Xilinx Accelerates Growth of Electronic Design Innovation in China

In a series of press briefings last week, Xilinx, Inc. (NASDAQ: XLNX) Chairman, President and CEO Wim Roelandts underscored the company’s commitment to accelerate growth of electronic design innovation in China. Among the key areas of expansion are new a multi-million dollar technology fund, dedicated support facilities including an applications development lab, an expanded third-party ecosystem and significant investment in local universities.

According to iSuppli, Xilinx is already the number one programmable logic device (PLD) supplier in China with 59 percent market segment share* selling more PLDs to Chinese-based manufacturers and electronics designers than all other PLD suppliers combined. With widespread adoption throughout the region, Xilinx plays a key role in supporting China’s drive for local technological innovation. Asia Pacific revenues now represent 25 percent of overall revenues, as reflected in the company’s most recent Q2 FY07 financial results.

“We have experienced continuous growth in China as our PLD solutions are designed in to more and more low-cost, high-volume consumer and industrial applications,” said Roelandts. “Our goal is to build a long-term, sustainable presence in China, thus enabling the local design community to develop new technologies and create world-class products for China and overseas markets.”

According to Yang Chiah Yee, vice president of Sales for Xilinx Asia Pacific, “As the leading provider of programmable logic devices, we have the resources and capabilities to invest in, promote and develop the entire electronics design value chain in China. We will continue to expand our strategic relationships with customers, partners, the government and key universities to support the growth of the Chinese semiconductor market.”

New Technology Fund Invests in Chinese Companies
Xilinx today launched its first major multi-million dollar technology fund focused on the Asia Pacific region, with China as a key investment location. The company is looking to invest in Chinese companies who are creating innovative programmable logic-based, targeted at key vertical markets such as wired/wireless communications, consumer, automotive, audio/video/broadcast, industrial/scientific/medical, and storage/servers or technology domains such as high-performance DSP and embedded processing. Xilinx is also interested to invest in companies developing technologies and solutions to increase the adoption of programmable logic throughout the company’s continuously expanding ecosystem in China – from manufacturing, silicon, software, intellectual property, design services and technical support. Potential investments range from US$500,000 to US$5 million.

Expanding Presence Increases Support
Xilinx opened its first mainland Chinese office in Shanghai in 2000 and today has 75 employees throughout six offices in China including Beijing, Chengdu, Nanjing, Shenzhen and Wuhan. Xilinx has more than doubled its headcount in China since the start of 2005, providing a variety of regional support services throughout the region. By providing local sales, marketing and support resources closer to its customers in China, Xilinx is strengthening its understanding of the Chinese electronics design community and increasing its ability to support local technical requirements.

In a further sign of its commitment to China, Xilinx offers two dedicated product teams responsible for key high-growth PLD segments of the Chinese semiconductor market. The Xilinx DSP team in Shanghai focuses on demonstrating the high performance digital signal processing capabilities offered through its silicon, tools, IP and reference design solutions, successfully solving customer design challenges in digital communication, digital video/audio and other market applications. The General Products team, including product specialists and a new applications development lab in Shenzhen, is dedicated to solving customer design challenges in low-cost, high-volume consumer applications using its Spartan(TM) line of field programmable gate arrays (FPGAs).

Expanding Ecosystem
Xilinx plans to expand its existing strategic third-party relationships with Chinese companies throughout the local semiconductor market covering design, manufacturing, marketing, sales and support activities. The company collaborates with various distributors, vendors and design houses to offer a complete, cost-effective solution, including development boards, reference designs, software, tools and education for the Chinese electronics design community. As a major fabless semiconductor company, Xilinx also outsources production of its low-cost Complex Programmable Logic Devices (CPLD) to He Jian Technology, a leading Chinese foundry.

Xilinx also works closely with the regional standards boards and industry associations to support the development of home-grown technologies for the China market. The company actively works with the Ministry of Information Industry (MII), the TD-SCDMA Forum, the Audio and Video Coding Standard Workgroup (AVS) and the China Video Industry Association (CVIA) and recently qualified as a senior member of the TD-SCDMA Forum. Joining other worldwide semiconductor leaders such as ADI, Agilent, Infineon, Intel, Philips and Texas Instruments, Xilinx will take part in the technical exchange activities organized by the Forum and make contributions in promoting the development and application of TD-SCDMA technology throughout China.

Expanding University Program Educates Future Engineers
Through its multi-million dollar university program in China, Xilinx continues to build on its long track-record of collaboration with Chinese academic institutions, with strategic donations to leading schools such as Fudan University, Peking University, Shanghai Jiaotong University, Tsinghua University and Zhejiang University. The company recently made a significant donation to the University of Shanghai for Science and Technology to commemorate its 100th anniversary on October 28, 2006. Donations enable upgrades in FPGA teaching and research capabilities to the latest 90nm and 65nm process nodes. By providing hands-on training and workshops on leading edge programmable logic and tools, Xilinx is helping to educate a new generation of engineers to address future challenges of the local electronics industry.

About Xilinx
Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions.