Daimler-Benz AG is to merge its component and subsystems operations into a new electronics company which will include Europe’s fourth largest European semiconductor operation, based at Telefunken Electronik GmbH headquarters in Heilbronn. This unit, which began operations on July 1, combines the resources of Matra MHS SA of France, Siliconix Inc of the US, Dialog Semiconductors Ltd of the UK and Eurosil of Germany with the component divisions of Daimler’s AEG and Deutsche Aerospace subsidiaries. It is one of the four sections of Daimler’s as yet untitled electronics project, expected to be up and running by early 1993. The other three units will develop automotive systems, microsystems (multichip models included) and special technologies like displays, high-energy batteries and microwave components. The company anticipates that revenues will be around $1,600m with annual growth targets of between 10% to 15%. In order to complete its semiconductor unit, it intends to acquire the half of Matra MHS that it does not already own; Matra MHS produces high speed CMOS static RAMs and embedded processors. Daimler already holds majority stakes in Siliconix, the Santa Clara, California-based integrated circuit manufacturer, as well as Swindon-based mixed signal ASIC supplier, Dialog Semiconductor. It also owns outright Eurosil, which specialises in low-voltage CMOS integrated circuits and Telefunken which produces discrete and optoelectronic semi-conductors. It is thought likely that Telefunken’s businesses will initially account for a slight majority of the new unit’s revenues though Dataquest analysts have noted the strong growth potential of Eurosil and Dialog. Dataquest has also highlighted the new semiconductor unit’s freedom from an excess of expensive fabrication plants. It will have three European chip plants (those of Telefunken and Matra) and two Siliconix fab lines only.
