We develop and manufacture specialized semiconductor products used by our customers
for a wide variety of embedded control applications. Our product portfolio comprises
8- and 16-bit PIC® microcontrollers and 16-bit dsPIC® digital signal
controllers, which feature on-board Flash (reprogrammable) memory technology.
In addition, we offer a broad spectrum of high-performance linear, mixed-signal,
power management, thermal management, battery management and interface devices.
We also make serial EEPROMs. Our synergistic product portfolio targets thousands
of applications and a growing demand for high-performance designs in the automotive,
communications, computing, consumer and industrial control markets. Our quality
systems are ISO/TS16949 (2002 version) certified.
Competitive pressures require manufacturers of a wide variety of products to
expand product functionality and provide differentiation while maintaining or
reducing cost. To address these requirements, manufacturers often use integrated
circuit-based embedded control systems that enable them to:
· differentiate their products
· replace less efficient electromechanical control devices
· reduce the number of components in their system
· add product functionality
· decrease time to market for their products
· significantly reduce product cost
Embedded control systems have been incorporated into thousands of products and
subassemblies in a wide variety of applications and markets worldwide, including:
· automotive comfort, safety and entertainment applications
· remote control devices
· handheld tools
· home appliances
· portable computers
· robotics
· accessories
· cordless and cellular telephone
· motor controls
· security systems
· educational and entertainment devices
· consumer electronics
· power supplies
Embedded control systems typically incorporate a microcontroller as the principal
active, and sometimes sole, component. A microcontroller is a self-contained
computer-on-a-chip consisting of a central processing unit, non-volatile program
memory, random access memory for data storage and various input/output peripheral
capabilities. In addition to the microcontroller, a complete embedded control
system incorporates application-specific software and may include specialized
peripheral device controllers, non-volatile memory components such as EEPROMs,
and various analog and interface products.
The increasing demand for embedded control has made the market for microcontrollers
one of the larger segments of the semiconductor market. Microcontrollers are
currently available in 4-bit through 32-bit architectures. 4-bit microcontrollers
are relatively inexpensive, but they generally lack the minimum functionality
required in most applications and are typically used in relatively simple applications.
8-bit microcontrollers remain very cost-effective for a wide range of high volume
embedded control applications and, as a result, continue to represent the largest
portion of the overall microcontroller market. 16-bit and 32-bit microcontrollers
provide higher performance and functionality, and are generally found in more
complex embedded control applications.
Many of the microcontrollers shipped today are ROM-based and must be programmed
by the semiconductor supplier during manufacturing, resulting in long lead times,
based on market conditions, for delivery of such microcontrollers. In addition
to delayed product introduction, these long lead times can result in potential
inventory obsolescence and temporary factory shutdowns when changes in the firmware
are required. To address these issues, some suppliers offer programmable microcontrollers
that can be configured by the customer in the customer’s manufacturing
line, thus significantly reducing lead time and inventory risks when the inevitable
firmware changes occur. While these microcontrollers were initially expensive
relative to ROM-based microcontrollers, manufacturing technology has evolved
over time to the point where reprogrammable microcontrollers are now available
for little to no premium over ROM-based microcontrollers, thus providing significant
value to microcontroller customers. As a result, reprogrammable microcontrollers
are the fastest growing segment of the microcontroller market.
Our Products
Our strategic focus is on embedded control solutions, including:
· microcontrollers
· development tools
· analog and interface products
· memory products
We provide highly cost-effective embedded control solutions that also offer
the advantages of small size, high performance, low voltage/power operation
and ease of development, enabling timely and cost-effective embedded control
product integration by our customers.
Competition
The semiconductor industry is intensely competitive and has been characterized
by price erosion and rapid technological change. We compete with major domestic
and international semiconductor companies, many of which have greater market
recognition and greater financial, technical, marketing, distribution and other
resources than we have with which to pursue engineering, manufacturing, marketing
and distribution of their products. Furthermore, capacity in the semiconductor
industry is generally increasing over time and such increased capacity or improved
product availability could adversely affect our competitive position.
We currently compete principally on the basis of the technical innovation and
performance of our embedded control products, including the following product
characteristics:
· speed
· functionality
· density
· power consumption
· reliability
· packaging alternatives
We believe that other important competitive factors in the embedded control
market include:
· ease of use
· functionality of application development systems
· dependable delivery and quality
· technical service and support
· price
· availability
We believe that we compete favorably with other companies on all of these factors,
but we may be unable to compete successfully in the future, which could harm
our business.
