----

----

| x | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

|   | For      the transition period from |   | to |   |
|--------|-------------------------------------|--------|----|--------|

| DELAWARE                                           |   | 94-2778785                                |
|----------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of               |   | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)                |   |                                      |
|                                               |   |                                      |
| 1630 McCarthy Boulevard, Milpitas,      California |   | 95035                                     |
| (Address      of principal executive offices)      |   | (Zip      Code)                           |

| Registrant’s      telephone number, including area code |   | (408)      432-1900 |
|---------------------------------------------------------------|--------|---------------------|

| Securities      registered pursuant to Section 12(b) of the Act: |   | Name      of each exchange on which registered |
|------------------------------------------------------------------|--------|------------------------------------------------|
| Common      Stock, $0.001 par value                              |   | The      Nasdaq Stock Market LLC               |

| None                        |
|-----------------------------|
|  (Title      of class) |

| Yes      x | No      o |
|------------|-----------|

| Yes      o | No      o |
|------------|-----------|

| Large      accelerated filer x                                                   |   | Accelerated      filer o         |
|----------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                             |   |                             |
| Non-accelerated      filer o ( Do not check if a      smaller reporting company) |   | Smaller      reporting company o |

|   | DOCUMENTS INCORPORATED BY      REFERENCE: |
|--------|-------------------------------------------|

| (1)   | Items      10, 11, 12 and 14 of Part III incorporate information by reference from      the definitive proxy statement (the "2009 Proxy Statement") for the 2009      Annual Meeting of Stockholders, to be filed  subsequently. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           |          |                                                                                                                    | Page   |
|----------------|---------------|-------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I:   |          |                                                                                                                    |
|           |          |                                                                                                                    |   |
|           | Item      1.  | Business                                                                                                                | 3-11   |
|           |          |                                                                                                                    |   |
|           | Item      1A. | Risk Factors                                                                                                            | 12     |
|           |          |                                                                                                                    |   |
|           | Item      1B. | Unresolved Staff Comments                                                                                               | 17     |
|           |          |                                                                                                                    |   |
|           | Item      2.  | Properties                                                                                                              | 18     |
|           |          |                                                                                                                    |   |
|           | Item      3.  | Legal Proceedings                                                                                                       | 18-19  |
|           |          |                                                                                                                    |   |
|           | Item      4.  | Submission of Matter to a Vote of Security      Holders                                                                 | 19     |
|           |          |                                                                                                                    |   |
| Part      II:  |          |                                                                                                                    |   |
|           | Item      5.  | Market for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 20     |
|           |          |                                                                                                                    |   |
|           | Item      6.  | Selected Financial Data                                                                                                 | 21     |
|           |          |                                                                                                                    |   |
|           | Item      7.  | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                        | 22-28  |
|           |          |                                                                                                                    |   |
|           | Item      7A. | Quantitative and Qualitative Disclosures About Market      Risk                                                         | 28     |
|           |          |                                                                                                                    |   |
|           | Item      8.  | Consolidated Financial Statements and Supplementary      Data                                                           | 29-51  |
|           |          |                                                                                                                    |   |
|           | Item      9.  | Changes in and Disagreements with Accountants on      Accounting and Financial Disclosure                               | 52     |
|           |          |                                                                                                                    |   |
|           | Item      9A. | Controls and Procedures                                                                                                 | 52     |
|           |          |                                                                                                                    |   |
|           | Item      9B. | Other Information                                                                                                       | 52     |
|           |          |                                                                                                                    |   |
| Part      III: |          |                                                                                                                    |   |
|           |          |                                                                                                                    |   |
|           | Item      10. | Directors, Executive Officers and Corporate      Governance                                                             | 53     |
|           |          |                                                                                                                    |   |
|           | Item      11. | Executive Compensation                                                                                                  | 53     |
|           |          |                                                                                                                    |   |
|           | Item      12. | Security Ownership of Certain Beneficial Owner and      Managements and Related Stockholder Matters                     | 53     |
|           |          |                                                                                                                    |   |
|           | Item      13. | Certain Relationships and Related Transactions, and      Director Independence                                          | 53     |
|           |          |                                                                                                                    |   |
|           | Item      14. | Principal Accountants Fees andServices                                                                                  | 53     |
|           |          |                                                                                                                    |   |
| Part      IV:  |          |                                                                                                                    |   |
|           | Item      15. | Exhibits and Financial Statement      Schedules                                                                         | 53-56  |
|           |          |                                                                                                                    |   |
| Signatures     |          |                                                                                                                    | 57     |

----

| ITEM      1. | BUSINESS |
|--------------|----------|

----

----

| Market         |   | End Applications/Products                               |   | Example Product Families              |
|----------------|--------|---------------------------------------------------------|--------|---------------------------------------|
| Industrial     |   | Flow      or rate metering                              |   |                                  |
|           |   | Position/pressure/temperature sensing      and controls |   |                                  |
|           |   | Robotics                                                |   |                                  |
|           |   | Energy      management/harvesting                       |   |                                  |
|           |   | Process      control data communication                 |   |                                  |
|           |   | Factory      automation                                 |   |                                  |
|           |   | Security      and surveillance system                   |   |                                  |
|           |   | Remote      meter reading                               |   | Data      converter products          |
|           |   | RFID      transponders                                  |   | High      performance operational     |
|           |   | Scanning      electron microscopes                      |   | amplifiers                            |
|           |   | Oscilloscopes/curve      tracers                        |   | Interface      (RS 485/232) products  |
|           |   | Solar      power                                        |   | Precision      operational amplifiers |
|           |   | Voltmeters/multimeters                                  |   | Instrumentation      amplifiers       |
|           |   | Test      equipment                                     |   | Line      drivers                     |
|           |   | Logic/network      analyzers                            |   | Line      receivers                   |
|           |   | Weighing      scales                                    |   | Precision      comparators            |
|           |   | Analytic      instruments                               |   | Precision      voltage references     |
|           |   | Gas      chromatographs                                 |   | Monolithic      filters               |
|           |   | X-Ray,      EKG, MRI, PET,CAT scanners                  |   | Switching      voltage regulators     |
|           |   | Particle      accelerators                              |   | Hot      swap circuits                |
|           |   | DNA      and blood analyzers                            |   | DC-DC      converters                 |
|           |   | Patient      monitors                                   |   | DC/DC      µModule Power Systems |
|           |   | Infusion      pumps                                     |   | POE      interface controllers        |
|           |   |                                                    |   | Push      button controllers          |
|           |   |                                                    |   | Ideal      diode controllers          |
| Space/Military |   | Communications                                          |   | Surge      stoppers                   |
|           |   | Satellites                                              |   |                                  |
|           |   | Guidance      and navigation systems                    |   |                                  |
|           |   | Displays                                                |   |                                  |
|           |   | Firing      controls                                    |   |                                  |
|           |   | Ground      support equipment                           |   |                                  |
|           |   | Sonar      systems                                      |   |                                  |
|           |   | Surveillance      equipment                             |   |                                  |
|           |   | Ordnance                                                |   |                                  |

----

| Market            |   | End Applications/Products                               |   | Example Product Families              |
|-------------------|--------|---------------------------------------------------------|--------|---------------------------------------|
| Space/Military    |   | Radar      systems                                      |   |                                  |
|              |   | GPS                                                     |   |                                  |
|              |   | JTRS      manpacks                                      |   |                                  |
|              |   |                                                    |   |                                  |
| Automotive        |   | Entertainment      systems                              |   |                                  |
|              |   | Hybrid/electric      vehicle battery systems            |   |                                  |
|              |   | Navigation      systems                                 |   |                                  |
|              |   | Daytime      running lights                             |   |                                  |
|              |   | Dashboard      instrumentation                          |   |                                  |
|              |   | Emission      controls                                  |   |                                  |
|              |   | Safety      systems                                     |   |                                  |
|              |   | Collision      avoidance systems                        |   |                                  |
|              |   |                                                    |   |                                  |
| Communications    |   | Cellular      phones                                    |   | DC      - DC converters               |
|              |   | Cellular      basestations (CDMA/WCDMA/GSM/ LTE/ WiMAX) |   | V.35      transceivers                |
|              |   | Point-to-point      wireless modems                     |   | Variable      gain amplifiers         |
|              |   | Modems/fax      machines                                |   | High-speed      amplifiers            |
|              |   | PBX      switches                                       |   | High      speed A - D converters      |
|              |   | Optical      networking                                 |   | Line      drivers/receivers           |
|              |   | ADSL      modems                                        |   | Digital      power monitors and       |
|              |   | Channel      service units/data service units           |   | controllers                           |
|              |   | Cable      modems/networks                              |   | Power      detectors                  |
|              |   | Internet      appliances                                |   | Low      noise operational amplifiers |
|              |   | Servers                                                 |   | Micropower      products              |
|              |   | Routers                                                 |   | Power      management products        |
|              |   | Switches                                                |   | Switched      capacitor filters       |
|              |   | Power      over Ethernet                                |   | I2C      bus buffers                  |
|              |   | Wireless      Access Points                             |   | Voltage      references               |
|              |   |                                                    |   | Voltage      regulators               |
|              |   |                                                    |   | Data      converter products          |
|              |   |                                                    |   | Hot      Swap controllers             |
|              |   |                                                    |   | Multi-protocol      circuits          |
|              |   |                                                    |   | Thermoelectric      coolers           |
|              |   |                                                    |   | DC      - DC and mixed signal         |
|              |   |                                                    |   | modules                               |
|              |   |                                                    |   | Power      amplifier controllers      |
|              |   |                                                    |   | RF      power detectors               |
|              |   |                                                    |   | Mixers/Modulators/Demodulators        |
|              |   |                                                    |   | Broadband      filters                |
|              |   |                                                    |   | Battery      chargers                 |
|              |   |                                                    |   | Power      over Ethernet controllers  |
|              |   |                                                    |   | Multi-Phase      switching regulators |
|              |   |                                                    |   |                                  |
| Computer/High-    |   | Communications/interface      modems                    |   | Battery      chargers                 |
| End      Consumer |   | Disk      drives                                        |   | DC      - DC converters               |
|              |   | Notebook      computers                                 |   | Data      converter products          |
|              |   | Desktop      computers                                  |   | Hot      Swap controllers             |
|              |   | Workstations                                            |   | Line      drivers                     |
|              |   | LCD      monitors/projectors                            |   | Line      receivers                   |
|              |   | Plotters/printers                                       |   | Low      drop out linear regulators   |
|              |   | Digital      still cameras                              |   | Micropower      products              |
|              |   | High      Definition TVs                                |   | Multi-Phase      switching regulators |
|              |   | Handheld      PCs                                       |   | PCMCIA      power switching           |
|              |   | Battery      chargers                                   |   | Power      management                 |
|              |   | Electronic      toys                                    |   | Power      sequencing/monitoring      |
|              |   | Video/multimedia      systems                           |   | DC/DC      µModule Power Systems |
|              |   | MP3      players                                        |   | Video      amplifiers                 |
|              |   | Satellite      radios                                   |   |                                  |

