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For Embargo: Sept. 4, 2001 Editorial Contact: Eric Sells (480) 792-7478 For Literature/Inquiries: Web: www.microchip.com Literature: (480) 792-7668 UNIQUE PROCESS TECHNOLOGY ELIMINATES TRADITIONAL FLASH MCU DESIGN BARRIERS; OPENS MANY NEW MARKETS, APPLICATIONS 8-bit Flash MCU Pricing Drops Below OTP CHANDLER, Ariz., Sept. 4, 2001 [NASDAQ: MCHP] — Microchip Technology Inc. has implemented a unique manufacturing technology that eliminates the traditional industry design barriers associated with Flash microcontrollers, including price premiums, endurance reliability and long programming times. This next-generation Flash process technology enables industryleading Flash device performance, as well as pricing equal to and in some cases lower than OTP microcontrollers. These technology innovations position Microchip’s growing PICmicro® Flash solutions for many new high-volume, cost-sensitive markets and applications. Flash Microcontrollers Debut To accommodate the growing demand for Flash, Microchip is announcing today 14 new high performance Flash microcontrollers based on this process technology at the Embedded Systems Conference-Boston (Booth #611), significantly expanding the Company’s current Flash product portfolio to offer a full range of 8- to 84-pin solutions. Another 16 devices are planned for introduction in the next six months, reflecting a significant R&D investment made by the Company to meet expected, growing market demand. Flash Technology Leadership: Lower Cost, Higher Reliability Microchip’s new leading-edge Flash process technology features a patented PMOS Electrically Erasable Cell (PEEC) which provides best-in-class ERASE/WRITE endurance, retention, and disturb reliability for both program and on-chip data memory. The PEEC cell resulted from a three-year development project to create a cell that specifically targets the demanding system environments of microcontroller embedded control applications. – MORE – ADD ONE – NEW FLASH MCU PROCESS TECHNOLOGY “Microchip made OTP microcontrollers cost effective for embedded designers,” said Steve Sanghi, president and CEO of Microchip. “We’re taking that same philosophy and technical expertise to make Flash microcontrollers cost effective for mainstream embedded applications. We see customers migrating their designs to our Flash microcontrollers, which are pin compatible with our OTP solutions. Today, we offer broad OTP and Flash product portfolios at similar pricing, allowing engineers to choose the most appropriate memory solution for their application.” Historically, the reliable cell of choice was an EEPROM cell, which cost more to produce because of the larger cell/array sizes. Therefore, most users were forced to settle for a compromised low reliability product that utilized very small Flash cells that were originally developed for cost sensitive non-microcontroller products. Today, Microchip’s PEEC cell is three times smaller than the previous generation EEPROM cells, providing significant cost reduction advantages. The cell offers improved reliability over the previous generation EEPROMs and significantly better reliability over the industry alternative Flash cells. The PEEC cell utilizes a size-reduced merged cell with a Fowler Nordheim tunneling region instead of a defined tunnel dielectric window to improve manufacturability, repeatability, and reliability across a –40C to 125C temperature range and 2.0V to 5.5V Vdd operations. Programming time has been reduced as a 1-Megabit array can be fully erased and programmed in less than 2 seconds. An individual word can be erased and programmed in less than 3 milliseconds. Reliability characterization data over multiple lots supports in excess of 5 million ERASE/WRITE cycles and more than 40 years of data retention. This high level of reliability characterization and manufacturability will enable the microcontroller system designer to achieve more than 1,000,000 data memory ERASE/WRITE cycles and more than 100,000 program memory ERASE/WRITE cycles. – MORE – ADD TWO – NEW FLASH MCU PROCESS TECHNOLOGY The architecture of this cell also allows for the Vdd range to be expanded down to 2.0V. The PEEC cell has superior low-voltage high-speed performance. A 3V product can now operate up to 20MHz. The wide 2.0V to 5.5V VDD range and low current is achieved by utilizing the next-generation Flash process technology which does not require any 5V overhead such as an onchip regulator or voltage charge pump. The on-chip ERASE/WRITE charge pump allows for full ERASE/WRITE/READ operations at only 2.0V without an external Vpp voltage. The I/O voltages utilized in this technology are true 5.5V capable (vs a 5.5V tolerant I/O design as required when designing with <0.35u