Contents. Semiconductor DQ Monday Report Issue 41

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1 Semiconductor DQ Monday Report Issue 41 Introduction to Semiconductor DQ Monday Report Semiconductor DQ Monday Report allows Gartner Dataquest analysts to share opinions and analysis of key events as they unfold. To learn more about Gartner's industry-leading products and services, we encourage you to contact us at: or contact your local account executive. You can also visit us at About Gartner Gartner Dataquest is the recognized leader in providing the high-technology and business communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, e-business, and professional services sectors of the global IT industry. Gartner provides unrivaled thought leadership for more than 10,500 organizations, helping clients achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and at Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2001 revenue of $963 million. Gartner's 4,000 associates, including 1,200 research analysts and consultants, are in more than 90 locations worldwide. Contents DRAM Spot Market Pricing... 2 Lightspeed Introduces 0.13-Micron Modular Array ASIC... 3 IBM to Acquire EADS Matra Datavision... 3 IBM Takes Big Step Into Engineering and Technology Services... 4 Memory Market Pricing, October China Manufactures Its Own Branded Computer ICs... 8 AT&T Says No to WCDMA: But Is EDGE Ready?... 8 Bookham and Nortel to Merge Optical Components Businesses... 9 Press.gartner.com In the News New Reports Get "Alert"ed to the Latest in Semiconductor Research Upcoming Gartner Conferences Gartner, Inc. 1

2 2 Semiconductor DQ Monday Report, Issue 41 DRAM Spot Market Pricing Table 1 shows the average spot market pricing for DRAM as tracked by Gartner Dataquest for the weeks ending 4 October and 11 October. Table 1 DRAM Spot Market Pricing (U.S. Dollars) 04-Oct Oct-02 Weekly Change (%) Low Range High Range Low Range High Range Low Range High Range 64Mb (8Mbx8 PC133) Mb (16Mbx8 PC133) Mb (16Mbx8 DDR266) Mb (32Mbx8 PC133) Mb (32Mbx8 DDR266) Mb (8Mbx16 RDRAM 400MHz) Source: Gartner Dataquest (October 2002) Gartner Dataquest Analysis Last week spot pricing changes ranged from an increase of 3.1 percent to an increase of 4.4 percent. Figure 1 shows a 52-week history of average DRAM spot pricing for the six key devices tracked. Figure 1 Average DRAM Spot Pricing, 52-Week History U.S. Dollars Mb PC-133 Average 128Mb PC-133 Average 256Mb PC133 Average 128Mb DDR266 Average 256Mb 266DDR Average Oct 9-Nov 30-Nov 21-Dec 11-Jan 1-Feb 22-Feb 15-Mar 5-Apr 26-Apr 17-May 7-Jun 28-Jun 19-Jul 9-Aug 30-Aug 20-Sep 11-Oct 128Mb RDRAM Average Source: Gartner Dataquest (October 2002)

3 Semiconductor DQ Monday Report, Issue 41 3 Pricing on the mainstream 128Mb 16Mbx8 PC133 device was unchanged, ended the week in the range of US$1.55 to US$1.80. Pricing on the higher-density 256Mb 32Mbx8 PC133 device was unchanged, ending the week in the range of US$2.25 to US$2.70. Pricing on DDR SDRAM 128Mb devices was up 3.1 percent for low-end pricing during the past week, while high-end pricing was up 4.3 percent. Pricing ended the week in the range of US$3.35 to US$3.65. Pricing on the 256Mb 32Mbx8 DDR266 was in the range of US$6.70 to US$7.15 low-end pricing was up 3.1 percent while high-end pricing was up 4.4 percent on the week. Once again, RDRAM pricing was unchanged. Pricing ended the week in the range of US$4.80 to US$5.05. By Andrew Norwood (andrew.norwood@gartner.com) Lightspeed Introduces 0.13-Micron Modular Array ASIC Lightspeed, on 7 October, introduced its next-generation modular array ASIC, Luminance, on the 0.13-micron process manufactured by TSMC. On the advanced process geometry, Luminance can deliver up to 700MHz in system performance and provides up to 10 million usable ASIC gates and five million SRAM bits. Luminance features advanced I/O systems, which include SPI 4.2 and HyperTransport, and the AutoTest structure, which eliminates DFT requirements and provides 100 percent stuck-at-fault coverage. Designs can be verified at an early stage through TSMC's CyberShuttle program, and production will start in the first quarter of Gartner Dataquest Analysis This is an obvious performance boost from the 200MHz Lightning (prior generation). Much of this is attributed to the technology advancement from the 0.25-micron to 0.13-micron process. Luminance is designed to play between the cell-based IC and FPGA markets. This predefined modular array platform allows reasonable time-to-market and lower device unit price, compared with FPGAs, but has an NRE charge associated with it, which doesn t apply to FPGAs. As compared with cell-based ICs, NRE charges and fab turnaroundtimearesignificantlyreducedasfewermasksandprocessstepsareinvolved. This platform, however, leads to a less-condensed chip, which implies a larger die size and higher cost per unit. Although design flexibility in this predefined platform may be limited, fast time-to-market does appear to be a valuable tradeoff. By Serena Hsu (serena.hsu@gartner.com) IBM to Acquire EADS Matra Datavision IBM has announced its intention to acquire EADS Matra Datavision to enhance IBM's product life cycle management (PLM) offerings. IBM will be adding EADS Matra Datavision's consulting and technical expertise in the leading PLM solutions to its PLM services and infrastructure offerings. The acquisition is expected to be completed in the fourth quarter and take effect by 1 January Source: Company Press Release

