TrendChip, Ralink to Merge

TrendChip Technologies Corp. and Ralink Technology Corp.'s merger agreement has been approved by the Board of Directors to create a global technology leader in the home networking and broadband access semiconductor markets. Under the terms of this agreement, the Board of Directors from both companies have agreed that the merged company will be called Ralink Technology Corp., and that each 0.8209 share of TrendChip will be exchanged for 1 share of Ralink. With a combined stock valuation of approximately NT$20 billion, and combined 2009 revenues of over NT$7.3 billion, the new Ralink Technology is among the world's "Top 30" fabless semiconductor companies as ranked by IC Insights based on revenue.

TrendChip, founded in 2001, is headquartered in Hsinchu, Taiwan, and maintains development centers in Suzhou and Nanjing China. TrendChip is among the fastest growing xDSL CPE semiconductor suppliers in the market with over 90 percent growth in 2009. TrendChip's solutions have been deployed by 50 carriers in 45 countries across Europe, Asia, and the Americas. With its high performance yet cost-effective xDSL solutions, TrendChip is on track to become the number 2 global xDSL CPE chip supplier in 2010. Ralink, also founded in 2001, is headquartered in Hsinchu, Taiwan, and operates a development center in Cupertino, California. Ralink's 802.11n solutions are shipping with customers in the Americas, Europe, and Asia, and are embedded in hundreds of products across all major Wi-Fi market segments including personal computers, broadband gateways, digital televisions, Blu-Ray players, web cameras, and IPTV set-top-boxes.

"Ralink and TrendChip have worked closely over the past several years to win joint designs with common customers across the globe," said Shinjou Fang, Chairman of TrendChip Technologies. "Both Ralink and TrendChip share a similar vision of the Networked Digital Home, and both companies are executing on similar strategies to deliver industry-leading performance at disruptive price points. By merging the two companies Ralink Technology Corp. will be able to leverage our combined resources, operational efficiencies, and complementary technologies to deliver superior solutions to our customers and increased value to our shareholders."

"By combining Ralink and TrendChip into a single company, Ralink Technology will be positioned to drive the growth of high-performance yet cost-effective 'triple play' voice, video, and data services throughout the Networked Digital Home," said Chris Kao, Chairman of Ralink Technology. "Broadband Gateways will incorporate our DSL and Wi-Fi chipsets, and they will deliver wireless content throughout the home to personal computers, televisions, phones, and other consumer electronics devices. With our combined forces and technologies, we anticipate accelerated growth in both existing and adjacent market segments over the coming years."

Management of the combined 600-person company will include executives and board members from both organizations. To streamline integration of the two companies, and to maximize operational efficiencies during the transition period, Ralink Technology's Board of Directors has appointed Shinjou Fang, Chairman of TrendChip Technologies, to be CEO of Ralink Technology and Chris Kao will continue to serve as Chairman.

TrendChip Technologies

Ralink Technology