----

| Market            |   | End Applications/Products                 |   | Example Product Families |
|-------------------|--------|-------------------------------------------|--------|--------------------------|
| Computer/High-    |   |                                      |   |                     |
| End      Consumer |   | Digital      video recorders              |   |                     |
|              |   | Set      top boxes/Satellite TV receivers |   |                     |
|              |   | Plasma      and LCD display TVs           |   |                     |
|              |   | Bluetooth      headsets                   |   |                     |
|              |   | Hand-held      GPS units                  |   |                     |
|              |   | Tablet      PCs                           |   |                     |
|              |   | PDAs                                      |   |                     |

----

| Process      Families      | Benefits/      Market Advantages                  | Product      Application                        |
|----------------------------|---------------------------------------------------|-------------------------------------------------|
| P-Well      SiGate CMOS    | General      purpose, stability                   | Switches,      filters, data conversion,        |
| chopper      amplifiers    |
| N-Well      SiGate CMOS    | Speed,      density, stability                    | Switches,      data conversion                  |
| Bi-CMOS                    | Speed,      density, stability, flexibilities     | Data      conversion                            |
| High      Power Bipolar    | Power      (100 watts), high current (10 amps)    | Linear      and smart power products,           |
| switching      regulators  |
| Low      Noise Biploar     | Precision,      low current, low noise, high gain | Op      amps, voltage references                |
| High      Speed Bipolar    | Fast,      wideband, video high data rate         | Op      amps, video, comparators,               |
| switching      regulators  |
| JFETS                      | Speed,      precision, low current                | Op      amps, switches, sample and hold         |
| Rad-Hard                   | Total      dose radiation hardened                | All      space products                         |
| Complementary      Bipolar | Speed,      low distortion, precision             | Op      amps, video amps, converters            |
| CMOS/Thin      Films       | Stability,      precision                         | Filters,      data conversion                   |
| High      Voltage CMOS     | High      voltage general purpose compatible      | Switches,      chopper amplifiers               |
| with      Bipolar          |
| Bipolar/Thin      Films    | Precision,      stability, matching               | Converters,      amplifiers                     |
| RF      Bipolar            | High      speed, low power                        | RF      wireless, high speed datacommunications |

----

----

| Name                        |   | Age    |   | Position                                                               |
|-----------------------------|--------|--------|--------|------------------------------------------------------------------------|
|                        |   |   |   |                                                                   |
| Robert      H. Swanson, Jr. |   | 70     |   | Executive      Chairman of the Board of Directors                      |
| Lothar      Maier           |   | 54     |   | Chief      Executive Officer                                           |
| Paul      Chantalat         |   | 59     |   | Vice      President Quality and Reliability                            |
| Paul      Coghlan           |   | 64     |   | Vice      President of Finance and Chief Financial Officer;  Secretary |
| Robert      C. Dobkin       |   | 65     |   | Vice      President of Engineering and Chief Technical Officer         |
| Alexander      R. McCann    |   | 43     |   | Vice      President and Chief Operating Officer                        |
| Richard      Nickson        |   | 59     |   | Vice      President of North American Sales                            |
| David      A. Quarles       |   | 43     |   | Vice      President of International Sales                             |
| Donald      Paulus          |   | 52     |   | Vice      President and General Manager, D Power Products              |
| Steve      Pietkiewicz      |   | 49     |   | Vice      President and General Manager, S Power Products              |
| Robert      Reay            |   | 48     |   | Vice      President and General Manager, Mixed Signal Products         |
| Erik      M. Soule          |   | 45     |   | Vice      President and General Manager, Signal Conditioning  Products |

----

----

 RISK FACTORS

----

----

----

----

| ·   | limiting      our ability to obtain in the future, if needed, financing for working      capital, capital expenditures, debt service requirements or other      corporate purposes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting      our flexibility in implementing our business strategy and in planning for,      or reacting to, changes in ourbusiness; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | placing      us at a competitive disadvantage relative to any of our competitors who      have lower levels of debt; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | decreasing      our debt ratings and increasing our cost of borrowed  funds; |
|--------------------|------------------------------------------------------------------------------|

| ·   | making      us more vulnerable to a downturn in our business or the economy      generally; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | subjecting      us to the risk of being forced to refinance at higher interest rates these      amounts when due; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | requiring      us to use a substantial portion of our cash to pay principal and interest      on our debt instead of contributing those funds to other purposes such as      working capital, capital expenditures or other corporate      purposes. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We      are not restricted from taking actions or incurring additional debt      (including secured debt) which may affect our ability to make payments      under the Notes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Notes are not secured by any of our assets or those of our subsidiaries      and are effectively subordinated to any secured debt we may      incur.  In any liquidation, dissolution, bankruptcy or other      similar proceeding, holders of our secured debt may assert rights against      any assets securing such debt in order to receive full payment of their      debt before those assets may be used to pay the holders of the Notes. In      such an event, we may not have sufficient assets remaining to pay amounts      due on any or all of the Notes.  In addition, none of our      subsidiaries have guaranteed our obligations under, or have any obligation      to pay any amounts due on, the Notes.  As a result, the Notes      are effectively subordinated to all liabilities of our subsidiaries,      including trade payables; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      fundamental change provisions in the Notes and the indentures may not      require us to offer to repurchase the Notes in the event of certain      transactions.  For example, any leveraged recapitalization,      refinancing, restructuring, or acquisition initiated by us will generally      not constitute a fundamental change requiring us to repurchase the      Notes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      liquidity of the trading market in the Notes, and the market price quoted      for these Notes, may be adversely affected by, among other things, changes      in, or other factors affecting, the market prices of our common stock,      changes in the overall market for debt securities, and prevailing interest      rates; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      conversion rates of the Notes may not adjust for certain events, such as a      third-party tender or exchange offer or an issuance of our common stock      for cash.  In addition, adjustments in conversion rates may not      adequately compensate noteholders for any lost value in the Notes as a      result of a particular transaction; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Notes may not be rated or may receive a lower rating than anticipated,      which may impact the market price of the Notes and our common      stock.  In addition, the sale of the Notes and the shares of      common stock issuable upon conversion of the Notes depends upon the      continued maintenance of a registration statement filed with the SEC      covering the resale of the Notes, or an exemption from the registration      requirements of the Securities Act and any applicable state securities      laws; and, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noteholders      are not entitled to any rights with respect to our common stock, but if      they subsequently convert their Notes and receive common stock upon such      conversion, they will be subject to all changes affecting the common      stock; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

UNRESOLVED STAFF COMMMENTS

----

PROPERTIES

| No.      of Bldgs |   | Location                        |   | Total      Sq. Ft |   | Use                                                           |
|-------------------|--------|---------------------------------|--------|-------------------|--------|---------------------------------------------------------------|
|              |   |                            |   |              |   |                                                          |
| 6                 |   | Milpitas,      California       |   | 430,000           |   | Executive      and administrative offices, wafer fabrication, |
|              |   |                            |   |              |   | test      and assembly operations, research and development,  |
|              |   |                            |   |              |   | sales      and marketing, and warehousing and distribution    |
| 1                 |   | Camas,      Washington          |   | 105,000           |   | Wafer      fabrication                                        |
| 1                 |   | Chelmsford,      Massachusetts  |   | 30,000            |   | Research      and development; sales and administration       |
| 1                 |   | Colorado      Springs, Colorado |   | 20,000            |   | Research      and development                                 |
| 1                 |   | Auburn,      New Hampshire      |   | 20,000            |   | Research      and development                                 |
| 2                 |   | Singapore      (A)              |   | 260,000           |   | Test      and packaging operations, warehousing and           |
|              |   |                            |   |              |   | distribution,      research and development, and              |
|              |   |                            |   |              |   | sales      and administration                                 |
| 1                 |   | Malaysia      (B)               |   | 220,000           |   | Assembly      operations, research anddevelopment             |

LEGAL PROCEEDINGS

----

| ITEM      4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS |
|--------------|----------------------------------------------------------|

----

| ITEM      5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER      MATTERS AND ISSUER PURCHASES OF EQUITY  SECURITIES |
|--------------|--------------------------------------------------------------------------------------------------------------------------|

|                                                  |                  |                | Total      Number of Shares | Maximum      Number of      |
|-------------------------------------------------------|-----------------------|---------------------|-----------------------------|-----------------------------|
|                                                  |                  |                | Purchased      as Part of   | Shares      that May Yet be |
|                                                  | Total      Number of  | Average      Price  | Publicly      Announced     | Purchased      Under the    |
| Period                                                | Shares      Purchased | Paid      per Share | Plans      or Programs      | Plans or Programs      (1)  |
| Month      #1 (March 30, 2009 – April 26, 2009) | -                     | -                   | -                           | -                           |
| Month      #2 (April 27, 2009 - May 24, 2009)         | 146,968               | 22.28               | 146,968                     | 18,986,577                  |
| Month      #3 (May 25, 2009 – June 28, 2009)    | -                     | -                   | -                           | -                           |
| Total                                                 | 146,968               | 22.28               | 146,968                     | 18,986,577                  |

