National Semiconductor acquires DigitalQuake Inc.

SEPTEMBER 4--National Semiconductor Corporation (Santa Clara, CA; www.national.com) has acquired all of the capital stock of DigitalQuake Inc., a Campbell, CA, developer of digital display products. Terms of the acquisition, which closed on August 29, 2002, were not disclosed.

"DigitalQuake adds several key technologies to National's existing digital display capabilities," said David Handorf, vice president of National Semiconductor's Displays Group, "including a fourth-generation scaling solution, a triple analog-to-digital converter, and an advanced digital video interface with the latest encryption/decryption technologies. DigitalQuake's intellectual property helps National Semiconductor provide a total system solution for flat-panel monitors."

"Combining DigitalQuake's technologies with National's strengths--its advanced low-emissions LVDS and RSDS interface technologies, integrated timing controllers, and high-volume manufacturing capabilities--enables National to provide fully integrated semiconductor solutions for the display market," said Paul A. Lessard, who served as CEO of DigitalQuake since its founding in February 2000. In its first two years DigitalQuake quickly developed an innovative scaler chip for digital displays. Scaling is one of the features needed to change the resolution and size of the display.

Flat-panel displays take up much less space and use less electrical power than conventional cathode-ray-tube (CRT) monitors. They are replacing CRTs in desktop computer systems and also gaining acceptance in the digital-TV market. According to industry estimates, the market for flat-panel monitors is forecast to exceed $20 billion in calendar 2002. In addition to driving integration in flat-panel displays, National is also a supplier of circuits for conventional CRT monitors.