• Phone +603-7729-3300
  • info@keyasic.com
  • Petaling Jaya, Selangor Darul Ehsan, Malaysia

Date: August 18, 2009 Tuesday
Contact: Mr. K P Thong Mr. Alan Aronoff
This email address is being protected from spambots. You need JavaScript enabled to view it. This email address is being protected from spambots. You need JavaScript enabled to view it.
KeyASIC Berhad KeyASIC Inc.
6 Floor, Unit 3, 8 First Avenue, 3900, Freedom Circle, Suite 101
Bandar Utama, 47800 Petaling Jaya, Santa Clara, CA 95054
Selangor Malaysia USA
Phone : +603-7729 3300 Phone : 1-408-567-4180
Fax : +603-7729 1300 Fax : 1-408-567-4199
 
 
 
(Kuala Lumpur, Santa Clara, August 18, 2009) KeyASIC Berhad (Stock Code: 0143) has announced today that it has signed agreements with the shareholders of Gateway Silicon, Inc. (GSI) to acquire up to 100% of the company in cash. GSI is a subsidiary of Macronix International, Co. Ltd, one of the largest semiconductor groups in Taiwan. The company is valued at approximately NT171M (USD5.3M or RM18.5M) for 100%.
 
 
Gateway Silicon Inc. is one of the spin off subsidiaries of Macronix International Co. Limited 3 years ago when Macronix restructured the Group into a few fabless IC design companies to focus on various sectors of the market. GSI was spun-off to focus on ASIC design, providing ASIC/SoC design to the Group and customers in Taiwan and Japan. Chartered Semiconductor, the world’s third largest open foundry based in Singapore is the second largest shareholders of GSI. GSI uses Chartered Semiconductor as foundry partners in addition to TSMC, and Tower. The Headquarters is based in Hsin Chu Science Park, the Silicon Valley of Taiwan, with an office in Japan and China. Macronix International Co. Limited is the world largest manufacturer of ROM products and the company provides a wide range of Parallel and Serial NOR Flash products of varies density. The Group has revenue exceeding USD700M.
 
 
GSI has built a significant pool of Analog IPs and Memory blocks among other IPs. However, the company has strong expertise in graphic and video IP and this will allow the combined entity to have a stronger and more complete offering in the graphic and video applications.
 
 
KeyASIC is a leading ASIC design company with focus on communication and consumer electronics applications. Listed in Bursa Malaysia, it is largely owned by leading industry players from Taiwan and 21% owned by Khazanah, the sovereign fund of Malaysia. It has Silterra as its foundry partner for 0.18um to 0.11um designs and IBM Microelectronics as its foundry partner for advance process technologies from 65nm to 32nm.
 
 
Moving forward, the Company will continue its current business strategy with strong focus on advance process technologies and continue to build IPs and platforms in video, graphics and networking areas in addition to its current communication and consumer electronics applications. 
 
“KeyASIC is a leading player in the ASIC design industry. We are pleased to merge with KeyASIC to build a bigger and stronger company that will enable all of us to play a more significant role in the ASIC design business. KeyASIC has very strong design experience in advanced technologies such as 65nm and 45nm and this will be a big value add to GSI’s existing customer base,” said J. P. Peng, CEO of GSI. “We have built up a very rich portfolio of Analog IP blocks and also a very strong Analog circuit design team that will be a value asset to the combined entity,” he added.
 
 
“We share the same vision with the key shareholders and management team of GSI in building a strong ASIC design business with consumer and communication globally. Both companies are synergistic and complimentary in areas of technologies, customer base and people. This merger will enable us to have more resources and technologies to better support our customers,” said Eg Kah Yee, Chairman of KeyASIC. “This strategic exercise is in line with the growth plan of both companies,” he added. 
 
 
With the acquisition, KeyASIC will expand deeper into Taiwan market and the Japan market. The merger will enhance the revenue plan of KeyASIC and it is expected to bring higher growth of the Company in 2010 and beyond. In addition to organic growth, KeyASIC plans to accelerate its growth through continuous M&A of synergistic companies.
 
 
 
 
 
 
About the Companies:
 
KeyASIC (Stock Code: 0143) is currently a public listed company on Mainboard of Bursa Malaysia. It specializes on turnkey ASIC design with IP and SoC platforms in consumer electronics and communication applications. Its customers are largely in the US and Asia. It has offices in Malaysia, Taiwan, and U.S. 
 