----

| ITEM      6. | SELECTED FINANCIALDATA |
|--------------|------------------------|

| FIVE      FISCAL YEARS ENDED June 28, 2009                |   | 2009                                                        |   | 2008                                                        |   | 2007                                                        |   | 2006                                                        |   | 2005                                                  |
|-----------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------|
| In      thousands, except per share amounts               |   |                                                        |   |                                                        |   |                                                        |   |                                                        |   |                                                  |
| Income      statement information                         |   |                                                        |   |                                                        |   |                                                        |   |                                                        |   |                                                  |
| Revenues                                                  |   | $968,498                                                    |   | $1,175,153                                                  |   | $1,083,078                                                  |   | $1,092,977                                                  |   | $1,049,694                                            |
| Net      income1                                          |   | 313,510                                                     |   | 387,613                                                     |   | 411,675                                                     |   | 428,680                                                     |   | 433,974                                               |
| Basic      earnings per share1                            |   | 1.41                                                        |   | 1.74                                                        |   | 1.42                                                        |   | 1.40                                                        |   | 1.41                                                  |
| Diluted      earnings per share1                          |   | 1.41                                                        |   | 1.71                                                        |   | 1.39                                                        |   | 1.37                                                        |   | 1.38                                                  |
| Weighted      average shares outstanding – Basic1   |   | 221,767                                                     |   | 222,232                                                     |   | 290,502                                                     |   | 305,156                                                     |   | 307,426                                               |
| Weighted      average shares outstanding – Diluted1 |   | 222,461                                                     |   | 226,257                                                     |   | 296,616                                                     |   | 313,285                                                     |   | 315,067                                               |
| Balance      sheet information                            |   |                                                        |   |                                                        |   |                                                        |   |                                                        |   |                                                  |
| Cash,      cash equivalents and marketable securities1    |   | $868,711                                                    |   | $966,701                                                    |   | $633,307                                                    |   | $1,819,587                                                  |   | $1,790,912                                            |
| Total      assets1                                        |   | 1,421,529                                                   |   | 1,583,889                                                   |   | 1,218,857                                                   |   | 2,390,895                                                   |   | 2,286,234                                             |
| Long-term      debt1                                      |   | 1,405,644                                                   |   | 1,700,000                                                   |   | 1,700,000                                                   |   | -                                                           |   | -                                                     |
| Cash      dividends per share                             |   | $         0.86 |   | $         0.78 |   | $         0.66 |   | $         0.50 |   | $        0.36 |

----

| ITEM      7. | MANAGMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|------------------------------------------------------------------------------------------------|

| • | Revenue      decreased by $206.7 million or 18% from fiscal year  2008.                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating      expenses were reduced by lower labor costs as employees were required to      take approximately 5.5 weeks of time-off during the year and a temporary      10% reduction in salaries beginning the middle of the fourth      quarter.              |
| • | The      Company reported approximately $3.9 million in restructuring expenses for      employee severance costs related to reductions in workforce of      approximately 230 employees.                                                                           |
| • | The      Company purchased and retired $294.4 million face value of its 3.125%      Convertible Senior Notes, which resulted in a gain of approximately $24.3      million.                                                                                        |
| • | The      Company’s annual effective tax rate of 23.0% was positively impacted by      various discrete tax benefits primarily related to the Company’s domestic      manufacturing deduction and the reinstatement of the federal R&D      credit. |

----

----

|                                       | Fiscal      Year Ended      |   | Percentage      Change                |
|--------------------------------------------|-----------------------------|--------|---------------------------------------|
|                                       | June      28,               |   | June      29,                         |   | July      1, |   | 2009      Over |   | 2008      Over |
|                                       | 20091                       |   | 20081                                 |   | 20071 |   | 2008 |   | 2007 |
|                                       |                        |   |                                  |   |   |   |   |   |   |
| Revenues                                   | 100.0%                      |   | 100.0%                                |   | 100.0% |   |  (18%) |   | 9% |
| Cost      of sales                         |   24.6            |   |   22.7                      |   |   22.3 |   |           (11) |   |           11 |
| Gross      profit                          |   75.4            |   |   77.3                      |   |   77.7 |   |           (20) |   |           8 |
| Expenses:                                  |                        |   |                                  |   |   |   |   |   |   |
| Research      & development            |   19.2            |   |   16.8                      |   |   17.0 |   |         (6) |   |         7 |
| Selling,      general & administrative |   13.3            |   |   12.1                      |   |   12.3 |   |         (10) |   |         7 |
| Restructuring                              |     0.4 |   |       - |   |       - |   |       - |   |      - |
|                                       |   32.9            |   |   28.9                      |   |   29.3 |   |         (6) |   |         7 |
| Operating      income                      |   42.5            |   |   48.4                      |   |   48.4 |   |          (28) |   |          8 |
| Interest      expense                      |   (5.4)           |   |   (4.9)                     |   |   (1.1) |   |        (10) |   |        378 |
| Interest      income                       |   2.4             |   |   2.6                       |   |    5.3 |   |         (24) |   |         (48) |
| Gain      on early retirement of           |                        |   |                                  |   |   |   |   |   |   |
| convertible      senior notes              |   2.5             |   |      -       |   |       - |   |       - |   |      - |
| Income      before income taxes            | 42.0%                       |   | 46.0%                                 |   | 52.6% |   |           (25) |   |           (5) |
| Effective      tax rates                   | 23.0%                       |   | 28.3%                                 |   | 27.8% |   |   |   |   |

----

----

----

----

| (In      thousands)                                                   |  Fiscal 2010 |  Fiscal 2011 |  Fiscal 2012 |  Fiscal 2013 | Fiscal      2014 andthereafter |
|-----------------------------------------------------------------------|-------------------|-------------------|-------------------|-------------------|--------------------------------|
| Operating      lease obligations (1)                                  | $      2,700      | $      1,900      | $      1,000      | $      600        | $      2,500                   |
| 3.0%      convertible debentures – principal and interest (2)   |  30,000      |  30,000      |  30,000      |  30,000      |  1,030,000                |
| 3.125%      convertible debentures – principal and interest (3) |  21,875      |  411,982     |  -           |  -           |  -                        |
|    Total                                               | $      45,376     | $      443,882    | $      31,000     | $      30,600     | $      1,032,500               |

| (1)   | The      Company leases some of its facilities under non−cancelable operating      leases that expire at various dates through fiscal 2057.  See      “Note 11. Commitments      and Contingencies” in Part II, Item 8 of this Form 10-K for      additional information about operatingleases. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In      April 2007, the Company issued $1.0 billion aggregate principal amount of      its 3.00% Convertible Senior Notes due May 1, 2027. The Company pays cash      interest at an annual rate of 3.0% payable semiannually on May 1 and      November 1 of each year, beginning on November 1, 2007. The Company may      redeem the 3.00% Convertible Senior Notes for cash at any time on or after      May 1, 2014, and holders may require the Company to repurchase the 3.00%      Convertible Senior Notes for cash on specified dates or upon a fundamental      change. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | In      April 2007, the Company issued $700 million aggregate principal amount of      its 3.125% Convertible Senior Notes due May 1, 2027. The Company will pays      cash interest at an annual rate of 3.125% payable semiannually on May 1      and November 1 of each year, beginning on November 1, 2007. During fiscal      year 2009, the Company purchased and retired $294.4 million face value of      the 3.125% Convertible Senior Notes. The Company may redeem the remaining      outstanding $405.6 million principal amount of the 3.125% Convertible      Senior Notes for cash at any time on or after November 1, 2010, and      holders may require the Company to repurchase the 3.125% Convertible      Senior Notes for cash on specified dates or upon a fundamental      change. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM      7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK |
|---------------|-----------------------------------------------------------------|

----

| ITEM      8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY    DATA |
|--------------|------------------------------------------------|

CONSOLIDATED STATEMENTS OF INCOME

| THREE YEARS ENDED JUNE 28,    2009                            | 2009                                                              |   | 2008                                                              |   | 2007                                                              |
|---------------------------------------------------------------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|
|                                                          |                                                              |   |                                                              |   |                                                              |
| Revenues                                                      | $      968,498                                                    |   | $      1,175,153                                                  |   | $      1,083,078                                                  |
| Cost      of sales(1)                                         | 237,868                                                           |   | 267,005                                                           |   | 241,513                                                           |
| Gross      profit                                             | 730,630                                                           |   | 908,148                                                           |   | 841,565                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Expenses:                                                     |                                                              |   |                                                              |   |                                                              |
| Research      and development (1)                             | 185,843                                                           |   | 197,089                                                           |   | 183,557                                                           |
| Selling,      general and administrative(1)                   | 128,804                                                           |   | 142,395                                                           |   | 133,690                                                           |
| Restructuring                                                 | 3,907                                                             |   | -                                                                 |   | -                                                                 |
|                                                          | 318,554                                                           |   | 339,484                                                           |   | 317,247                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Operating      income                                         | 412,076                                                           |   | 568,664                                                           |   | 524,318                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Interest      expense                                         | (52,273)                                                          |   | (57,792)                                                          |   | (12,093)                                                          |
| Interest      income                                          | 22,954                                                            |   | 30,082                                                            |   | 57,699                                                            |
| Gain      on early retirement of convertible senior notes     | 24,252                                                            |   | -                                                                 |   | -                                                                 |
| Income      before income taxes                               | 407,009                                                           |   | 540,954                                                           |   | 569,924                                                           |
| Provision      for income taxes                               | 93,499                                                            |   | 153,341                                                           |   | 158,249                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Net      income                                               | $    313,510                                  |   | $    387,613                                  |   | $    411,675                                  |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Basic      earnings per share                                 | $          1.41 |   | $          1.74 |   | $          1.42 |
| Shares      used in the calculation of basic                  |                                                              |   |                                                              |   |                                                              |
| earnings      per share                                       | 221,767                                                           |   | 222,232                                                           |   | 290,502                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Diluted      earnings per share                               | $          1.41 |   | $          1.71 |   | $          1.39 |
| Shares      used in the calculation of diluted                |                                                              |   |                                                              |   |                                                              |
| earnings      per share                                       | 222,461                                                           |   | 226,257                                                           |   | 296,616                                                           |
|                                                          |                                                              |   |                                                              |   |                                                              |
| Cash      dividends per share                                 | $          0.86 |   | $          0.78 |   | $          0.66 |
|                                                          |                                                              |   |                                                              |   |                                                              |
| (1) Includes stock-based      compensation charges as follows |
| Cost      of sales                                            | $        8,328            |   | $        7,862            |   | $        11,481           |
| Research      and development                                 | 35,039                                                            |   | 32,743                                                            |   | 37,341                                                            |
| Selling,      general and administrative                      | 19,836                                                            |   | 18,261                                                            |   | 22,786                                                            |
|                                                          |                                                              |   |                                                              |   |                                                              |
|                                                          |                                                              |   |                                                              |   |                                                              |

