Faraday Reaffirms Its Commitment to Structured ASIC Business

Unique Product Strategy and Healthy Return on Investment Provide Confidence to

Expanding Faraday's Product Portfolio

Apr 04, 2006, 01:00 ET from Faraday Technology Corporation

    HSINCHU, Taiwan and SUNNYVALE, Calif., April 4 /PRNewswire-FirstCall/ --
 Faraday Technology (TAIEX: 3035), a leading ASIC and IP provider, today
 announced that it is satisfied with its structured ASIC business, and will
 more than double its portfolio by the end of 2006. This announcement is in
 response to questions raised by LSI Logic's exit of its RapidChip Structured
 ASIC business, and Synplicity's withdrawing its support for Structured ASIC
 design tools.
     "We want our customers and investors to know that we have invested
 carefully, and is reaping excellent returns on our Structured ASIC product
 portfolio," said H.P. Lin, President of Faraday Technology. "Our unique vision
 of reducing ASIC NRE cost instead of replacing high unit price FPGA chips,
 coupled with our application-focused product lines have helped us avoided the
 issues that other players have encountered."
     Most of the Structured ASIC vendors, including LSI Logic, have fashioned
 their product lines after embedded arrays of the gate array era, with large
 product lines of generic blank slices for customers to add their custom logic
 designs on. The large product line results in huge upfront investment, as well
 as on-going inventory costs. Furthermore, many of these slices lack the focus
 to be used by customers who are looking for particular solutions.
     Faraday's Structured ASIC Success
     Faraday's unique Structured ASIC strategy starts with market focus: PC
 peripheral and network communication. The PeripheralComposer (PC-1) and
 NetComposer (NC-1) are optimized for their respective market space: embedded
 KVM switch, and PCI-X to Gigabit Ethernet traffic. With only 40% of PC-1 and
 NC-1 being structured ASIC logic, the rest optimized custom ASIC, both
 products are price competitive against ASSP solutions. To date, Faraday has
 won ten design wins, and expects about $30 million in production revenue over
 the lifespan of just these two products.
     "Faraday's Structured ASIC platform strategy has been to dominate specific
 market segments with the smallest die size and fastest turnaround time," said
 Dr. George Hwang, Vice President of R&D and Marketing at Faraday. "We are very
 glad the success has given us the confidence to expand our product offering."
     Since the Composer product line is meant to be the lower-NRE cost solution
 to traditional ASICs, the design flow has remain compatible to Synopsys-
 Cadence mainstream ASIC methodology. Therefore, the Synplicity EDA product
 line termination will not affect Faraday and its customers at all.
     Faraday expects to announce a third product of its Structured ASIC
 shortly, and will announce the follow-on products for the PC-1 and the NC-1 in
 the second half of this year.
     About Faraday Technology Corporation
     Faraday Technology Corporation is a leading silicon IP and fabless ASIC
 vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, USB 2.0,
 Ethernet, Serial ATA, and PCI-Express. With more than 630 employees and 2005
 revenue of $180 million, Faraday is one of the largest fabless ASIC companies
 in the Asia-Pacific region, and it also has a significant presence in other
 markets, worldwide. Headquartered in Taiwan, Faraday has service and support
 offices around the world, including the U.S., Japan, Europe, and China. For
 more information, please visit: http://www.faraday-tech.com
      Press Contact, Faraday HQ          Press Contact, Faraday USA
      Selina Ko                          Chris Moezzi
      +1.886.3.578.7888 ext. 8350        +1.408.522.8888 ext. 111
      selina@faraday-tech.com            moezzi@faraday-tech.com

SOURCE Faraday Technology Corporation