----

----

| 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 "2010 Proxy Statement") for the 2010 Annual Meeting of Stockholders, to be filed subsequently. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

```

```

----

```

```

|       |     |                                                                                                               | Page     |
|------------|----------|--------------------------------------------------------------------------------------------------------------------|----------|
| Part I:    |     |                                                                                                               |
|       |     |                                                                                                               |     |
|       | Item 1.  | Business                                                                                                           | 3        |
|       |     |                                                                                                               |     |
|       | Item 1A. | Risk Factors                                                                                                       | 12       |
|       |     |                                                                                                               |     |
|       | Item 1B. | Unresolved Staff Comments                                                                                          | 18       |
|       |     |                                                                                                               |     |
|       | Item 2.  | Properties                                                                                                         | 18       |
|       |     |                                                                                                               |     |
|       | Item 3.  | Legal Proceedings                                                                                                  | 18       |
|       |     |                                                                                                               |     |
|       | Item 4.  | (Removed and Reserved)                                                                                             | 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       |
|       |     |                                                                                                               |     |
|       | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                         | 28       |
|       |     |                                                                                                               |     |
|       | Item 8.  | Consolidated Financial Statements and Supplementary Data                                                           | 29       |
|       |     |                                                                                                               |     |
|       | Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 53       |
|       |     |                                                                                                               |     |
|       | Item 9A. | Controls and Procedures                                                                                            | 53       |
|       |     |                                                                                                               |     |
|       | Item 9B. | Other Information                                                                                                  | 53       |
|       |     |                                                                                                               |     |
| Part III:  |     |                                                                                                               |     |
|       |     |                                                                                                               |     |
|       | Item 10. | Directors, Executive Officers and Corporate Governance                                                             | 54       |
|       |     |                                                                                                               |     |
|       | Item 11. | Executive Compensation                                                                                             | 54       |
|       |     |                                                                                                               |     |
|       | Item 12. | Security Ownership of Certain Beneficial Owner and Managements and Related Stockholder Matters                     |  54 |
|       |     |                                                                                                               |     |
|       | Item 13. | Certain Relationships and Related Transactions, and Director Independence                                          | 54       |
|       |     |                                                                                                               |     |
|       | Item 14. | Principal Accountants Fees and Services                                                                            | 54       |
|       |     |                                                                                                               |     |
| Part IV:   |     |                                                                                                               |     |
|       | Item 15. | Exhibits and Financial Statement Schedules                                                                         | 54       |
|       |     |                                                                                                               |     |
| Signatures |     |                                                                                                               | 58       |

```

```

----

```

```

| 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                        |   |                             |
|           |   | High brightness lighting                            |   |                             |
|           |   | Process control data communication                  |   |                             |
|           |   | Factory automation                                  |   |                             |
|           |   | Security and surveillance system                    |   | High speed A/D converters        |
|           |   | Remote meter reading                                |   | D/A converters                   |
|           |   | Wireless sensor networks                            |   | High performance operational     |
|           |   | RFID transponders                                   |   | amplifiers                       |
|           |   | Scanning electron microscopes                       |   | Interface (RS 485/232) products  |
|           |   | Solar power                                         |   | Precision operational amplifiers |
|           |   | Voltmeters/multimeters/ oscilloscopes/curve tracers |   | Instrumentation amplifiers       |
|           |   | Test equipment                                      |   | Line drivers/receivers           |
|           |   | Logic/network analyzers                             |   | Precision comparators            |
|           |   | Weighing scales                                     |   | Precision voltage references     |
|           |   | Analytic and test equipments                        |   | Monolithic filters               |
|           |   | Gas chromatographs                                  |   | Switching voltage regulators     |
|           |   | X-Ray, EKG, MRI, PET,CAT scanners                   |   | Hot swap circuits                |
|           |   | Particle accelerators                               |   | DC-DC converters                 |
|           |   | DNA and blood analyzers                             |   | DC/DC µModule Power Systems |
|           |   | Patient monitors                                    |   | POE interface controllers        |
|           |   | Infusion pumps                                      |   | Push button controllers          |
|           |   |                                                |   | Ideal diode controllers          |
|           |   |                                                |   | Surge stoppers                   |
| Space/Military |   | Communications                                      |   | Battery gas gauges               |
|           |   | Satellites                                          |   | Isolated uModule systems         |
|           |   | Guidance and navigation systems                     |   | Low drop out voltage regulators  |
|           |   | Displays                                            |   | LED driver controllers           |
|           |   | Firing controls                                     |   | DC-DC converters                 |
|           |   | Ground support equipment                            |   | Lithium ion battery chargers     |
|           |   | Sonar systems                                       |   |                             |
|           |   | Surveillance equipment                              |   |                             |