----

CONSOLIDATED BALANCE SHEETS

| JUNE 28, 2009 AND JUNE 29,    2008                                |   | 2009   |       |   | 2008   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                              |   |   |       |   |   |   |
| Assets                                                            |   |   |       |   |   |   |
| Current      assets:                                              |   |   |       |   |   |   |
| Cash      and cash equivalents                                    |   | $      | 217,018    |   |   | $      | 149,221 |   |
| Marketable      securities                                        |   |   | 651,693    |   |   |   | 817,480 |   |
| Accounts      receivable, net of allowance for                    |   |   |       |   |   |   |   |   |
| doubtful      accounts of $1,790 ($1,752 in 2008)                 |   |   | 95,434     |   |   |   | 161,452 |   |
| Inventories:                                                      |   |   |       |   |   |   |   |   |
| Raw      materials                                                |   |   | 3,343      |   |   |   | 4,996 |   |
| Work-in-process                                                   |   |   | 38,612     |   |   |   | 40,028 |   |
| Finished      goods                                               |   |   | 10,576     |   |   |   | 10,993 |   |
| Total      inventories                                            |   |   | 52,531     |   |   |   | 56,017 |   |
| Deferred      tax assets                                          |   |   | 37,628     |   |   |   | 31,882 |   |
| Prepaid      expenses and other current assets                    |   |   | 34,947     |   |   |   | 29,488 |   |
| Total      current assets                                         |   |   | 1,089,251  |   |   |   | 1,245,540 |   |
| Property,      plant and equipment, at cost:                      |   |   |       |   |   |   |   |   |
| Land,      buildings and improvements                             |   |   | 216,561    |   |   |   | 205,447 |   |
| Manufacturing      and test equipment                             |   |   | 506,824    |   |   |   | 479,829 |   |
| Office      furniture and equipment                               |   |   | 3,792      |   |   |   | 3,694 |   |
|                                                              |   |   | 727,177    |   |   |   | 688,970 |   |
| Accumulated      depreciation and amortization                    |   |   | (468,752   | )      |   |   | (427,885 | ) |
| Net      property, plant and equipment                            |   |   | 258,425    |   |   |   | 261,085 |   |
| Other      non-current assets                                     |   |   | 73,853     |   |   |   | 77,264 |   |
| Total      assets                                                 |   | $      | 1,421,529  |   |   | $      | 1,583,889 |   |
|                                                              |   |   |       |   |   |   |   |   |
| Liabilities      and stockholders’ deficit                  |   |   |       |   |   |   |   |   |
| Current      liabilities:                                         |   |   |       |   |   |   |   |   |
| Accounts      payable                                             |   | $      | 10,531     |   |   | $      | 16,860 |   |
| Accrued      payroll and related benefits                         |   |   | 44,250     |   |   |   | 66,465 |   |
| Deferred      income on shipments to distributors                 |   |   | 28,497     |   |   |   | 37,777 |   |
| Income      taxes payable                                         |   |   | 9,718      |   |   |   | 19,839 |   |
| Other      accrued liabilities                                    |   |   | 32,345     |   |   |   | 34,217 |   |
| Total      current liabilities                                    |   |   | 125,341    |   |   |   | 175,158 |   |
| Deferred      tax liabilities                                     |   |   | 62,752     |   |   |   | 41,932 |   |
| Convertible      senior notes                                     |   |   | 1,405,644  |   |   |   | 1,700,000 |   |
| Other      long-term liabilities                                  |   |   | 94,394     |   |   |   | 100,717 |   |
| Total      liabilities                                            |   |   | 1,688,131  |   |   |   | 2,017,807 |   |
| Commitments      and contingencies                                |   |   |       |   |   |   |   |   |
| Stockholders’      deficit:                                 |   |   |       |   |   |   |   |   |
| Preferred      stock, $0.001 par value, 2,000 shares authorized;  |   |   |       |   |   |   |   |   |
| none      issued or outstanding                                   |   |   | -          |   |   |   | - |   |
| Common      stock, $0.001 par value, 2,000,000 shares authorized; |   |   |       |   |   |   |   |   |
| 222,276      shares issued and outstanding at June 28, 2009       |   |   |       |   |   |   |   |   |
| (221,508      shares at June 29, 2008)                            |   |   | 222        |   |   |   | 221 |   |
| Additional      paid-in capital                                   |   |   | 1,119,147  |   |   |   | 1,050,038 |   |
| Accumulated      other comprehensive income, net of tax           |   |   | 5,095      |   |   |   | 1,452 |   |
| Accumulated      deficit                                          |   |   | (1,391,066 | )      |   |   | (1,485,629 | ) |
| Total      stockholders’ deficit                            |   |   | (266,602   | )      |   |   | (433,918 | ) |
| Total      liabilities and stockholders’ deficit            |   | $      | 1,421,529  |   |   | $      | 1,583,889 |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

| THREE YEARS ENDED JUNE 28,    2009                                      |   | 2009   |     |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|------------|--------|--------|
|                                                                    |   |   |     |   |   |   |       |   |   |
| Cash      flow from operating activities:                               |   |   |     |   |   |   |       |   |   |
| Net      income                                                         |   | $      | 313,510  |   |   | $      | 387,613    |   |   | $ | 411,675 |   |
| Adjustments      to reconcile net income to                             |   |   |     |   |   |   |       |   |   |   |   |   |
| net      cash provided by operating activities:                         |   |   |     |   |   |   |       |   |   |   |   |   |
| Depreciation      and amortization                                      |   |   | 47,982   |   |   |   | 48,140     |   |   |   | 50,717 |   |
| Tax      (deficit) benefit received on employee                         |   |   |     |   |   |   |       |   |   |   |   |   |
| stock      transactions                                                 |   |   | (1,652   | )      |   |   | 9,514      |   |   |   | 9,112 |   |
| Stock-based      compensation                                           |   |   | 63,203   |   |   |   | 58,866     |   |   |   | 71,608 |   |
| Gain on sale of      investment                                         |   |   | -        |   |   |   | (2,106     | )      |   |   | - |   |
| Gain      on early retirement of convertible senior notes               |   |   | (24,252  | )      |   |   | -          |   |   |   | - |   |
| Change      in operating assets and liabilities:                        |   |   |     |   |   |   |       |   |   |   |   |   |
| Decrease      (increase) in accounts receivable                         |   |   | 66,018   |   |   |   | (30,906    | )      |   |   | 23,751 |   |
| Decrease      (increase) in inventories                                 |   |   | 3,486    |   |   |   | (4,942     | )      |   |   | (12,044 | ) |
| Decrease      (increase) in prepaid expenses, other                     |   |   |     |   |   |   |       |   |   |   |   |   |
| current      assets and deferred tax assets                             |   |   | 8,967    |   |   |   | (929       | )      |   |   | 15,436 |   |
| Decrease      (increase) in long-term assets                            |   |   | 3,042    |   |   |   | (1,345     | )      |   |   | (32,719 | ) |
| (Decrease)      increase in accounts payable,                           |   |   |     |   |   |   |       |   |   |   |   |   |
| accrued      payroll and other accrued liabilities                      |   |   | (39,975  | )      |   |   | 16,720     |   |   |   | (15,088 | ) |
| Decrease      in deferred income on                                     |   |   |     |   |   |   |       |   |   |   |   |   |
| shipments      to distributors                                          |   |   | (9,280   | )      |   |   | (2,169     | )      |   |   | (8,067 | ) |
| (Decrease)      increase in income taxes payable                        |   |   | (14,676  | )      |   |   | 50,378     |   |   |   | (39,302 | ) |
| Increase      in long-term liabilities                                  |   |   | 225      |   |   |   | 1,495      |   |   |   | 2,882 |   |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      provided by operating activities                              |   |   | 416,598  |   |   |   | 530,329    |   |   |   | 477,961 |   |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      flow from investing activities:                               |   |   |     |   |   |   |       |   |   |   |   |   |
| Purchase      of long-term investment                                   |   |   | -        |   |   |   | (980       | )      |   |   | - |   |
| Proceeds      from sale of investment                                   |   |   | -        |   |   |   | 16,486     |   |   |   | - |   |
| Purchase      of marketable securities                                  |   |   | (317,512 | )      |   |   | (1,093,979 | )      |   |   | (1,322,337 | ) |
| Proceeds      from sale and maturities of available-for-sale securities |   |   | 489,333  |   |   |   | 756,625    |   |   |   | 2,131,098 |   |
| Purchase      of property, plant and equipment                          |   |   | (39,130  | )      |   |   | (35,269    | )      |   |   | (61,992 | ) |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      provided by (used in) investing activities                    |   |   | 132,691  |   |   |   | (357,117   | )      |   |   | 746,769 |   |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      flow from financing activities:                               |   |   |     |   |   |   |       |   |   |   |   |   |
| Excess      tax benefits received on employee                           |   |   |     |   |   |   |       |   |   |   |   |   |
| stock      transactions                                                 |   |   | 70       |   |   |   | 12,718     |   |   |   | 14,241 |   |
| Issuance      of common stock under employee stock plans                |   |   | 12,338   |   |   |   | 82,413     |   |   |   | 84,470 |   |
| Issuance      of convertible senior notes                               |   |   | -        |   |   |   | -          |   |   |   | 1,700,000 |   |
| Retirement      of convertible senior notes                             |   |   | (270,104 | )      |   |   | -          |   |   |   | - |   |
| Purchase      of common stock                                           |   |   | (29,116  | )      |   |   | (98,964    | )      |   |   | (3,215,574 | ) |
| Payment      of cash dividends                                          |   |   | (194,680 | )      |   |   | (176,652   | )      |   |   | (192,433 | ) |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      used in financing activities                                  |   |   | (481,492 | )      |   |   | (180,485   | )      |   |   | (1,609,296 | ) |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Increase      (decrease)  in cash and cash equivalents        |   |   | 67,797   |   |   |   | (7,273     | )      |   |   | (384,566 | ) |
| Cash      and cash equivalents, beginning of year                       |   |   | 149,221  |   |   |   | 156,494    |   |   |   | 541,060 |   |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents, end of year                             |   | $      | 217,018  |   |   | $      | 149,221    |   |   | $ | 156,494 |   |
|                                                                    |   |   |     |   |   |   |       |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                 |   |   |     |   |   |   |       |   |   |   |   |   |
| Cash      paid for income taxes                                         |   | $      | 102,291  |   |   | $      | 90,226     |   |   | $ | 175,204 |   |
| Cash      paid for interest expense                                     |   | $      | 47,420   |   |   | $      | 54,438     |   |   | $ | 1,752 |   |

