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Pericom builds Rs.138 crore FCP plant in Shandong

Posted: 19 Apr 2010     Print Version  Bookmark and Share

Keywords:Pericom Shandong facility  frequency control  oscillator  crystal 

Pericom Semiconductor Corp. has inaugurated PSE Technology (Shandong) Corp., its new crystal factory for their frequency control products (FCP) in the hi-tech zone of Jinan, Shandong, China. Built from the ground up as a production facility, the PSE factory and employee campus will be able to support Pericom and SaRonix-eCera for crystal and crystal oscillator production and reinforce their service level in the Asia market, in particular the China market.

"The opening of our PSE factory in Shandong Province, China is a great achievement for Pericom, and in a strategic location that is close to our supply partners. It allows us to stay ahead of our competitors and bring our products to market faster," said Pericom CEO Alex Hui. "In addition, this factory further reinforces our leading position in a fast-growth FCP market, which is driven by the rapid adoption of serial high-speed protocols requiring more advanced low-jitter timing solutions, like our FCP product families."

The overall crystal and oscillator market is growing from Rs.12,929.56 crore ($2.8 billion) in 2009 to Rs.14,314.87 crore ($3.1 billion) in 2010 (CY2009-CY2010 Crystal & Oscillator Report from CS&A, LLC). A particularly fast growth segment is driven by the more complex timing requirements of serial high speed protocols such as PCIe 2.0 (5Gbps) and 3.0 (8Gbps), USB3 (5Gbps), SATA3 and SAS2 (6Gbps), and others requiring a more precise low-jitter timing source. Pericom offers advanced timing solutions for all these protocols.

The new factory represents a total investment that will reach Rs.138.53 crore ($30 million) and two years of construction to completion. Pericom's Taiwan SaRonix-eCera factory is currently among the top three crystal suppliers in Taiwan. The new Shandong facility will significantly increase Pericom's total production capacity and will offer increased flexibility in production planning and will reduce shipping lead-time for improved service to Pericom customers. Pericom's vertical integration with SaRonix-eCera uniquely provides total timing solutions based on both quartz and silicon, resulting in optimal cost and performance for the customer.

"China manufacturing provides Pericom with many competitive advantages, such as being close to existing and potential customers as well as direct access to the Chinese market. At the same time, it eliminates the need to import materials from other countries," said Shujong Cheng, president of SaRonix-eCera Corporation and PSE Technology (Shandong) Corp. "The opportunity to operate locally gives us a solid base for growth in the China market and the greater Asian market. The size and scale of the new factory operation demonstrates our commitment to our customers on FCP production both now and in the future."





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