FCS Fairchild Semiconductor International, Inc. (MM)

Fairchild Semiconductor -- Spotlights Optimizing Semiconductor Technology to Leverage Power Efficiency and Satisfy China's Latest Energy Efficiency Regulations -- Illustrates How China Can Achieve RMB 34.6 billion (US $4.2 billion) Annual Savings in Power Fairchild Semiconductor (NYSE: FCS), the leading global supplier of products that optimize system power, today announced that Eric Kuo, president of Fairchild Semiconductor in Asia, delivered a keynote address at the recent International Consumer Electronics Industry Summit (SINOCES) held in Qingdao, Shandong Province, China. During his speech, Kuo highlighted the importance of optimizing semiconductor technology to leverage power efficiency and satisfy China's latest energy-efficiency labeling regulations. The high-level summit provided an insight into the most recent developments and future trends in China's consumer electronics sector. "This is an important time for China. We have experienced impressive economic growth in the last few years, yet we face a tremendous challenge in sustaining power for our society," said Kuo. "According to the Earth Policy Institute, China is the world's top consumer of resources, and Zhou Heliang, executive vice-president of the China Electrotechnical Society (CES), has said that China's installed power-generating capacity would experience significant growth until 2020. "China had 380 million kilowatts of installed power-generating capacity at the end of 2003. This level is expected to exceed 450 million kilowatts by 2005, 650 million kilowatts by 2010, and around 950 million kilowatts by 2020" continued Kuo. "However, low energy efficiency remains a problem for China as its comprehensive energy efficiency stands at 33%, 10 percentage points lower than that of other developed countries, while China's energy consumption for per unit output value is twice as much as that of other developed countries. It is therefore essential that the semiconductor industry continues to make tremendous strides in power management to assist China in meeting its energy needs." During his speech, Kuo highlighted Fairchild's emphasis on products that optimize system power and its continuing transition to higher value power discrete and analog solutions is making an impact on China's power consumption. Kuo stated the company is playing a key role supporting China's recently introduced energy-efficiency labeling regulations with its leading portfolio of semiconductors that convert, control and minimize power in all electronic applications. Kuo noted that the demand for electricity in China is increasing by 14%-15% per annum. He also highlighted that domestic white goods, such as refrigerators and air-conditioners, comprise approximately 10% of the total demand, and that during the summer months power consumption increases by 40%. He identified that China has become an important global exporter of home appliances and in 2003, 29.4% of the total production of refrigerators and 34% of air-conditioners were destined for export. He commented, "It is essential to take international standards into consideration as we are now a global exporter of home appliances. China's Energy Labeling Regulations have been in effect since March 1st 2005 for domestic refrigerators and air-conditioners, and the program aims to improve the power efficiency of end equipment and reduce the emission of greenhouse gases." By September 1st 2005, the sale of products failing to reach standard will be prohibited and the China National Institute of Standardization has forecasted that approximately 15% of the high power consumption refrigerators will be eliminated. "With the rising cost of energy and with government regulations setting lower power consumption limits, the need for efficient power devices is escalating," continued Kuo. "Products such as our green Fairchild Power Switches (FPS(TM)), our IntelliMAX(TM) load management products, uSerDes(TM), and Smart Power Modules(TM), the industry's most comprehensive line-up of integrated power modules, ranging from 50W to 3kW, coupled with our increased investment in silicon and package integrated solutions and continued partnership with customers through our Global Power Resource(TM) Design Centers, are all making a real difference." Kuo illustrated the level of power saving that Fairchild products can achieve. In an air-conditioners for example, the energy savings offered by an inverter over constant speed is 40%. In China, this equates to a possible saving of 28,000,000,000 KWh per annum, based on figures from 2003. In color TVs, cell phone chargers, set-top boxes, and VCD/DVD players, there are similar savings to be achieved, with Fairchild's green FPS controlling standby power savings of up to 28,809,450,000 KWh per annum. "We calculated these figures using data from Cheaa.com, August 2004; China Daily, May & August 2004; and IMS Research, March 2004, and this equates to a potential RMB34.6 billion per annum saving in power for China. "Fairchild is The Power Franchise(R)," Kuo concluded. "Fairchild is the leading semiconductor supplier of power products that optimize system power. Fairchild's products cover a range of power specification from 1V-1200V, from micro amps to over 600 amps - no other semiconductor supplier can make this claim. Fairchild has the insight and experience in both designing and manufacturing power products and partnering closely with leading manufacturers. This inherent closeness of design and manufacturing and the close partnership with major customers in the industry continues to yield insight into design challenges and the continued development of products that solve these power management challenges. Fairchild continues to demonstrate its dominance with 76% of sales from power products, an increase from approximately 14% eight years ago." Fairchild Semiconductor: Fairchild Semiconductor (NYSE: FCS) is the leading global supplier of high performance power products critical to today's leading electronic applications in the computing, communications, consumer, industrial and automotive segments. As The Power Franchise(R), Fairchild offers the industry's broadest portfolio of components that optimize system power through minimization, conversion, management and distribution functions. Fairchild's 9,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at www.fairchildsemi.com.