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FUJITSU MICROELECTRONICS LIMITEDASIA E-newsletter

26th IssueMay – July 2009

Corporate Message Press Releases Activities Special Media Coverage

Corporate Message

Dear Media Friends:

Welcome to the 26th Fujitsu Microelectronics e-newsletter featuring the latest activities, releases and media coverage ofFujitsu Microelectronics in Asia.

With university programs being the focus of 2009, we're pleased to say that Fujitsu Microelectronics MB95200 SeriesMCU Competition 2009 is progressing smoothly - approximately 700 people has signed up for the competition,corresponding to the successful completion of preliminary promotional work. The theme "Creativity Changes Your Life",attracts teachers and students from more than 200 universities as well as independent designers, to showcase theirtalents while developing practical products for our daily llives using the innovative technology platform of FujitsuMicroelectronics.

Consistently engaging with the industry, Fujitsu Microelectronics participated in the recent WiMAX Taipei 2009 and ChinaDigital TV Add Value Service Union Technology Development Forum 2009, showcasing the latest WiMAX and digital TVproducts and solutions, as well as sharing the company's achievements in related areas and its opinions on futuredevelopment.

On a different note, Fujitsu Microelectronics is sustaining its corporate social responsibility through the launch of a TreeAdoption Program with the theme "For the Environment, For Our Earth" among employees – being our commitment of agood corporate citizen in China. Concurrently, the company also participated in environmental activities in Hong Kongand Singapore, as our group wide conscientious efforts to respond to society needs.

Last but not least, in effort to keep up with innovation, Fujitsu Microelectronics launched anew leading-edge USB 3.0-SATA bridge IC, adding two full HD H.264/MPEG-2 transcoderICs and introduced two competitive 125°C spec. low power memory for SiPs. It has alsosuccessfully delivered WiMAX VoIP Devices to Smile Communications, an effort that hassupported the establishment of infrastructure for a developing country, making anothermilestone for the company's technology innovation.

Read the details in the 26th issue of Fujitsu Microelectronics Limited Asiae-Newsletter!

Fujitsu MicroelectronicsParticipated in WiMAXTaipei 2009

Fujitsu Microelectronics"Adopt a Tree" Activity, topromote Corporate SocialResponsibility

Fujitsu Releases New Full HD H.264/MPEG-2 Transcoder ICs

Fujitsu Launches World's First 125°C Spec. Low Power Memory for SiPs

Fujitsu Releases New USB 3.0 - SATA Bridge IC for PC Peripherals

Interview Article from China Electronics News: Multiple 32-bit Processor Cores WillCo-exist

Interview Article from Electronics Bazaar: Microcontroller Making May Happen inIndia Soon

Interview Article from Electronics For You: Electronics in Cars

About Fujitsu Microelectronics Limited Asia

Collaborating collectively on its distinct strengths and expertise, FujitsuMicroelectronics (Shanghai) Co Ltd, Fujitsu Microelectronics Asia Pte Ltd and FujitsuMicroelectronics Pacific Asia Ltd collectively form Fujitsu Microelectronics Limited Asia

Fujitsu Microelectronicsparticipated in ChinaDigital TV Add ValueService Union TechnologyDevelopment Forum 2009

SemiconductorInternational published aninterview with MasayoshiKusumoto

(FML Asia), to provide a one-stop center for its semiconductor products to allcustomers in the Asia-Pacific region. Apart from sales and marketing of semiconductorproducts, FML Asia also offers flexible business and system solutions for the digital AV,automotive, consumer electronics, and mobile and wireless markets, as well as designand technical support for customers, locally and regionally.

With technology resource centers and ASIC design support centers strategicallylocated in Hongkong,Taiwan,Shanghai and Chengdu, FML Asia can speedily andcompetitively meet customers' stringent design-in requirements on ASSP, MCU andASIC products. With heavy investments in design and engineering capabilities andapplication support resources, complemented by a regional network of design partners,suppliers and distributors, FML Asia can readily delivers innovative and value-addedsolutions and varied range of products to its target markets in the Asia-Pacific region.

About Fujitsu Microelectronics Asia Pte Ltd (FMAL)

Fujitsu Microelectronics Asia Pte Ltd (FMAL) was established in 1986 to providesemiconductor sales and support solutions to customers in Southeast Asia, India andOceania. FMAL offers a diverse array of application-oriented semiconductor productsand solutions such as ASIC, ASSPs, microcontrollers/microprocessors (FR-V), SystemMemory (FRAM/FCRAM) and System LSIs (DVD MPEG Source Decoders/MPEG –2Encoders).

Press Releases

Fujitsu Releases New Full HD H.264/MPEG-2 Transcoder ICs

Singapore, May 13, 2009, - Fujitsu Microelectronics Asia Pte Ltd (FMAL) announced two new transcoder ICs that canconvert between Full HD (1920 dots x 1080 lines) MPEG-2 video data and H.264 video data, as well as transcodebetween audio formats while featuring a low power consumption of only 1.0 Watt (W) including the in-package memory.These new ICs are targeted to support the growing number of electronic equipment that can record digital broadcasts. Byemploying Fujitsu's proprietary transcode technology, Fujitsu Microelectronics realized industry-leading low powerconsumption. Combined with the small form-factor packaging, these ICs can be used not only for non-mobile fixedelectronic equipment – such as digital video recorders (DVRs) – but also in such mobile products such as notebook PCs.In addition to the transcode function, security functions are included on a single chip to make it easy for customers tocreate their systems.

For more information, please visit:http://www.fujitsu.com/sg/news/pr/fmal_20090513.html

Fujitsu Launches World's First 125°C Spec. Low Power Memory for SiPs

Singapore, May 22, 2009 ,- Fujitsu Microelectronics Asia Pte Ltd(FMAL) announced the launch of two new ConsumerFCRAM memory chips featuring an operating temperature range that has been extended to a high-temperature of 125°Cfor the first time in memory with a DDR SDRAM interface. Sample shipment of the two new FCRAM products, the512Mbit (MB81EDS516545), and 256Mbit (MB81EDS256545), will begin from today. These products are low powerconsumption memory optimized for use in system-in-packages (SiPs) in digital consumer products such as digital TVsand digital video camcorders.

