SIA ISSUE BACKGROUNDERS

FINANCIAL REPORTING/MEDIA

Issue: With industry and financial data transmitted instantaneously around the globe and factored into countless business and investment decisions, it is in the interest of all semiconductor companies that information released on our industry is timely, accurate, and comprehensible. Given the market sensitivity of semiconductor industry data, and the role of our industry in driving information technology more broadly, it is also important that industry spokesmen are available to interpret and comment on regularly released industry statistics, trends and forecasts, to market analysts and other decision makers in both the private sector and public sectors.

Importance: The SIA today is recognized as an authoritative, reliable, and accessible source of information, analysis and commentary on the global semiconductor industry. SIA's initiatives convey information and increase understanding of the enabling role that semiconductor technology plays in generating new investment, growth, jobs, and productivity around the globe, increasing opportunity and standards of living in developed and developing economies alike.

In addition to an annual four year-Forecast and the semi-annual Forecast update, the SIA issues a monthly Global Sales Report, covering worldwide product sales by major category and geographical market, and commenting on trends, new developments and major growth markets. SIA officers regularly interpret the data and offer insight and analysis with interviews on CNBC, CNN, Bloomberg and other business television and print outlets. SIA's reputation as an accurate and unimpeachable source of information makes it a highly valued resource for industry analysts and media around the world, and promotes accurate and timely coverage of the industry's performance and contribution to innovation and growth. Releases and forecasts are made regularly available on the SIA's website, www.sia-online.org.

SIA Position/Action: In view of the national and global attention currently given to the recovery of the semiconductor industry, and the outlook for attendant recovery in information technology more broadly, SIA is committed to increase the reach and effectiveness of its communications in 2005 through the following initiatives:

• Program of Webcasts for the quarterly and annual data reported in the Global Sales Report and forecasts. Webcasts have proved effective in reaching audiences from coast to coast and facilitating increased industry coverage in major media outlets;
  
  
• Stepped-up efforts on national television, given the increasing prominence of these shows and their role as opinion maker in financial and industry circles;
  
  
• SIA's regular program of press releases, commentary and special releases for breaking industry news important to private and public sector leaders; and
  
  
• New York and San Francisco media tours, allow for more in-depth discussion and analysis of semiconductor industry outlook and performance with journalists and media outlets.