----

| Market         |   | End Applications/Products                |   | Example Product Families         |
|----------------|--------|------------------------------------------|--------|----------------------------------|
|           |   | Ordnance                                 |   |                             |
| Space/Military |   | Radar systems                            |   |                             |
|           |   | GPS                                      |   |                             |
|           |   | JTRS manpacks                            |   |                             |
|           |   |                                     |   |                             |
| Automotive     |   | Entertainment systems                    |   |                             |
|           |   | Hybrid/electric vehicle battery systems  |   |                             |
|           |   | Navigation and safety system             |   |                             |
|           |   | Headlamps                                |   |                             |
|           |   | Daytime running lights                   |   |                             |
|           |   | Dashboard instrumentation                |   |                             |
|           |   | Emission controls                        |   |                             |
|           |   | Collision avoidance systems              |   |                             |
|           |   | Antenna power supplies                   |   |                             |
|           |   |                                     |   |                             |
| Communications |   | Cellular phones                          |   | DC - DC converters               |
|           |   | Smart phones                             |   | V.35 transceivers                |
|           |   | Cellular basestations (CDMA/WCDMA/GSM/   |   | Isolated uModule systems         |
|           |   | LTE/ WiMAX)                              |   | Variable gain amplifiers         |
|           |   | Point-to-point wireless modems           |   | High-speed amplifiers            |
|           |   | Fax machines                             |   | High speed A/D converters        |
|           |   | PBX switches                             |   | Line drivers/receivers           |
|           |   | Optical networking                       |   | Digital power monitors and       |
|           |   | Channel service units/data service units |   | controllers                      |
|           |   | Cable modems/networks                    |   | Power detectors                  |
|           |   | Internet appliances                      |   | Low noise operational amplifiers |
|           |   | Servers/ routers/switches                |   | Micropower products              |
|           |   | Power over Ethernet                      |   | Power management products        |
|           |   | Wireless Access Points                   |   | Switched capacitor filters       |
|           |   |                                     |   | I2C bus buffers                  |
|           |   |                                     |   | Voltage references               |
|           |   |                                     |   | Voltage regulators               |
|           |   |                                     |   | Data converter products          |
|           |   |                                     |   | Hot Swap controllers             |
|           |   |                                     |   | Multi-protocol circuits          |
|           |   |                                     |   | Thermoelectric coolers           |
|           |   |                                     |   | DC - DC uModules                 |
|           |   |                                     |   | Power amplifier controllers      |
|           |   |                                     |   | RF power detectors               |
|           |   |                                     |   | Mixers/Modulators/Demodulators   |
|           |   |                                     |   | 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/ receivers          |
|           |   | LCD monitors/projectors                  |   | USB power controller/ chargers   |
|           |   | Plotters/printers                        |   | Low drop out linear regulators   |
|           |   | Digital still cameras                    |   | Micropower products              |
|           |   | High Definition TVs                      |   | Multi-Phase switching regulators |
|           |   | Satellite radios                         |   | PCMCIA power switching           |
|           |   | Battery chargers                         |   | Power management                 |
|           |   | Electronic toys                          |   | Power sequencing/monitoring      |

```

```

----

```

```

| Market         |   | End Applications/Products            |   | Example Product Families         |
|----------------|--------|--------------------------------------|--------|----------------------------------|
|           |   | Video/multimedia systems             |   | DC/DC µModule Power Systems |
|           |   | MP3 players                          |   | Video amplifiers                 |
|           |   |                                 |   | High speed A/D converters        |
| 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                                 |   |                             |
|           |   | Media players                        |   |                             |

----

| 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, power controller, battery  |
| management            |
| 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 data communications |

----

```

```

----

```
Government Contracts
```

| Name                   |   | Age    |   | Position                                                         |
|------------------------|--------|--------|--------|------------------------------------------------------------------|
|                   |   |   |   |                                                             |
| Robert H. Swanson, Jr. |   | 71     |   | Executive Chairman of the Board of Directors                     |
| Lothar Maier           |   | 55     |   | Chief Executive Officer                                          |
| Paul Chantalat         |   | 60     |   | Vice President Quality and Reliability                           |
| Paul Coghlan           |   | 65     |   | Vice President of Finance and Chief Financial Officer; Secretary |
| Robert C. Dobkin       |   | 66     |   | Vice President of Engineering and Chief Technical Officer        |
| Alexander R. McCann    |   | 44     |   | Vice President and Chief Operating Officer                       |
| Richard Nickson        |   | 60     |   | Vice President of North American Sales                           |
| David A. Quarles       |   | 44     |   | Vice President of International Sales                            |
| Donald Paulus          |   | 53     |   | Vice President and General Manager, D Power Products             |
| Steve Pietkiewicz      |   | 50     |   | Vice President and General Manager, S Power Products             |
| Robert Reay            |   | 49     |   | Vice President and General Manager, Mixed Signal Products        |
| Erik M. Soule          |   | 46     |   | Vice President and General Manager, Signal Conditioning Products |

----

----

----

----

----

----

| ·   | 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 our business; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 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 as holders of our common stock although, given that the Notes are convertible into shares of our common stock, they may be affected by any change relating to the common stock. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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 and development            |

----

```

```

----

```

```

| 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 29, 2010 – April 25, 2010) | -                | -              | -                      | -                      |
| Month #2 (April 26, 2010 - May 23, 2010)         | 149,978          | 30.85          | 149,978                | 18,467,723             |
| Month #3 (May 24, 2010 – June 27, 2010)    | -                | -              | -                      | -                      |
| Total                                            | 149,978          | 30.85          | 149,978                | 18,467,723             |

```