For more information, please visit:http://www.fujitsu.com/sg/news/pr/fmal_20090522.html

Fujitsu Leads Project Team to Deliver WiMAX VoIP Devices to Smile Communicationsto Serve Developing Countries

Tokyo, Japan and Johannesburg, South Africa, June 2, 2009 - Fujitsu Microelectronics Limited and Smile TelecomsHoldings Limited announced the realization of the world's first WiMAX(1) Voice-over-IP (VoIP) phone and service fordeveloping countries, enabled through the creation of an eco-system encompassing mobile carrier, handset,semiconductor and module partners. Fujitsu Microelectronics led technology partners in collaboration with SmileCommunications Ltd, a subsidiary of Smile Telecoms Holdings, to produce a ground-breaking VoIP phone and servicewhich are set to revolutionize communications in developing markets by bringing affordable communications tounderserved customers in Africa. This low-cost voice service is enabled through voice transmission over InternetProtocol (IP).

For more information, please visit:http://jp.fujitsu.com/group/fml/en/release/20090602.html

Fujitsu Microelectronics MB95200 Series MCU Competition, 2009 Sign-up Work Completed in Satisfaction

Shanghai, July 20, 2009, - Fujitsu Microelectronic (Shanghai) Co., Ltd. announced that the sign-up and preliminarypromotion work of "Fujitsu Microelectronics MB95200 Series MCU Competition, 2009" have finished satisfactorily. So faralmost 700 persons have signed up. Teachers and students from over 200 universities have enrolled for it, which covermost of sciences and engineering colleges, and social men also actively signed up.

For more information, please visit:http://www.fujitsu.com/cn/fmc/en/news/archives/2009/0720.html

Fujitsu Releases New USB 3.0 - SATA Bridge IC for PC Peripherals

Singapore, July 27, 2009 - Fujitsu Microelectronics Asia Pte Ltd (FMAL) announced the new USB 3.0 - SATA bridgeICs, built with Fujitsu's leading-edge proprietary physical layer device (PHY). It supports SuperSpeed USB, the USB 3.0specification, and enables data transfer rates of 5Gbps maximum between external storage devices – such as hard diskdrives (HDDs) – and PCs. The new IC, MB86C30A, is the first in the MB86C30 Series of USB 3.0-SATA bridge ICs, andwhen embedded in PC peripheral devices, enables over 10-fold faster data transfer rates in comparison to the USB 2.0specification. In addition to the bridge functionality, the new IC also features a high-speed data encryption/decryptionengine, offering high security without impairing the high-speed performance of USB 3.0. Samples of the new MB86C30AIC are available from today, July 27, 2009.

For more information, please visit:http://www.fujitsu.com/sg/news/pr/fmal_20090727.html

Activities

Fujitsu Microelectronics Participated in WiMAX Taipei 2009

During WiMAX Taipei 2009 event, held at the Taipei World Trade Center from June 2 to 6, Fujitsu Microelectronicsshowcases its 2nd Generation Mobile WiMAX devices, Tri Band Solutions as well as commercial products based onFujitsu WiMAX ICs. The low power, low cost, high performance and high liability WiMAX solutions brought to theaudience a commendable WiMAX broadband speed.

Fujitsu's WiMAX chips are used as small optimized embedded modules of mobile WiMAX equipment, including basicfrequency devices such as MB86K22 and MB86K23, radio frequency devices such as MB86K52, and powermanagement devices such as MB39C316. The internal devices are core devices comprising competitive WiMAXmodule. Fujitsu's WiMAX ICs can help module suppliers develop more competitive products in mobile WiMAXapplications.

For more information, please visit:

http://www.fujitsu.com/cn/fmc/events/market/20090606.html

Fujitsu's booth at WiMAX Taipei 2009 Visitors to Fujitsu's booth

Fujitsu Microelectronics Launched "Adopt a Tree" Activity to Promote Corporate Social Responsibility

Fujitsu Microelectronics (Shanghai) Co., Ltd. recently launched a tree adoption activity with the theme "For theEnvironment, For Our Earth" among its employees together with the company's leaders. As an important part ofenvironmental protection and promotion of corporate social responsibility at Fujitsu Microelectronics, staff membersenthusiastically took part and more than 30 trees were adopted in the event. The adoption activities was completed witha ceremony presentation of corporate brand name and certificate of participation.

The ceremony for licensing: FujitsuMicroelectronics Asia-Pacific Chairmanand CEO, Mr Michael Shih (right) erects aplacard next to a tree he adopted togetherwith an employee representative.

Fujitsu employees group photo at theAdopt A Tree CSR activity.

Fujitsu Microelectronics Participated in China Digital TV Add Value Service Union Technology DevelopmentForum 2009

China Digital TV Add Value Service Union Technology Development Forum 2009 was held in Kuerle city, Xinjiang UygurAutonomous Region, from June 27 to 28, 2009. Fujitsu Microelectronics was invited to attend the seminar. Mr CedricHuang, Marketing Manager of Fujitsu Microelectronics, delivered a speech on "What Is Operable Digital TV Set-Top Box"to share the emerging in STB applications and the required technical support for development of these new applications.He also explained the technology, IC support and the company's competitive products such as USB interface, JVM andlow power technology.

Mr Huang delivering a speech on "What Is Operable Digital TV Set-Top Box"

Fujitsu Microelectronics Participated in the 11th National Consumer Electronics Technology Conference andDigital TV Seminar

The 11th National Consumer Electronics Technology Conference and Digital TV Seminar was held in Xining, Qinghaiprovince, from July 29 to 30. Fujitsu Microelectronics was invited to attend the discussion on all-in-one and STB. MrCedric Huang, Marketing Manager of Fujitsu Microelectronics, has engaged on a discussion on the effective measures inaccelerating the promotion of all-in-one and international standards on separation of handset and PIM card, the strategyof coordinated development on all-in-one and STB, MID, trend of intelligent mobile phone and netbook, and the future ofintelligent terminal.

Mr Huang sharing his views at the seminar

Special Media Coverage

Media Interview

Portable Design, April 2009

Andy Chang, Marketing Director of Fujitsu Microelectronics Ltd Asia, as interviewed by Portable Design. He discussedthe various opportunities in vehicle infotainment system.

