Filed by Alpha Industries, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
Commission File Number: 001-05560
Subject Company: Conexant Systems, Inc.
Commission File Number: 000-24923
Alpha Industries will file a proxy statement/prospectus and other relevant
documents concerning the proposed merger of Conexant's wireless business with
and into Alpha Industries with the SEC. Investors and security holders are
advised to read the proxy statement/prospectus and other relevant documents
filed by Alpha Industries with the SEC regarding the proposed merger
referenced in the foregoing information when they become available because
they will contain important information. Investors and security holders may
obtain a free copy of the documents regarding the proposed merger (when
available) and other documents filed by Alpha Industries at the SEC's web site
at www.sec.gov. The documents regarding the proposed merger and such other
documents may also be obtained from Alpha Industries directing such request to
Alpha Industries, Inc., Attn: Paul E. Vincent, 20 Sylvan Road, Woburn, MA,
01801.
Alpha Industries and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from Alpha Industries'
shareholders. A list of the names of the directors and executive officers and
descriptions of their interests in Alpha Industries is contained in Alpha
Industries' proxy statement dated July 30, 2001, which is filed with the SEC
and will also be included in future proxy statements filed with the SEC.
Shareholders may obtain additional information about the interest of the
directors and executive officers in this transaction by reading the proxy
statement/prospectus when it is available.
INVESTORS' PRESENTATION
SLIDE 1
---------------------------------------------------------------------------
[Alpha logo] [Conexant logo]
Creating The Pure-Play
Wireless Semiconductor Leader
December 2001
SLIDE 2
Safe Harbor Statement
---------------------------------------------------------------------------
This presentation reflects Management's outlook only as of the date of
the presentation and contains forward-looking statements which predict
future results and other matters. These forward-looking statements are
inherently subject to risks and uncertainties. Actual results and
outcomes may materially differ as a result of various factors. Such
factors include, but are not limited to: the timing and extent of
recovery in each of the Companys' markets, customer orders not being as
expected; erosion of margins; competitive pressures and economic and
market conditions that vary from expectation; modification of Company
plans or intentions; the transaction not occurring and financial results
varying from expectations. Additional information on these and other
factors that may cause actual results and Company performance to differ
is included in each the Companys' latest earnings releases and within
their most recent Form 10-K/10Qs as filed with the SEC
SLIDE 3
Market Dynamics
-----------------------------------------------------------------------------
o Shortening product development cycles
o Simplified architectures
o OEMs shifting to low-cost suppliers around the world
o ODMs and contract manufacturers entering the phone business without RF
and systems expertise
o Uniquely positioned to drive the future evolution of RF and
systems integration
_________________________________________________________
| |
| A Significant Opportunity For a Pure-Play, |
| Broad-Based Wireless Semiconductor Supplier |
|_________________________________________________________|
SLIDE 4
Strategic Combination Rationale
---------------------------------------------------------------------------
o Two highly successful, complementary and high growth wireless businesses
o Industry's broadest technology and product offering
o Supplier to all key handset and infrastructure OEMs
o Capitalizing on the trend towards handset outsourcing
o Uniquely positioned to drive the future evolution of RF
and systems integration
__________________________________________________________________________
| |
| Creating The Pure-Play Leader in Mobile Communications Semiconductors |
| --- |
|__________________________________________________________________________|
SLIDE 5
---------------------------------------------------------------------------
Alpha Industries
SLIDE 6
Alpha Industries
--------------------------------------------------------------------------
_________________________________________________________
| |
| Highly Integrated Radio Frequency Solutions Enhancing |
|_________________________________________________________|
Focused Investments
-------------------
[GRAPHIC OF PRODUCTS]
o Switches and Filters
o InGaP GSM PA Modules
o Base Station Components
o RF Process Technologies
____________________________________________________________________
| |
