Technology Terms
Analog – Analog devices convert signals such as movement and sound into
analogous electronic patterns. For example, a vinyl LP (long-playing) record
provides an analog representation of sound. Digital devices, on the other hand,
represent analog data in a binary format, that is using ones and zeros. A CD
(compact disk) provides a digital representation of sound.
ASIC – An ASIC (application-specific integrated circuit) is a type of logic
semiconductor chip customized or tailored for a specific application within a
specific product. ASICs can be found in a variety of electronic products, such as
camcorders, automobile air bag systems, and cellular phones.
ASSP – Application Specific Standard Products (ASSPs) are types of logic
semiconductor chips tailored for a specific application, but marketed and typically
used by multiple customers. ASSPs are more broadly utilized than ASICs, but
are not as commonly used as general-purpose processors.
BGA – A ball grid array (BGA) is a type of chip package that typically uses a
group of solder balls to connect to a circuit board. BGA-packaged chips are
often used in mobile applications where PGA (pin grid array) chips would take up
too much space due to the length of the pins used to connect the chips to the
circuit board. BGA packages are also assembled to a circuit board by surface
mounting, which allows packages to be mounted on both sides of a circuit
board; PGA packages are thru-hole devices which are only mounted on one side
of a circuit board.
CSP – Chip scale packages (CSPs) are a type of semiconductor package that
house semiconductor chips. Unlike TSOP or DIP packages, which are
comparatively large and bulky, CSPs are nearly the same size of the chip itself.
CSPs have been instrumental in the development of small form factor electronics
and are pervasively used in cellular phones today. Other consumer electronics,
such as MP3 players, digital cameras, video cameras and gaming stations, also
use CSPs to meet reliability, size and performance requirements.
Die-Stack – A die-stack integrates multiple die within the footprint of a single
package. The most common die-stack solution available today is a two-die
Flash/SRAM memory stack. This product is widely used in cellular phones.
Die-stack solutions are well-suited for stacking similar device types, such as
high-yielding memory devices. Due to testing and other issues, package
stacking is a preferable means of stacking dissimilar device types, such as logic
and memory chips, although logic and memory have been assembled in single
package die stacks.
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Digital– Digital devices represent analog data using ones and zeros. A digital
signal is binary, that is it has two distinct states (i.e. 1/0, plus/minus, on/off).
DIP – The electronic industry’s mainstream semiconductor package in the 1970s
and 80s was the dual inline package (DIP). DIPs are large and rectangular with
leads on the two long sides of the package. Though DIPs proved too spacehungry and performance-limiting to keep pace with Moore’s Law, they did play
an important role in the evolution of semiconductor packaging, leading to
emergence of surface-mount technology (SMT) packages such as pin grid
arrays (PGAs) and ball grid arrays (BGAs).
DIMM – Dual inline memory modules (DIMMs) are small circuit boards that
contain one or more memory chips. They are installed into memory sockets on a
memory system board in personal computers, servers, and other applications
requiring significant memory.
DDR, DDR2, DDR3 – Double data rate (DDR) devices are types of memory
chips that are a part of the SDRAM family of random access memory
technologies. SDRAM chips are in turn a part of the DRAM family. DDR chips
double the effective data rate of a computer bus by transferring data on both the
rising and falling edges of a clock signal. DDR (also known as DDR1) runs at
clock speeds ranging from 200 – 550 MHz. The more common implementation,
running at 400Mhz, increases memory bandwidth to 3.2 gigabytes per second, a
400 percent increase over original SDRAM.
DDR2, which is expected to be the mainstream memory solution of choice in the
2006 – 2007 timeframe, offers a number of upgrades over DDR. More
specifically, DDR2 memory is faster, with clock speeds of up to 667MHz or
higher.
DDR3 is being developed as the successor to DDR2. Theoretically, DDR3 chips
could transfer data at effective clock speeds of 800-1067 MHz, compared to
DDR2's current range of 500-667 MHz or DDR’s range of 200-550 MHz.
DRAM – DRAM stands for Dynamic Random Access Memory, which is a type of
RAM (random access memory). RAM is used in most personal computers,
servers and other computing-intensive electronics.