4 4 Semiconductor DQ Monday Report, Issue 41 Gartner Dataquest Analysis This is a significant move in IBM's strategic penetration of the design and engineering market. Until just a few years ago, Matra Datavision was a key vendor of mechanical design applications. The company sold off most of its software applications business to competitor Dassault Systemes in 1999 and instead became predominantly a software service provider to mechanical design users. Matra continued to offer consulting services, such as application implementation and integration, for engineering solutions. Matra struck an alliance with IBM and became its top-producing PLM business partner, distributing and providing integration services for IBM PLM's CATIA, ENOVIA and SMARTEAM product development and data management applications. IBM's acquisition of Matra will enhance its position as the top-ranked mechanical applications vendor, further solidifying its worldwide leadership in the mechanical design market for software and services. The acquisition reaffirms the role of services as a critical part of the mechanical design applications market. IBM is leveraging its proficiencies as a design and engineering powerhouse to deepen its reach into the value chain by coupling product and service offerings. IBM has wisely selected the services it has chosen to introduce for each market segment. For the mechanical design market, in which design outsourcing is not a particularly booming trend, IBM will continue to concentrate on services closely aligned with the sales of its core PLM products. In the burgeoning services market for electronics design, IBM has a multifaceted approach that largely centers on outsourcing opportunity. Complementing service offerings with IBM's core product portfolio will offset the cyclicality inherent in these services businesses. IBM is using its strong position in mechanical and electronics design to bolster its opportunity for success as a leading service provider. By Laurie Balch (laurie.balch@gartner.com) IBM Takes Big Step Into Engineering and Technology Services IBM has announced a services business IBM Engineering & Technology Services focused on helping companies design innovative electronic products. The business brings together IBM's know-how and capabilities in IT services and advanced technology, offering customers a wealth of engineering talent and access to IBM's vast intellectual property, including designs ranging from complex chips to entire systems. To help propel this business, IBM has shifted more than 700 design engineers worldwide into the unit and expects the number to increase to more than 1,000 by next year. Source: Company Press Release Gartner Dataquest Analysis The industry is in its worst downturn ever. Design outsourcing was one of the first casualties as customers pulled design operations in-house. Many semiconductor vendors and OEMs went further, laying off engineers in large numbers. Design services companies and other consulting businesses across the world are in trouble. In the middle of all this, IBM makes a big push to design services. So what's going on? Thetimingofthismoveissignificant.Theelectronicsandsemiconductorindustriesare depressed right now, but clear signs are of an upturn. As soon as vendors sense the start of the upturn, we can expect a sharp boost in design outsourcing in view of the depleted internal resources in many companies. Several major design outsourcing vendors have been weakened by the downturn and are therefore less able to respond to IBM's challenge.