English Version:

Safety, Efficiency and Convenience – Transition from Manufacturing to Service Industry – A BusinessOpportunity for Auto Communication and Entertainment Systems Combined with communication systems,telematics will achieve multiple business applications

Andy Chang, Marketing Director of Fujitsu Microelectronics Ltd Asia, believes that auto electronics can be divided intothree categories:

1. Telematics, which includes infotainment, navigation, remote diagnostics, safety & security, andcommunication.

2. Automatics, which includes, such as power-train, chassis, safety, safety from damage, bodywork, anddriving information system which falls into the category of Telematics.

3. ITS, which includes traffic management, public transport systems, commercial vehicle operating systems,

emergency systems, electronic fee collection system or protection system of vulnerable users, among them,the information provision to the vehicles through communication technology, again, falls into the category ofTelematics.

Chang said Fujitsu Microelectronics focuses on Automatics. In cooperation with system vendors, FujitsuMicroelectronics provides auto makers with a variety of automotive electronic systems such as body electronics, audioand video processing systems and navigation systems, and its 8, 16 and 32-bit MCU have been widely used in the areasof body electronics and audio/video processing; the GDC families of graphic display controller ranks as the top providerin the map navigation sector of the global market, and its MB91460 Series MCU has obtained verifications jointlyconducted by the world-renowned BMW and Daimler.

Communication tech and telematics

The current auto communication market can merely provide users with a few simple services, such as traffic information,vehicle safety warning, GPS vehicle tracking and e-call. Chang believes that, in the future, telecom operators will put 3G(third-generation mobile communication system) and WiMAX high-speed wireless networks into Telematics systems asusers will be able to access high-speed networks inside their cars, which will provide plenty of possibilities in everyaspect. In the face of a global economic crisis, Chang said Fujitsu Microelectronics believes that there are still a numberof favorable factors namely the auto makers will develop Telematic services as a tool for the CRM and VRM to build upcloser customer relationships and enhance their competitive advantage and unique selling points. However, the businessmodel is not yet matured so as to be able to support the industry chain and business operations, and a complete industrychain has not yet been formed so this will have a negative impact on the future development. As for Taiwanmanufacturers, they have the advantages in the telematic industry, such as in the areas of navigation equipment designsand machining, auto multimedia systems, automotive computers, WiMAX and 3G devices. As a matter of fact, Taiwanmanufacturers have an outstanding position in the field of GPS; they rank first in the global PND market, and their audiovideo processing chips have been widely used in the field of consumer electronics. There will be more marketopportunities if their products come in compliance with the automotive specifications

Products are diversified to meet customers demand

Chang pointed out that customer demands are become increasingly diversified. They demand that telematics have bothreliable early warning systems, audio and video entertainment together with high-speed data services. The newlyreleased SOC product, MB86298, integrated the next generation of automotive infotainment systems on a single chip.It's the first controller of this kind that has a high-speed video and image processing which can process four video inputstogether and transmit these video outputs to four separate displays. This controller not only provides navigation to thedriver and show TV images to the passengers but also handles the combined 3D graphic instrumentations (includingmeter needle). In addition, the controller can handle the four input-video-cameras on the four sides and processes thevideo signals on a real-time basis. For the 3D graphics of car navigation, the controller outputs 1600 × 600high-definition visual which gives the users abundant information on the surroundings

Chang believes that mobile WiMAX wireless technology will be gradually applied to in-car entertainment system, sopeople will be able to get the needed information by the networks in their cars and enjoy the audio/video programs andget their emails. The company has now joined hands with some of the world's leading manufacturers to put thehigh-speed mobile WiMAX into the reality of auto infotainment systems. The data transfer rate of MB86K23 mobileWiMAX data card of Fujitsu's second-generation mobile WiMAX controller, is as high as 10.xMbps

Communication standard

Looking at the auto communication standards, the first generation of V2Null to V2V, V2R, V2I, V2P, and at present, theV2I (Vehicle-to-Infrastructure) is still the mainstream. V2I provides services to the drivers by mobile phones and GPS,such as GM OnStar and KDDI G-Book. The mainstream for the overall development lies on V2X (Vehicle-to-Any) whichincludes V2V, V2R, V2P, and so on. Since the introduction of V2V and V2P, users will have more choices incommunication.

Chang said that the company is planning to put ZigBee wireless technology into traffic safety control. When there is adiversion on a vehicle lane or the vehicle is getting too close to something, the vehicle monitoring system will signalwarnings to the driver through Zigbee.

Chang pointed out that the current Telematics interface contains DSRC, OSGi VEG, AUTOSTAR, SAE J2735 and so on,and Fujitsu Microelectronics is more optimistic about the DSRC, because traffic safety boost is always the main purposefor every country to promote the use of Telematics.

Japan features the ISO/TC204 standards, and commissioned 5.8GHz for DSRC communications. Europe features theCEN/TC278 standards, and commissioned 5.8GHz for DSRC communications. The US Federal CommunicationsCommission has formally approved the 5.9GHz for dedicated short-range communications. China will use the samestandards and frequency as Europe.

Semiconductor International, June/July 2009

Masayoshi Kusumoto, Senior Marketing Director of Fujitsu Microelectronics Ltd Asia, being interviewed bySemiconductor International, and sharing his views on whether MCU has a sustainable development space in China.

English Version:

MB95200 Series MCU: Manufactured in China; promoted in the International Market

Among Fujitsu's wide range of MCU products, the MB95200 series have the most Chinese blood in it. However, to push itto international market is Fujitsu Microelectronics' focus when promoting it in Asia-Pacific, especially in China. Topromote Fujitsu's MCU, it has launched the Fujitsu Microelectronics MB95200 Series MCU Competition 2009. Currently,the Fujitsu Microelectronics MB95200 Series MCU Competition 2009 is in an advanced stage.

Meanwhile, we (EDN China/Semiconductor International) had a discussion with Masayoshi Kusumoto, who has 23 yearsof experience in the semiconductor industry and is in charge of the competition, to discuss whether MCU has asustainable development space in China.

EDN China/SI China: What are the technical features of the MB95200 series of products selected by the MCU DesignContest?

