although the Company believes that the expectations reflected in
such forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be achieved. Important factors
that could cause actual results to differ materially from the Company's
expectations include weakness in the wireless communications and consumer
entertainment markets; slowing growth or decline in the demand for the
company's semiconductors; product pricing pressures and the impact of
competitive forces; loss of one or more major customers, particularly in the
communications market; failure to develop and introduce new products in a
timely manner; lower factory utilization and excess capacity; and
unanticipated problems experienced in ramping up production of a new process
or facility. For a more detailed discussion of these and other risk factors,
see the company's SEC reports, including but not limited to the Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q. The Company disclaims any
duty to update the forward-looking statements contained herein, except as may
be required by law.
SOURCE VLSI Technology, Inc.
-0- 03/29/99
/NOTE TO EDITORS: Velocity, Standard Communication Platform, OneC,
System-Level Silicon, FSB and Functional System Block are trademarks or
registered trademarks of VLSI Technology, Inc. All other names and marks are
the property of their respective holders./
/CONTACT: Media - Earle Speranza, Public Relations Manager, 408-922-5268,
or Investors- Lisa Ewbank, Director, Investor Relations, 408-474-5519, both of
VLSI Technology/
/Web site: samsungelectronics.com
/Web site: vlsi.com |