----

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

| THREE YEARS ENDED JUNE 28,    2009           |              |       | Accumulated            | Retained       |                |
|----------------------------------------------|-------------------|------------|------------------------|----------------|---------------------|
|                                         |              | Additional | Other                  | Earnings       | Total               |
|                                         | Common      Stock | Paid-In    | Comprehensive          | (Accumulated   | Stockholders’ |
|                                         | Shares            | Amount     | Capital                | Income         | Deficit)            | Equity      (Deficit) |
| Balance      at July 2, 2006                 | 303,092           | $      303 | $      1,063,143       | ($      5,085) | $      1,046,137    | $      2,104,498 |
| Issuance      of common stock for cash       |              |       |                   |           |                |   |
| under      employee stock option,            |              |       |                   |           |                |   |
| restricted      stock and stock              |              |       |                   |           |                |   |
| purchase      plans                          | 5,492             | 5          | 84,465                 | -              | -                   | 84,470 |
| Tax      benefit from stock transactions     | -                 | -          | 23,353                 | -              | -                   | 23,353 |
| Purchase      and retirement of common stock | (78,929)          | (79)       | (340,663)              | -              | (2,874,832)         | (3,215,574) |
| Cash      dividends - $0.66 per share        | -                 | -          | -                      | -              | (192,433)           | (192,433) |
| Stock-based      compensation                | -                 | -          | 71,608                 | -              | -                   | 71,608 |
| Comprehensive      income:                   |              |       |                   |           |                |   |
| Unrealized      gain on available-for- sale  |              |       |                   |           |                |   |
| investments, net of ($551) tax      effect   | -                 | -          | -                      | 4,438          | -                   | 4,438 |
| Net      income                              | -                 | -          | -                      | -              | 411,675             | 411,675 |
| Comprehensive      income                    | -                 | -          | -                      | -              | -                   | 416,113 |
| Balance      at July 1, 2007                 | 229,655           | 229        | 901,906                | (647)          | (1,609,453)         | (707,965) |
| Cumulative      effect adjustments,          |              |       |                   |           |                |   |
| net      of ($3,038) tax effect:             |              |       |                   |           |                |   |
| Adoption      of EITF-06-2                   | -                 | -          | -                      | -              | (5,173)             | (5,173) |
| Adoption      of FIN 48                      | -                 | -          | -                      | -              | 1,613               | 1,613 |
| Issuance      of common stock for cash       |              |       |                   |           |                |   |
| under      employee stock option,            |              |       |                   |           |                |   |
| restricted      stock and stock              |              |       |                   |           |                |   |
| purchase      plans                          | 5,927             | 6          | 82,407                 | -              | -                   | 82,413 |
| Tax      benefit from stock transactions     | -                 | -          | 22,232                 | -              | -                   | 22,232 |
| Purchase      and retirement of common stock | (14,074)          | (14)       | (15,373)               | -              | (83,577)            | (98,964) |
| Cash      dividends - $0.78 per share        | -                 | -          | -                      | -              | (176,652)           | (176,652) |
| Stock-based      compensation                | -                 | -          | 58,866                 | -              | -                   | 58,866 |
| Comprehensive      income:                   |              |       |                   |           |                |   |
| Unrealized      gain on available-for- sale  |              |       |                   |           |                |   |
| investments, net of $663 tax      effect     | -                 | -          | -                      | 2,099          | -                   | 2,099 |
| Net income                                   | -                 | -          | -                      | -              | 387,613             | 387,613 |
| Comprehensive      income                    | -                 | -          | -                      | -              | -                   | 389,712 |
| Balance      at June 29, 2008                | 221,508           | 221        | 1,050,038              | 1,452          | (1,485,629)         | (433,918) |
| Issuance      of common stock for cash       |              |       |                   |           |                |   |
| under      employee stock option,            |              |       |                   |           |                |   |
| restricted      stock and stock              |              |       |                   |           |                |   |
| purchase      plans                          | 1,782             | 2          | 12,336                 | -              | -                   | 12,338 |
| Tax      (deficit) from stock transactions   | -                 | -          | (1,582)                | -              | -                   | (1,582) |
| Purchase      and retirement of common stock | (1,014)           | (1)        | (4,848)                | -              | (24,267)            | (29,116) |
| Cash      dividends - $0.86 per share        | -                 | -          | -                      | -              | (194,680)           | (194,680) |
| Stock-based      compensation                | -                 | -          | 63,203                 | -              | -                   | 63,203 |
| Comprehensive      income:                   |              |       |                   |           |                |   |
| Unrealized      gain on available-for- sale  |              |       |                   |           |                |   |
| investments, net of $3,054 tax      effect   | -                 | -          | -                      | 3,643          | -                   | 3,643 |
| Net income                                   | -                 | -          | -                      | -              | 313,510             | 313,510 |
| Comprehensive      income                    | -                 | -          | -                      | -              | -                   | 317,153 |
| Balance      at June 28, 2009                | 222,276           | $222       | $  1,119,147 | $5,095         | ($1,391,066)        | ($  266,602) |

----

----

| In      thousands            |   | June      28, |    |   | June      29, |   |
|------------------------------|--------|---------------|---------|--------|---------------|--------|
|                         |   | 2009          |    |   | 2008          |   |
| United      States           |   | $             | 210,030 |   |          | $      | 217,976 |   |
| Malaysia                     |   |          | 38,035  |   |          |   | 46,165 |   |
| Singapore                    |   |          | 43,617  |   |          |   | 41,984 |   |
| Total      long-lived assets |   | $             | 291,682 |   |          | $      | 306,125 |   |

----

----

| In      thousands       |   | June      28, |    |   | June      29, |   |    | July      1, |   |
|-------------------------|--------|---------------|---------|--------|---------------|--------|---------|--------------|--------|
|                    |   | 2009          |    |   | 2008          |   |    | 2007         |   |
| Europe                  |   | $             | 166,872 |   |          | $      | 212,776 |         |   | $ | 193,125 |   |
| Japan                   |   |          | 122,037 |   |          |   | 154,091 |         |   |   | 142,599 |   |
| Rest      of the world  |   |          | 390,329 |   |          |   | 461,478 |         |   |   | 402,399 |   |
| Total      export sales |   | $             | 679,238 |   |          | $      | 828,345 |         |   | $ | 738,123 |   |

----

----

----

|                                        | June      28,                            |   | June      29,                            |   | July      1,                             |
|---------------------------------------------|------------------------------------------|--------|------------------------------------------|--------|------------------------------------------|
|                                        | 2009                                     |   | 2008                                     |   | 2007                                     |
| Expected      lives in years                |    4.9                    |   |    4.1                    |   |    4.9                    |
| Expected      volatility                    |  44.0%                              |   |  29.5%                              |   |  30.8%                              |
| Dividend      yields                        |       3.3% |   |       2.0% |   |       1.9% |
| Risk      free interest rates               |    1.5%                   |   |    3.9%                   |   |    4.6%                   |
| Weighted-average      grant date fair value |  $6.72                              |   |  $8.70                              |   |  $8.92                              |

|                                              |   |               |       |   |     |   |   | Weighted          |   |   |      |   |
|---------------------------------------------------|--------|--------------------|------------|--------|----------|--------|--------|-------------------|--------|--------|-----------|--------|
|                                              |   |               |       |   | Weighted |   |   | Average           |   |   |      |   |
|                                              |   |               |       |   | Average  |   |   | Remaining         |   |   | Aggregate |   |
|                                              |   | Stock      Options |       |   | Exercise |   |   | Contract          |   |   | Intrinsic |   |
|                                              |   | Outstanding        |       |   | Price    |   |   | Life      (Years) |   |   | Value     |   |
| Outstanding      options, July 2, 2006            |   |               | 35,117,532 |   |     | $      | 32.04  |              |   |   |      |   |   |   |
|                                              |   |               |       |   |     |   |   |              |   |   |      |   |   |   |
| Granted                                           |   |               | 478,500    |   |     |   | 31.15  |              |   |   |      |   |   |   |
| Forfeited      and expired                        |   |               | (996,420   | )      |     |   | 39.85  |              |   |   |      |   |   |   |
| Exercised                                         |   |               | (4,392,515 | )      |     |   | 17.64  |              |   |   |      |   |   |   |
| Outstanding      options, July 1, 2007            |   |               | 30,207,097 |   |     | $      | 33.87  |              |   |   |      |   |   |   |
|                                              |   |               |       |   |     |   |   |              |   |   |      |   |   |   |
| Granted                                           |   |               | 65,000     |   |     |   | 35.84  |              |   |   |      |   |   |   |
| Forfeited      and expired                        |   |               | (714,440   | )      |     |   | 41.56  |              |   |   |      |   |   |   |
| Exercised                                         |   |               | (4,466,633 | )      |     |   | 17.00  |              |   |   |      |   |   |   |
| Outstanding      options, June 29, 2008           |   |               | 25,091,024 |   |     | $      | 36.65  |              |   |   |      |   |   |   |
|                                              |   |               |       |   |     |   |   |              |   |   |      |   |   |   |
| Granted                                           |   |               | 6,499,250  |   |     |   | 22.74  |              |   |   |      |   |   |   |
| Forfeited      and expired                        |   |               | (2,414,360 | )      |     |   | 30.42  |              |   |   |      |   |   |   |
| Exercised                                         |   |               | (230,358   | )      |     |   | 24.13  |              |   |   |      |   |   |   |
| Outstanding      options, June 28, 2009           |   |               | 28,945,556 |   |     | $      | 34.15  |              |   |   | 3.52      |   |   | $ | 5,085,163 |   |
| Vested      and expected to vest at June 28, 2009 |   |               | 27,830,264 |   |     | $      | 34.60  |              |   |   | 3.40      |   |   | $ | 4,228,709 |   |
|                                              |   |               |       |   |     |   |   |              |   |   |      |   |   |   |   |   |
| Options      vested and exercisable at:           |   |               |       |   |     |   |   |              |   |   |      |   |   |   |   |   |
| July      1, 2007                                 |   |               | 26,236,607 |   |     | $      | 33.59  |              |   |   |      |   |   |   |   |   |
| June      29, 2008                                |   |               | 22,828,399 |   |     |   | 36.68  |              |   |   |      |   |   |   |   |   |
| June      28, 2009                                |   |               | 22,361,156 |   |     |   | 37.46  |              |   |   | 2.65      |   |   | $ | 80,740 |   |

