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Product category: Microprocessors, Microcontrollers and DSPs
News Release from: IDT
Edited by the Electronicstalk Editorial Team on 06 April 2001

IDT looks east to Newave Semiconductor
acquisition

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IDT is to acquire Newave Semiconductor Corp, a telecommunications IC provider.

IDT is to acquire Newave Semiconductor Corp, a telecommunications IC provider Newave's design subsidiary in Shanghai, China will bring technology expertise that supports IDT's communications IC strategy, and also provides additional telecommunications products to extend IDT's offerings in the telecommunications marketplace

Under the terms of the agreement, IDT will pay approximately $80 million in cash to acquire strategic design expertise and products in analogue and mixed-signal circuit design critical to voice processing and transport products, enhancing IDT's focus on the delivery of voice-oriented solutions to the converging global network.

IDT is an industry leader of proven and emerging technologies for networking and the Internet.

To address the Internet's expansion to carry not only more data, but also additional voice and video traffic, IDT is focused on the incorporation of new voice technology to augment its existing expertise and product offerings.

With the acquisition of Newave, IDT will possess a more complete telecommunications product portfolio, including voice processing ICs and transport ICs.

These solution additions, combined with IDT's own time slot interchange (TSI) family of digital switching products, will equip IDT with a strategic response to the rapid growth for telecommunications ICs worldwide.

"As IDT continues to be an industry leader, the acquisition of core technologies and products will accelerate our communications IC strategy to better serve the emerging needs of our customers", said Jerry Taylor, IDT's president and chief executive officer.

"Together, IDT and Newave can expedite the design, development and delivery of a broader range of voice-oriented products for our leading communications customers".

"IDT's worldwide sales force and strong customer base, coupled with its in-house manufacturing capability, will allow us to broaden the reach of our products to customers worldwide", said Ying Shum, president and chief executive officer of Newave Semiconductor.

"This acquisition opens the door to a tremendous number of opportunities for Newave, and we are excited to align ourselves with a global industry leader".

Newave's design centre, based in Shanghai, is located in the heart of China's rapidly growing technology sector.

According to the Semiconductor Industry Association (SIA), while the world's largest market for semiconductor products for communications solutions will continue to be the Americas, the Asia-Pacific region is the fastest growing market with 46.6 percent growth in 2000.

Traditional telecommunications applications, including the telecom network, central office switches, plain old telephone service (POTS) and digital loop carrier, are expected to grow significantly in China over the next year.

In the United States during the same timeframe, emerging telecom applications, including multi-service access switches, integrated access devices (IADs) and voice over Internet protocol (VoIP) gateways are forecasted to grow strongly.

"China and its neighboring Asian countries are quickly developing their communications infrastructures, making this region one of the fastest growing semiconductor markets for communications applications", said Jack Lin, IDT's Asia Pacific manager of sales and marketing.

"The acquisition of Newave will supplement IDT's existing Shanghai office to grow our data and telecommunications solution presence in China.

Serving this high-growth area is of tremendous strategic importance from a regional standpoint".

Design resources acquired from Newave include more than 70 engineers that will provide critical mass in terms of research and development to enhance IDT's integration of voice and data.

IDT expects to introduce products from the former Newave product line in the second quarter of the calendar year.

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