The world of microprocessors has changed dramatically, moving from a linear path based on power to a diversity of specialized chips.

They are a generation behind in memory chip technology and further behind in more specialized chips.

Mr. Halla is moving National into more specialized chips that offer higher margins.

These specialized chips will have broad uses for handling the avalanche of computerized data in many applications.

And the new semi-customized chip technology allowed customers to make many of the specialized chips that the company used to manufacture.

Japanese chip makers are not as strong in microprocessors and some other specialized chips as American companies.

The company sells specialized chips and hardware to computer and other equipment manufacturers.

Sales of the specialized chips were unchanged from the first quarter, although up from the corresponding period a year earlier.

National revived the Fairchild name last year when it decided to separate its commodity products from its more specialized chips.