There are two basic types of RAM: DRAM and SRAM (static RAM).
Both DRAM and SRAM are volatile, which means that any data stored in RAM is
retained only as long as the RAM chips are connected to a power supply.
DSP – DSP stands for Digital Signal Processor. DSPs are specialized
microprocessors designed to perform calculations at very high speeds. DSPs, as
their name implies, process analog information such as sound or photographs
that has been converted into a digital form.
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Fabless – Fabless (or “Fabrication-less”) semiconductor companies outsource
the processing of silicon wafers to other companies. Doing so allows them to
focus on the design, development and test of semiconductor chips, rather than
the capital-intensive manufacturing. QUALCOMM, Broadcom and NVIDIA are
examples of Fabless semiconductor companies.
Flash (NOR/NAND) – Flash memory is a type of non-volatile memory that
retains its data when the power is turned off. Flash memory is made in two
forms: NOR and NAND flash. NOR flash, the first type to be developed, is the
preferred technology to store and run code, usually in small capacities. NANDbased solutions are well-suited for Flash applications requiring higher capacity
data storage. Both NOR and NAND chips can be commonly found in products
such as cellular phones and digital cameras.
Flip-Chip – A flip-chip package is a type of semiconductor package where the
active area of the chip is "flipped over" facing downward, hence the name “flipchip.” Instead of facing up and bonding to the package leads with wires from the
outside edges of the chip, any area on the surface of the flip chip can be used for
interconnection, allowing for a large number of interconnects with shorter
connection lengths than wire bonds.
Foundry – A foundry is a company that performs chip manufacturing services. A
wafer foundry will fabricate chips designed by many other companies. Taiwan
Semiconductor Manufacturing Company (TSMC) is the world’s largest foundry.
FPGA – Field Programmable Gate Arrays (FPGAs) are chips that can be
programmed for specific functions after they are made, rather than having those
functions “hard-wired” into the chip. This programmable functionality makes
FPGAs attractive in rapidly changing markets, such as wireless and consumer
electronics, where design modifications and other changes can be made by
reprogramming (rather than replacing) the chip.
IDM – Integrated Device Manufacturers (IDMs), design, manufacture and sell
integrated circuits. This business model is in contrast to the fabless model,
where a third party performs the manufacturing, or the foundry model, in which a
company specializes in manufacturing the chips designed by other companies.
Examples of IDMs include Intel, Samsung, Texas Instruments, Toshiba, and
Renesas.
Logic – A logic chip performs mathematical functions on inputs to produce
outputs—its fundamental role is to process data. This is in contrast to a memory
chip, whose primary function is to store data. ASICs, ASSPs, DSPs, FPGAs are
examples of types of logic chips.
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Memory – A memory chip stores information. There are three types of memory
chips: permanent e.g. read-only memory (ROM)), volatile (i.e. DRAM and SRAM)
and non-volatile (i.e. Flash) memory.
µBGA® (“microBGA”) –One of the first iterations of a commercially successful
BGA CSP invented by Tessera used initially with Flash and DRAM type chips.
MCP – Multi-chip packages (MCPs) allow for the combination of multiple chips
within the footprint of a single package. Common types of MCPs include diestack and package-stack solutions.
Moore’s Law – First stated in 1965 by Intel co-founder Gordon Moore, this “law”
– which is more of an observation – stated that the number of transistors placed
on a semiconductor chip would double every year. In 1975, he updated his
prediction to once every two years.
Package-Stack or Package on Package – Package stack solutions allow
multiple chips to be packaged and stacked within the footprint of a single
package. Unlike die-stack solutions, each individual chip within a package-stack
can be tested prior to stacking, providing higher package yield while at the same
time maintaining a small package footprint. Package-stack solutions are well
suited for packaging higher and lower yielding chips together, such as logic and
memory devices.
SDRAM – Synchronous DRAM (SDRAM) is a frequently used type of DRAM that
is synchronized with the clock speed of the processor in order to boost
processing speed. DDR memory is the next-generation SDRAM.
SiP – A System-in-Package (SiP) is a highly integrated semiconductor package
that makes it possible to integrate multiple semiconductor chips (such as logic
and memory devices) within a single package footprint. Though there is no
general agreement on the type of multi-chip package that constitutes an SiP,
SiPs do provide higher levels of integration, analogous to that of system-on-chip
(SOC) devices.
