LSI Logic announces RapidChip - an innovative semiconductor platform

• New product expected to expand company's customer base by opening up underserved logic market segments, which are expected to exceed $11 billion in 2006 
• RapidChip halves time-to-market while reducing costs; lowers design and manufacturing risk for high-performance, high-density custom chips
• First products shipping early 2003

NEW YORK, Sept. 4, 2002 – Redefining the custom semiconductor market that it was instrumental in creating, LSI Logic Corporation (NYSE: LSI) today introduced a new semiconductor platform called RapidChip™ (rapidchip.lsilogic.com), complete with a new customer-centric design methodology and tool set. 

Combining LSI Logic's high-performance CoreWare® intellectual property (IP) library, customizable logic, and groundbreaking semiconductor design concepts, RapidChip halves time-to-market and will permanently change the way complex chips are designed and manufactured.

"There is a growing market segment that has evolved as a result of increasing pressure in the industry to create high-density chips faster, more predictably, and at a lower cost," said Jordan Selburn, principal analyst, iSupply Corporation. "Application-focused design platforms that incorporate rapid customization will relieve these growing pressures and will provide an enabling capability to seize this new segment." 

The design start through product delivery for RapidChip is approximately six months, comparable to a Field Programmable Gate Array (FPGA), but about half the time of a standard-cell Application Specific Integrated Circuit (ASIC). Unit prices for RapidChip can be as low as 10% of a complex FPGA and total development costs can be as low as 20% of a normal standard-cell ASIC. Another benefit of this new low-risk platform is the ability to quickly migrate a design to a full ASIC to achieve the lowest possible unit price. 

"RapidChip is specifically targeted at the emerging middle of the logic TAM that is largely underserved," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "RapidChip employs our extensive library of proven intellectual property building blocks to address the demands of new communications, consumer and storage customers requiring lower silicon development costs and faster time-to-market."

The first RapidChip products are in design today and will be manufactured early next year using LSI Logic's G12™ and Gflx™ (0.18 and 0.11-micron) process technologies at its world-class Gresham, Oregon, manufacturing campus and at its foundry partners. G90™ (90-nanometer) versions of the new technology will be available for customer engagements in late 2003. RapidChip will be available to LSI Logic customers through its direct sales channels and worldwide distribution partners.

"Our customers need the ability to configure their chips quickly with increased predictability at a lower cost," said Rick Marz, LSI Logic executive vice president of Communications and ASIC Technology. "RapidChip provides a quick, deterministic design cycle with access to high-value IP that is proven, tested and pre-placed." 

This new platform product combines the high-density, high-performance and proven IP benefits of cell-based ASICs with the customization and fast time-to-market advantages of FPGAs. The resulting combination considerably reduces the design-through-production cycle. This is achieved through families of market-specific silicon platforms, which have been predefined and prefabricated to enable easily customizable designs. The ease-of-use and customization is realized through the methodology and user-defined metal layers.

Unique to RapidChip is the customer-friendly interface that dramatically simplifies the underlying complexity of the design tools and flows associated with SoC design. Rule sets automatically manage architectural design, verification, and physical design. As a result, design schedules for high-performance chips are very predictable. 

"As the pioneer of standard cell ASICs and SoC design methodology, LSI Logic is uniquely qualified to bring this revolutionary product to market," said Chris Hamlin, chief technology officer for LSI Logic. "No other company has our end-to-end experience for an initiative of this magnitude. RapidChip represents a whole new design era and is destined to become the technology of choice." 

Safe Harbor for Forward Looking Statements

This news release and the statements by LSI Logic management include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from the actual future events or results. Readers are referred to the discussion of risk factors detailed in the company's filings from time to time with the Securities and Exchange Commission, including but not limited to the most recent reports on Form 10-K, 10-Q and 8-K. Forward-looking statements include estimates of the reduction in time-to-market, the time required for completing a design, the cost savings achievable and the expected date of availability of the technology. Risks and uncertainties to which the company is subject may include, but may not necessarily be limited to fluctuations in the timing and volumes of customer demand, the rate of depletion of customer inventory buildup, and the company's achievement of revenue objectives and other financial targets. Other risks and uncertainties that may affect the company's actual results include, but are not necessarily limited to the continued availability of appropriate levels of manufacturing capacity, the realization of benefits from the company's strategic relationships, and investments and disruptions in general economic activity caused by the effects of terrorist activities and armed conflict. The company operates in an industry sector where securities' values are highly volatile and may be influenced by the cyclical nature of the industry, the unpredictability of the economy and other factors beyond the company's control.

About LSI Logic Corporation

LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com.