5 Semiconductor DQ Monday Report, Issue 41 5 However, IBM's capabilities go further than traditional semiconductor design outsourcing. Most outsourcing in this sector is of special functions in chips, occasionally full chip design, some IP licensing and a little software development. IBM has the resources to offer complete product design and will therefore be able to offer its services to companies outside of the semiconductor industry. Perhaps, to those outside the electronics industry, this could open sectors in the US$2.1 billion electronics design outsourcing market, triggering high-market growth. IBM will face plenty of competition, notably from contract equipment manufacturing companies. But IBM's technology capabilities will be hard to challenge. The value in electronics is shifting somewhat from manufacturing to design, software and services. IBM is anticipating this value shift very effectively. Memory Market Pricing, October 2002 By Jim Tully (jim.tully@gartner.com) Memory Prices Softer Heading Into 4Q Despite modest seasonal strength in demand and concerns that component inventories are perilously low, memory prices have edged downward in October as fourth-quarter contractpricelevelstakehold.sofar,leadtimeshavenotmoved,andbuyersstillhave the upper hand, with cellular phones the lone bright spot for memory vendors. Table 2 shows regional and worldwide average memory device contract pricing for September. Gartner Dataquest Analysis DRAM DRAM contract prices continue to reflect the ongoing product mix imbalance between relatively higher demand/lower supply for DDR devices and relatively lower demand/ higher supply for SDR devices. Standard SDRAM device pricing has dropped to the US$2 and US$4 range for the 128Mb and 256Mb devices, respectively, while the same density in DDR devices are double the cost. However, the effect of more balanced productionloading by vendors, plus seasonal weakness in demand from the PC sector going into the first quarter of 2003, ought to result in softer DDR DRAM prices through the end of the year. Flash NOR-Based Flash No significant price movements have been witnessed during the past few weeks. NAND-Based Flash No significant price movements have been witnessed during the past few weeks.

6 6 Semiconductor DQ Monday Report, Issue 41 Table 2 Average Contract Pricing for Selected Memory Devices (U.S. Dollars) South Korea Japan Taiwan China/Hong Kong Europe Americas Worldwide Device Low High Low High Low High Low High Low High Low High Low High NOR Flash 32Mb 2Mbx16-TSOP Mb 4Mbx16-TSOP Mb 2Mbx16-TSOP N/A N/A N/A N/A N/A N/A N/A N/A NAND Flash 64Mb 4Mbx16-TSOP N/A N/A Mb 8Mbx16-TSOP N/A N/A Mb 16Mbx16-TSOP N/A N/A Mb 32Mbx16-TSOP N/A N/A N/A N/A N/A N/A SRAM Asynchronous 1Mb 128Kx8-70ns 5V Mb 256Kx8-70ns 3V (CSP) Mb 512Kx8-15ns 3V Mb 512Kx8-70ns 1.8V (CSP) Mb 512Kx8-70ns 5V Mb 512Kx16-70ns 1.8V/3V (CSP) Mb 1024x16-70ns 1.8V/3V (CSP) N/A N/A SRAM Synchronous 4Mb N/A N/A Mb N/A N/A Mb N/A N/A Flash/SRAM Combo 2Mb x 16 Flash + 256Kb x 16 SRAM MCP N/A N/A Mb x 16 Flash + 256Kb x 16 SRAM MCP N/A N/A N/A N/A N/A N/A Mb x 16 Flash + 512Kb x 16 SRAM MCP N/A N/A N/A N/A

7 Semiconductor DQ Monday Report, Issue 41 7 Table 2 (Continued) Average Contract Pricing for Selected Memory Devices (U.S. Dollars) South Korea Japan Taiwan China/Hong Kong Europe Americas Worldwide Device Low High Low High Low High Low High Low High Low High Low High DRAM 128Mb (16Mbx8-133MHz) Mb (16Mbx8-266MHz DDR) Mb (8x16Mb RDRAM 800MHz) Mb (8x32Mb RDRAM 800MHz) N/A N/A Mb (32Mbx8-133MHz) Mb (32Mbx8-266MHz DDR) N/A = Not available Source: Gartner Dataquest (October 2002)

