February 6, 2001 - Strengthening its position in wireless communications, National Semiconductor Corporation (NYSE:NSM) today disclosed it has reached an agreement to acquire innoCOMM wireless, a San Diego-based leading developer of chipsets for wireless networking applications. National expects to complete the acquisition within its February 2001 quarter for a purchase price of approximately $130 million.
National said the acquisition of innoCOMM, including 45 skilled wireless technologists, brings additional competence, technical know-how and product design capabilities in areas complementary to National's existing base of design and product expertise. InnoCOMM's expertise ranges from short-range wireless technologies such as Bluetooth and HomeRF to full wireless local area networking (LAN) based on the IEEE 802.11 standards which assure interoperability for wireless LANs similar to that of today's Ethernet wired networking technology.
Founded in 1998, innoCOMM recently announced a single-chip Bluetooth radio transceiver manufactured in standard digital CMOS technology that offers significant advantages in cost and power consumption. Bluetooth is a technology that interconnects electronic systems such as computers, cellular telephones and other devices without wires or cables. InnoCOMM also develops chipsets for the HomeRF standard for home networking, and wireless LAN solutions based on both the IEEE 802.11a standard and the 802.11b standard, which extends operation to the 2.4 gigaHertz frequency band and delivers 11 megabit per second data rates.
"The highly skilled technologists and advanced products at innoCOMM are a perfect fit with National Semiconductor's existing strengths in the wireless marketplace and wireless technologies," said Patrick J. Brockett, executive vice president and general manager of National's Analog Group. "By adding innoCOMM's engineering talent to our existing team, we will be able to accelerate National's introduction of leading-edge wireless products for this explosive market," he added.
Brockett said National has been selectively adding key pieces of intellectual property and talent that extend its global reach and support the company's thrust into new information and communications-based markets.
"National is a premier analog company focused on the huge market opportunities presented by the convergence of voice and data services accessing the Internet over wired and wireless networks," Brockett added. "Building this infrastructure and its access terminals will drive the semiconductor industry during this decade.
Bernard Xavier, CEO of innoCOMM wireless, added, "The combination of National's manufacturing and sourcing capabilities coupled with innoCOMM's expertise in wireless data communications will result in very competitive system solutions from antenna to baseband in the personal area networks and residential gateway markets. InnoCOMM's engineering team will complement National's existing wireless engineering efforts, building on National's technical edge."
Bluetooth, Home RF and the 802.11 standards are key technologies driving the development of next generation wireless networking solutions.
"InnoCOMM's Bluetooth radio transceiver, combined with National's Bluetooth baseband technology, will quickly lead to a complete single-chip Bluetooth solution," said William Stacy, vice president of National's Wireless Group. He also emphasized that the acquisition of innoCOMM will enhance National's strong wireless position by strengthening National's presence in San Diego, a hotbed of wireless engineering talent. This facility will be the 19th of National's analog/wireless development sites, which span three continents and eight countries.
Stacy said innoCOMM's capabilities in other technologies such as HomeRF and wireless LANs based on the 802.11 standard will also be integrated into National's strategic roadmap for wireless networking applications.
The innoCOMM acquisition fits well with National's world class manufacturing capabilities which include a licensing agreement that allows National to use TSMC's (Taiwan Semiconductor Manufacturing Corporation) process technology for wafer manufacturing operations in National's South Portland, Maine, facility. TSMC has been serving as the foundry for innoCOMM's products. National's agreement with TSMC enables National and innoCOMM to share common design tools and methodologies.
The innoCOMM team will remain in San Diego and will operate as a development center within National's Wireless Group, reporting to Stacy. First CMOS products from the joint development effort are expected to be introduced in the second half of calendar 2001.
About innoCOMM
InnoCOMM wireless was founded in 1998 under its former name of Analog Circuit Technologies in San Diego, California. Prior to 2000 the company was a leading design house providing radio frequency (RF) and mixed signal semiconductor design solutions for integrated device manufacturers (IDMs). Gaining valuable experience and knowledge over the last two years, innoCOMM wireless is now applying its expertise in the product space providing wireless chipset solutions in both the personal area network and the local area network markets.
About National Semiconductor
National Semiconductor is the premier analog company driving the information age. Combining real-world analog and state-of-the-art digital technology, the company is focused on the fast growing markets for wireless handsets; information appliances; information infrastructure; and display, imaging and human interface technologies. With headquarters in Santa Clara, California, National reported sales of $2.1 billion for its last fiscal year and has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at http://www.national.com/".