Based in Santa Clara, CA, Integrated Device Technology, Inc., is an original equipment manufacturer (OEM) of a broad portfolio of digital communications semiconductor components and modules that primarily target the telecommunication and communications networking end markets. These products are contained within various core, metro, access, and enterprise wireline, wireless and base-station equipment. The company has three operating segments: communications integrated circuits (ICs), logic & clocks, and SRAM (static random access memory). The communications ICs segment accounted for 65% of fiscal 2005 revenue, logic & clocks generated19% and SRAM 16%.
The communications IC segment consists of network search engines (NSE), content inspection engines (CIE), integrated communications processors, flow-control management devices, FIFO data buffers, multi-ports, telecommunications products and serial switching. The logic & clocks segment products include various logic devices implemented with a variety of semiconductor technologies, as well as programmable clock generators, synchronizers and distribution chips. Specific semiconductor logic technologies include: complementary metal oxide silicon (CMOS), TTL compatible (FCT), low-voltage CMOS (LVC) and advanced low-voltage CMOS (ALVC) logic devices. Specific clocking semiconductor devices include: programmable skew phase lock loop (PLL) devices, zero-delay PLLs, DDR2 PLLs, clock generators and clock fan-out or distribution chips. The SRAM segment contains the legacy memory business that focuses on high-speed, industry-standard communications applications.
IDT manufactures and tests nearly all its semiconductor devices in-house. The company recently completed an expansion project, increasing the fabrication line capacity to 30,000 (30k) wafer starts per month. Most component assembly and testing are conducted at the company's Penang (Malaysia) and Manila (Philippines) facilities. Non-SRAM competitors include Cypress, Integrated Circuit Systems, MetLogic, Texas Instruments, Motorola, Toshiba, NEC, Infineon, PMC-Sierra, Agere, Zarlink, Exar, Intel and Maxim. SRAM competitors include Cypress, Giga Semiconductor, Integrated Silicon Solutions, Samsung, and other various Far East memory manufacturers.
Most of the customers are OEMs within the communications industry, which embed the firm's products within larger systems. Sales distribution is conducted through a direct sales force, distributors, contract electronic manufacturers (CEMs) and independent sales representatives. Direct sales accounted for 47% of 2005 revenue with distributors contributing 36% and the remaining 17% from consignments. Although no single end- customer accounted for more than 10% of direct sales, management estimates that 20-25% of 2005 revenue came indirectly from items that were ultimately incorporated into a Cisco-branded product. Geographically, 32% of 2005 revenue was generated in the Americas in 2004, 37% in the Asia/Pacific region (ex-Japan), 17% in Europe, and the remaining 14% in Japan.