Conexant Systems announces record revenues for fourth
quarterTom Foremski
Conexant Systems announced record revenues of $452.2m for its
fiscal fourth quarter and signed a $150m foundry agreement with
Taiwan Semiconductor Manufacturing Company (TSMC) to help keep up
with demand.
Revenues were up 19 per cent from the previous quarter and up 71
per cent from fiscal fourth quarter of 1998. The company said that
strong sales of its communications chips in key markets helped
drive demand. Conexant also said that it did not expect its first
quarter sales to be affected by the recent Taiwan earthquake but it
said it needs extra foundry capacity and TSMC will provide it with
additional wafers.
"Conexant will have access to a significant supply of wafers for a
fraction of the cost of building a fab of our own," said Conexant
CEO Dwight Decker. The agreement with TSMC is an extension of the
company's current foundry arrangements.