Notes to Consolidated Financial Statements

Note 1. Nature of Operations                 

Xilinx designs, develops and markets complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, design services, customer training, field engineering and technical support.  The wafers used to manufacture its products are obtained from independent wafer manufacturers located in Taiwan, Japan and the United States.  The Company is dependent on these foundries to produce and deliver wafers on a timely basis.  The Company is also dependent on subcontractors, located in the Asia Pacific region, to provide semiconductor assembly, test and shipment services.  Xilinx is a global company with manufacturing and test facilities in the United States and Ireland and sales offices throughout the world.  The Company derives over one-half its revenues from international sales, primarily in Europe, Japan and Asia Pacific.