| Speed, Quality and Performance of Wireless Voice, Data and Video |
|____________________________________________________________________|
SAMSUNG MITSUBISHI MOTOROLA SONY LUCENT TECHNOLOGIES
Bell Labs Innovations
NORTEL ALCATEL ERICSSON SIEMENS
SLIDE 7
A Broad Handset Product Portfolio
---------------------------------------------------------------------------
------------------------------------------------------------------------
o Switches | - Worldwide Leader
| 40% Share
-------------------------------|----------------------------------------
o Power Amplifiers | - Established PHEMT Lead
| - HBT InGaP
-------------------------------|----------------------------------------
o Discrete Semiconductors | - Module Building Blocks
|
------------------------------------------------------------------------
New Integrated Products -------------------> THE SOLUTION
------------------------------------------------------------------------
________________________________________
| |
| Products in More Than 40 Handsets |
|________________________________________|
SLIDE 8
Wireless Handset Participation
------------------------------------------------------------------------------
Couplers and Detectors RF IC Power Amplifiers and Modules
[GRAPHIC OF PRODUCT]
Varactor Diodes
Schottky Diodes
RF IC Switches and Switch Filters
PIN Diodes
_________________________________________________________________
| |
| Capturing an Increasing Number of Sockets Within the Handset |
|_________________________________________________________________|
SLIDE 9
RF Front End Strategy
---------------------------------------------------------------------------
Si ASIC
PA PA RT Transmit Chain Module
MMICs Module
Discrete [Diagram]
[DIAGRAM]
Directional
Detector
Switches Switch Filter
Module
Si ASIC Filter
___________________________________________
| |
| Accelerating the RF Integration Roadmap |
|___________________________________________|
SLIDE 10
Leadership RF Front End Implementations
---------------------------------------------------------------------------
Technology Breadth
------------------
o PHEMT
o HBT [GRAPHIC OF PRODUCT]
o Siligon Logic
o Discrete Semiconductors
SLIDE 11
Leadership RF Front End Implementations
---------------------------------------------------------------------------
ai Integration Platform
Power Amplifier Controller
Power Amplifier
[DIAGRAM]
Discrete Semiconductors Directional Detector
Switch Controller Switch
_______________________________________________________
| |
| Continually Raising Level of Component Integration |
|_______________________________________________________|
SLIDE 12
LTCC Technology Capability
---------------------------------------------------------------------------
Low Temperature Cofired Ceramics
Matching
Inductor Circuit
Key Characteristics
Coupler -------------------
[DIAGRAM]
Filter o In House LTCC Technology
Capicitor
o Complexity of > 20 Layers
o Dedicated LTCC Design Capability
________________________________________________________________
| |
| A Distinct Competitive Advantage in RF Front End Integration |
|________________________________________________________________|
SLIDE 13
Switch and Filter Modules
---------------------------------------------------------------------------
Silicon CaAs
ASIC SP4T
Switch
[DIAGRAM]
LTCC
DCS GSM Ceramic
SAW SAW Substrate
___________________________________________________________
| |
| The Clear Market Leader in Delivering Switching Solutions |
|___________________________________________________________|
SLIDE 14
Wireless Infrastructure Components
---------------------------------------------------------------------------
Ceramic Resonators Filters
Detectors / Couplers Vector Modulators
[IMAGE]
Magnetic Products Amplifiers
Coaxial Resonators Switches
Diodes Attenuators
_________________________________________________
| |
| Increasing Base Station Semiconductor Content |
|_________________________________________________|
SLIDE 15
-----------------------------------------------------------------------------
Conexant's Wireless Business
SLIDE 16
Conexant's Wireless Business
---------------------------------------------------------------------------
______________________________________________________________________
| |
| Components, RF Subsystems and Semiconductor System Solutions |
|______________________________________________________________________|
Focused Investments
[IMAGE] -------------------
o Power Amplifiers
o RF Subsystems
o Cellular Systems
o Wireless Data
__________________________________________________________
| |
| for Digital Wireless Voice and Data Communications |
|__________________________________________________________|
Motorola Samsung NEC KYOCERA ACER
LG NOKIA ERICSSON SONY
SLIDE 17
Power Amplifiers
------------------------------------------------------------------------------
