Davicom Semiconductor Inc.--a communication-IC supplier that was spun-offfrom Taiwan's United Microelectronics Corp. (UMC) two years ago--next week
will enter the LAN-switch controller market by announcing the acquisition
of a Sunnyvale, Calif.-based fabless IC design house called Netio
With Netio, Sunnyvale-based Davicom will gain a quick entry into a booming
but cluttered market that includes Allayer Technology, Broadcom, Galileo
Technology, Level One Communications, PMC-Sierra, and Texas Instruments.
At present, though, Netio is still in the development stage. The
one-year-old company is developing two- and eight-port switch chips for
Ethernet- and Fast Ethernet-based networks, reportedly with plans to
introduce these products sometime in 1999, sources said.
``Over the past year, Netio has built a core technology for the
implementation of Ethernet and Fast Ethernet switching semiconductors,''
according to Ting Herh, president and chief executive of Davicom, a
supplier of media-access controllers (MACs) and physical-layer (PHY) ICs
for 10/100-Mbit/s networks.
David Lin, president and chief executive of Netio, said the deal will help
fast-growing Davicom become a one-stop shop for LAN-IC products. Netio's
products fill out Davicom's LAN product offerings beyond network-interface
cards and hubs to include products for Ethernet switches, Lin said.
Davicom itself was formerly the communication-IC product division of
Hsinchu-based UMC. Two or so years ago, however, UMC began to spin-off its
product divisions as part of an effort to become a pure-play, IC-wafer
At the time, UMC decided to spin-off its communications-IC division into a
new and independent fabless IC design house in the United States called
Davicom. At present, Davicom is one of the largest suppliers of MAC and PHY
ICs in Asia, with ambitions to expand its presence in the U.S. market in