Avago Technologies Begins Operations as World’s Largest Privately Held Independent Semiconductor Company

Avago Technologies today announced it has started operations as the world’s largest privately held independent semiconductor company. Avago was created as a result of the acquisition of Agilent Technologies Inc.’s (NYSE: A) Semiconductor Products Group by Kohlberg Kravis Roberts & Co. (KKR) and Silver Lake Partners in a $2.66 billion transaction announced Aug. 15, 2005, and completed on Dec. 1, 2005.

“Our strategy is to leverage our substantial intellectual property, design expertise and system-level knowledge to win in our markets,” said Dick Chang, president and CEO of Avago Technologies. “We’ll continue to provide the innovative products that enable our customers and that have established our market leadership positions. We’ll also continue to drive profitability through a highly variable, low-cost operating model, and we’ll capitalize on our new independence by developing an efficient, stand-alone cost structure.”

Li Ting, general manager of Avago Technologies China/Hongkong, said: “Avago has traditionally been very strong in Asia as this region represents the majority of our global business. In view of this, Avago is now co-headquartered in Singapore. The momentum for our business in this region is very strong, as it is elsewhere around the world. Our organization in Asia will play an important role in ensuring that Avago remains at the forefront of the semiconductor industry.”

Avago Technologies (pronounced, a-va’-go) has an extensive portfolio of more than 5,500 products, which are sold into a broad set of applications and end markets, including wireless and wired communications, industrial, automotive, consumer electronics and storage and computing. The company maintains “top three” market leadership positions in optocouplers, infrared transceivers, optical communications, printer ASICs, optical mouse sensors, and motion control encoders. Avago products are sold to more than 40,000 customers through both a worldwide distributor network and direct sales force.

Avago Technologies is co-headquartered in San Jose, Calif., and Singapore, and begins operations with 6,500 employees of which 1,000 are analog design engineers. Avago differentiates its business through effective supply chain management, strong worldwide distribution channels and a highly variable, low-cost operating model. The company has over 35 years of operating history in Asia, where approximately three-quarters of Avago employees are located and where a significant portion of its products are produced. Avago’s presence in Asia places it in close proximity to many of its customers and to the center of the worldwide electronics supply chain. Avago maintains highly collaborative design and product development engineering resources around the world, including six design centers in Asia, four in the United States and two in Europe.