ZILOG OPENS SHANGHAI IC DESIGN CENTER.

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SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 31, 2004--ZiLOG(R), Inc. (NASDAQ:ZILG), the creator of the Z80(R) microprocessor and a leading designer of integrated microcontroller solutions, today kicked off its celebration of 30 years of innovation (since it was founded in 1974 by Federico Faggin) with the unveiling of a brand new 6000 square feet integrated circuit (IC) Design Center located within the prestigious Zhangjiang Hi-Tech Industrial Park in the Pudong area of Shanghai, China.

Initially, the Design Center will be home to a group of specialized analog and digital design engineers. The facility consists of design, layout and laboratory working areas and will comfortably accommodate up to 40 engineers. The center will be used to design analog and mixed signal microcontrollers, embedded software and applications. It will also support new product prototyping including interface with the Company's Asian wafer manufacturing foundries for new Chinese-developed products.

"The Shanghai Design Center represents a significant step for ZiLOG and is an important element of our China business strategy," said ZiLOG chairman and chief executive officer Jim Thorburn. "It highlights our commitment to the regions of Hong Kong, Taiwan and mainland China, which currently represent around 50 per cent of ZiLOG's total Asia revenue. Having such a facility enables ZiLOG to provide fast turn solutions for the growing microcontroller market in China."

"We are already designing different varieties of microcontrollers based on ZiLOG's proprietary technology, primarily for the Chinese market," commented LM Wang, vice president and managing director, ZiLOG Sales, Asia and Japan. "ZiLOG now offers a complete supply chain for Chinese designers wanting to use silicon. The range of devices and cost effective solutions that ZiLOG produces positions us to meet the growth demand in appliance, automotive, consumer and industrial markets. In addition, having our own designers 'in-house' allows the development of high-end devices with advanced technologies and staying close to the market."

Customers in the Greater China market are already actively designing ZiLOG devices into applications for industrial and factory automation, facility automation and energy management, portable GPRS terminals, biometrics, communication systems, IP appliances and remote diagnostic equipment. Going forward, ZiLOG intends to develop additional products that further address lower-cost applications for China's electronics manufacturers and is also planning to expand resources and capabilities at the Design Center.

"ZiLOG intends to extend and maintain full sales, marketing, field applications, engineering and service personnel in China, and continue to support local universities, encouraging talent at the grass roots level," Wang continued. "There is a need to invest in training and development of local and regional management for companies to successfully develop and market cost-effective devices that help stimulate the domestic market. ZiLOG realized that China would have a significant influence on the overall semiconductor and electronics markets, not only as a low-cost manufacturing region, but also in terms of research and development, design, marketing and sales functions. Our knowledge of this market enables us to understand how our products fit the ...