Masayoshi Kusumoto: MB95200 series is an extension of Fujitsu's LPC microcontrollers. The F2MC-MB95200 familyis the focus of the competition. It is an 8-bit general purpose single-chip product family. It features fast-speed processand low power consumption with a wide array of timers, including 8- and 16-bit timer optional compound (features includeInterval timer, PWM, PWC, Capture) and watch prescaler (only in dual clock product). The timer can be configured as an"8-bit timer x 2 channel" or a "16-bit timer x 1 channel". Dual-operation flash memory is also one of the features of thisfamily, when a program in a storage area in the run-time can be stored in another area to complete the rewrite, andreduce the size of the external memory parts to minimize the board surface area.

EDN China/SI China: Thanks for sharing with us the outstanding performance of MB95 series. While, after all, it ispositioned in an 8-bit MCU. Will Fujitsu put emphasis on promoting 8-bit MCU products in China?

Masayoshi Kusumoto: Fujitsu Microelectronics has extensive MCU products lines such as 8, 16 and 32-bits. Theresearch and development of 16/32 bits products is based in its Japanese headquarters and users cover the Japanesehome appliance companies and Euro-American automotive electronic companies. In fact, Fujitsu has strong technicalstrengths in high-end MCU market.

This year is the third year for Fujitsu to hold the MCU competition for teachers and students in related universities, foron-the-job technicians and microelectronics fans. It aims to arouse such target audiences' creative passion and researchmotion through making full use of the leading design and application of MB95200 series MCU, so as to push forward thecreation and development of MCU in the technical and application fields.

MB95200 series single-chip is integrated with Fujitsu's new 8-bit in-core and rich peripherals. It can be used not only formain microcontroller, for test systems which have high requirement for chip space and power management applied bycontroller, but also for external control systems. MB95200 is widely applied in home appliances, household electricalappliances, power tools, power management, home security systems and industry fields which are the mainstreamapplications of MCU market in China. Fujitsu will promote the MB95300 series in the next half year and plans to achievesales of to reach US$1 million by 2011.

EDN China/SI China: Is it because of the severe local competition pressure that Fujitsu is changing the business centerinto China?

Masayoshi Kusumoto: The 8-bit MCU market is mainly in the Asia-Pacific region. Fifty percent of the sales of MB95200are from China, for which LPC products occupy a greater proportion. Fujitsu has set up a complete frame ofdevelopment, manufacturing and marketing promotion of 8-bits products, making Shanghai the center two years ago.

In fact, the MB95200 products come from the suggestions of Fujitsu's Chinese technical engineers. After comprehensiveassessment of various factors, I recommended the headquarters to carry out 8-bit products development strategy inChina. Fujitsu must remove the development business center of 8-bit single-chip from Japan to China in order to developthe products that will be efficiently fit for the China market. We can only learn the actual marketing demands unless wehave a deep understanding of the key markets. We can only meet the local clients' requirement only if we develop theproducts in the key market.

It's not easy to let the headquarters and Japanese understand the necessity to change the business center from Japanto China, which is also a way to change the way of thinking for the Japanese companies. The Chinese market iscurrently based on 8-bit products. Once the market of 16/32 bits is growing, local companies will appear and will growaccordingly. Thus foreign companies will follow the market and take the localization strategy.

EDN China/SI China: Recent years have witnessed the greatly improving 8-bit MCU technology as well as the

increasing number of 8-bit MCU designers and developers in China. How do you compete with local companies providinglower-price MCU products?

Masayoshi Kusumoto: Our Japanese customers usually launch finished systems after having used our MCU product forone year, but the Chinese customers will launch the product after three months, so the solution is more important than thechip in China. Based on this, our system solution and IC design centers in Shanghai, Chengdu, Hong Kong and Taiwancommunicate and coordinate with customers, design partners, R&D resources and other parts suppliers to jointly developtotal solutions, so as to form a complete Asia-Pacific including China, design, development and technical supportnetwork. It is a challenge to reduce cost and lower specific indexes for a company. We will reduce the product designcost first, and then send the 0.35μm CMOS chips used in MB95200 in Japan to NFME for their package, putting into thewarehouse in Hong Kong and delivering to users all over the world. Next year, the MB95 series will use 0.18μm process,with 90nm process as the final goal. In terms of testing, we adopt the most possible measures to guarantee the liabilityand reduce compulsory test items to realize low-cost testing.

Our technology, product quality, matured solution and advanced technical support are the major competitive factors. Wecan realize low price through high performance-price ratio as a whole.

EDN China/SI China: Will you worry that the Chinese companies will imitate you when you transfer your 8-bit MCUbusiness center to China?

Masayoshi Kusumoto: From the perspective of market development, the number of users of 8-bit MCU is decreasingexcept for the Chinese users. So if you want to continue to develop yourself in the market, you must enter into its corearea and be close to your users.

The 8-bit MCU technology is already matured and the standard process of the technology has been developed inapplication and in process design. Those who only imitate others will definitely not become the leader of the market, sowe do not care if someone imitates us. The process from low-end chip to high-end chip is an indispensable choice fordevelopment of any country or immerging market. Japan was also imitating some practices of European and Americancompanies when it was at the initial stage, which makes today's Japan.

EDN China/SI China: As you have been living in China for nine months, what do you think is the difference betweenChinese and Japanese engineers?

Masayoshi Kusumoto: Compared to Chinese and Japanese students and engineers, Chinese young people are veryactive and easy to communicate with, and Chinese engineers have many development opportunities, whereas mostJapanese young technical staff expects to work in a sector in the long term to become the technical expert in that sector.

In fact, semiconductor industry is a very organizational industry, as well as an industry needing long-term experience. Ibelieve that when the Chinese semiconductor industry develops into a matured industry, many Chinese engineers willexpect to become experts in some sectors such as the Japanese engineers today.

Looking back over the development of semiconductor industry, we should say the industry comes first and then talentdevelopment comes. At the initial stage of the development of Japanese semiconductor industry, 50 percent ofpractitioners came from non-electronics major. Drawing lessons from Japan, China starts to pay attention to thedevelopment of its electronics talent. However, Chinese universities have insufficient abilities in developing students'technical development capability due to some limitations. So do Japanese universities. Therefore, enterprises arerequired to participate in this process so as to accelerate the appearance of technical development talent from theperspective of development capability.

