Chip Component Firm Up During Downturn; Artisan's Crafted Gains; Sales, profit have risen at technology designer, but issues have surfaced.(INTERNET & TECHNOLOGY)

Byline: MARILYN ALVA

What semiconductor slump? Artisan Components Inc. hasn't noticed. The designer of chip components has posted double- and triple-digit sales and profit growth the last six quarters.

With revenue last year of $37 million, Artisan isn't huge. But that total was nearly double from the year before, and company officials expect this year's sales to nearly double again.

As chipmakers strive to cut costs, more chip designers are using Artisan's intellectual property to redesign chips. So Artisan's designs are being used in more chip production.

"We're blowing the doors off last year," said Artisan Chief Executive Mark Templeton.

Still, the chip business is notoriously up and down. For example, last year volume rollouts of Microsoft Corp.'s Xbox video game console boosted Artisan's royalties from the manufacturer of the graphic chips inside the games -- Taiwan Semiconductor Manufacturing Corp.

But when Xbox production fell off after weak holiday sales left excess inventory, so did Artisan's royalties. And there have been rumors that TSMC itself is thinking of jumping into Artisan's market.