```

----

```
Stock Performance Graph
```

| ITEM 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

| FIVE FISCAL YEARS ENDED June 27, 2010                |   | 20103                                                 |   | 20093                                                 |   | 20083                                                 |   | 20073                                                 |   | 2006                                                  |
|------------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------------------------|
| In thousands, except per share amounts               |   |                                                  |   |                                                  |   |                                                  |   |                                                  |   |                                                  |
| Income statement information                         |   |                                                  |   |                                                  |   |                                                  |   |                                                  |   |                                                  |
| Revenues                                             |   | $1,169,988                                            |   | $  968,498                                  |   | $1,175,153                                            |   | $1,083,078                                            |   | $1,092,977                                            |
| Net income1                                          |   | 361,341                                               |   | 289,207                                               |   | 367,123                                               |   | 409,010                                               |   | 428,680                                               |
| Basic earnings per share2                            |   | 1.59                                                  |   | 1.28                                                  |   | 1.62                                                  |   | 1.39                                                  |   | 1.39                                                  |
| Diluted earnings per share2                          |   | 1.58                                                  |   | 1.28                                                  |   | 1.60                                                  |   | 1.37                                                  |   | 1.36                                                  |
| Weighted average shares outstanding – Basic2   |   | 227,723                                               |   | 226,321                                               |   | 226,263                                               |   | 293,912                                               |   | 307,425                                               |
| Weighted average shares outstanding – Diluted2 |   | 228,860                                               |   | 226,387                                               |   | 229,905                                               |   | 299,044                                               |   | 315,140                                               |
| Balance sheet information                            |   |                                                  |   |                                                  |   |                                                  |   |                                                  |   |                                                  |
| Cash, cash equivalents and marketable securities     |   | $  958,069                                  |   | $  868,711                                  |   | $  966,701                                  |   | $  633,307                                  |   | $1,819,587                                            |
| Total assets                                         |   | 1,590,718                                             |   | 1,421,529                                             |   | 1,583,889                                             |   | 1,218,857                                             |   | 2,390,895                                             |
| Convertible senior notes1                            |   | 1,159,886                                             |   | 1,280,617                                             |   | 1,532,640                                             |   | 1,500,545                                             |   | -                                                     |
| Cash dividends per share                             |   | $        0.90 |   | $        0.86 |   | $        0.78 |   | $        0.66 |   | $        0.50 |

```

```

----

```

```

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

```

```

----

```

```

|                                  | Fiscal Year Ended                     |   | Percentage Change           |
|---------------------------------------|---------------------------------------|--------|-----------------------------|
|                                  | June 27,                              |   | June 28,                    |   | June 29, |   | 2010 Over |   | 2009 Over |
|                                  | 2010                                  |   | 20091                       |   | 20081 |   | 2009 |   | 2008 |
|                                  |                                  |   |                        |   |   |   |   |   |   |
| Revenues                              | 100.0%                                |   | 100.0%                      |   | 100.0% |   | 21% |   | (18%) |
| Cost of sales                         |   23.0                      |   |   24.6            |   |   22.7 |   | 13 |   |  (11) |
| Gross profit                          |   77.0                      |   |   75.4            |   |   77.3 |   |  23 |   |   (20) |
| Expenses:                             |                                  |   |                        |   |   |   |   |   |   |
| Research & development            |   17.0                      |   |   19.2            |   |   16.8 |   |    7 |   |     (6) |
| Selling, general & administrative |  11.8                            |   |   13.3            |   |   12.1 |   |     8 |   |    (10) |
| Restructuring                         |       - |   |     0.4 |   |       - |   |       - |   |       - |
|                                  |   28.8                      |   |   32.9            |   |   28.9 |   |     6 |   |     (6) |
| Operating income                      |   48.2                      |   |   42.5            |   |   48.4 |   |     37 |   |    (28) |
| Interest expense                      |   (6.5)                     |   |   (8.6)           |   |   (7.6) |   |     (9) |   |     (8) |
| Interest income                       |   1.1                       |   |   2.4             |   |   2.5 |   |    (44) |   |    (24) |
| (Loss) gain on early retirement of    |                                  |   |                        |   |   |   |   |   |   |
| convertible senior notes              |   (0.9)                     |   |   1.7             |   |      - |   |  - |   |       - |
| Income before income taxes            | 41.9%                                 |   | 38.0%                       |   | 43.3% |   |      33 |   |    (28) |
| Tax rate                              | 26.3%                                 |   | 21.6%                       |   | 27.9% |   |   |   |   |