Standards Support
-----------------
o CDMA
[IMAGE]
o TDMA/EDGE
o GSM/GPRS
o cdma2000
o W-CDMA
_____________________________________________
| |
| Nearly 150 Million PA Modules Shipped |
|_____________________________________________|
SLIDE 18
CDMA PA Module Leadership
---------------------------------------------------------------------------
Key Characteristics
-------------------
o 50 GHz GaAs InGaP
[IMAGE] o 4mm x 4mm Footprint
o Increased Efficiency
o Improved Linearity
__________________________________
| |
| World's Smallest CDMA PA Modules |
|__________________________________|
Slide 19
RF Subsystems
------------------------------------------------------------------------------
[IMAGE] Full Transmit and
Receive Chain
Standards Support
-----------------
o GSM/GPRS
o IS-95 / cdma2000
o EDGE
o Bluetooth
o W-CDMA
________________________________________
| |
| More Than 25 Committed DCR Design Wins |
|________________________________________|
Slide 20
Traditional GSM RF Section
------------------------------------------------------------------------------
I-Q I
SAW LNA SAW X SAW Demod Q
[DIAGRAM]
T/R
Switch PLL PLL
Translational I
PA Loop Q
[IMAGE]
114 Components
$12 - $13 GSM RF Subsystem
Slide 21
GSM Direct Conversion Approach
------------------------------------------------------------------------------
o Lowest Power o Highest Integration o Most Flexible
[DIAGRAM] [IMAGE]
47 Components
$7 - $8 GSM DCR Subsystem
Slide 22
Cellular Systems Architecture
------------------------------------------------------------------------------
Baseband Power Management
[IMAGE] [IMAGE] [IMAGE]
Mixed Signal DCR Transceiver
Power Amplifier
________________________________________________
| |
| World's Most Complete GSM/GPRS System Solution |
|________________________________________________|
Slide 23
Cellular Systems Volume Ramp
------------------------------------------------------------------------------
5M
___________
| |
| Customers |
|___________|
________________
| | Samsung
| Unit Shipments | A300 (Dual LCD)
|________________| A400
A301 (Chinese)
[BARGRAPH] A408 (Chinese)
1M China 1
China 2
M100 Europe
<100K A188 Japan
A100 A110 Korea
1999 2000 2001
_________________________________________________________________
| |
| Handset Wins 1 5 20 |
|_________________________________________________________________|
_________________________________________________________________
| |
| Rapidly Expanding System Solution Customer Base |
|_________________________________________________________________|
Slide 24
------------------------------------------------------------------------------
Leaderco
Business Overview
Slide 25
Leaderco's Strategic Intent
------------------------------------------------------------------------------
_________________________________________________________________
| |
| Radio Frequency and Complete System Solutions |
|_________________________________________________________________|
Focused Investments
-------------------
[IMAGE] o PA / Front End Modules [IMAGE]
o RF Systems
o Cellular Systems
o Wireless Infrastructure
_________________________________________________________________
| |
| for 2.5G and 3G Wireless Voice, Data and Video Applications |
|_________________________________________________________________|
Slide 26
The Market Opportunity
------------------------------------------------------------------------------
___________________ ________________________________
| Worldwide Digital | | Digital Cellular Handset and |
| Cellular Handsets | | Infrastructure Semiconductors |
|___________________| |________________________________|
782m $37b
384M $18B
[BAR GRAPH]
Outsourced
HANDSET
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Source: EMC/Internal Estimates
__________________________________________________
| Strong Growth in Mobile Communications, |
| Highest in Outsourced Handsets |
|__________________________________________________|
Slide 27
Complementary Product Portfolios
------------------------------------------------------------------------------
Couplers and Detectors RF IC Power Amplifiers and Modules
Power Management ICs
Synthesizers
Varactor Diodes
RF Transceivers [GRAPHIC OF PRODUCT] Mixed Signal
Schottky Diodes
___________________
| Alpha Product |
| Conexant Product |
| Joint Product | RF IC Switches Baseband
|___________________| and Switch Filters PIN Diodes
SLIDE 28
Unparalleled RF Systems Integration Capabilities
---------------------------------------------------------------------------
Front End Module + Direct Conversion Transceiver
__
SP2T GSM Matching SP4T |__| I
MMIC Amp Network MMIC SAW
Switch [DIAGRAM] Switch __
Si CMOS SAW |__| Q
Controller
|__| LO
DCS Matching
Amp Network __
|__| Translational
Passive Loop I
Detector Q
____________________________________________________________________
| |
