electronicaUSA With the Embedded Systems Conference Opens to Shape Direction of Electronics Systems Design Industry

iSuppli Corp. Releases Semiconductor Data Revealing Upside and Downside to Outsourcing Trend

Mar 30, 2004

CMP Media LLC (NASDAQ: UNEWY) today announced the opening of electronicaUSA with the Embedded Systems Conference (www.electronicaUSA.com), the largest systems design event in North America. More than 15,000 system design engineers, architects, technical managers, and embedded software developers have come to San Francisco to shape the direction of the industry, exchange ideas, identify new opportunities, and get business done. More than 430 companies will be showcasing over 8000 cutting-edge products focused on hardware, software, tools and the full spectrum of components. One highlight in the impressive program line-up is market research firm, iSuppli Corp will release data and analysis concerning the fiercely debated topic of outsourcing and its impact on Americans employed in chip design and manufacturing jobs.

"In the 15+ year history of the Embedded Systems Conference, this year's interest from exhibitors and attendees is record-breaking, which demonstrates the value companies, and decision-makers in particular, place in meeting face-to-face with customers," said Paul Miller, Vice President and Group Publisher, CMP Media. "In addition to a breadth of technologies showcased on the exhibition floor, attendees have the opportunity to learn from experts at a series of world-class technical conferences."


   -- Tuesday, March 30, 10:00-11:00 a.m.  Room 134, Dr. Robert D.
      Ballard, "Living the Dream:  Lessons Learned on the Ocean Floor"
   -- Wednesday, March 31, 10:00-11:00 a.m.  Room 134, Jerry Fiddler,
      Founder and Member of the Board - Wind River
   -- Wednesday, March 31, 11:00 a.m.-12:00 p.m.  Room 131, Robert Lucky,
      Independent Consultant and former Corporate VP at Applied Research,
      Telcordia Technologies
   -- Tuesday, March 30, 3:45 p.m.-4:45 p.m.  Room 130, Alexander Lidow,
      CEO of International Rectifier

   -- Tuesday, March 30, 2:00-3:30 p.m.  Room 131, The Future of Tools:
      The Landscape of the New Co-Design World
   -- Wednesday, March 31, 8:30-10:00 a.m.  Room 131, Electronics'
      Tectonic Shift:  What Hath the Downturn Wrought?
   -- Wednesday, March 31, 2:00-3:30 p.m.  Room 131, China's Emerging
      Supply Base:  Threat or Opportunity?
   -- Thursday, April 1, 11:00 a.m.-12:30 p.m. Room 131, Silicon's Shifting
      Sands:  The Battle over Design Methodologies between PLD and ASIC


In the heated debate over the migration of electronics production to Asia, the word "outsourcing" has become synonymous with the word "downsizing" for many U.S. high-technology workers. However, newly-released semiconductor data from the market research firm iSuppli Corp. reveals a more complex picture for Americans employed in chip design and manufacturing jobs, with the outsourcing trend presenting both an upside and a downside.

While much production of electronic equipment has migrated to Asia, particularly to China, most the semiconductors essential to building this equipment are sold by U.S.-based companies. And while some of these U.S.-based semiconductor suppliers have outsourced chip production, assembly and test to Asia, many others continue to maintain extensive manufacturing and design operations in the United States, keeping thousands of Americans employed in high-paying, high-tech jobs.

  The latest data from iSuppli's Competitive Landscaping Tool (CLT) shows:
  -- The Asia/Pacific region, which includes China, accounted for 39.9
     percent of global semiconductor sales in 2003, up from 37.4 percent in
     2002 and 29.9 percent in 2001. This makes Asia/Pacific the largest
     chip-consuming region in the world. In comparison, the share of
     semiconductor consumption in the Americas region has shrunk from near
     parity with Asia/Pacific in 2001, at 27.5 percent, to just 20.1 percent
     in 2003.
  -- Despite the shift in semiconductor consumption to Asia, Americas-based
     companies continue to dominate worldwide chip sales. Semiconductor
     suppliers headquartered in the Americas accounted for 48.7 percent of
     worldwide chip revenue in 2002.
  -- The domination of Americas-based companies is even more pronounced in
     the Asia/Pacific region. Companies headquartered in the Americas
     accounted for 51.2 percent of semiconductor sales in the Asia/Pacific
     region in 2003.
  -- A significant driver for the U.S. economy and employment is the
     development of new small businesses. In the semiconductor industry, new
     companies most frequently are fabless, i.e. firms that outsource their
     production to chip manufacturers. An estimated 75.1 percent of revenue
     in the worldwide fabless industry in 2003 was generated by
     Americas-based companies. iSuppli estimates that 56.8 percent of global
     fabless semiconductor demand originated from the Asia/Pacific region in
     2003, supporting this key U.S. business.

To view the full iSuppli Corp. press release and see how specific semiconductor companies performed, visit www.esconline.com/electronicaUSA/media/ or contact Jonathan Cassell, public relations manager at iSuppli Corp. at 408-654-1714.

About CMP Media LLC

CMP Media LLC (www.cmp.com) is a leading integrated media company providing essential information and marketing services to the entire technology spectrum -- the builders, sellers and users of technology worldwide. Capitalizing on its editorial strength, CMP is uniquely positioned to offer comprehensive, integrated media solutions tailored to meet the individual needs of marketing professionals. Its diverse products and services include newspapers, magazines, Internet products, research, direct marketing services, education and training, trade shows and conferences, and custom publishing.

About Messe Muenchen

Munich Trade Fairs International, MMI, (www.messe-muenchen.de) stages more than 30 trade fairs a year in the investment goods and consumer goods sectors, and also high-tech fairs in the fields of electronics, photonics, information technology, analysis, and product engineering. Each year, over 30,000 exhibitors from more than 90 countries, and over two million visitors from at least 180 countries travel to Munich for these events. MMI also organizes trade fairs in Asia and South America.

About iSuppli Corp.

iSuppli Corp. is a globally recognized provider of unique value chain services targeted to the electronics marketplace. iSuppli helps original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original device manufacturers (ODMs) and component suppliers improve the cost and performance of their supply chains by delivering the information, analysis, advice and tools that improve strategic and operational decision-making.

CONTACT: Linda Riedman of Fleishman-Hillard, +1-503-402-1442, or riedmanl@fleishman.com, for CMP Media LLC.


CONTACT: Linda Riedman of Fleishman-Hillard, +1-503-402-1442, or
riedmanl@fleishman.com, for CMP Media LLC

Web site: http://www.messe-muenchen.de/

Web site: http://www.electronicausa.com/

Web site: http://www.cmp.com/