SoC – A System-on-Chip (SoC) is a highly integrated semiconductor chip where
a single integrated circuit performs the complete function of a system. For
example, an SoC for a wireless application might include a transmitter, receiver
and transceiver.
Solder Ball – Solder balls are the tiny spherical metal balls that allow for the
physical attachment of a chip package to the printed circuit board. Since solder
is an electrical conductor, the electrical connections from the chip package to the
circuit board are also made via the solder balls.
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SRAM –SRAM stands for Static Random Access Memory (RAM), which is a type
of RAM (random access memory). RAM is used in most personal computers,
servers and other computing-intensive electronics.
There are two basic types of RAM: DRAM and SRAM. Both SRAM and DRAM
are volatile, which means that any data stored in RAM is retained only as long as
the RAM chips are connected to a power supply.
Surface-Mount Technology (SMT) – A semiconductor packaging technique in
which the leads or balls are soldered directly on the surface of a printed circuit
board, not through it. TSOPs, BGAs and wafer-scale packages are all SMT
packages. Older packaging technologies, such as DIPs, use thru-hole
technology to connect to the circuit board.
Thru-Hole Package – A circuit board packaging technique in which the leads
(pins) on the chips and components are inserted into holes in the board. The
leads are bent 90 degrees under the board, snipped off and soldered from below.
DIPs are a type of thru-hole package.
TSOPs – Thin Small Outline Packages (TSOPs) are thin, plastic,
rectangular chip packages. TSOPs are a common IC package type for DRAM
chips. TSOPs mount directly on the surface of the printed circuit board. TSOPs
are considerably larger than BGA-type packages.
Wafer-Level Package (WLP) / Wafer-Scale Package -- A wafer-level or waferscale package is an IC package completely fabricated and tested at the wafer
level before singulation. As wafer sizes increase, performing all packaging
process steps at the wafer-level tends to reduce cost. (In conventional
packaging, packaging steps are performed on individual chips after they have
been separated from the wafer). Wafer-level packages are assembled to printed
circuit boards with standard surface mount technology.
Wire bond – A wire bond allows for the interconnection of a semiconductor chip
to its package or connection between multiple chips within a multi chip package.
Wire bonds are tiny wires that are soldered to a bare die on one end and to metal
leads of the chip package on the other. The interconnection wire permits the
transmission of electrical currents between the chip and substrate.
VLP-DIMM – Very low profile (VLP) dual inline memory modules (DIMMs) are
small, low-profile memory modules which hold memory chips and plug into a
motherboard. VLP-DIMMs primarily use DRAM chips. VLP DIMMs are preferred
over standard DIMMs in products that require high levels of performance in
compact form factors, such as “blade” servers.
Sources: Answers.com, Computer Desktop Encyclopedia, eWeek.com,
webopedia.com, Wikipedia, Tessera
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Financial Terms
Pro Forma Net Income is income adjusted for non-cash tax expense and stock
based compensation.
Pro Forma Net Income per Share is pro forma net income divided by the diluted
share count as of that period end.
Recurring Revenues are royalty payments from existing licensees.
Cost of Revenues is operating expenses directly related to the goods sold and
services provided. Tessera’s cost of revenues are almost entirely associated
with its services revenue.
Total Revenue is comprised of Royalties and License Fee Revenue, Payments
for Past Production Revenue, and Services Revenue.
Royalties and License Fees, previously called IP Revenue, consists of royalties
and one-time licensing fees from new customers.
Payments for Past Production, previously called Other IP Revenue, represents
payments received from customers for products using Tessera’s technology that
have been shipped in past periods.
Services Revenues are derived from the completing research and development
projects for customers. These customer-funded R&D projects often result in new
intellectual property which is owned by Tessera.
Research and Development (R&D) is the scientific and marketing evolution of a
new product or service (from Barron’s Dictionary of Finance and Investment
Terms).
Total Technical Effort is R&D plus cost of revenues.
SG&A is selling, general and administrative expenses. Tessera also includes
litigation expenses in its SG&A.
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