SUNNYVALE, Calif. ( ChipWire) -- Fairchild Semiconductor International Corp. is looking to grow its analog business with an aggressive combination of new product introductions and judicious acquisitions, said Hubert Engelbrechten, director of strategic marketing for the company's analog and mixed-signal products group.

By concentrating on power-management devices and controllers, Fairchild hopes to approach or exceed $1 billion in analog revenues by 2002, Engelbrechten said. The company's 1999 analog revenues were approximately $400 million, with $280 million of that coming from power-management devices and controllers, including standard linear ICs, MOS amplifiers and data converters, motor controllers, high-voltage power devices and lower-voltage controllers.

In addition to growing analog chip sales, the power management thrust is expected to play a key role in Fairchild's overall target of doubling total revenue to about $2.7 billion by 2003 (see March 2 story).

The World Semiconductor Trade Statistics (WSTS) organization projects the analog segment of the semiconductor industry will grow 15% per year, reaching $26 billion in 2001. If Fairchild simply "rides the curve," it will reach $650 million this year. Making up the additional $350 million will require a strategic acquisition, Engelbrechten said.

However, previous acquisitions -- Raytheon Semiconductor in December 1997 and Samsung's analog and discrete product line in April 1999 -- had proved successful. The Raytheon acquisition gave Fairchild an $80 million stake in data converters and switching regulators, including Pentium core voltage controllers. The absorption of Samsung's discrete business gave Fairchild a $400 million stake in MOSFET transistors and linear power regulators.

Fairchild will continue to grow its position in the power-management segment, but Engelbrechten said it does not want to use the Texas Instruments Inc. acquisition of Unitrode as a model, where TI paid $1.2 billion purchase for a $280 million company, he said. "A competitor's underfunded design team would be more like it," he said.

"We have looked at between 50-to-100 possible acquisitions in all product areas including, but not limited to, analog, since 1997 and we continue to be very active in seeking potential candidates," Engelbrechten said. While there is no internal fund particularly earmarked for acquisitions, a deal could be financed by cash, debt, equity -- or some combination of all three, he said. "Our ongoing business is 'cash positive' and our balance sheet is strong," Engelbrechten said.

To be successful, a company needs to have a mix of talents and capabilities, Engelbrechten said. It must be good at product definition and execution, and also at service and support, as well as processes and manufacturing.

Fairchild will also rely on distributors to move its analog products. Engelbrechten feels that distributors take a favorable view of suppliers with broad, rather than specialized, product offerings.

The South Portland, Maine-based company introduced some 45 new analog products in 1999, and hopes to bring out close to 100 this year. In particular, the company hopes to grow its product line in power-management devices, including voltage regulators, system supervisors and battery chargers. Its power regulators and battery management devices have been built in 0.8-micron CMOS and BiCMOS -- a "workhorse process," Engelbrechten said -- while the system supervisors have been implemented in 0.35-micron CMOS. The larger geometries support higher-breakdown voltages in power regulation circuits.

Fairchild is partnering with Intersil on core voltage controllers for Pentium-based portable computers. On its own, it is developing charge pumps to compete with Maxim's in cell phones and other low-voltage applications. But this design effort is still in its infancy, Engelbrechten said.