Gateway Silicon Inc. (GSI), a professional IC design service company founded in August 2006 at Hsin Chu Science Park, Taiwan. GSI focuses on research and development of analog IP/digital IP for consumer ICs, provides services in SOC implementation and IC turnkey realization. Through GSI’s proprietary platform solutions, competitive wafer package and integrated turnkey service, customers are able to benefit the time to market and good quality IC products from conceptual design, system verification to mass production. GSI has offices in Taiwan and Japan.
 
Q & A
1. How many people are they in GSI?
There are 60+ people at GSI. They are very experience engineers and designers since they were spinoff from Macronix.
 
2. Who are some of GSI’s customers?
GSI’s customers are largely in Taiwan, Japan and US. Macronix’s group of companies is some of its customers.
 
3. What is the total number of employees of the combined entity?
It is 120+ employees.
 
4. What is the strategy moving forward after the acquisition?
The strategy moving forward is to make deeper penetration in Taiwan and Japan market with special focus on advance process technology.
 
5. Are the IPs and platforms from KeyASIC made available now to GSI’s customers and vice versa?
We will make product lines from both companies as a single product line available to customers from both companies. This allows us to make a more complete offering to our customer base.
 

Date: July 28, 2009
Contact: Mr. K P Thong
Key ASIC Berhad
6 Floor, Unit 3, 8 First Avenue,
Bandar Utama, 47800 Petaling Jaya,
Selangor Malaysia
Phone: +603-7729 3300
Fax : +603-7729 1300
 
 
 
(Kuala Lumpur, 28 July 2009) KeyASIC Berhad (Stock Code: 0143) has announced today that the video processor chip that it has designed with a customer in Silicon Valley will begin shipment next quarter. The chip was designed on IBM 65nm process technology and will be fabricated in the most advance wafer fab of IBM in New York. This chip is the latest generation of video process that will go into high end Audio Video Recording systems, DVD, HD-DVD and Blu Ray systems. It allows interface to HDMI to high definition video systems. 
 
 
The video processor uses breakthrough technologies to scale an image horizontally and vertically to achieve high quality video for today’s digital display. The proprietary deinterlacing technology and unique noise reduction capability enhance the pictures and provides an artifact-free picture quality for high quality viewing experience. 
 
 
This is the 3rd generation video processing chip and the existing second generation chip, and will goes into many of the system in the next 3-5 months. The chip is currently in pilot run and is expected to be in mass production next quarter. It is expected that most of the Japanese brand of DVD, HD-DVD and Audio Video Receiver systems will be using this chip to enhance the picture quality, replacing the existing version of the chip. This chip is expected to ship about 1 million units a year and the market price of the chip of this type is about $10-$15. This chip is expected to ship over the next 3 years.
 
 
“We are pleased that this chip was successful in first silicon on IBM 65nm process technology. We now have a set of IPs that are silicon proven and a commercial design methodology and flow that is working well on IBM 65nm process. This will allow us to provide the design flow to our customers and allow us to engage more projects in the advance process technology. There a limited number of IC design companies worldwide that has turnkey silicon design and production experience in advance technology of 65nm and beyond,” said Eg Kah Yee, Chairman of KeyASIC. “The issues of signal integrity, IR drop, noise and power are some of the major concerns when designing and manufacturing at the deep submicron technology. The design methodology and flow must have the capabilities of simulating and validating those issues. KeyASIC now has developed a silicon proven design flow that allow us to have quality designs and quality yield. Advance design and process will be the primary focus of our business moving forward,” he added.
 
 
System on Chip or SoC is chip that consist CPU, Memory, analog blocks, I/O, etc. KeyASIC’s core competency is CPU based on datapath optimization for performance, power or size, enabling customer products to have SoC of higher performance and lower power, hence high values, and at the same time, smaller in die size, allowing customers to have lower costs. KeyASIC has developed proprietary technology for design optimization in the implementation of chips.
 
 
“We are currently working with some partners and customers in U.S., Japan and Taiwan on a few more 65nm SoC projects, and we expect a couple of them moving down to 45nm technology in the next generation,” Eg added. “We are definitely pushing the technologies and we intend to make this our key value add to our customers, reducing their time to market and increase their first time silicon success.”
 
 
 
 
 
 
About the Companies:
 
Key ASIC (Stock Code: 0143) is currently a public listed company on Mainboard of Bursa Malaysia. It specializes on turnkey ASIC design with IP and SoC platforms in consumer electronics and communication applications. Its customers are largely in the US and Asia. It has offices in Malaysia, Taiwan, and U.S.