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Electronics Production | October 11, 2004

Jennic adopts fabless model

Jennic announced that it is repositioning its wireless connectivity business from a traditional intellectual property (IP) approach to a fabless manufacturing business model, offering complete integrated circuits (IC) directly to its customer base.
The company’s shift is being driven by customers who want to reduce time-to-market by eliminating the need to develop and prove their own ICs.

The transition comes at a time when the market for wirelessly connected equipment in industrial applications, commercial buildings and the home is set for rapid growth. According to In-Stat/MDR annual shipments of IEEE802.15.4 wireless personal area networks and ZigBee solutions will surpass 150 million units in 2008. Supporting this rapid growth trend, On World forecasts that industrial process monitoring, commercial building control, and home automation will consume 330 million radios in 2010. A single-chip solution is widely seen as the key to unlock this potential.

“We have a clear lead in single-chip integration for this market and we intend to capitalize on this lead by adopting a fabless model,” stated Jim Lindop the CEO and founder of Jennic. “This transition allows us to maximize the market opportunity whilst helping our customers ramp up production quickly. We have demonstrated functional first silicon to strategic customers; we are working with world-class manufacturing partners and will be delivering quantities approaching cellular phone numbers by the end of the decade”.

Since launching the IP portfolio in February, 2004, Jennic has been an active member of the standards committees (IEEE802.15.4 and ZigBeeTM).

In order to support the company’s expansion into fabless manufacturing, and develop the worldwide customer support network associated with a fabless company, a third round of private funding, supported by current investors, is in progress.

Lindop added, “Whilst the transition to the fabless model in the wireless connectivity market represents a great opportunity for us as a company, we will continue to support our IP customers for wireline products such as physical layer framers, access co-processors, line-card connectivity, and other IP. This has been, and continues to be, an important part of our revenue stream.”

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