8 8 Semiconductor DQ Monday Report, Issue 41 SRAM SRAM pricing has taken a downward step in October. Across the board, SRAM contract pricing has been set 5 percent to 10 percent lower for the fourth quarter, with particular competition seen in the market for higher-density synchronous SRAM. By Richard Gordon (richard.gordon@gartner.com), Andrew Norwood (andrew.norwood@gartner.com), Hee-chan Lee (hee-chan.lee@gartner.com), Dorothy Lai (dorothy.lai@gartner.com), Jamie Wang (jamie.wang@gartner.com) and Hiroyuki Shimizu (hiroyuki.shimizu@gartner.com) China Manufactures Its Own Branded Computer ICs China began to produce its own proprietary computer chips to break away from foreign monopolization. Sources note that Philips Semiconductor, Samsung, TCL, Legend and other leading computer brands in China are using the image decoding chips designed by Beijing-based VIMICRO. The Chinese Academy of Sciences announced it will start batch production of its high-performance general chip. Source: Xinhua News Agency Gartner Dataquest Analysis This is not the first time China has tried to break away from foreign domination of standards. Its development of Linux and TD-SCDMA are key examples of how China tries get away from the Windows and GSM/CDMA platforms. Although it will be difficult to break away from Intel or AMD's influence in the PC market immediately, China's proprietary chips may be able to support the niche markets, such as in finance, military and industrial controls. In addition, by designing its own chips, China will be able to break away from the export control imposed by countries such as the United States. Although China is supposed to comply with WTO rules by giving the same privileges to local companies as foreign ones, it will still try to support local standards in the name of protecting national security. By Dorothy Lai (dorothy.lai@gartner.com) AT&T Says No to WCDMA: But Is EDGE Ready? Recently, AT&T Wireless announced than it sees no immediate need to deploy WCDMA in its network during the next five years. The company will proceed with its planned launch of enhanced data-rates for global evolution (EDGE) service in Gartner Dataquest Analysis AT&T's decision makes a lot of sense. The GSM/GPRS base stations that the company (and Cingular) are deploying are capable of operating with the EDGE standard as well. Upgrading the base stations to EDGE will be a relatively inexpensive process, particularly when compared with the cost of installing the base station equipment required for WCDMA. The timing of EDGE deployment is becoming critical. The rollout of cdma2000 networks by Sprint and Verizon is putting pressure on AT&T and Cingular to upgrade their networks from GPRS to EDGE to achieve data rates comparable with cdma 1x (100 Kbps). While the infrastructure equipment is available to complete the rollout, the availability of handsets is in question. No EDGE handsets are available. This is further exacerbated by the lack of availability of semiconductor chipsets for EDGE handsets. The real challenge seemstobewiththedesignoftheradio,particularlythetransmitsection.theonlyedge transmitter that is available is the TimeStar from Tropian. The design uses a polar modulation technique, which appears to be the approach that others will use when they announce products that will be available in 2003.

9 Semiconductor DQ Monday Report, Issue 41 9 PrairieComm and Analog Devices have announced chipset solutions that will enable EDGEphones.However,itwillbesometimebeforephonesusingthesechipsetsbecome available. As a result AT&T may find a relatively limited variety of EDGE handsets available when it launches its service. Nokia has indicated that it will introduce an EDGE handset in AT&T and Cingular should be spending some time working with chipset and handset manufacturers to be sure that different EDGE-capable handsets would be available when the service is launched. Chipset companies should consider putting more effort into starting production of an EDGE-capable chipset during the next six months. By Stan Bruederle (stan.bruederle@gartner.com) Bookham and Nortel to Merge Optical Components Businesses On 7 October, Bookham Technology (a provider of optical components for communications networks in the United Kingdom) announced that it has agreed to buy the optical transmitter and receiver and optical amplifier businesses of Nortel Networks. These business units produced US$64 million in revenue during the first six months of the year, with the majority being internal sales to Nortel's optical systems business. In return, Nortel will receive Bookham shares (30 percent of the company), its debt of US$50 million, warrants and US$10 million. On the day of the announcement, the deal was valued at US$112 million. The United Kingdom listing authority will classify the transaction as a reverse takeover. Nortel has agreed not to exercise its resultant voting rights except under limited circumstances and to decline a presence on the Bookham board of directors. Approval will be sought from Bookham shareholders on 5 November. The terms of the agreement include a three-year supply contract. During the first 18 months after the transaction, Nortel agreed to buy US$120 million of components from Bookham. In the subsequent 18 months, Bookham will supply a fixed percentage of Nortel's component requirements (calculated on a product-by-product basis). The agreement is subject to performance and delivery-time criteria. Gartner Dataquest Analysis This is not an unexpected deal for Nortel; last May it said it was considering selling its loss-making optical components business. The supply agreement allows them to retain access to the product line. However, not every Nortel optical component asset will be transferred, so it still faces some shutdown costs. Among the assets being shut down is Nortel's Coretek acquisition, a group producing tunable lasers and filter technology. Nortel has some risks. It must pay US$120 million to Bookham, even if this exceeds actual requirements. If Bookham struggles, it may not fulfill its supply commitments, so Nortel must qualify second sources. Nortel will lose the ability to differentiate its products on the basis of component content. It will lose its design capability and have to resort to collaborative efforts for high-end products. However, increasing vertical segmentation is an industry trend, with systems vendors increasingly choosing to outsource optical and electronic components. For Bookham, this is a bold but risky move. While it has a guaranteed revenue stream for 18 months, it is taking on a loss-making operation. It claims to have identified quarterly cost savings of US$23 million in the short term and a further US$14 million in the midterm. On the basis of these assumptions, the component acquisition is potentially profitable in the midterm. However, the company s operations are depleting its cash reserves, which decreased 9 percent in the second quarter.

