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Kingston: The OEM Of Memory

    In the mid-1980s, the personal computer industry faced a crisis a severe shortage of memory chips. PC makers drastically underestimated how quickly the memory upgrade business would mature. They simply couldn't keep up with the demand of memory-hungry computer users, especially in the corporate market with its need for more-powerful desktop computers.

    In 1987 Kingston Technology Corporation was formed to take advantage of this new market for memory upgrades. Kingston engineers now design and manufacture customized memory modules for more than 2,300 different models of personal computers, servers, workstations, and printers.

    To ensure the absolute quality and compatibility required by the demanding corporate market, Kingston designs and optimizes each module for a specific computer system. Customized memory modules guarantee 100% compatibility and clearly distinguish Kingston from other memory suppliers. In fact Kingston is widely perceived as the original equipment manufacturer (OEM) of memory throughout the computer industry.

    To achieve absolute quality control, Kingston tests 100% of its module designs in the same system in which they will be used. As a leader in quality control, Kingston developed specialized testing hardware and software that enables 100% testing of its modules, even as product shipments now exceed 1,200 per day worldwide.

    As proof of its commitment to quality, in 1994 Kingston was one of the first companies to receive the computer industry's ISO (International Standardization Organization) 9000 certification.

    As a critical partner in the computer industry, Kingston works closely with leading computer manufacturers to develop memory for each new generation of computing systems. For high-end Intel Pentium-based PCs, Kingston is now manufacturing modules that employ Extended Data Out memory technology and synchronous DRAM. As faster microprocessors evolve, Kingston engineers are working on cutting-edge technologies such as SRAM, or static RAM. Demand for SRAM is growing as the architectural limitations of slower DRAM devices fail to keep up with new microprocessors. SRAM architecture creates a memory "cache" which allows faster microprocessors to access data more quickly.
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Memory Demand Soaring

    The story of Kingston Technology, like the story of the semiconductor industry, is one of explosive growth. Since l987 the semiconductor market has grown at an annual rate of 35% percent. By the year 2000, total sales of semiconductors are projected to reach $300 billion per year. Sales of memory products alone are expected to represent 35% of that total.

    Less than eight years after it was founded, Kingston Technology Corporation surpassed the $1 billion mark in annual sales. Sales for 1996 are projected to reach $2.1 billion.

    A number of factors are spurring the demand for memory devices. One is the increasing unit sales of desktop computers, at 20% per year. Another is the emergence of faster microprocessors, which require more memory. Yet another is the development of more-complex, memory-intensive software. And finally, the more-demanding usage patterns of today's sophisticated computer users.

    New operating systems, like Windows 95 and Windows NT, often require double the memory of their predecessors. Multitasking and networking functionality are now common on most PCs. Multimedia and 3D graphics applications are now widely run from the desktop. While software advances continue, it is memory that holds the key to productivity.

    Today, many high-end graphics applications require up to 80 megabytes of memory. High-performance servers may require up to 2 gigabytes. Without more memory, companies and their computer users cannot deploy the latest generation of powerful software and hardware.

    A recent study by PC Computing presented compelling evidence of the role of memory in individual productivity across a wide spectrum of professions. The study found that adding even as little as four megabytes of memory made people up to 26% more productive. Memory upgrades also pay for themselves as much as 26 times per year. As microprocessors grow faster, software becomes more complex, and more companies understand the link between memory and productivity, worldwide demand for memory will grow.

    As the world's leading independent manufacturer of memory, Kingston Technology is well positioned to take advantage of this growth. In addition to memory products, Kingston also designs and manufactures a wide range of desktop storage and networking products which provide unsurpassed quality and reliability to companies of all sizes.
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Memory: A Critical Component

    As the importance of memory has grown, Kingston's stature in the industry has evolved as well. In the past 4 years, the average base memory per PC has increased by 400%. In fact, by 1997 memory cost will represent more than 30% of the total cost of the average PC. At the same time, OEMs are turning increasingly to outsourcing for component manufacturing. Thus it appears that many OEMs are prepared to embrace high-quality, branded components like memory, much as they embraced high-quality branded microprocessors in the late 1980s.

    Because of its reputation for outstanding quality, Kingston is poised to play a major role as this transition occurs. Since its founding, Kingston's relationships with OEMs have been critical to its success. Because memory modules are essential building blocks to increasing a computer's performance, the availability of high-quality memory modules is critical to both OEMs and end users. From the outset Kingston demonstrated an understanding of the technical issues that affect both the compatibility and quality of memory devices. As an engineering company, Kingston sought to optimize the performance of its memory products by designing them for individual computer systems. As a result, Kingston product designs meet or exceed specifications set by the OEMs.

    Servers are powerful computing systems often used for a company's mission-critical applications. Workstations are high-powered desktop systems favored by sophisticated computer users who run memory-intensive software. Kingston currently designs and manufactures server and workstation memory for leading OEMs in response to the maturing of other markets and to complement its core focus on distribution. The company often supplies the memory that is shipped inside the PCs, workstations, and servers manufactured by the leading OEMs.

    The fact that OEMs install Kingston memory in these systems is perhaps the best proof of their confidence in the reliability of Kingston products. The availability of high-quality memory modules allows OEMs to keep prices low and at the same time offer their customers an easy upgrade path. By optimizing each design for a particular system, Kingston maximizes both flexibility for the end user and ensures the best use of end users' memory investment.


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