Electronics Supply & Manufacturing China, June 20009

Peng Tao, Product Manager of Fujitsu Microelectronics (Shanghai) Co. Ltd, in the interview with Electronics Supply &Manufacturing China. He discussed the influence of "Electric Appliance Subsidiary" policy on MCU and power device.

English Version:

The Policy of "Electric Appliance Subsidiary" Boosts the MCU and Power Devices, Cost-effective Products arethe Most Popular

Boosted by the Chinese government's "Electric Appliance Subsidiary" policy, the Chinese white goods enterprises haveencountered a rare historical opportunity for development. When their international competitors are frustrated by theshrinking markets in the developed countries, this policy has created a holy grail for the local Chinese enterprises todevelop in a sustainable way.As the rural market opens their arms for white goods, such as refrigerators, washing machines, microwave ovens,air-conditioners, water heaters, semiconductor providers would also like to seize such opportunities to offset the financialimpact from the crisis. A number of international IC providers and local IC providers have already benefited from thisscheme

MCU and power devices are the first to benefit

The "Electric Appliance Subsidiary" gives rise to the sales of white goods. Although some of the international brandshave joined the scheme, it's no doubt that it's the local providers, who have always been comfortable in the local market,are the biggest beneficiaries. Take Midea Electric Appliance Group, for example. Wang Jinliang, the vice president ofrefrigeration and home appliance market, said that despite the financial crisis having a negative impact on their exports,the domestic business has been quite good. Since taking full participation in the "Electric Appliance Subsidiary" scheme,the Midea Electric Appliance Group is the successful tenderer of refrigerators and washing machines, so sales ofrefrigerators and washing machines in the rural areas are on the rise this year; expecting sales will increase by 50percent. The industry sector is more optimistic, given the fact of the speedy expansion of Midea's production capacity.This year, the Midea Electric Appliance Group will most likely become one of the world's leading white goods provider

Peng Tao: As theupstream rawmaterial suppliers,semiconductorcompanies canbenefit indirectlyfrom the "ElectricApplianceSubsidiary" policy.For example, ourMCU orders haveincreasedsignificantly thisyear.

The huge demand of white goods market has created development opportunities for the industry bothupstream and downstream. Peng Tao, Product Manager of Fujitsu Microelectronics (Shanghai) Co.Ltd, said semiconductor manufacturers are not directly involved in the "Electric Appliance Subsidiary"process, but as the upstream suppliers of raw materials, many semiconductor companies indirectlybenefit from this policy. The "Appliances to the countryside" policy will continue for four years, andwill be throughout the whole China, speeding up the penetration of white goods into China's ruralmarket. Within the next few years, the semiconductor devices market for such terminal product willbe enlarged. He also said, "Affected by financial crisis, the semiconductor market has decreased in2008. The export of China's white goods in particular was seriously hit. The "Electric ApplianceSubsidiary" policy to enlarge domestic demand is a great help to the semiconductor industry."

MCU, power device (power IC / driver IC) will be the first beneficiary among semiconductor products."This is because these two types of devices are almost used in every white good," Peng Taoexplained, and Fujitsu Microelectronics is such an example. As a traditional supplier for white goodsMCU products, Fujitsu Microelectronics has already benefited from this policy as early as thebeginning of this year. "The quantity of our orders on MCU has increased significantly this year."Chen Shu, marketing manager of Shanghai Haier IC Company, has the same feeling.

"Refrigerators, washing machines, microwave ovens and air-conditioners all must use MCU devices, so the promotion ofwhite goods market in rural areas is a rare opportunity for semiconductor manufacturers."

He takes one model of washing machine from Haier as an example. It uses their MCU and before the "Electric ApplianceSubsidiary" program, the output per month was 15,000-20,000, while after being listed in the "Electric ApplianceSubsidiary" product, the output increase to 40,000 K per month.

Taking the special nature of the rural markets into account, the MCU for low-end market benefits the most. Chen Shu alsoconfirmed this saying. He said that regardless it is big or small household appliances, as long as it is listed on the"Electric Appliance Subsidiary" policy, it must be the common model with large output. The MCU in IC products forShanghai Haier is just for this type of market, so we also benefit a lot from it."However, in "Electric Appliance Subsidiary" program, the related policy also has higher requirement on low power. Forexample, refrigerators and freezers for tendering must achieve level 2 of the new energy efficiency standard which isequivalent to the A + and A-level in Europe. In addition, full-automatic washing machine is required to be above level 2and the double-barrel washing machine is required to be above level 3, which is better than the market average level for2 or 3 class. "The latest addition to the promotion is solar water heater, which also shows that the concern of energyconsumption of white products from the government," Peng Tao said. "This, in turn, promoted the application of MCU inthe white goods."

Senior Technical Manager Zhang Sanling from Fairchild agrees with the viewpoint of Peng Tao. However, from the pointof view of a supplier of power device, he pointed out the technique for frequency conversion is one of the importanttechniques for energy saving in the motor control technique, which is essential to white goods. However, due to highercosts, this technique can be widely used in this "Electric Appliance Subsidiary" program. "But what can be sure is theadvanced analog and discrete devices will gain favorable market opportunities."

Cost-effective products are the most popular

As we all know, the "Electric Appliance Subsidiary" program is mainly directed at three or four rural markets in the terminal

with a larger secondary market or are there differences? On the whole, the former is more concerned about price andperformance, which is even more concerned about the brand and the quality of specific details, air-conditioning, washingmachine, refrigerator/freezers and other products are different.

According to Peng Tao, domestic brands of fixed frequency-based air-conditioner are the major part in third to fourth tiermarket currently, while the inverter air-conditioner is the major part in the first and second tier market. The fixedfrequency-based air-conditioner in the first and second level market should be the products with high energy efficiencylevel and are from the joint ventures or foreign investment.

For washing machines, the "Electric Appliance Subsidiary" products are mainly concentrated in the products in the pricerange of RMB800 to RMB1,500 and the types are mostly wheel and semi-automatic, which the fully automatic, and thedrum product will be more concerned about by the first and second level market.

