National development boosted by microprocessor-maker buy

Following its acquisition of x86 microprocessor maker Cyrix, National Semiconductor is looking to expand its high-end production capabilities, and Asia is a leading candidate as a site for a new wafer production plant.

National already has two manufacturing plants in Asia, located in Malaysia and Singapore, which handle assembly and testing.

Earlier this year, the company announced it was investing US$100 million on expanding its 8-inch wafer facility in Santa Clara, California. The expansion will enable it to etch circuitry on to silicon wafers at .25 microns and eventually at .18 microns.

This will provide a boost for Cyrex because it relies on outside suppliers for this type of chip.

Speaking of the merger, Everett Roach, vice-president of Asia-Pacific for Cyrix said: 'Cyrix will gain access to company fabs to complement its foundry relationships, advantageous cross-licence agreements for x86 patents, access to National's library of reusable cells and leverage of a global sales and distribution infrastructure.' Patrick Brockett, National's executive vice-president of sales and marketing described the acquisition as giving the firm the final piece of technology to develop a complete system-on-a-chip for use in the sub-$500 PC and information appliance market.

He said he expected these products to do well in the region, which already was the company's fastest-growing market.

Mr Roach said the company's Media GX chip represented an entry solution that was not being addressed by Intel Corp, the microprocessor market leader. He added that the company expected the chip to do well in China.