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Fairchild Semiconductor Corp, which last year bought its way out of National Semiconductor Corp (CI No 2,939), has agreed to buy Raytheon Co’s semiconductor business for some $120m in cash, to help it break into the analog semiconductor market, and as part of its aggressive acquisition strategy. South Portland, Maine-based Fairchild claims to be unique in the semiconductor industry, in that it is entirely focused on multi-market products, in other words chips which can be used across the board in products from personal computers to cellular phones. You may have heard everyone talking about system-on-a-chip says Fairchild executive vice president and chief financial officer Joe Martin. Well we are the only company articulating a multi-market focus, and not going for the high-end system on a chip approach. Martin says Fairchild is delighted that system-on-a-chip vendors are doing well, however, because Fairchild’s chips surround these systems, providing all the peripheral integrated circuits needed in all sorts of devices. The Raytheon deal will add analog system chips to the company’s product line, for products such as power regulators in personal computers, and analog to digital or digital to analog converters. Raytheon Semiconductor is a $70m business, which Fairchild says was embedded’ within the $14bn defense and electronics giant. The acquisition also brings to Fairchild Raytheon’s Mountain View, California Wafer fab, and its design operation in San Diego, along with 421 employees. Martin said the acquisition is in line with the company’s plan at the time of the buyout, to grow aggressively by acquisition, and to make its first purchase within six to twelve months of completion of the management buyout in March this year. Fairchild, with 6,500 employees worldwide, is projecting revenue this year of $800m. It will now look to buy companies with multi-market products that will add to its existing portfolio.

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