|                                         |   | Options      Outstanding       |   | Options      Exercisable             |
|----------------------------------------------|--------|--------------------------------|--------|--------------------------------------|
| Range      of Exercise Prices                |   | Stock      Options Outstanding |   | Weighted      Average Exercise Price |   | Weighted      Average Remaining Contractual Life (Years) |   | Stock      Options Exercisable |   | Weighted      Average Exercise Price |
| $      22.74  -  $ 22.74 |   | 6,499,250                      |   | $22.74                               |   | 6.55 |   | 0 |   | $  0.00 |
| $      23.11 -  $ 23.11            |   | 201,850                        |   | 23.11                                |   | 3.25 |   | 201,850 |   | 23.11 |
| $      25.05  -  $ 25.05 |   | 3,945,036                      |   | 25.05                                |   | 3.02 |   | 3,945,036 |   | 25.05 |
| $      27.69 -  $ 35.20            |   | 3,196,520                      |   | 32.38                                |   | 2.32 |   | 3,196,520 |   | 32.38 |
| $      35.61  -  $ 37.03 |   | 3,262,250                      |   | 36.51                                |   | 3.12 |   | 3,177,900 |   | 36.52 |
| $      37.05  -  $ 38.25 |   | 3,288,250                      |   | 37.94                                |   | 2.50 |   | 3,287,450 |   | 37.94 |
| $      38.50  -  $ 40.88 |   | 2,947,500                      |   | 40.12                                |   | 3.93 |   | 2,947,500 |   | 40.12 |
| $      40.90  -  $ 50.25 |   | 4,297,950                      |   | 46.68                                |   | 1.77 |   | 4,297,950 |   | 46.68 |
| $      52.94  -  $ 52.94 |   | 711,500                        |   | 52.94                                |   | 1.50 |   | 711,500 |   | 52.94 |
| $      55.88  -  $ 55.88 |   | 595,450                        |   | 55.88                                |   | 1.29 |   | 595,450 |   | 55.88 |
| $      22.74  -  $ 55.88 |   | 28,945,556                     |   | $34.15                               |   | 3.52 |   | 22,361,156 |   | $37.46 |

----

|                                  |   | Restricted      Awards Outstanding |       |   | Weighted-Average      Grant-Date Fair Value |   |
|---------------------------------------|--------|------------------------------------|------------|--------|---------------------------------------------|--------|
| Outstanding      awards, July 2, 2006 |   |                               | 3,171,525  |   |                                        | $      | 36.96 |   |
|                                  |   |                               |       |   |                                        |   |   |   |
| Granted                               |   |                               | 2,077,302  |   |                                        |   | 31.29 |   |
| Vested                                |   |                               | (869,809   | )      |                                        |   | 37.05 |   |
| Forfeited                             |   |                               | (196,697   | )      |                                        |   | 36.06 |   |
| Nonvested      at July 1, 2007        |   |                               | 4,182,321  |   |                                        | $      | 34.45 |   |
|                                  |   |                               |       |   |                                        |   |   |   |
| Granted                               |   |                               | 2,156,598  |   |                                        |   | 33.96 |   |
| Vested                                |   |                               | (1,221,133 | )      |                                        |   | 35.34 |   |
| Forfeited                             |   |                               | (159,047   | )      |                                        |   | 34.60 |   |
| Nonvested      at June 29, 2008       |   |                               | 4,958,739  |   |                                        | $      | 34.00 |   |
|                                  |   |                               |       |   |                                        |   |   |   |
| Granted                               |   |                               | 1,839,769  |   |                                        |   | 24.29 |   |
| Vested                                |   |                               | (1,222,458 | )      |                                        |   | 34.29 |   |
| Forfeited                             |   |                               | (279,560   | )      |                                        |   | 31.82 |   |
| Nonvested      at June 28, 2009       |   |                               | 5,296,490  |   |                                        | $      | 30.72 |   |

|   | Note      3.  Fair Value |
|--------|------------------------------------|

----

| In      thousands                                                                                                                                                                                                                  |   | Quoted      Prices in      |            |   |                   |   |                  |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------------|--------|------------------------|--------|-----------------------|--------|--------|
|                                                                                                                                                                                                                               |   | Active      Markets        |            |   | Significant      Other |   |                  |   |   |
|                                                                                                                                                                                                                               |   | for      Identical         |            |   | Observable      Inputs |   |                  |   |   |
| Description                                                                                                                                                                                                                        |   | Instruments      (Level 1) |            |   | (Level      2)         |   |                  | Total  |   |
| Assets                                                                                                                                                                                                                             |   |                       |            |   |                   |   |                  |   |   |
|    Investments      in U.S. Treasury     securities      and money-market funds                                                                                                            |   | $                          | 182,540         |   |                   | $      | -                     |   |   | $ | 182,540 |   |
|    Investments      in municipal bonds,     obligations      of U.S. government-     sponsored      enterprises and commercial     paper |   |                       |     - |   |                   |   |     612,191 |   |   |   |      612,191 |   |
| Total      assets measured at fair value                                                                                                                                                                                           |   | $                          | 182,540         |   |                   | $      | 612,191               |   |   | $ | 794,731 |   |

|                                                      |   | June      28, 2009 |    |
|-----------------------------------------------------------|--------|--------------------|---------|
| In      thousands                                         |   | Amortized          |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                      |   | Cost               |    |   | Gain |   |   | (Loss)      (1) |   |   | Value |   |
| U.S.      Treasury securities                             |   | $                  | 65,297  |   |   | $ | 696 |   |   | $ | - |   |   | $ | 65,993 |   |
| Obligations      of U.S. government-sponsored enterprises |   |               | 96,153  |   |   |   | 1,075 |   |   |   | (2 | ) |   |   | 97,226 |   |
| Municipal      bonds                                      |   |               | 459,006 |   |   |   | 6,208 |   |   |   | (15 | ) |   |   | 465,199 |   |
| Corporate      debt securities and other                  |   |               | 26,283  |   |   |   | 187 |   |   |   | - |   |   |   | 26,470 |   |
| Money      market funds                                   |   |               | 139,843 |   |   |   | - |   |   |   | - |   |   |   | 139,843 |   |
| Total                                                     |   | $                  | 786,582 |   |   | $ | 8,166 |   |   | $ | (17 | ) |   | $ | 794,731 |   |
|                                                      |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      included in:                                 |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      equivalents                                     |   | $                  | 143,038 |   |   | $ | - |   |   | $ | - |   |   | $ | 143,038 |   |
| Marketable      Securities                                |   |               | 643,544 |   |   |   | 8,166 |   |   |   | (17 | ) |   |   | 651,693 |   |
| Total                                                     |   | $                  | 786,582 |   |   | $ | 8,166 |   |   | $ | (17 | ) |   | $ | 794,731 |   |

----

|                                                      |   | June      29, 2008 |    |
|-----------------------------------------------------------|--------|--------------------|---------|
| In      thousands                                         |   | Amortized          |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                      |   | Cost               |    |   | Gain |   |   | (Loss)      (1) |   |   | Value |   |
| U.S.      Treasury securities                             |   | $                  | 67,253  |   |   | $ | 490 |   |   | $ | (199 | ) |   | $ | 67,544 |   |
| Obligations      of U.S. government-sponsored enterprises |   |               | 148,890 |   |   |   | 741 |   |   |   | (63 | ) |   |   | 149,568 |   |
| Municipal      bonds                                      |   |               | 582,434 |   |   |   | 1,557 |   |   |   | (336 | ) |   |   | 583,655 |   |
| Corporate      debt securities and other                  |   |               | 18,784  |   |   |   | - |   |   |   | (75 | ) |   |   | 18,709 |   |
| Money      market funds                                   |   |               | 65,801  |   |   |   | - |   |   |   | - |   |   |   | 65,801 |   |
| Total                                                     |   | $                  | 883,162 |   |   | $ | 2,788 |   |   | $ | (673 | ) |   | $ | 885,277 |   |
|                                                      |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      included in:                                 |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      equivalents                                     |   | $                  | 67,797  |   |   | $ | - |   |   | $ | - |   |   | $ | 67,797 |   |
| Marketable      Securities                                |   |               | 815,365 |   |   |   | 2,788 |   |   |   | (673 | ) |   |   | 817,480 |   |
| Total                                                     |   | $                  | 883,162 |   |   | $ | 2,788 |   |   | $ | (673 | ) |   | $ | 885,277 |   |

| In      thousands                           |   | June      28, |    |   | June      29, |   |
|---------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                        |   | 2009          |    |   | 2008          |   |
| Due      in one year or less                |   | $             | 268,139 |   |          | $      | 322,447 |   |
| Due      after one year through three years |   |          | 383,554 |   |          |   | 495,033 |   |
| Total                                       |   | $             | 651,693 |   |          | $      | 817,480 |   |

| In      thousands             |   | June      28, |    |   | June      29, |   |
|-------------------------------|--------|---------------|---------|--------|---------------|--------|
|                          |   | 2009          |    |   | 2008          |   |
| Gross      carrying amount    |   | $             | 56,570  |   |          | $      | 58,170 |   |
| Accumulated      amortization |   |          | (35,828 | )      |          |   | (31,237 | ) |
| Total      intangible assets  |   | $             | 20,742  |   |          | $      | 26,933 |   |

----

|                                                 |   | June      28, |      |   | June      29, |   |
|------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| In      thousands                                    |   | 2009          |      |   | 2008          |   |
|                                                 |   |          |      |   |          |   |
| 3.00%      Convertible Senior Notes due May 1, 2027  |   | $             | 1,000,000 |   |          | $      | 1,000,000 |   |
| 3.125%      Convertible Senior Notes due May 1, 2027 |   |          | 405,644   |   |          |   | 700,000 |   |
|                                                 |   | $             | 1,405,644 |   |          | $      | 1,700,000 |   |

----

| In      thousands                     |   | June      28, |   |   | June      29, |   |   | July      1, |   |
|---------------------------------------|--------|---------------|--------|--------|---------------|--------|--------|--------------|--------|
|                                  |   | 2009          |   |   | 2008          |   |   | 2007         |   |
| Number      of shares of common stock |   |          |   |   |          |   |   |         |   |
| repurchased                           |   |          | 1,014  |   |          |   | 14,074 |         |   |   | 78,929 |   |
| Total      cost of repurchase         |   | $             | 29,116 |   |          | $      | 98,964 |         |   | $ | 3,215,574 |   |

