Study Shows AMCC Increasing Sales in Embedded Processor, 10G Markets

Applied Micro Circuits Corporation (NASDAQ:AMCC), a global leader in embedded Power Architecture(TM) processing, optical transport and storage solutions, announced that a recently released industry study indicates that the company had major increases in revenue that led the industry in several product categories including high-end and midrange PowerPC(R)-based embedded processors and SONET ICs, which are often used in 10G networks.

The Linley Group study titled Networking Silicon Market Share 2006 revealed that AMCC’s year-over-year revenue gain of 28.5% in the high-end and midrange embedded CPU market segment topped all leading vendors including Intel, IBM and Freescale Semiconductor.

“These are very impressive numbers for AMCC, especially in such competitive markets,” said Linley Gwennap, principal analyst at The Linley Group. “Our report indicates that revenue in the entire networking silicon market grew at an approximate rate of 15% in 2006, and AMCC easily surpassed that figure in several product categories. The company’s share gains in the Power Architecture and SONET IC market segments is clear indication that it is delivering strong products that satisfy customer needs.”

In another market segment featured in the report, SONET ICs, AMCC’s revenue gain of nearly twenty percent (19.5%) outpaced both Agere Systems and PMC-Sierra. AMCC currently has the industry’s largest product portfolio of 10G PHYs and is ideally positioned to meet service provider demand for advanced components that enable low cost Carrier-grade Ethernet services over Metro and Core SONET/SDH and OTN networks. As the report noted, these revenue gains by AMCC were organic and not the result of acquisitions.

“Last year our management team made commitments to customers, investors and employees that AMCC would make operational improvements, increase R&D investment and leverage our core technology strengths to become the premier provider of solutions to process, transport and store information in the world’s converged networks,” said Kambiz Hooshmand, president and CEO of AMCC. “The Linley Group report is the latest evidence that we are successfully executing those goals. Our established product roadmap, strong customer relationships and operational excellence are driving these rapid share gains in our key target markets and we expect to continue this market momentum.”

The Linley Group, the leading provider of independent technology analysis for networking, communications, and consumer electronics semiconductors, covers emerging areas such as high-speed embedded processors, Gigabit and 10G Ethernet, wireless handset processors, and more.

The Networking Silicon Market Share 2006 report is available now directly from the Linley Group. For further details, including pricing and a list of included tables, contact Candace Doyle at +1-408-370-7631 or

About AMCC
AMCC provides leadership semiconductor solutions to process, transport, and store digital information for the world’s wired and wireless networks. As a leading supplier of Power Architecture(TM) based processors and with world-class expertise in SONET and Ethernet protocol processing and PHY technology our products are the foundation of the IP Communications Revolution.

AMCC is a registered trademark of APPLIED MICRO CIRCUITS CORPORATION. Power Architecture is a trademark licensed by PowerPC is a trademark licensed by the IBM Corporation.