), an original equipment manufacturer (OEM) of a broad range of
high-reliability and analog/mixed signal integrated circuits,
announced that an independent organization completed reliability
testing of Microsemi's commercial-grade Axcelerator® Field
programmable gate arrays (FPGAs). The test process spanned 4
FPGAs are semiconductor devices that allow programming /
reprogramming even after the device has been installed. This
flexibility makes the devices more expensive relative to regular
programmable logic devices (PLDs), so their use is relatively
Microsemi's Axcelerator® FPGAs are the commercial version of
their RTAX-S/SL FPGAs, which are custom designed for space
applications using non-volatile antifuse technology, which protects
from intense radiation and heat.
According to a Research and Markets report, the global FPGA
market is poised to grow at a compounded annual growth rate (CAGR)
of 10.4% from 2011 to 2015 driven by growing demand for
customizable integrated circuits (ICs). Since FPGAs allow increased
flexibility when creating designs and enable electronic device
manufacturing companies to minimize their R&D costs, they are
seeing increased demand.
Microsemi's Axcelerator® FPGA is another potent weapon in their
radiation-tolerant space products portfolio. They have designed
this FPGA specially for the space programs. Overall, FPGAs are
gaining popularity in this segment, as engineers can use a single
processor in place of multiple ones. In addition, these have to be
high in quality, as they have to bear the harsh conditions in
RNCOS, a research and consultancy firm expects the global
aerospace segment to grow at a CAGR of 2.5% from 2012 to 2015
reaching $460.0 billion by 2015. The increasing adoption of
electronics in the segment is therefore likely to be a positive for
suppliers such as Microsemi, as well as peers
Lattice Semiconductor Corp.
For the past five decades, Microsemi has grown as a developer of
new and innovative products for the aerospace segment. The product
portfolio comprises a wide range of high-performance,
high-reliability radio frequency (RF) and power components, analog
and RF ICs, standard and customizable system-on-chip solutions and
mixed-signal and radiation-tolerant FPGAs.
Microsemi's revenue in the second quarter of 2012 was $249.3
million, up 3.5% sequentially and 20.2% year over year. The
aerospace segment generated 21.0% of revenue, increasing 8.0%
sequentially. The defense, aerospace and medical markets largely
consume Microsemi's high reliability chips, while the other markets
use its analog/mixed signal products.
There are, however, some issues in Microsemi's defense business,
as the U.S. Department of Defense (DoD) has announced that it will
trim the defense budget, which could push out some short-term
defense programs. This uncertainty could keep the lid on share
Currently, Microsemi Corporation has a Zacks Rank of #4,
implying a short-term Sell recommendation.
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