----

| In      thousands             |   | June      28, |    |   | June      29, |   |    | July      1, |   |
|-------------------------------|--------|---------------|---------|--------|---------------|--------|---------|--------------|--------|
|                          |   | 2009          |    |   | 2008          |   |    | 2007         |   |
| United      States operations |   | $             | 317,850 |   |          | $      | 425,919 |         |   | $ | 464,924 |   |
| Foreign      operations       |   |          | 89,159  |   |          |   | 115,035 |         |   |   | 105,000 |   |
|                          |   | $             | 407,009 |   |          | $      | 540,954 |         |   | $ | 569,924 |   |

| In      thousands           |   | June      28, |   |   | June      29, |   |    | July1, |   |
|-----------------------------|--------|---------------|--------|--------|---------------|--------|---------|--------|--------|
|                        |   | 2009          |   |   | 2008          |   |    | 2007   |   |
| United      States federal: |   |          |   |   |          |   |    |   |   |
| Current                     |   | $             | 81,991 |   |          | $      | 119,336 |   |   | $ | 146,095 |   |
| Deferred                    |   |          | 4,694  |   |          |   | 22,095  |   |   |   | (1,653 | ) |
|                        |   |          | 86,685 |   |          |   | 141,431 |   |   |   | 144,442 |   |
| State:                      |   |          |   |   |          |   |    |   |   |   |   |   |
| Current                     |   |          | 6,049  |   |          |   | 6,256   |   |   |   | 10,579 |   |
| Deferred                    |   |          | (1,303 | )      |          |   | 1,186   |   |   |   | (643 | ) |
|                        |   |          | 4,746  |   |          |   | 7,442   |   |   |   | 9,936 |   |
| Foreign:                    |   |          |   |   |          |   |    |   |   |   |   |   |
| Current                     |   |          | 2,284  |   |          |   | 4,160   |   |   |   | 2,744 |   |
| Deferred                    |   |          | (216   | )      |          |   | 308     |   |   |   | 1,127 |   |
|                        |   |          | 2,068  |   |          |   | 4,468   |   |   |   | 3,871 |   |
|                        |   | $             | 93,499 |   |          | $      | 153,341 |   |   | $ | 158,249 |   |

| In      thousands                                            |   | June      28, |    |   | June      29, |   |    | July      1, |   |
|--------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|---------|--------------|--------|
|                                                         |   | 2009          |    |   | 2008          |   |    | 2007         |   |
| Tax      at U.S. statutory rate                              |   | $             | 142,453 |   |          | $      | 189,334 |         |   | $ | 199,474 |   |
| State      income taxes, net of federal benefit              |   |          | 2,664   |   |          |   | 4,095   |         |   |   | 6,459 |   |
| Earnings      of foreign subsidiaries subject to lower rates |   |          | (20,281 | )      |          |   | (25,692 | )            |   |   | (23,730 | ) |
| Tax-exempt      interest income                              |   |          | (5,363  | )      |          |   | (5,304  | )            |   |   | (11,029 | ) |
| Export      sales benefit                                    |   |          | -       |   |          |   | -       |         |   |   | (795 | ) |
| Domestic      manufacturing deduction                        |   |          | (10,139 | )      |          |   | (4,172  | )            |   |   | (1,568 | ) |
| Research      and development credit                         |   |          | (9,602  | )      |          |   | (4,280  | )            |   |   | (12,755 | ) |
| Settlements                                                  |   |          | (6,697  | )      |          |   | -       |         |   |   | - |   |
| Other                                                        |   |          | 464     |   |          |   | (640    | )            |   |   | 2,193 |   |
|                                                         |   | $             | 93,499  |   |          | $      | 153,341 |         |   | $ | 158,249 |   |

----

| In      thousands                                                       |   | June      28, |   |   | June      29, |   |
|-------------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|
|                                                                    |   | 2009          |   |   | 2008          |   |
| Deferred      tax assets:                                               |   |          |   |   |          |   |
|   Inventory      valuation                                    |   | $             | 10,310 |   |          | $      | 7,863 |   |
|   Deferred      income on shipments to distributors           |   |          | 10,487 |   |          |   | 13,960 |   |
|   Stock-based      compensation                               |   |          | 33,897 |   |          |   | 28,385 |   |
|   Accrued      compensation and benefits                      |   |          | 3,751  |   |          |   | 5,961 |   |
|   Other                                                       |   |          | 19,780 |   |          |   | 7,936 |   |
|      Total      deferred tax assets            |   |          | 78,225 |   |          |   | 64,105 |   |
|                                                                    |   |          |   |   |          |   |   |   |
| Deferred      tax liabilities:                                          |   |          |   |   |          |   |   |   |
|    Depreciation      and amortization                    |   | $             | 1,496  |   |          | $      | 1,959 |   |
|    Unremitted      earnings of subsidiaries              |   |          | 12,463 |   |          |   | 9,358 |   |
|    Convertible      senior notes                         |   |          | 45,027 |   |          |   | 29,422 |   |
|    Other                                                 |   |          | 3,766  |   |          |   | 1,193 |   |
|       Total      deferred tax liabilities |   |          | 62,752 |   |          |   | 41,932 |   |
|    Net      deferred tax assets                          |   | $             | 15,473 |   |          | $      | 22,173 |   |

| In      thousands                                 |   | Unrecognized      Tax |   |
|---------------------------------------------------|--------|-----------------------|--------|
|                                              |   | Benefits              |   |
| Balance      at July 2, 2007                      |   | $                     | 55,369 |   |
| Net      additions                                |   |                  | 8,345  |   |
| Settlements                                       |   |                  | (6,291 | ) |
| Balance      at June 29, 2008                     |   | $                     | 57,423 |   |
| Net      additions for current year tax positions |   |                  | 2,636  |   |
| Settlements                                       |   |                  | (5,617 | ) |
| Balance      at June 28, 2009                     |   | $                     | 54,442 |   |

----

----

----

| In      thousands, except per share amounts |   | June      28, |    |   | March      29, |   |    | December      28, |   |   | September      28, |   |
|---------------------------------------------|--------|---------------|---------|--------|----------------|--------|---------|-------------------|--------|--------|--------------------|--------|
| Quarter      Ended Fiscal Year 2009         |   | 2009          |    |   | 2009           |   |    | 2008              |   |   | 2008               |   |
|                                        |   |          |    |   |           |   |    |              |   |   |               |   |
| Revenues                                    |   | $             | 208,018 |   |           | $      | 200,933 |              |   | $      | 249,196            |   |   | $ | 310,351 |   |
| Gross      profit                           |   |          | 154,562 |   |           |   | 148,271 |              |   |   | 188,918            |   |   |   | 238,879 |   |
| Net      income                             |   |          | 56,232  |   |           |   | 54,465  |              |   |   | 95,204             |   |   |   | 107,609 |   |
| Basic      earnings per share               |   |          | 0.25    |   |           |   | 0.25    |              |   |   | 0.43               |   |   |   | 0.49 |   |
| Diluted      earnings per share             |   |          | 0.25    |   |           |   | 0.25    |              |   |   | 0.43               |   |   |   | 0.48 |   |
| Cash      dividends per share               |   |          | 0.22    |   |           |   | 0.22    |              |   |   | 0.21               |   |   |   | 0.21 |   |
| Stock      price range per share:           |   |          |    |   |           |   |    |              |   |   |               |   |   |   |   |   |
| High                                        |   |          | 24.24   |   |           |   | 25.77   |              |   |   | 30.66              |   |   |   | 34.12 |   |
| Low                                         |   |          | 20.66   |   |           |   | 20.97   |              |   |   | 18.56              |   |   |   | 29.38 |   |

| In      thousands, except per share amounts |   | June      29, |    |   | March      30, |   |    | December      30, |   |   | September      30, |   |
|---------------------------------------------|--------|---------------|---------|--------|----------------|--------|---------|-------------------|--------|--------|--------------------|--------|
| Quarter      Ended Fiscal Year 2008         |   | 2008          |    |   | 2008           |   |    | 2007              |   |   | 2007               |   |
|                                        |   |          |    |   |           |   |    |              |   |   |               |   |
| Revenues                                    |   | $             | 307,080 |   |           | $      | 297,865 |              |   | $      | 288,720            |   |   | $ | 281,488 |   |
| Gross      profit                           |   |          | 237,287 |   |           |   | 230,926 |              |   |   | 222,508            |   |   |   | 217,427 |   |
| Net      income                             |   |          | 103,149 |   |           |   | 99,234  |              |   |   | 93,755             |   |   |   | 91,475 |   |
| Basic      earnings per share               |   |          | 0.47    |   |           |   | 0.45    |              |   |   | 0.42               |   |   |   | 0.41 |   |
| Diluted      earnings per share             |   |          | 0.46    |   |           |   | 0.44    |              |   |   | 0.41               |   |   |   | 0.40 |   |
| Cash      dividends per share               |   |          | 0.21    |   |           |   | 0.21    |              |   |   | 0.18               |   |   |   | 0.18 |   |
| Stock      price range per share:           |   |          |    |   |           |   |    |              |   |   |               |   |   |   |   |   |
| High                                        |   |          | 37.27   |   |           |   | 31.89   |              |   |   | 35.34              |   |   |   | 38.22 |   |
| Low                                         |   |          | 30.58   |   |           |   | 26.54   |              |   |   | 29.65              |   |   |   | 33.95 |   |

----

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

----

| ITEM      9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE |
|--------------|-------------------------------------------------------------------------------------------|

| ITEM      9A. | CONTROLS ANDPROCEDURES |
|---------------|------------------------|

| ITEM      9B. | OTHER INFORMATION |
|---------------|-------------------|

----

| ITEM      10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE |
|---------------|-------------------------------------------------------------|

| ITEM      11. | EXECUTIVECOMPENSATION |
|---------------|-----------------------|

| ITEM      12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT AND RELATED STOCKHOLDERMATTERS |
|---------------|----------------------------------------------------------------------------------------------------|

| ITEM      13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE |
|---------------|--------------------------------------------------------------------------------|

| ITEM      14. | PRINCIPAL ACCOUNTING FEES AND  SERVICES |
|---------------|-----------------------------------------|

| ITEM      15. | EXHIBITS AND  FINANCIAL STATEMENT      SCHEDULES |
|---------------|------------------------------------------------------------|

| (a)  1. | Financial      Statements |
|-------------------|---------------------------|

Consolidated Statements of Income for each of the three years in theperiod ended June 28, 2009