----

----

----

| (In thousands)                                                   |  Fiscal 2011 |  Fiscal 2012 |  Fiscal 2013 |  Fiscal 2014 | Fiscal 2015 and thereafter |
|------------------------------------------------------------------|-------------------|-------------------|-------------------|-------------------|----------------------------|
| Operating lease obligations (1)                                  | $ 2,600           | $ 1,500           | $ 900             | $ 600             | $ 2,000                    |
| 3.0% convertible debentures – principal and interest (2)   |  25,353      |  25,353      |  25,353      |  870,441     |  -                    |
| 3.125% convertible debentures – principal and interest (3) |  402,013     |  -           |  -           |  -           |  -                    |
|    Total                                          | $ 429,966         | $ 26,853          | $ 26,253          | $ 871,041         | $ 2,000                    |

| (1)   | The Company leases some of its facilities under noncancelable operating leases that expire at various dates through fiscal 2057.  See Note 11. of Notes to Consolidated Financial Statement contained in the Annual Report on Form 10-K for additional information about operating leases. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 has purchased and retired $154.9 million face value of the 3.0% Convertible Senior Notes. The Company may redeem the remaining outstanding $845.1 million principal amount of 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 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. The Company has purchased and retired $304.2 million face value of the 3.125% Convertible Senior Notes. The Company may redeem the remaining outstanding $395.8 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.   The Company presently intends to redeem the remaining outstanding $395.8 million principal on November 1, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

```

```

----

```

```

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

```

```

----

```

```

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

| THREE YEARS ENDED JUNE 27, 2010                           | 2010                                                              |   | 2009*                                                             |   | 2008*                                                             |
|-----------------------------------------------------------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|
|                                                      |                                                              |   |                                                              |   |                                                              |
| Revenues                                                  | $ 1,169,988                                                       |   | $ 968,498                                                         |   | $ 1,175,153                                                       |
| Cost of sales(1)                                          | 269,076                                                           |   | 237,868                                                           |   | 267,005                                                           |
| Gross profit                                              | 900,912                                                           |   | 730,630                                                           |   | 908,148                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Expenses:                                                 |                                                              |   |                                                              |   |                                                              |
| Research and development (1)                              | 198,957                                                           |   | 185,843                                                           |   | 197,089                                                           |
| Selling, general and administrative(1)                    | 138,544                                                           |   | 128,804                                                           |   | 142,395                                                           |
| Restructuring                                             | -                                                                 |   | 3,907                                                             |   | -                                                                 |
|                                                      | 337,501                                                           |   | 318,554                                                           |   | 339,484                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Operating income                                          | 563,411                                                           |   | 412,076                                                           |   | 568,664                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Interest expense(2)                                       | (75,356)                                                          |   | (83,011)                                                          |   | (89,887)                                                          |
| Interest income                                           | 12,814                                                            |   | 22,954                                                            |   | 30,082                                                            |
| (Loss) gain on early retirement of                        |                                                              |   |                                                              |   |                                                              |
| convertible senior notes(3)                               | (10,458)                                                          |   | 16,882                                                            |   | -                                                                 |
| Income before income taxes                                | 490,411                                                           |   | 368,901                                                           |   | 508,859                                                           |
| Provision for income taxes                                | 129,070                                                           |   | 79,694                                                            |   | 141,736                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Net income                                                | $    361,341                                  |   | $    289,207                                  |   | $    367,123                                  |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Basic earnings per share                                  | $          1.59 |   | $          1.28 |   | $          1.62 |
| Shares used in the calculation of basic                   |                                                              |   |                                                              |   |                                                              |
| earnings per share                                        | 227,723                                                           |   | 226,321                                                           |   | 226,263                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Diluted earnings per share                                | $          1.58 |   | $          1.28 |   | $          1.60 |
| Shares used in the calculation of diluted                 |                                                              |   |                                                              |   |                                                              |
| earnings per share                                        | 228,860                                                           |   | 226,387                                                           |   | 229,905                                                           |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Cash dividends per share                                  | $          0.90 |   | $          0.86 |   | $          0.78 |
|                                                      |                                                              |   |                                                              |   |                                                              |
| Includes the following non-cash charges:                  |
| (1) Stock-based compensation                              |                                                              |   |                                                              |   |                                                              |
| Cost of sales                                             | $        9,082            |   | $        8,328            |   | $        7,862            |
| Research and development                                  | 39,130                                                            |   | 35,039                                                            |   | 32,743                                                            |
| Selling, general and administrative                       | 21,708                                                            |   | 19,836                                                            |   | 18,261                                                            |
| (2) Amortization of debt discount (non-cash interest |                                                              |   |                                                              |   |                                                              |
| expense)                                                  | 29,003                                                            |   | 30,738                                                            |   | 32,095                                                            |
| (3) Non-cash charge on early retirement of convertible    |                                                              |   |                                                              |   |                                                              |
| senior notes                                              | 10,458                                                            |   | 7,370                                                             |   | -                                                                 |

```