10 10 Semiconductor DQ Monday Report, Issue 41 Bookham gains from the infusion of Nortel's intellectual capital and from extending its product line without internal development efforts. This brings it closer to offering onestop shopping to its clients. However, the supply agreement with Nortel means Bookham is essentially committed to specific products, even if they generate losses. For this deal to be successful, Bookham must act decisively to boost the component operation's efficiency and market share. At best, the deal provides a breathing space for the companies. It is not guaranteed that either of them will survive in the optical communications business. By Peter Middleton (peter.middleton@gartner.com) Press.gartner.com Press.gartner.com is designed to guide you through the correct procedure of obtaining a Gartner Dataquest analyst's quote. If your company would like to issue a press release quoting one of our analysts, you must submit your request to quote.requests@gartner.com. Standard requests will be approved within 48 hours. In the News STI Acquires Conductus Superconductor Technologies Inc. has acquired another vendor in the arena Conductus of Sunnyvale, California. The company will retain the STI name. Under the terms, Conductusshareholderswillreceive0.6sharesofnewlyissuedSTIcommonstockfor each outstanding share of Conductus common stock. Rambus' 3Q Sales Jump 3 Percent Rambus reported sales of US$24.5 million for its fourth quarter, which ended 30 September, down 12 percent over the same period last year but up 3 percent from the previous quarter. Net income was US$5.9 million, compared with US$6.5 million for the same period last year and US$5.9 million in the previous quarter. Earnings per share for the quarter was US$0.06, which was the same as a year ago and a quarter ago. Nortel, Qualcomm Demo UMTS at 1.9GHz Nortel and Qualcomm say they have completed the first Universal Mobile Telecommunications System (UMTS) voice and data calls across commercial cellular sites using the live 1.9GHz radio spectrum. The commercial form-factor handsets used chipsets from Qualcomm, while the live, end-to-end third-generation partnership projectcompatible UMTS network was provided by Nortel. The companies say the success of the trials is significant for operators in North America, which have spectra available at 1.9GHz but not at 2.1GHz. Dongbu, Anam to Merge Operations, Aim for IPO Dongbu Electronics and Anam Semiconductor have begun to integrate their operations and plan to file for an IPO in 2004 or Dongbu Electronics will shortly begin selling wafers from Anam's fab a move that will expand the company's foundry capacity and give it a major boost in the marketplace. Last year, Anam was the world's fourth-largest foundry vendor, behind TSMC, UMC and Chartered, according to IC Insights of Scottsdale, Arizona.

