1999-11-17 , SSC-9909
Business News From Philips Semiconductors

Worldwide headquarters established for Standard Analog business

Philips Semiconductors, a division of Royal Philips Electronics (NYSE: PHG), today announced plans to expand its newly acquired operations in Tempe, Arizona, USA, which currently employs 185 people. The plan is to add at least 50 positions within the next year, and to continue to grow at this rate in subsequent years. By 2003, employment is expected to double at the site, with new positions in engineering, marketing, and technology development.

Philips Semiconductors will establish the worldwide headquarters for its Standard Analog business at the Tempe site. In addition to Standard Analog, increased emphasis and staffing will be focused in the Networking business line, the Computing and ASIC business line, and related technology development organizations.

The Standard Analog business line will be led by Ben Adamo, who joins Philips Semiconductors from Motorola Semiconductor. Adamo spent more than 20 years with Motorola in engineering and management positions, most recently as Director, Analog Hard Copy Imaging Operations.

The Philips Semiconductors site in Tempe was formerly part of VLSI Technology, Inc., which was acquired by Philips in June 1999. Philips Semiconductors immediately recognized the value of this location as a key site to base global businesses, and expand engineering, marketing, and technology activities. Tempe is one of four key locations in the US for Philips Semiconductors, joining Silicon Valley, California; Albuquerque, New Mexico; and San Antonio, Texas.

"As part of the successful integration of VLSI, Philips Semiconductors moved quickly to re-align its business units and re-prioritize programs to maximize growth potential", said Rick Goeld, executive vice president and general manager, Multi Market Products Business Unit, Philips Semiconductors. "Tempe offers a tremendous talent pool, room for growth and excellent quality of life considerations. We anticipate a great future for Philips Semiconductors in Tempe".

Goeld added, "We benefit from the universities, established technology talent and business infrastructure to create a winning combination for our employees, the community and Philips Semiconductors. We have a strong core group currently in Tempe, and we look forward to contributing to the growth and quality of life in Tempe with this plan to expand."

The Philips Semiconductors facility in Tempe was established in 1987 by VLSI Technology. At the time, a single building served some fifty-plus employees. Over the next 10 years, the site was modified to include two additional buildings attached to the original structure. The total site encompasses 123,000 square feet, of which 31,000 square feet are currently sub-leased. In addition to standard analog, networking, computing and ASIC groups, Philips Semiconductors also has units in Tempe working on PC audio, embedded processors, design automation, technology development and accounts payable activities. This facility will serve Philips Semiconductors' current needs including the initial growth projected as part of this announcement.

Philips Semiconductors is the eighth largest semiconductor supplier in the world according to Dataquest's 1998 market share report. Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. As a global company, offices in 40 countries serve major markets. Philips Semiconductors, headquartered in Eindhoven, The Netherlands, is a division of Royal Philips Electronics. Please join us at the Philips Semiconductors website: www.semiconductors.philips.com for further information