SHELTON, CT and SUNNYVALE, CA-- April 12, 2011 - TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for multimedia connectivity and processing, and eSilicon Corporation, the largest independent semiconductor Value Chain Producer (VCP), today announced that they have signed an agreement for eSilicon to manage the supply chain for a large number of existing TranSwitch products as well as to collaborate on cost optimization of new products.
Through this agreement, TranSwitch will leverage a comprehensive services offering from eSilicon including: integrated ASIC services; and sophisticated, comprehensive manufacturing services. The resulting ASIC design and manufacturing efficiencies will allow TranSwitch to achieve lower product costs and focus resources on new product development. This partnership will not alter TranSwitch's relationship and supply agreements with its customers.
"TranSwitch's new strategic initiative is to offer the highest performance semiconductor products for High Definition (HD) multimedia connectivity and processing. In order to be competitive in the higher volume consumer markets, we needed to partner with an experienced semiconductor VCP who could offer economies of scale and competitive pricing as well as manage high volume production ramp," said Michael Macari, vice president of Engineering and Operations of TranSwitch Corporation. "We selected eSilicon because they can provide a complete turnkey solution with a full offering of ASIC and manufacturing services and an extensive IP portfolio while also reducing our costs."
"As a leader in their field, with a need to ramp production while simultaneously streamlining processes and reducing costs, TranSwitch is a perfect customer for us and we are excited to partner with them," said Lawrence Conrad, vice president and general manager of the SMS business unit of eSilicon. "Through our vast experience and turnkey offering, we can ramp up quickly while providing quality and on-time delivery helping them address their immediate and future growth needs. Our systems, processes, operations experts and amortized cost model provide for world-class operations capability while delivering enhanced customer satisfaction."
About Value Chain Producers
A Value Chain Producer (VCP) is a company that collaborates with foundries, IP and service providers, EDA suppliers, package, assembly and test operations in designing and producing chips for fabless IC, IDM and OEM companies. VCPs optimize the economics of customer value chains and enable customers to focus on their product differentiation and market growth. A VCP earns revenue by shipping packaged, tested products with the customer's logo. The term was created by eSilicon and was adopted by the Global Semiconductor Alliance (GSA) as a new category in October 2009.
TranSwitch Corporation (NASDAQ: TXCC) is a leading provider of semiconductor solutions in the rapidly growing segments of the consumer electronics and telecommunications markets. Founded in 1988, TranSwitch® is headquartered in Shelton, CT. The company designs and develops innovative silicon integrated circuits and intellectual property solutions to deliver best-in-class voice and video quality for the next generation of multimedia over IP, while providing the customer support needed for the fastest time-to-market. For more information, please visit: www.transwitch.com
eSilicon, the largest independent semiconductor Value Chain Producer (VCP), delivers ASICs to OEM and fabless semiconductor companies through a fast, flexible, lower-risk path to volume production by deploying its comprehensive suite of design, productization and manufacturing services. eSilicon serves a wide variety of markets including the consumer, computer, communications and industrial segments. eSilicon - Enabling Your Silicon Success™. For more information, please visit www.esilicon.com.