Given National Semiconductor Corp’s recent exit from the Intel-compatible processor market through its Cyrix microprocessor division, it’s not surprising that rumors about Integrated Device Technology Inc’s future in the market are mounting. IDT itself isn’t commenting specifically, although it told Forbes Magazine that it is in the process of reviewing its overall strategy regarding the WinChip product line.
WinChip2, an enhanced version of IDT’s Centaur C6 design, has had the distinction this year of being the lowest cost Intel compatible chip available. But it suffered a nine month delay due to IDC closing down its San Jose plant, which was sold off to Cadence Design Systems Inc (CI No 3,583). WinChip3 is currently sampling, while IBM Corp has been signed up to manufacture WinChip4, which would be the company’s shot at the low-end of the mainstream PC market. Still, IDT has a share of the market below 1%, and sales dropped in its fourth quarter from the 700,000 units shipped in the third quarter. Options under consideration are a withdrawal from the market altogether, or a joint venture partnership, according to sources quoted by Forbes.
IDT still has its RISC business, based on technology licensed from MIPS Technologies Inc, and recently completed the acquisition of Quality Semiconductor Inc, with which it intends to expand its product portfolio into logic and clock management devices. IDT claims to be the second largest supplier of CMOS logic.
The Santa Clara, California-based company, which employs 4,600 people, returned to profit in its fiscal fourth quarter, with income of $8m on revenue up 2.7% to $139.4m, compared with the same quarter last year. But for the year, revenue was down 8% to $540.2m from $587.1m the previous year, and the company posted a net loss of $41.2m, compared with $8.2m profit last time.
