Conexant Systems announces record revenues for fourth quarterTom ForemskiConexant 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.