```

----

```

```

| JUNE 27, 2010 AND JUNE 28, 2009                                      |   | 2010   |       |   |   | 2009*  |       |
|----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|
| Assets                                                               |   |   |       |   |   |   |       |
| Current assets:                                                      |   |   |       |   |   |   |       |
| Cash and cash equivalents                                            |   | $      | 295,854    |   |   | $      | 217,018    |   |
| Marketable securities                                                |   |   | 662,215    |   |   |   | 651,693    |   |
| Accounts receivable, net of allowance for                            |   |   |       |   |   |   |       |   |
| doubtful accounts of $2,043 ($1,790 in 2009)                         |   |   | 176,874    |   |   |   | 95,434     |   |
| Inventories:                                                         |   |   |       |   |   |   |       |   |
| Raw materials                                                        |   |   | 5,430      |   |   |   | 3,343      |   |
| Work-in-process                                                      |   |   | 39,799     |   |   |   | 38,612     |   |
| Finished goods                                                       |   |   | 8,815      |   |   |   | 10,576     |   |
| Total inventories                                                    |   |   | 54,044     |   |   |   | 52,531     |   |
| Deferred tax assets                                                  |   |   | 38,689     |   |   |   | 37,628     |   |
| Prepaid expenses and other current assets                            |   |   | 36,625     |   |   |   | 34,947     |   |
| Total current assets                                                 |   |   | 1,264,301  |   |   |   | 1,089,251  |   |
| Property, plant and equipment, at cost:                              |   |   |       |   |   |   |       |   |
| Land, buildings and improvements                                     |   |   | 228,654    |   |   |   | 216,561    |   |
| Manufacturing and test equipment                                     |   |   | 527,230    |   |   |   | 506,824    |   |
| Office furniture and equipment                                       |   |   | 3,789      |   |   |   | 3,792      |   |
|                                                                 |   |   | 759,673    |   |   |   | 727,177    |   |
| Accumulated depreciation and amortization                            |   |   | (502,638   | )      |   |   | (468,752   | ) |
| Net property, plant and equipment                                    |   |   | 257,035    |   |   |   | 258,425    |   |
| Other non-current assets                                             |   |   | 69,382     |   |   |   | 73,853     |   |
| Total assets                                                         |   | $      | 1,590,718  |   |   | $      | 1,421,529  |   |
|                                                                 |   |   |       |   |   |   |       |   |
| Liabilities and stockholders’ equity (deficit)                 |   |   |       |   |   |   |       |   |
| Current liabilities:                                                 |   |   |       |   |   |   |       |   |
| Accounts payable                                                     |   | $      | 21,235     |   |   | $      | 10,531     |   |
| Accrued payroll and related benefits                                 |   |   | 80,796     |   |   |   | 44,250     |   |
| Deferred income on shipments to distributors                         |   |   | 33,700     |   |   |   | 28,497     |   |
| Income taxes payable                                                 |   |   | 19,615     |   |   |   | 9,718      |   |
| Other accrued liabilities                                            |   |   | 34,238     |   |   |   | 32,345     |   |
| Convertible senior notes-current portion(1)                          |   |   | 392,926    |   |   |   | -          |   |
| Total current liabilities                                            |   |   | 582,510    |   |   |   | 125,341    |   |
| Deferred tax liabilities                                             |   |   | 108,665    |   |   |   | 107,514    |   |
| Convertible senior notes(1)                                          |   |   | 766,960    |   |   |   | 1,280,617  |   |
| Other long-term liabilities                                          |   |   | 92,798     |   |   |   | 94,394     |   |
| Total liabilities                                                    |   |   | 1,552,346  |   |   |   | 1,607,866  |   |
| Commitments and contingencies                                        |   |   |       |   |   |   |       |   |
| Stockholders’ equity (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;         |   |   |       |   |   |   |       |   |
| 224,231 and 222,276  shares issued and outstanding at June |   |   |       |   |   |   |       |   |
| 27, 2010 and June 28, 2009, respectively                             |   |   | 224        |   |   |   | 222        |   |
| Additional paid-in capital                                           |   |   | 1,331,664  |   |   |   | 1,246,870  |   |
| Accumulated other comprehensive income, net of tax                   |   |   | 1,974      |   |   |   | 5,095      |   |
| Accumulated deficit                                                  |   |   | (1,294,077 | )      |   |   | (1,438,524 | ) |
| Total stockholders’ equity (deficit)                           |   |   | 39,785     |   |   |   | (186,337   | ) |
| Total liabilities and stockholders’ equity (deficit)           |   | $      | 1,590,718  |   |   | $      | 1,421,529  |   |

```