For refrigerators and freezers, as the number in a family in a rural household is relatively more than that of an urbanfamily, the usage habits are also different. The electromechanical products with larger capacity are popular, while thefirst-tier and secondary markets are concerned about power, appearance (such as the addition of a liquid crystal display,touch switch, double doors and so on) and brand. Obviously, Fujitsu Microelectronics pays a lot of effort on the marketresearch of the "Electric Appliance Subsidiary" program.

It should be emphasized that, even if they are the equivalent third and fourth tier market for "Electric ApplianceSubsidiary" products, there will be some differences in various areas, for example, some differences will exist betweenthe east coastal area and inland provinces. Peng Tao said that because the income difference is not great in the coastalareas, so there will be fewer differences for the rural market compared with the first and second tier market, however, thedifferences will be more in the inland provinces. "In particular, the power supply in China's rural areas is unstable andthere are voltage fluctuations, so the demands for product are significantly different."

All in all, as the pre-existing low-end products form the white goods manufacture is the major part in the early period, theproducts for "Electric Appliance Subsidiary" are of great difference compared with the products sold in the first andsecond tier market..

This special situation is bound to have special requirements for semiconductors solutions. As the target market is therural areas, the manufacturer must provide the products with high cost-effective product. At the same time, since thedemand in different areas varies, the development cycle is becoming shorter and shorter.

Zhang Sanling: Dueto the higher cost,the technique forfrequencyconversion driverdoesn't have muchdevelopment spacein the current"Electric ApplianceSubsidiary"program.

Take MCU as an example, we can clearly know this trend. Peng Tao said that in the process ofdealing with customers, he clearly felt there are three main characteristics in the demand for MUC ofthis new market: 1. The products are mainly low price, small and medium-sized pin-count (less than64-pin); 2 .Higher performance requirements for anti-interference, and the power down reset, resetand other functions are required in order to adapt to fluctuations in supply voltage in the rural areas;3. In order to meet the ever shortening cycle for product development and marketing, the easy to usetool is required, while the MCU ROM is mainly Flash. As the target customers are farmers whoseincome is relative low compared with urban residents, it is necessary to make the price of theproducts listed in "Electric Appliance Subsidiary" program affordable, while the performance shouldbe good. That is called cost-effectiveness and should be high. Similarly, the solutions for thesemiconductor market are also with the same features."

But perhaps the main focus has been put in the high-end market, feelings can be so obvious - for thelow-end market has been hit in the Shanghai Haier IC, it seems still the same.

However, our focus is always in the high end market, so the feeling of Fujitsu Microelectronics is soobvious, while it seems no difference for Shanghai Haier whose target markets are low end one.

"The products listed in 'Electric Appliance Subsidiary' are mainly the basic models which are of great market demand andwe are always paying attention on it. We have not found any special difference compared with before," Chen Shu said.

The Strategies of the Manufacturers Varies

As a major supplier of MCU for white products, Fujitsu Microelectronics has concerned about the white goods market fora long time. The company's MCU product line for "Electric Appliance Subsidiary" has been covered by all the white goodsincluding refrigerators, washing machines, air-conditioners, microwave ovens and water heaters. They promote threepolices for the "Electric Appliance Subsidiary" market. "First, we will focus on the promotion of washing machines,

air-conditioners and refrigerators, " Peng Tao explained. "Second, develop some new products especially for thismarket." It is said that the new series MCU MB95F200 developed in 2008 provides high cost effectiveness for themanufacturers of white goods, while the new MB95F300 series developed in 2009 focus more on energy-efficiency andon environmental protection. "Finally, we will also provide the manufacturers of white goods with solutions such as forinverter air conditioner and inverter washing machines to help them speed up their development of new products."

The action to provide customers with the solutions has also been promoted in Fairchild. Zhang Sanling said that tosupport end-product manufacturers, the company set up the Global Power Resource Center in China to provide theoverall power solution design services.

As it is for the "Electric Appliance Subsidiary" market originally, the strategy of Shanghai Haier IC has not varied muchcompared with the past. However, Chen Shu still expressed that the sudden arrival of the "Electric Appliance Subsidiary"policy really has certain impact to the company. For example, the prior orders to the sub factory are all based on theestimation, so the sudden increased requirements to some model lead some insufficient. To address such issues, thecompany also made a positive response.

China Electronics News, June 23, 2009

Peng Tao, Product Manager of Fujitsu Microelectronics (Shanghai) Co. Ltd, was interviewed by China Electronics News.He discussed the topic on the 32-bit microprocessor core.

English Version:

Multiple 32-bit Processor Cores Will Co-exist

Fujitsu Microelectronics has its own proprietary FR60 and FR80 series 32-bit microprocessor core. In 2008, FujitsuMicroelectronics obtained the authorization from ARM for Cortex core. The strategy of Fujitsu Microelectronics in thisarea is to develop various products with multiple cores to meet diversified market demand.

In automotive electronics and industrial control, Fujitsu Microelectronics FR60/80 succeeds in providing customers withquality products and services. As the Cortex core from ARM has certain advantages in power consumption, cost andprocessing speed, Fujitsu Microelectronics will launch its Cortex-M3 products in 2010, which can be used in consumer

electronics and industrial control.

The success of 32-bit microprocessor should be its core, peripherals, development environment (hardware and software)and the integration of application software. However, if you only consider the core alone, it will just be a one-sided story.There will be a trend that multiple 32-bit processor cores will coexist in the future. In the general processor area, asCortex's ARM core was developed only in recent years, they have improved power consumption, cost and speed in anintegration level.

At the same time, as the promotion of other series core from ARM as well as the development software and tools are ofbetter price-performance, its chips owns the advantages in consumption and cost. However, the authorization is to pay,therefore, for the MCU manufacturers with its own proprietary core. Which core to choose is based on a comprehensivecost assessment.

For some special areas, such as network, automotive and medical, other cores are still developing strongly. This isbecause of their long term accumulation of applications in certain special areas. They are very specialized in hardwareand software development and in technical support. It is difficult for the proprietary core to be promoted in other areas,and it is of less advantage in cost and the support of tools.