| Integrating the Entire RF Section of a Digital Cellular Handset |
|____________________________________________________________________|
SLIDE 29
Complete Systems Migration
---------------------------------------------------------------------------
Internet Access GPS
Bluetooth Digital Audio
[IMAGE]
Games MMS
Digital Camera PDA
MPEG Video 802.11
________________________________________________________________
| |
| A Highly Integrated Unified Architecture Enabling Rapid |
| Time-To-Market For 2.5G and 3G Wireless Multimedia Terminals |
|________________________________________________________________|
SLIDE 30
Wireless Infrastructure Business Expansion
---------------------------------------------------------------------------
Ceramic Resonators Front-End Receivers Filters
PA Drivers Frequency Synthesizers
Detectors / Couplers [IMAGES] Vector Modulators
Magnetic Products IQ Modulators
Coaxial Resonators Amplifiers
Switches
Diodes Attenuators
________________________________________________________________
| |
| Capitalizing on Alpha's Customers and Sales Channel |
|________________________________________________________________|
SLIDE 31
Process and Packaging Technology
---------------------------------------------------------------------------
___________________
| |
| Si Technology |
|__________________| \
o SiGe \
o BIPOLAR \
o RF CMOS \
o BiCMOS \
\
______________________ \
| | \
| Band-Gap Technology | >
|______________________| _ _ _ _ _ _ _ _ _ _ _ _ _ > Integrated Multi-Chip
o HBT Module Solutions
o PHEMT ^
o MESFET /
/
________________________ /
| | /
| Packaging Technology | _ _ _/
|________________________|
o CSP/WSP
o Organics
o LTCC
________________________________________________________________
| |
| Unmatched Breadth of Proven Core Competencies |
|________________________________________________________________|
SLIDE 32
Manufacturing Leadership
---------------------------------------------------------------------------
_______________ ___________________________
| | | |
| Digital CMOS | | Gallium Arsenide |
|_______________| |___________________________|
o Conexant o InGaP HBT o InP
o UMC [IMAGE] o PHEMT o AlGaAs HBT
o TSMC
Woburn, MA
Sunnyvale, CA
Newbury Park, CA Mexicali, Mexico
Newport Beach, CA
_____________________________ __________________________
| | | |
| RF and Mixed Signal | | Assembly and Test |
|_____________________________| |__________________________|
SiGe, BiCMOS, RF CMOS, Analog CMOS
o High volume, low cost module
o Conexant o TSMC assembly and RF optimized test
o UMC o Chartered o Purchased from Conexant at closing
________________________________________________________________
| |
| Opportunity to Capture Significant Economies of Scale |
|________________________________________________________________|
SLIDE 33
Complementary Capabilities
---------------------------------------------------------------------------
-----------Processes----------- --Packaging-- ----------Components---------- -------Systems-------
Full
SiGe/ TX RF Cellular
HBT InGaP PHEMT BiCMOS Modules LTCC PAMs Switch Filter RF ICs Systems Systems
--- ----- ----- ------ ------- ---- ---- ------ ------ ------ ------- -------
_______________________________________________________________________________________________________________________________
| |
| Leaderco |
|_______________________________________________________________________________________________________________________________|
Conexant [DIAGRAM]
Alpha
_______________________________________________________________________________________________________________________________
| __ __ __ |
| [__] Leadership Capability [__] Solid Capability [__] Limited Capability |
|_______________________________________________________________________________________________________________________________|
SLIDE 34
Leaderco Competitive Positions
-------------------------------------------------------------------------------
-----------Processes----------- --Packaging--- ----------Components---------- -------Systems-------
Full
SiGe/ TX RF Cellular
HBT InGaP PHEMT BiCMOS Modules LTCC PAMs Switch Filter RF ICs Systems Systems
--- ----- ----- ------ ------- ---- ---- ------ ------ ------ ------- -------
_______________________________________________________________________________________________________________________________
| |
| Leaderco |
|_______________________________________________________________________________________________________________________________|
RFMD
Hitachi [DIAGRAM]
TriQuint
Anadigics
Celeritek
_______________________________________________________________________________________________________________________________
| __ __ __ |
| [__] Leadership Capability [__] Solid Capability [__] Limited Capability |
|_______________________________________________________________________________________________________________________________|