```

----

```

```

| THREE YEARS ENDED JUNE 27, 2010                                    | 2010                                              |   | 2009*                                             |   | 2008*                                  |
|--------------------------------------------------------------------|---------------------------------------------------|--------|---------------------------------------------------|--------|----------------------------------------|
|                                                               |                                              |   |                                              |   |                                   |
| Cash flow from operating activities:                               |                                              |   |                                              |   |                                   |
| Net income                                                         | $     361,341            |   | $     289,207            |   | $     367,123 |
| Adjustments to reconcile net income to                             |                                              |   |                                              |   |                                   |
| net cash provided by operating activities:                         |                                              |   |                                              |   |                                   |
| Depreciation and amortization                                      | 45,489                                            |   | 47,982                                            |   | 48,140                                 |
| Tax (deficit) benefit received on employee                         |                                              |   |                                              |   |                                   |
| stock transactions                                                 | (996)                                             |   | (1,652)                                           |   | 9,514                                  |
| Stock-based compensation                                           | 69,920                                            |   | 63,203                                            |   | 58,866                                 |
| Gain on sale of investment                                         | -                                                 |   | -                                                 |   | (2,106)                                |
| Loss (gain) on early retirement of convertible senior notes        | 10,458                                            |   | (16,882)                                          |   | -                                      |
| Amortization of convertible senior notes discount                  | 29,003                                            |   | 30,738                                            |   | 32,095                                 |
| Change in operating assets and liabilities:                        |                                              |   |                                              |   |                                   |
| (Increase) decrease in accounts receivable                         | (81,440)                                          |   | 66,018                                            |   | (30,906)                               |
| (Increase) decrease in inventories                                 | (1,513)                                           |   | 3,486                                             |   | (4,942)                                |
| (Increase) decrease in prepaid expenses, other                     |                                              |   |                                              |   |                                   |
| current assets and deferred tax assets                             | (3,019)                                           |   | 8,967                                             |   | (929)                                  |
| (Increase) decrease in long-term assets                            | (2,598)                                           |   | 3,042                                             |   | (1,345)                                |
| Increase (decrease)  in accounts payable,                |                                              |   |                                              |   |                                   |
| accrued payroll and other accrued liabilities                      | 41,364                                            |   | (39,975)                                          |   | 16,720                                 |
| Increase (decrease) in deferred income on                          |                                              |   |                                              |   |                                   |
| shipments to distributors                                          | 5,203                                             |   | (9,280)                                           |   | (2,169)                                |
| Increase (decrease) in income taxes payable                        | 13,082                                            |   | (28,481)                                          |   | 38,773                                 |
| Increase in long-term liabilities                                  | 6,183                                             |   | 225                                               |   | 1,495                                  |
|                                                               |                                              |   |                                              |   |                                   |
| Cash provided by operating activities                              | 492,477                                           |   | 416,598                                           |   | 530,329                                |
|                                                               |                                              |   |                                              |   |                                   |
| Cash flow from investing activities:                               |                                              |   |                                              |   |                                   |
| Purchase of marketable securities                                  | (706,167)                                         |   | (317,512)                                         |   | (1,093,979)                            |
| Proceeds from sale and maturities of available-for-sale securities | 690,770                                           |   | 489,333                                           |   | 756,625                                |
| Purchase of property, plant and equipment                          | (38,342)                                          |   | (39,130)                                          |   | (35,269)                               |
| Purchase of long-term investment                                   | -                                                 |   | -                                                 |   | (980)                                  |
| Proceeds from sale of investment                                   | -                                                 |   | -                                                 |   | 16,486                                 |
|                                                               |                                              |   |                                              |   |                                   |
| Cash (used in) provided by investing activities                    | (53,739)                                          |   | 132,691                                           |   |  (357,117)                        |
|                                                               |                                              |   |                                              |   |                                   |
| Cash flow from financing activities:                               |                                              |   |                                              |   |                                   |
| Excess tax benefits received on employee                           |                                              |   |                                              |   |                                   |
| stock transactions                                                 | -                                                 |   | 70                                                |   | 12,718                                 |
| Issuance of common stock under employee stock plans                | 23,836                                            |   | 12,338                                            |   | 82,413                                 |
| Retirement of convertible senior notes                             | (163,964)                                         |   | (270,104)                                         |   | -                                      |
| Purchase of common stock                                           | (14,671)                                          |   | (29,116)                                          |   | (98,964)                               |
| Payment of cash dividends                                          | (205,103)                                         |   | (194,680)                                         |   | (176,652)                              |
|                                                               |                                              |   |                                              |   |                                   |
| Cash used in financing activities                                  | (359,902)                                         |   | (481,492)                                         |   | (180,485)                              |
|                                                               |                                              |   |                                              |   |                                   |
| Increase (decrease)  in cash and cash equivalents        | 78,836                                            |   | 67,797                                            |   | (7,273)                                |
| Cash and cash equivalents, beginning of year                       | 217,018                                           |   | 149,221                                           |   | 156,494                                |
|                                                               |                                              |   |                                              |   |                                   |
| Cash and cash equivalents, end of year                             | $     295,854            |   | $     217,018            |   | $    149,221       |
|                                                               |                                              |   |                                              |   |                                   |
| Supplemental disclosures of cash flow information:                 |                                              |   |                                              |   |                                   |
| Cash paid for income taxes                                         | $     118,254            |   | $     102,291            |   | $     90,226  |
| Cash paid for interest expense                                     | $       42,370 |   | $       47,420 |   | $     54,438  |

```