Consolidated Balance Sheets as of June 28, 2009 and June 29,2008

Consolidated Statements of Cash Flows for each of the three years inthe period ended June 28, 2009

Consolidated Statements of Stockholders’ Equity (Deficit) foreach of the three years in the period ended

June 28, 2009

Report of Independent Registered Public AccountingFirm

----

| 2. | Schedules |
|----|-----------|

|                                  |   |            |   |   | Additions       |   |   |          |   |   |            |   |
|---------------------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|-----------------|--------|
|                                  |   | Balance      at |   |   | Charged      to |   |   |          |   |   | Balance      at |   |
|                                  |   | Beginning       |   |   | Costs      and  |   |   |          |   |   | End      of     |   |
|                                  |   | of      Period  |   |   | Expenses        |   |   | Deductions(1) |   |   | Period          |   |
|                                  |   |            |   |   |            |   |   |          |   |   |            |   |
| Allowance      for doubtful accounts: |   |            |   |   |            |   |   |          |   |   |            |   |
|                                  |   |            |   |   |            |   |   |          |   |   |            |   |
| Year      ended July 1, 2007          |   | $               | 1,808  |   |            | $      | -      |          |   | $      | 33              |   |   | $ | 1,775 |   |
|                                  |   |            |   |   |            |   |   |          |   |   |            |   |   |   |   |   |
| Year      ended June 29, 2008         |   | $               | 1,775  |   |            | $      | -      |          |   | $      | 23              |   |   | $ | 1,752 |   |
|                                  |   |            |   |   |            |   |   |          |   |   |            |   |   |   |   |   |
| Year      ended June 28, 2009         |   | $               | 1,752  |   |            | $      | 38     |          |   | $      | -               |   |   | $ | 1,790 |   |

|   | (1) | Write-offs      of doubtful accounts. |
|--------|-----|---------------------------------------|

| 3. | Exhibits |
|----|----------|

| (c) | Exhibit      Index |
|-----|--------------------|

| 3.1 | Certificate      of Incorporation of Registrant. (9) |
|-----|------------------------------------------------------|

| 3.4 | Amended      and Restated Bylaws of Registrant.(13) |
|-----|-----------------------------------------------------|

| 4.1 | Indenture      dated April 24, 2007 with U.S. Bank National Association as Trustee and      Cede & Co. as nominee for The Depository Trust Corporation for 3.00%      Convertible Senior Notes due May 1, 2027.(16) |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Indenture      dated April 24, 2007 with U.S. Bank National Association as Trustee and      Cede & Co. as nominee for The Depository Trust Corporation for 3.125%      Convertible Senior Notes Due May 1, 2027.(16) |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | 1981      Incentive Stock Option Plan, as amended, and form of Stock Option      Agreements, as amended (including Restricted Stock Purchase      Agreement).(*)(3) |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Agreement      to Build and Lease dated January 8, 1986 between Callahan-Pentz      Properties, McCarthy Six and theRegistrant.(1) |
|-------|------------------------------------------------------------------------------------------------------------------------------------|

| 10.25 | 1986      Employee Stock Purchase Plan, as amended, and form of Subscription      Agreement.(*)(2) |
|-------|----------------------------------------------------------------------------------------------------|

| 10.35 | 1988      Stock Option Plan, as amended, form of Incentive Stock Option Agreement,      as amended, and form of Non-statutory Stock Option Agreement, as      amended.(*)(6) |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.36 | Form      of Indemnification Agreement. (9) |
|-------|---------------------------------------------|

| 10.45 | Land      lease dated March 30, 1993 between the Registrant and the Singapore      Housing and Development Board.(4) |
|-------|----------------------------------------------------------------------------------------------------------------------|

| 10.46 | Land      lease dated November 20, 1993 between the Registrant and the Penang      Development Corporation. (5) |
|-------|-----------------------------------------------------------------------------------------------------------------|

| 10.47 | 1996      Incentive Stock Option Plan and form of Nonstatutory Stock Option      Agreement.(*) (7) |
|-------|----------------------------------------------------------------------------------------------------|

| 10.48 | 1996      Senior Executive Bonus Plan, as amended July 25, 2000. (*)    (8) |
|-------|-----------------------------------------------------------------------------|

----

| 10.49 | 2001      Nonstatutory Stock Option Plan, as amended July 23, 2002, and form of      Stock Option Agreement. (*)(11) |
|-------|----------------------------------------------------------------------------------------------------------------------|

| 10.50 | Amended      and Restated Employment Agreement between Registrant and Robert H.      Swanson, Jr. Dated November 4,  2008. (*)  (14) |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.51 | Employment      Agreement dated January 15, 2002 between the Registrant and Paul Coghlan.      (*) (10) |
|-------|---------------------------------------------------------------------------------------------------------|

| 10.52 | Employment      Agreement dated January 15, 2002 between the Registrant and Robert C.      Dobkin. (*) (10) |
|-------|-------------------------------------------------------------------------------------------------------------|

| 10.53 | 2005      Equity Incentive Plan, form of Stock Option Agreement, form of Restricted      Stock Agreement, and form of Restricted Stock Unit Agreement. (*)      (15) |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.54 | 2005      Employee Stock Purchase Plan and enrollment form. (*)  (12) |
|-------|-----------------------------------------------------------------------|

| 10.55 | Registration      Rights Agreement dated April 24, 2007 for 3.00% Convertible Senior Notes      Due May 1, 2027. (16) |
|-------|-----------------------------------------------------------------------------------------------------------------------|

| 10.56 | Registration      Rights Agreement dated April 24, 2007 for 3.125% Convertible Senior Notes      Due May 1, 2027. (16) |
|-------|------------------------------------------------------------------------------------------------------------------------|

| 21.1 | Subsidiaries      of Registrant. |
|------|----------------------------------|

| 23.1 | Consent      of Independent Registered Public Accounting  Firm. |
|------|-----------------------------------------------------------------|

| 24.1 | Power      of Attorney. |
|------|-------------------------|

| 31.1 | Certification      of Chief Executive Officer. |
|------|------------------------------------------------|

| 31.2 | Certification      of Chief Financial Officer. |
|------|------------------------------------------------|

| 32.1 | Certification      of Lothar Maier and Paul Coghlan Pursuant to 18 U.S.C. Section 1350, as      Adopted Pursuant to Section 906 of the Sarbanes Oxley Act of      2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (*)  The      item listed is a compensatory plan of the  Company. |
|--------|-----------------------------------------------------------------------------|

| (1) | Incorporated      by reference to identically numbered exhibits filed in response to Item      16(a), "Exhibits" of the Registrant's Registration Statement on Form S-1      and Amendment No. 1 and Amendment No. 2 thereto (File No. 33-4766), which      became effective on May 28, 1986. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated      by reference to identically numbered exhibit filed in response to Item      6,  "Exhibits and Reports  on      Form  8-K"  of the  Registrant's Quarterly      Report on Form 10-Q for the quarter ended December 28,    1997. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated      by reference to identically numbered exhibit filed in response to Item      6,  "Exhibits and Reports  on      Form  8-K"  of the  Registrant's Quarterly      Report on Form 10-Q for the quarter ended December 30,    1990. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated      by reference to identically numbered exhibit filed in response to Item      14(a)(3) "Exhibits" of the Registrant's Annual Report on Form 10-K for the      fiscal year ended June 27, 1993. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated      by reference to identically numbered exhibit filed in response to Item      14(a)(3) "Exhibits" of the Registrant's Annual Report on Form 10-K for the      fiscal year ended July 3, 1994. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated      by reference to identically numbered exhibit filed in response to Item      6,  "Exhibits and Reports  on      Form  8-K"  of the  Registrant's Quarterly      Report on Form 10-Q for the quarter ended October 2,  1994. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated      by reference to Exhibits 4.1 and 4.2 of the Registrant’s Registration      Statement on Form S-8 filed with the Commission on July 30,      1999. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Incorporated      by reference to identically numbered exhibit filed in response to      Item 14(a)(3) "Exhibits" of the Registrant's Annual Report on Form      10-K for the fiscal year ended July 2,2000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Incorporated      by reference to identically numbered exhibit filed in response      Item14(a)(3) “Exhibits” of the Registrant’s Annual Report on Form 10-K for      the fiscal year ended July 1, 2001. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (10) | Incorporated      by reference to identically numbered exhibit filed in response to Item 6 “      Exhibits and Reports on Form 8-K” of the Registrant’s Quarterly Report on      Form 10-Q for the quarter ended March 31,2002. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated      by reference to identically numbered exhibit filed in response to Item      14(a)(3) “Exhibits” of the Registrants’s Annual Report on Form 10-K for      the fiscal year ended June 30,2002. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Incorporated      by reference to the Registrant’s Statement on Form S-8 filed with the      Securities and Exchange Commission on September 30,  2005. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Incorporated      by reference to the Registrant’s current report on Form 8-K filed with the      Securities and Exchange Commission on October 18,  2006. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Incorporated      by reference to the Registrant’s current report on Form 8-K filed with the      Securities and Exchange Commission on November      6, 2008. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Incorporated      by reference to identically numbered exhibit filed in response to Item 6      “Exhibits” of the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended October 2, 2005. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Incorporated      by reference to identically numbered exhibit filed in response to Item 6      “Exhibits” of the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended April 1, 2007. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| /s/ Lothar Maier                        |   | /s/ Paul Coghlan                               |
|-----------------------------------------|--------|------------------------------------------------|
| Lothar      Maier                       |   | Paul      Coghlan                              |
| Chief      Executive Officer (Principal |   | Vice      President of Finance and Chief       |
| Executive      Officer)                 |   | Financial      Officer (Principal Financial    |
| August      14, 2009                    |   | Officer      and Principal Accounting Officer) |
|                                    |   | August      14, 2009                           |
|                                    |   |                                           |
| /s/ Robert H. Swanson, Jr.              |   | /s/ Thomas S. Volpe                            |
| Robert      H. Swanson, Jr.             |   | Thomas      S. Volpe                           |
| Executive      Chairman of the Board    |   | Director                                       |
| August      14, 2009                    |   | August      14, 2009                           |
|                                    |   |                                           |
| /s/ David S. Lee                        |   | /s/ Richard M. Moley                           |
| David      S. Lee                       |   | Richard      M. Moley                          |
| Director                                |   | Director                                       |
| August      14, 2009                    |   | August      14, 2009                           |
|                                    |   |                                           |

----