SLIDE 35
Strategic Engagements With Market Leaders
------------------------------------------------------------------------------
_____________________________________________________________________
| |
| Leaderco Will Sell to Every Key Handset OEM... |
| ____________________________________________________________________|
_____________________________________________________________________
| |
| NOKIA MOTOROLA ERICSSON SAMSUNG |
|_____________________________________________________________________|
SIEMENS LG NEC ACER
KYOCERA SONY MITSUBISHI PANASONIC
_____________________________________________________________________
| |
| ...WITH Tier I Handset OEMs Becoming Its Top Four Customers... |
|_____________________________________________________________________|
SLIDE 36
Strategic Engagements With Market Leaders
------------------------------------------------------------------------------
_____________________________________________________________________
| |
| ...While Leaderco's Top Four Infrastructure Customers... |
|_____________________________________________________________________|
_____________________________________________________________________
| |
| ERICSSON MOTOROLA NOKIA NORTEL |
|_____________________________________________________________________|
SAMSUNG ALCATEL LUCENT TECHNOLOGIES
Bell Labs Innovations
_____________________________________________________________________
| |
| ...Represent the World's Largest Infrastructure OEMs |
|_____________________________________________________________________|
SLIDE 37
------------------------------------------------------------------------------
Leaderco
Financial Overview
SLIDE 38
The Transaction
---------------------------------------------------------------------------
Wireless
Communications
> \ Alpha
/ \ /
/ \ /
/ \ / 33%
CONEXANT 67% > <
\ Leaderco
\ ^
\ /
\ / Mexicali
\_ _ _ _ _ _ > CONEXANT /
___________________________________________________________
| |
| Targeting Completion Second Calendar Quarter of 2002 |
|___________________________________________________________|
SLIDE 39
Leaderco Financial Overview
-------------------------------------------------------------------------------
o Merger significantly strengthens relationships with key customers and
provides numerous cross-selling revenue opportunities
o Significant operating synergies available from reductions in
manufacturing costs
o Economy of scale benefits for incremental G&A
______________________________________________________________________
| |
| Transaction Should Be Accretive Even Before Expected Synergies |
|______________________________________________________________________|
SLIDE 40
Transaction Timeline
-------------------------------------------------------------------------------
December January February March April May June
------------------ ----------------- -------------- -------------- ---------------- -------------- -------------
3 10 17 24 31 1 7 14 21 28 4 11 18 25 1 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24
^ Announce Merger
^ Commence Roadshow
^ File HSR Documents
^ File IRS Ruling Request for Spin-off
^ File Form S-4 / Proxy Statement with SEC
^ HSR Waiting Period Expires
^ SEC Filings Declared Effective
Alpha Shareholder Meeting ^
Receive IRS Ruling ^
Close Spin-off of Conexant's Wireless Business ^
Close Merger ^
Close Sale of Mexicali to Leaderco ^
Leaderco Stock Trading Begins ^
SLIDE 41
Leaderco Investment Thesis
-------------------------------------------------------------------------------
o The pure-play leader in mobile communications semiconductors
o Tremendous market growth opportunities
o Leadership expertise in core RF and wireless systems technologies
o Blue chip handset and infrastructure customer base
o Strong management team with proven track records
_____________________________________________________________
| |
| Uniquely Positioned to Drive the Evolution of |
| RF Integration and Complete System Solutions |
|_____________________________________________________________|
Slide 42
------------------------------------------------------------------------------
Back-Up Material
Slide 43
The Transaction: First Step
------------------------------------------------------------------------------
Wireless
_ _ _ _ _ _ _ _> Communications
/
/
/
Conexant
\
\
\
\_ _ _ _ _ _ _ _ > Conexant
__________________________________________________
| Conexant Spins Wireless Business |
|__________________________________________________|
Slide 44
The Transaction: Second Step
------------------------------------------------------------------------------
Wireless Alpha
_ _ _ > Communications _ _ _ _ _ _ _ |
/ | | 33%
/ | |
/ | |
Conexant 67% |_ _ _ > |
\ Leaderco
\
\_ _ _ _ _> Conexant
__________________________________________________
| Conexant's Wireless Business and Alpha |