```

----

```

```

| THREE YEARS ENDED JUNE 27, 2010                          |         | Additional | Accumulated Other      | Retained Earnings | Total               |
|----------------------------------------------------------|--------------|------------|------------------------|-------------------|---------------------|
|                                                     | Common Stock | Paid-In    | Comprehensive          | (Accumulated      | Stockholders’ |
|                                                     | Shares       | Amount     | Capital*               | Income            | Deficit)*           | Equity (Deficit)* |
| Balance at July 1, 2007                                  | 229,655      | $ 229      | $  1,032,299 | $ (647)           | $(1,612,118)        | ($ 580,237) |
| 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                                               | -            | -          | -                      | -                 | 367,123             | 367,123 |
| Comprehensive income                                     | -            | -          | -                      | -                 | -                   | 369,222 |
| Balance at June 29, 2008                                 | 221,508      | 221        | 1,180,431              | 1,452             | (1,508,784)         | (326,680) |
| 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) |
| Early extinguishment of convertible senior notes         | -            | -          | (2,670)                | -                 | -                   | (2,670) |
| 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                                               | -            | -          | -                      | -                 | 289,207             | 289,207 |
| Comprehensive income                                     | -            | -          | -                      | -                 | -                   | 292,850 |
| Balance at June 28, 2009                                 | 222,276      | 222        | 1,246,870              | 5,095             | (1,438,524)         | (186,337) |
| Issuance of common stock for cash                        |         |       |                   |              |                |   |
| under employee stock option, restricted stock            |         |       |                   |              |                |   |
| and stock purchase plans                                 | 2,474        | 3          | 23,833                 | -                 | -                   | 23,836 |
| Tax (deficit) from stock transactions                    | -            | -          | (996)                  | -                 | -                   | (996) |
| Purchase and retirement of common stock                  | (519)        | (1)        | (2,879)                | -                 | (11,791)            | (14,671) |
| Early extinguishment of convertible senior notes         | -            | -          | (5,084)                | -                 | -                   | (5,084) |
| Cash dividends - $0.90 per share                         | -            | -          | -                      | -                 | (205,103)           | (205,103) |
| Stock-based compensation                                 | -            | -          | 69,920                 | -                 | -                   | 69,920 |
| Comprehensive income:                                    |         |       |                   |              |                |   |
| Unrealized gain (loss)  on available-for- sale |         |       |                   |              |                |   |
| investments, net of $2,063 tax effect                    | -            | -          | -                      | (3,121)           | -                   | (3,121) |
| Net income                                               | -            | -          | -                      | -                 | 361,341             | 361,341 |
| Comprehensive income                                     | -            | -          | -                      | -                 | -                   | 358,220 |
| Balance at June 27, 2010                                 | 224,231      | $ 224      | $ 1,331,664            | $1,974            | ($1,294,077)        | $  39,785 |

```

```

----

```

```

----

| In thousands               |   | June 28, 2009          |       |
|----------------------------|--------|------------------------|------------|
|                       |   | As Previously Reported |       |   | Adjustments |   |   | As Adjusted |   |
| Deferred tax liabilities   |   | $                      | 62,752     |   |   | $ | 44,762 |   |   | $ | 107,514 |   |
| Convertible Senior Notes   |   |                   | 1,405,644  |   |   |   | (125,027 | ) |   |   | 1,280,617 |   |
| Additional paid-in capital |   |                   | 1,119,147  |   |   |   | 127,723 |   |   |   | 1,246,870 |   |
| Accumulated deficit        |   |                   | (1,391,066 | ) |   |   | (47,458 | ) |   |   | (1,438,524 | ) |
|                       |   |                   |       |   |   |   |   |   |   |   |   |   |

| In thousands, excepts per share amounts |   | June 28, 2009             |   | June 29, 2008             |
|-----------------------------------------|--------|---------------------------|--------|---------------------------|
|                                    |   | As Previously Reported    |   | Adjustments               |   | As Adjusted |   | As Previously Reported |   | Adjustments |   | As Adjusted |   |
| Interest expense                        |   | $   52,273 |   | $   30,738 |   | $   83,011 |   | $   57,792 |   | $  32,095 |   | $   89,887 |   |
| Gain on early                           |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| retirement of                           |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| convertible                             |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| senior notes                            |   | 24,252                    |   | (7,370)                   |   | 16,882 |   | - |   | - |   | - |   |
|                                    |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| Provision for                           |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| income taxes                            |   | 93,499                    |   | (13,805)                  |   | 79,694 |   | 153,341 |   | (11,605) |   | 141,736 |   |
|                                    |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| Net income                              |   | 313,510                   |   | (24,303)                  |   | 289,207 |   | 387,613 |   | (20,490) |   | 367,123 |   |
|                                    |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| Basic earnings                          |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| per share                               |   | 1.41                      |   | (0.13)                    | * | 1.28 |   | 1.74 |   | (0.12) | * | 1.62 |   |
|                                    |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| Diluted earnings                        |   |                      |   |                      |   |   |   |   |   |   |   |   |   |
| per share                               |   | 1.41                      |   | (0.13)                    | * | 1.28 |   | 1.71 |   | (0.11) | * | 1.60 |   |

|   | *As adjusted for the adoption of EITF 03-6-1, now codified in ASC 260-10-45 to 65. |
|--------|------------------------------------------------------------------------------------|

