Microsemi Corp. (MSCC - Analyst Report), an original equipment manufacturer (OEM) of a broad range of high-reliability and analog/mixed signal integrated circuits, announced the launch of flash memory products which can withstand high temperature while drilling into the surface of the Earth for oil and gas.
Microsemi’s new NOR flash products are tailor-made for drilling as they can withstand temperatures of 150°C and more. They also provide the requisite endurance benefits to systems designers. The product can withstand extreme temperatures, shock and vibration encountered by drilling equipment deep down below the surface.
The oil and gas industry is going through a period of fundamental change. The challenges of meeting the growing global demand for energy against naturally declining production and reserves from existing fields are significant. In order to meet these challenges, the industry is now turning to unexplored fields.
Workers face constant challenges like breakdown of machineries due to malfunctions in the microelectronics used in drilling equipment when they are exposed to extreme environments. Thus, Microsemi’s new products that are specially designed for drilling activities may provide the requisite solutions to workers.
Microsemi’s revenues in the first quarter of 2013 were $247.6 million, down 5.9% sequentially but up 2.8% year over year. The defense, aerospace and medical markets are the biggest consumers of Microsemi’s high reliability chips, while other markets use its analog/mixed signal products.
Microsemi has a Zacks Rank #4 (Sell). However, not all semiconductor companies are in the doldrums. A few that are currently doing well include MagnaChip Semiconductor Corp. , Silicon Laboratories Inc. (SLAB - Snapshot Report) and NXP Semiconductor (NXPI - Snapshot Report). All MagnaChip, NXP semiconductor and Silicon carry a Zacks Rank #1 (Strong Buy).