| Immediately Merge to Create Leaderco |
|__________________________________________________|
Slide 45
The Transaction: Third Step
------------------------------------------------------------------------------
Alpha
_ _ Wireless _ _ |
/ Communications \ | 33%
/ \ |
/ \ |
/ \ 67% |
/ \ |
Conexant_ _/ \ _ _ _> Leaderco
\ /
\_ _ _ _ _ _ > Conexant _ _ _ _ _ _ / Mexicali
_____________________________________________________________________
| Mexicali Assembly and Test Facility Transfers to Leaderco |
|_____________________________________________________________________|
Slide 46
The Transaction: Completion
------------------------------------------------------------------------------
Alpha
_ _ _ _ _ > Wireless |
/ Communications -------------\ |
/ \ | 33%
/ 67% \ |
/ > |
Conexant/ /_ _ _ _> Leaderco
\ /
\_ _ >Conexant _ _ _ _ _ _ _ _/
Mexicali
_____________________________________________________________________
| Targeting Completion Second Calendar Quarter of 2002 |
|_____________________________________________________________________|
Slide 47
------------------------------------------------------------------------------
Continuing Conexant
Business Overview
Slide 48
Conexant's Strategic Evolution
------------------------------------------------------------------------------
Conexant
Mobile Broadband Internet
Communications Access Infrastructure
_____________________________________________________________________
| Creating Three Independent Leadership Companies |
|_____________________________________________________________________|
Slide 49
Broadband Access
------------------------------------------------------------------------------
_____________________________________________________________________
| Communications and Media Processing Semiconductor Solutions |
|_____________________________________________________________________|
Focused Investments
-------------------
[IMAGES] o Adsl Modems
Telephone Line o Home Network Processors
Residential Power Line
Gateways WirelessLAN o Cable Modems
Bluetooth
o Set Top Box Systems
__________________________________________
| for the Broadband Digital Home |
|__________________________________________|
Thomson Motorola Compaq Hewlett
Packard
ECHOSTAR SONY DELL
Slide 50
Mndspeed TM
------------------------------------------------------------------------------
_________________________________________________
| Semiconductor System and Software Solutions for |
|_________________________________________________|
[IMAGE] Focused Investments
-------------------
o T3/E3 Carrier Solutions
o 10/40 Gbps SONET/SDH
o Network Processors
o Scalable Switch Fabrics
_____________________________________________________
| WAN Aggregation, Transmission and Switching |
|_____________________________________________________|
Alcatel CiscoSystems Nortel Lucent Technologies
Bell Labs Innovations
Huawei Tellium Juniper
Networks
Slide 51
A Broad Front-End Product Offering
------------------------------------------------------------------------------
Power Detector Power Amplifier Switching/Routing
[DIAGRAM]
Switching 1st VCO IF & Semoids VCOs
Switching/Routing
_______________________________________________
| Single or Multifunction Implementations |
|_______________________________________________|
Slide 52
Switch Filter Front Ends
------------------------------------------------------------------------------
GSM Matching
Amp Network
[DIAGRAM]
SP2T SP4T
MMIC S:CMOS MMIC Passive
Switch DCS Controller Matching Switch Detector
Amp Network
SAW SAW
FEM - Front End Module
__________________________________________
| Driving Switch Filter Integration |
|__________________________________________|
Slide 53
Senior Leadership and Board Composition
------------------------------------------------------------------------------
Dwight Decker Chairman 17 Years Experience
Dave Aldrich Chief Executive Officer XX Years Experience
Paul Vincent Chief Financial Officer XX Years Experience
Moiz Beguwala President XX Years Experience
Mohy Abdelgany RF Systems XX Years Experience
Kevin Barber Operations XX Years Experience
Klaus Buehring Power Amplifiers XX Years Experience
Murthy Renduchintala Cellular Systems XX Years Experience
_______________________________________________________________
| Alpha and Conexant to Share Equal Board Representation, |
| Plus One Jointly Selected Director |
|_______________________________________________________________|
Slide 54
InGaP Quad-Band GSM PA Modules
------------------------------------------------------------------------------
3 Stage InGaP DCS Power Amplifier
[GRAPHIC OF PRODUCT]
3 Stage InGaP GSM Power Amplifer
Silicon Bi-Polar Power Amplifier Controller
___________________________________________________
| Industry's First InGaP Quad-Band PA Module |
|___________________________________________________|