11 Semiconductor DQ Monday Report, Issue Actel Announced Availability of Military-Qualified Antifuse FPGAs Actel has announced the availability of its SX72A and SX32A antifuse FPGAs, qualified to military specifications. These chips will be shipped under standard military drawing numbers approved by the Defense Supply Center Columbus. The SX-A family is scalable up to 36,000 ASIC gates, delivering system performance of up to 250MHz, and is able to sustain temperature from negative 55 C to 125 C. Based on antifuse technology, these chips feature high design security, as no configuration boot PROMs or bit streams can be intercepted and decoded. The SX-A devices are well-suitable for a range of military, aerospace and avionics applications, including radar command and control, groundbased communications, and advanced weapon control systems. New Reports Worldwide Wireless Communications Semiconductor Update, 2H02 The wireless semiconductor markets are declining in 2002 except for the handset semiconductor market, which is expected to grow 5.6 percent as inventories become aligned with production again. (Gartner Dataquest Market Statistics, SCSA-WW-MS-0128, 9 October 2002, US$1,495) Flip-Chip Bumping Services: Driving Value-Added Businesses Wafer-bumping services are diversifying their forms with the evolution of flip-chip packaging technology. (Gartner Dataquest Perspective, SEMC-WW-DP-0191, 9 October 2002, US$795) Asia/Pacific Microcomponents Market Outlook (Executive Summary) The semiconductor market is gradually improving in Asia/Pacific, but the pace of recovery is slowing. The microcomponents market is forecast to decline 1.1 percent to $14.6 billion in (Gartner Dataquest Executive Summary, SEMC-WW-EX-0167, 7 October 2002, US$195) Worldwide ASIC/ASSP, FPGA/PLD and SLI/SOC Application Forecast, 3Q02 Gartner Dataquest has lowered the total ASIC/ASSP revenue for 2002 by about 3 percent to negative 4.7 percent. The SLI/SOC market is expected to grow 8 percent in revenue in (Gartner Dataquest Market Statistics, SCSI-WW-MS-0151, 1 October 2002, US$6,995) Get "Alert"ed to the Latest in Semiconductor Research Would you like to be notified by when the latest semiconductor research has been published? If so, all you have to do is follow these simple instructions to set up an "Alert." Click the button "Alerts" at the bottom of the gartner.com home page. A small screen will open with a button in the top right corner labeled "Create/ Modify Personal Alert." Click on this button. In the field labeled "Create/Modify Alert Name:" enter "semiconductors." In the field labeled "Search for the Following Words:" enter "semiconductor." Under "Search Content:" click on "All Content." (Please be advised that if you search "All Content" you may not have access to the publication unless you subscribe to its respective cluster.) Under "Search the..." select "Title," "Full Text" and "Summary." Under "Topic" select "Semiconductor Market Data." Under "Type" select "Market Analysis," "Strategy Trends," "News," and "Market Statistics." Leave "Region:" and "Industry:" blank.

12 12 Semiconductor DQ Monday Report, Issue 41 Under "Send This Alert To:" type your address. Under " frequency:" select "Daily," "Weekly" or "Monthly." Click on "Update" at the bottom of the page. Upcoming Gartner Conferences Gartner and Gartner Dataquest host the IT industry's most respected conferences and strategic forums in locations around the world. For more information, please contact Gartner Worldwide Events from within the United States at or visit the Gartner Web site at gartner.com. Gartner Dataquest Technology Pipeline: From Semiconductors to User Adoption 5 Through 7 November Los Angeles Looking for answers that will shed some light on the future of the semiconductor industry? Need to know when businesses and consumers will start buying again? Searching for information that will help your company keep up with escalating demand 24x7? Plan to attend Gartner Technology Headlight, 5 through 7 November. By consulting with the top Gartner analyst team and getting advice from recognized industry experts, you'll emerge from this conference with a sound technology strategy that will help your organization meet the demands of your established customer base as well as address the needs of emerging customer segments. And, you'll get to see the latest technology from our corporate sponsors and IT vendor demonstrators for hands-on learning about innovative products and services. As a user of technology you'll learn how to do the following: Get the most for your technology purchasing dollars Deploy technology infrastructure for competitive business advantage Maximize enterprise IT efficiency at the lowest TCO Understand the impact of emerging technologies Plan for orderly transitions Prepareforthefuture As a vendor of technology you'll learn about the following: Trends and directions of key technology markets The real-time enterprise Mobility and wireless Content management IA-32 vs. IA-64 vs. RISC Policy-based computing and grid computing

13 Semiconductor DQ Monday Report, Issue As an investor in technology you'll learn how to do the following: Review what technology areas are hot or will be Prioritize investment opportunities Understand key survival and success criteria The following should attend: Strategic planners Server, storage and network planners Mobile computing planners Data center managers, administrators and architects Server and network operations managers Procurement managers IT managers CIOs IS executives Business executives Engineering project managers Component and system vendors IT vendor marketing VPs IT vendor strategic planners IT vendor product marketing managers Market and financial analysts You'll learn how to understand the following semiconductor market opportunities: Wired communications semiconductor outlook Design starts Barometer to future ASIC/SOC revenue What are the top-selling devices, and what is driving demand? What are the key technologies in next-generation products? How can semiconductor manufacturers best capitalize on this opportunity? Semiconductor manufacturing outlook: When will the upturn start? Pricing Early-bird discount (if payment is received by 25 September) is US$1,295 for Gartner clients, US$1,595 for nonclients. Standard price is US$1,495 for Gartner clients, US$1,795 for nonclients. Client discount applies to clients retaining more than US$5,000 in contract value. Why Gartner Technology Headlight Is No. 1 Only Gartner Dataquest can put on an event of the scope of Technology Headlight This conference offers qualitative and quantitative views of technology markets and technology from end-user and vendor perspectives.