High efficiency and low power are the focus of the market

Affected by the international financial crisis, the demand in export market has decreased. In the Chinese market, thedecrease in the sales of MCU is particularly prominent in the first half of 2009, though the second half is expected to beslightly better. We believe that the growth of China's MCU market will be further slowing down in 2009, and the sales frommarket is estimated to reduce. The consumer electronics in overseas markets, such as small household electricalappliances and electronic toys are hit seriously. Medical electronics, industrial control and automotive electronics arerelatively less affected. Guided by the national policy, products of high efficiency and low power is the focus in the marketthis year, such as frequency conversion electrical appliances, lighting (lighting, LED, electronic rectifier) andinstrumentation products (water meter, gas meter and electricity meters).

In 2009, our focus is still on the traditional business, but at the same time, we will continually develop the market of newapplications. Fujitsu Microelectronics is a major MCU supplier of white goods. In the Chinese market, we are concernedabout the new trends in the market more. Intelligent, efficient, low power appliances will become the development trend ofnext-generation home appliances and the home appliances with frequency conversion will replace the traditional homeappliances. Fujitsu Microelectronics has started the development of the corresponding new products as early as 2008,including the 8-bit, 16 bit and 32-bit MCU. In 2009 the new products will be developed continually, such as the MB95F300(8-bit), FR32 (32-bit) to provide the cost-effective product for the frequency conversion market. Through the cooperationwith some well-known manufacturers of home appliances in China, we will provide customers with some programs suchas 180 degree frequency conversion air-conditioning in 2009.

"Electric Appliance Subsidiary" is a policy of the Chinese government in order to expand domestic demand and to copewith the international financial crisis. The products belonging to the "Electric Appliance Subsidiary" are also of concern atFujitsu Microelectronics. Through the cooperation with manufacturers of home appliances, it is expected that our newproducts MB95F200 series and FMC-8FX series will become the new growth point in 2009.

Industrial control and medical electronics will also be two segments that Fujitsu Microelectronics are concerned with. Forexample, industrial frequency converter, the power meter and home medical equipment (blood pressure, blood glucosemeasuring instrument) are the focus of our markets in 2009.

Automotive electronics is the main business of MCU

MCU is developed based on market demand. With the rapid development of China's MCU market, the demand of MCU isalso ever-changing and in constant development. Market segmentation, MCU product differentiation and specializationwill be the trends.

In product planning, Fujitsu Microelectronics releases the corresponding products based on the market subdivision, suchas the low pin MB95F200 series for small home appliances, the MB95F300 and FR32 series for frequency conversionproducts, and the MB95F31X low-power series for portable medical equipment with LCD driver function.

Automotive Electronics has been a key business in MCU for Fujitsu Microelectronics. In the Chinese market, we haveextensive cooperation with the manufactures for auto parts in the CAN bus control, car audio, automotive instrumentationand air-conditioning. In the future, we will continually strengthen the local development of new products in order to providethe Chinese market with cost-effective 8-bit and 16-bit CAN bus MCU.

An important market trend in the instrument market this year is the standardization of the electricity meter by the National

Grid Company, and it is expected to have new requirements to the electricity meter on power management, storagecapacity, control pin and communication functions. The SoC integrated with measurement chip is the ultimatedevelopment target of electricity meter. However, for the Chinese market, it is still based on separation of themeasurement chip and MCU in the next few years, but the MCU will integrate more analog components, such as thecomparator and multi-segments LCD drivers. Fujitsu Microelectronics will continue to focus on this market and introducenew products.

Fujitsu Microelectronics will provide customers with the MCU of higher performance, lower power consumption and moreintegrated peripherals. In the coming year, the MCU we provide will integrate analog comparators, operational amplifiersand analog 12-bit ADC and multi- segments LCD driver with more segments.

Fujitsu Microelectronics has made great success in the field of electronic blood pressure monitor. We will continue to bein the market for portable medical and health equipment (such as blood pressure monitors, blood glucose device,electronic thermometer, and so on) and strengthen the research and development. We will focus MB95F31X serieswhich is cost-effective, has lower power consumption and is integrated with more analog functions.

In addition, we pay will more attention to the market for lighting control (such as electronic rectifier and LED dimmingcontrol) and related products are expected to be available in 2010.

Fujitsu Microelectronics has MCU R & D teams both in Shanghai and Chengdu. In existing products, the 8-bit MCU, some16-bit MCU and 32-bit MCU are researched and developed in China, such as low pin MB95F200 series, MB95F300Series, FFMC-8FX Series, FFMC-16LX Series and FR32 series.

EDN China, June 2009

Andy Chang, Marketing Director of Fujitsu Microelectronics Ltd Asia, and Cedric Huang, Marketing Manager of FujitsuMicroelectronics, took up an interview by EDN China. They shared the trends in the digital TV market.

English Version:

Interaction and Interconnection: Power for Growth of Set-top Box Market

Currently, there are 395 million families in China that have TV sets. After 2015 when analog television services come toan end, a large subscriber group will gradually transfer to IP and digital cable TV as well as DTH satellite TV and digitalterrestrial DTMB transmission. Interaction and connectivity will be center of attention in the Chinese set-top box market.

The competition goes beyond the cost of chips and manufacturers should have a long-term view

For operators, the "transition and transformation" of digital TV is under enormous pressure, and it is very sensitive tocost. Semiconductor manufacturers think that the cost should comprise the products and services.

Zili Huang, manager of marketing department of Fujitsu Microelectronics, thinks that future competition does not lie in thecost of chips, but the services provided to users. The difference in the cost of chips from different manufacturers may beonly one dollar, which isn't a great consideration in the overall cost. Price war almost makes no difference.

On the contrary, what matters are whether the demands of operators, customers and strategic middleware partners forservices and sustainable development can be met. Therefore, Fujitsu has viewed this kind of "soft strength" as the keypoint in its services. Guowei Zheng, director of marketing department of Fujitsu Microelectronics, thinks that if theservices provided are perfect, the customers won't care whether your chips are several cents more expensive orcheaper than others. In addition, in the current high definition set-top box market, low power consumption is one of thecritical elements representing the competitiveness of solutions. If you want to make your products more competitive, fansand heat sinks should be gotten rid of. Power reduction can be realized through two ways: process and integration.

Niitsu Shigeo, associate vice president of the 2nd SoC Operations Unit of NEC Electronics, also thinks that differentoperators have different requirements, requesting powerful customization of software. Niitsu Shigeo also emphasizes thatset-top box manufacturers should focus their attention on the greater space beyond the set-top box, namely the wholedigital home market. All electrical apparatus can merge into the digital home in future and everything will beinterconnected via a network.

