Analog Devices: Eagle Chipset to be fabbed by TSMC

The China Post staff

Analog Devices Inc. announced yesterday their new Eagle chipset series, the industry’s smallest ADSL client chipset and the first two-chip solution for ADSL (Asymmetric Digital Subscriber Line) customer premise equipment (CPE). According to the company, Eagle chipsets will be mass produced starting in July and will be fabbed by Taiwan Semiconductor Manufacturing Company Ltd. According to the company, reducing the physical size and the total number of chips lowers the power consumption and the manufacturing cost for CPE manufacturers.

Analog Devices, based in Norwood, Massachusetts, is one of the leading designers of chipsets in the world. According to company statements, Analog Devices designed over 75 percent of the chipset solutions currently in use and serves over 90 leading companies around the world. Vic Jayasimha, director of marketing for the company said that Analog Devices and Alcatel, its closest competitor, together control roughly 80 percent of the international chipset market. According to Jayasimha, Analog Devices is planning to beat out its rival in coming months. “We expect to close the market on Alcatel later this year,” he said. Jayasimha said that the company is actively marketing the chipsets to Taiwan customers. “We have at least 5 major companies in Taiwan who are committed to using our chipsets,” he explained. Analog Devices grew by nearly 80 percent in 2000 but the company’s CEO, Jerry Fishman, said that it would be unrealistic to expect that sort of growth to continue. Speaking recently at the Banc of America Technology Week Conference in San Francisco Fishman said that the company expects to grow at roughly 35 percent per year over the long term and would reach sales of US$5 billion by 2003. Analog Devices’ business prospects could well be affected by the slowdown in the international PC and wireless device markets.

Nevertheless Jason Tsai, president for Taiwan operations, expressed optimism saying that he expects the worldwide market to pick up in June of this year.