14 14 Semiconductor DQ Monday Report, Issue 41 The industry's largest analyst team, Gartner deploys more than 500 dedicated, full-time analysts to provide an unrivaled depth of industry expertise. Gartner Technology Headlight showcases the industry's most exciting products. You'll walk away with a short-list of vendors and products, dramatically shortening your procurement cycle. This is the hard data only Gartner Dataquest can provide for quantitative analysis of the technology marketplace. In this tight economic environment, you simply cannot afford to make anything less than the best technology investment. Gartner Dataquest can guide you to the most effective enterprise infrastructure, technology and systems management software, as well as the emerging business applications that will add the most value. For more information, please contact Ashley Pearce at (in the United States) or (outside the United States). You can ashley.pearce@gartner.com and check out the Web site at gartner.com/2_events/ conferences/scon6/scon6.jsp. Semiconductor and Emerging Technology Conference What Will Sustain Growth? 6and7November Martinez Hotel, Cannes, France Consumer demand for semiconductor-based technology is poised for explosion. Renewed corporate spending is on the horizon. How should your organization respond? Technology is emerging: wireless LAN, biometrics and MPEG4. Traditional sectors have a different business dynamic. What impact will this have on your IT strategy? This conference will examine the entire semiconductor industry supply chain and analyze high-impact, emerging technologies that will shape the future. Last year this event was oversubscribed so book early to avoid disappointment. This year's event will coincide with the Gartner Symposium/ITxpo. Attend Gartner's European Semiconductor and Emerging Technologies conference, and you will receive a pass to access the ITxpo show floor. See many of the latest IT products hard at work: in oneplaceatthesametime.and,aswellastheitxpopass,youwillalsobeinvitedto attend the ITxpo cocktail reception on 6 November at no extra cost. This is a great networking opportunity and a chance to meet colleagues, peers and Gartner analysts. What You Will Learn The conference provides a valuable perspective on what will sustain industry growth and why the following emerging technologies will present growth opportunities in the semiconductor industry: Wireless applications Automotive telematics Smart cards and biometrics Digital television Semiconductor intellectual property

15 Semiconductor DQ Monday Report, Issue WhoShouldAttend? Business Executives CEOs, business managers and business strategists from semiconductor vendors and semiconductor industry participants should attend. Sales and Marketing Executives Professionals responsible for directing strategic marketing initiatives for semiconductorbased, and -derived technologies should attend. Technology Strategists Professionals responsible for investigating emerging trends and defining strategies for semiconductor and related technologies should attend. Funding and Investment Analysts Professionals responsible for evaluating and advising on financial decisions related to semiconductor vendors, electronic equipment OEMs and emerging technology startups should attend. Pricing Standardpricingisasfollows: 1,050 euros for Gartner clients 1,250 euros for nonclients Registrations may be cancelled, in writing, before 23 October; a handling charge of 250 euros will be incurred. Cancellations received after 5 p.m. on 23 October and nonattendance will be subject to the full conference registration fee. Substitutions may be made at anytime before the start of the program. Why Attend? Gather information to make decisions from a source you can trust. Gartner and Gartner Dataquest are recognized for breadth of knowledge, depth of detail and commitment to objectivity. With unrivaled industry expertise, qualitative and quantitative views of markets and technology from end-user and vendor perspectives, you can gain an understanding of semiconductors, market forecasts, consumer attitudes, emerging technology and much more by attending this event. Please direct all inquiries regarding this conference to Pat Pearce You can pat.pearce@gartner.com and check out the Web site at gartner.com/2_events/ conferences/sem1i/sem1i.jsp.

16 16 Semiconductor DQ Monday Report, Issue 41 For More Information... In the United States: In Europe, the Middle East and Africa: In Asia/Pacific: In Japan: Gartner Interactive: The content herein is often based on late-breaking events whose sources are believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of the information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The conclusions, projections and recommendations represent Gartner's initial analysis. As a result, our positions are subject to refinements or major changes as Gartner analysts gather more information and perform further analysis. Entire contents 2002 Gartner, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden Gartner, Inc. All rights reserved