To become a bigger player in power management, Philips Semiconductors is expanding a resale agreement with Mitsumi Electric Co. Ltd. into a multiyear cross-sales and co-development pact for standard-analog ICs.
On the heels of the worst semiconductor industry downturn on record, Philips hopes the move will bring a rapid increase in standard-product revenue and market share, while affording deeper understanding of system-level power issues.
The original deal, signed in Sept. 2000, gave Mitsumi a sales channel for analog components through Philips to customers including Philips Electronics. The new arrangement also allows Philips to sell its parts through Mitsumi, a leading vendor of power supplies and batteries.
Key to the three-year alliance is the combination of design and manufacturing resources at the two companies to co-develop analog devices, said Ben Adamo, vice president and general manager of Philips' Standard Analog Business Line, Tempe, Ariz.
"The most exciting part of this to me is the ability to go in and jointly develop products," Adamo said. "We can combine the strengths of our respective applications, our design differences, and our technology differences, and come together with a lot of opportunities."
The pairing of Mitsumi's application expertise with Philips' analog processing know-how "will yield significant operating synergies," said Isao Sato, vice president and general manager of Mitsumi Semiconductor Division, Tokyo.
In 2000, Philips ranked fourth in the analog-IC market, said Ada Cheng, an analyst at Gartner Dataquest, San Jose. Philips' analog product lines are diverse, but have become more focused on power management, Cheng said.
Adamo said Philips is eyeing opportunities in the areas of high-performance amplifiers and temperature sensors.