Fujitsu ASIC chief lays out strategy

Electronic News, Oct 7, 1996 by Peter Brown, Jim DeTar

San Jose, Calif.--Fujitsu took another step toward boosting its lagging position in the U.S. application specific integrated circuit (ASIC) market recently when Dr. Bami Bastani was named executive VP of Fujitsu's System-LSI Division after spending 11 years at another system-on-a-chip oriented company, National Semiconductor.

Fujitsu has undertaken a series of steps recently to refocus its ASIC efforts, including the creation of what the company terms a world-wide infrastructure team, or WWIT. Fujitsu's WWIT was formed last month (EN, Sept. 9) to work with its partners to define IP and CAD methodologies for system-on-a-chip. Another step the company has undertaken is to position itself as a leader in the recently-formed Virtual Socket Interface Alliance (VSIA) (EN, Sept. 2; Sept. 9).

Until two years ago, Fujitsu was the long-standing market leader in ASIC sales worldwide, according to market research firm Integrated Circuit Engineering (ICE). In 1994, however, Fujitsu fell behind NEC in sales; and last year Fujitsu fell to number three in worldwide ASIC sales, surpassed by the volume leading American company, LSI Logic, which now holds the number two slot and NEC which retained its position at the top of the ladder.

In 1995 NEC posted sales of $1.27 billion, compared to $1.18B for LSI Logic and $1.17B for Fujitsu. Toshiba and Texas Instruments are also closing in on Fujitsu with 1995 ASIC sales, respectively, of $933M and $923M. Not surprisingly, LSI Logic was notably absent at the launch of the VSIA, as were IBM, Samsung and Motorola. Industry observers speculated LSI Logic may view the VSIA as a vehicle for Fujitsu and partners to try and keep LSI Logic from gaining further market share.

In an in-depth interview last week, Fujitsu's Dr. Bastani laid bare plans for his company to storm the ramparts and re-take the title of ASIC market leader. Dr. Bastani described how he immediately began imparting a sense of urgency to his sales force.

"At my first meeting with the reps I wasted no time. I said 'Gentlemen, start your engines.'

"I came against the backdrop of the VSIA and of the whole system-on-a-chip craze. I also came just as Fujitsu made the system-LSI group," said Dr. Bastani. "They named it of course the system-LSI group because it covers system-on-a-chip but also core peripherals as well."

When asked how critical to Fujitsu's progress it is to turn around the ASIC group, he replied: "ASICs have gone through dull years and high years. We have proven that ASICs are an enabling technology and we will emphasis ASICs in the future because ASICs are so critical to doing system-on-a-chip."

Dr. Bastani said the new system-LSI group includes personal systems/workstations, communications and application specific integrated circuits (ASICs). The communications aspect of the group features wireless and networking applications such as LAN, ATM, PLLs and what Fujitsu calls Versi-TILE or wireless ASIC. Versi-TILE involves taking building blocks that are normally found in ASICs and tying them together.

"This gives people a time-to-market advantage over other wireless communications," he asserted. "This opens the wireless ballgame to those who have taken a seat next to the big guys."

Dr. Bastani disclosed plans for Fujitsu to come to market next year with higher-performance standard Ethernet products--currently a gap in the company's product portfolio of 10-megabit Ethernet devices. "We have been ahead of the ballgame in ATM (asynchronous transfer mode) and we will come to market with 10/100-megabit Ethernet products within the next year."

Dr. Bastani said there are three key processes to making high performance, fully functional system-on-a-chip devices a reality: reliable ASIC technology, 0.35-micron or lower process technology and high integration of core libraries.

Reaching the 0.35-micron geometry level in process technology will be a key factor in enabling system-on-a-chip, according to Dr. Bastani. The eventual move to 0.25-micron CMOS technology will drive the power consumption levels down to 2 volts, Dr. Bastani added.

Fujitsu has plans for future system-on-a-chip products, according to Dr. Bastani. "The horse race has just begun. There are still many barriers that have to be overcome before we see any real true product," he noted. "The WWIT is a good start. We have to make sure our products are compatible in-house first."

Commenting on when he thinks the Virtual Socket Interface alliance (VSIA) will deliver standards and compatible products based on those standards, Dr. Bastani was skeptical. "The VSIA has a grand plan, but it is also an ambitious plan. I doubt that it will be fully implemented when they say it will be," he said. "I think inside a company the process will take at least one to two years. Outside the company working with various providers and licensees will take a tremendous amount of time, somewhere between three to five years."