technology) Design Barriers for Flash MCUs Once a niche-oriented technology for prototyping, Flash microcontrollers gained popularity in applications with long lives, where remote field upgrades could be made without expensive service calls. These were typically high-ticket items, such as automobiles, which could justify the 25%+ price premium over other microcontrollers. Because of the substantially longer programming cycle for Flash versus OTP, high volume applications were not feasible without installing additional manufacturing lines. These traditional industry design barriers have been eliminated thanks to Microchip’s innovative Flash process technology. Mainstream Flash Applications Microchip estimates the worldwide 8-bit Flash microcontroller market at $600 million in 2000, jumping to $1.5 billion by 2003 as more and more mainstream applications migrate to Flash memory. The current demand for Flash is being fueled by the need for remote field upgrades and Internet connectivity, especially in applications such as automotive subsystems, networked home appliances, home medical appliances, remote controls, parking meters and vending machines. Today’s announcement opens the door for many high-volume cost-sensitive applications to incorporate the advantages of reprogrammability where Flash was historically not feasible. These applications include telecommunication line cards, personal identification systems and access control systems. – MORE – ADD THREE – NEW FLASH MCU PROCESS TECHNOLOGY Expanding Flash MCU Portfolio Microchip’s new Flash microcontroller families introduced in separate news announcements today are: PIC18FXX8: These four 28- and 40-lead self-programmable Flash memory devices feature an intelligent CAN 2.0B active interface and an abundant peripheral set. The 28-lead package is the smallest and most powerful CAN solution in the market today. PIC18FXX2: These powerful PICmicro Flash devices offer 10 MIPS at 10 MHz performance and an operating range of 2.0-5.0v. The devices feature up to 32K bytes of self-programmable Flash memory, 1.5K bytes of user SRAM and 256 bytes of data EEPROM. Possessing a 10-bit analog-to-digital converter (ADC) with up to 8 input channels, the devices also provide a C compiler-friendly development environment PIC16F85/86: These devices expand Microchip’s popular PIC16F8X family with increased program and data memory, four channels of 8-bit analog-to-digital converters and two analog comparators. PIC16F87XA: Microchip updates the popular PIC16F87X family with two analog comparators on its advanced enhanced Flash technology, enabling further cost reductions for high volume embedded control applications. Development System Support Microchip’s MPLAB® In Circuit Debugger (ICD) supports these high performance Flash solutions with a complete hardware development system, including a demo board. The ICD provides a powerful, affordable run-time development tool and starts as low as $99. Microchip’s MPLAB-IDE editor, assembler, linker, simulator, project manager and source level symbolic debug is also included. – MORE – ADD FOUR – NEW FLASH MCU PROCESS TECHNOLOGY For More Information For more information, contact Microchip via the literature line at (480) 792-7668, the website at www.microchip.com, or through any Microchip sales representative or authorized worldwide distributor. Microchip Technology Inc. manufactures the popular PICmicro® field-programmable RISC microcontrollers, which serve 8- and 16-bit embedded control applications, and a broad spectrum of high-performance linear and mixed-signal, power management and thermal management devices. The Company also offers complementary microperipheral products including interface devices; microID RFID devices; serial EEPROMs; and the patented KEELOQ® security devices. This synergistic product portfolio targets thousands of applications and a growing demand for high-performance designs in the automotive, communications, computing, consumer and industrial control markets. The Company's quality systems are ISO 9001 (1994 version) and QS9000 (1998 version) certified. Microchip is headquartered in Chandler, Arizona with design facilities in Mountain View, California and Bangalore, India; semiconductor fabrication facilities in Tempe and Chandler, Arizona and Puyallup, Washington; and assembly and test operations near Bangkok, Thailand. Microchip employs approximately 2,950 people worldwide and has sales offices throughout Asia, Europe, Japan and the Americas. More information on the Company can be found at www.microchip.com. #### Note: The Microchip name and logo, PIC, PICmicro, MPLAB and KEELOQ are registered trademarks of Microchip Technology Inc. in the USA and other countries. All other trademarks are the property of their respective owners.