Interconnection and Interaction: New Meaning of Digital Life

Targeting the demand of consumers for digital life, ST Microelectronics (ST) proposed the concept of "new digitallifestyle". This concept is centered on three axials: content, interaction and interconnection, and user experience.Rongyu Li from ST said that the interaction and connectivity will become the main driving force behind the home digitalmedia market. Interactive services based on the set-top box have emerged, and the game, business, education,socializing, financing and other functions will become the core of interactive services. As for user experience,unidirectional of "TV-watching" will gradually transit to a bidirectional "interaction with the TV". While enhanced interactionwill raise higher requirements for a good user experience, the user interface should not only be pleasing to the eye butcan respond quickly and also provide shortcuts to various information; and input devices should be easy to use.Therefore, a fully new operating mode which combines MEMS will maximize its performance in the set-top box market.Competitive set-top box solutions not only manage many contents, but will also safeguard the contents, support digitalright management (DRM), conditional access (CA) and advanced safety system, and offer real-time code conversion andvoice encryption.

Turnkey Solutions Aren't the Result of an Economic Crisis

Whereas many IC manufacturers introduce turnkey set-top-box solutions, Zhenhui Jiang, Greater China manager ofdigital set-top-box division of home entertainment business department of NXP, thinks that the release of turnkeysolutions isn't related to current economic situation, because cable TV, IPTV and other fields are less influenced byeconomic situation. NXP will work out different strategies for different markets and introduce turnkey solutions mostlybased on regional strategies. There are many different manufacturers and operators in China; the solution should takethem into consideration regardless of technology advantage; and right services should be provided to them, so turnkeysolutions will be a good choice. NXP expects that this kind of solutions can meet the demands of different consumers.

Zili Huang from Fujitsu agrees with this opinion and said:" Turnkey solution is the result of market demand. At present, thebidding of set-top-box solutions takes 2 factors into consideration: price and compatibility. Turnkey solution isundoubtedly competitive in price and current set-top-box market is relatively disordered, so customers desire for oneunified solution and consequently prefer to turnkey solutions."

Daniel A. Marotta, senior vice president and general manager of broadband communications business department ofBroadcom, thinks that low-cost device manufacturers focus their eyes more on hardware and manufacturing technologyand often ignore the software, so turnkey solutions are greatly beneficial to large-volume shipping and cost reduction andaren't related to economic situation.

Image Enhancement Technology at a Premium

When video signals are input to display devices from set-top boxes, the sharpness, contrast and color temperature ofimages will be influenced due to processing algorithm, A/D conversion or display devices. Therefore, adding imageenhancement or correction functions to set-top boxes which emphasize user experience becomes the new bright spot indifferentiation.

NXP's image enhancement technology for set-top boxes is implemented with software and is suitable for web camera, TVsets, video conferencing, mobile terminal and more. For example, jitter cleaning, motion sharpness and realistic colormanagement eliminate the ghosting effect and soft edge, which are often found when TV set displays high-speed motionshots. Unlike interpolation operation which views anterior and posterior frames as reference, frame interpolationalgorithm regards three frames as the basis to realize jitter cleaning and complete motion compensation, and automaticpicture control (APC) function can dynamically adjust processing parameters and improve the picture in each lattice.

Broadcom's enhancement technology is based on hardware. One high-performance PEP engine is integrated into thesolution to increase the sharpness of pictures and perform post-processing operation. John Gleiter, senior marketingdirector of broadband communications business department of Broadcom, thinks that Broadcom's hardware solutionsdon't restrict the flexibility while increasing the performance. Therefore, we can provide the configurability of the wholeseries of functional modules in terms of customization, and the users can customize specific enhancements based ontheir own needs.

ST acquired Genesis Microchip, a leading image processing system supplier, at the end of 2007, and further enhancesits capability in system-on-chips, particularly in image processing and enhancement technology. Genesis is characterizedby Genesis Display PeRFection technology and Emmy-Awards-wining Faroudja video technology, and can reproduceimages with better visual effect in various equipments.

More Precise Market Positioning

As consumer products, set-top boxes should realize possibly highest performance-price ratio. Broadcom thinks thatprecise market positioning is one of effective ways for increasing performance-price ratio. John Gleiter said that thecable TV market, for example, is one with the largest scale, but the competition is extremely fierce and performance-priceratio is a very important factor. Broadcom strives for precise product positioning. Newly-introduced low-cost single-chipsolutions, BCM7003 and 7004, represent this consideration. The BCM700x series are mainly developed for meeting thedemand of operators for "transition and transformation". Since the demand is high and the cost should be strictlycontrolled, some high-end functions are simplified: for example, the support for AVC is eliminated, because its targetapplications only need MPEG decoding. Therefore, set-top box manufacturers should analyze real market demand indepth to make their product more competitive in a cost-sensitive market.

Fujitsu adopts different strategies for solutions to HD and SD device markets. Zili Huang said that if they produce SDproducts through modifying HD chips, the products will have high power consumption and cost and furthermore thecircuits will be very complex due to high pin counts of HD products. Fujitsu's strategy is to specially work out one set ofsolutions for SD designs, which can ease the burden of HD products and are software compatible.

Electronics Bazaar, July 2009

Desmond Tan, Senior Marketing Manager of Fujitsu Microelectronics Asia Pte Ltd, in a interview with Electronics Bazaar.He discussed the development of microcontrollers in India.

Electronics For You, July 2009

Desmond Tan, Senior Marketing Manager of Fujitsu Microelectronics Asia Pte Ltd, participated in a industry interviews by

Electronics For You. He shared the application of electronic technology in cars.

Technical Article

Electronics Bazaar, July 2009

Electronics Bazaar's article, Digital broadcast recording ICs, introduces Fujitsu's HD H.264 MPEG-2 transcoder IC.

Special Press Report

Electronics For You, May 2009

Fujitsu Launches World's First 1394 Automotive IC for HD Video

India PRwire, May 22, 2009

Fujitsu Launches World's First 125°C Spec. Low Power Memory for SiPs

EDN Asia, Jul 28, 2009

Fujitsu Releases USB 3.0 SATA Bridge IC for PC Peripherals

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