----

| In thousands       |   | June 28, 2009          |   | June 29, 2008 |   |
|--------------------|--------|------------------------|--------|---------------|--------|
|               |   | As Previously Reported |   | Adjustments   |   | As Adjusted |   | As Previously Reported |   | Adjustments |   | As Adjusted |   |
| Shares used in the |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| calculation of     |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| basic earnings     |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| per share          |   | 221,767                |   | 4,554         |   | 226,321 |   | 222,232 |   | 4,031 |   | 226,263 |   |
|               |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| Shares used in the |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| calculation of     |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| diluted            |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| earnings per       |   |                   |   |          |   |   |   |   |   |   |   |   |   |
| share              |   | 222,461                |   | 3,926         |   | 226,387 |   | 226,257 |   | 3,248 |   | 229,505 |   |

----

| In thousands            |   | June 27, |    |   | June 28, |   |
|-------------------------|--------|----------|---------|--------|----------|--------|
|                    |   | 2010     |    |   | 2009     |   |
| United States           |   | $        | 188,605 |   |     | $      | 210,030 |   |
| Malaysia                |   |     | 44,610  |   |     |   | 38,035 |   |
| Singapore               |   |     | 46,586  |   |     |   | 43,617 |   |
| Total long-lived assets |   | $        | 279,801 |   |     | $      | 291,682 |   |

----

----

| In thousands       |   | June 27, |    |   | June 28, |   |    | June 29, |   |
|--------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
|               |   | 2010     |    |   | 2009     |   |    | 2008     |   |
| Europe             |   | $        | 203,343 |   |     | $      | 166,872 |     |   | $ | 212,776 |   |
| Japan              |   |     | 172,863 |   |     |   | 122,037 |     |   |   | 154,091 |   |
| Rest of the world  |   |     | 465,588 |   |     |   | 390,329 |     |   |   | 461,478 |   |
| Total export sales |   | $        | 841,794 |   |     | $      | 679,238 |     |   | $ | 828,345 |   |

----

|                                   | June 27,                                 |   | June 28,                                 |   | June 29,                                 |
|----------------------------------------|------------------------------------------|--------|------------------------------------------|--------|------------------------------------------|
|                                   | 2010                                     |   | 2009                                     |   | 2008                                     |
| Expected lives in years                |    4.9                    |   |    4.9                    |   |    4.1                    |
| Expected volatility                    |  27.8%                              |   |  44.0%                              |   |  29.5%                              |
| Dividend yields                        |       3.0% |   |       3.3% |   |       2.0% |
| Risk free interest rates               |    2.5%                   |   |    1.5%                   |   |    3.9%                   |
| Weighted-average grant date fair value |  $5.97                              |   |  $6.72                              |   |  $8.70                              |

```

```

----

```
Stock Options
```

|                                         |          |   |     |   | Weighted     |   |        |
|----------------------------------------------|---------------|--------|----------|--------|--------------|--------|-------------|
|                                         |          |   | Weighted |   | Average      |   |        |
|                                         |          |   | Average  |   | Remaining    |   | Aggregate   |
|                                         | Stock Options |   | Exercise |   | Contract     |   | Intrinsic   |
|                                         | Outstanding   |   | Price    |   | Life (Years) |   | Value       |
| 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   |   |         |   |        |
|                                         |          |   |     |   |         |   |        |
| Granted                                      | 5,000         |   | 29.71    |   |         |   |        |
| Forfeited and expired                        | (2,808,806)   |   | 39.21    |   |         |   |        |
| Exercised                                    | (705,610)     |   | 25.45    |   |         |   |        |
| Outstanding options, June 27, 2010           | 25,436,140    |   | $33.83   |   | 2.85         |   | $53,722,369 |
| Vested and expected to vest at June 27, 2010 | 24,739,467    |   | $34.14   |   | 2.77         |   | $49,422,156 |
|                                         |          |   |     |   |         |   |        |
| Options vested and exercisable at:           |          |   |     |   |         |   |        |
| June 29, 2008                                | 22,828,399    |   | 36.68    |   |         |   |        |
| June 28, 2009                                | 22,361,156    |   | 37.46    |   |         |   |        |
| June 27, 2010                                | 20,294,210    |   | 36.64    |   | 2.16         |   | $21,977,687 |

|                                    |   | 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 |   | 6,256,465                 |   | $22.74                          |   | 5.55 |   | 1,119,785 |   | $  22.74 |
| $ 23.11 -   $ 23.11      |   | 186,400                   |   | 23.11                           |   | 2.29 |   | 186,400 |   | 23.11 |
| $ 25.05  -  $ 25.05 |   | 3,609,375                 |   | 25.05                           |   | 2.07 |   | 3,609,375 |   | 25.05 |
| $ 27.69 -   $ 36.12      |   | 2,994,700                 |   | 34.04                           |   | 2.83 |   | 2,989,700 |   | 34.05 |
| $ 36.52  -  $ 37.05 |   | 2,696,500                 |   | 36.95                           |   | 2.36 |   | 2,696,250 |   | 36.95 |
| $ 37.79  -  $ 38.50 |   | 2,767,000                 |   | 38.21                           |   | 0.99 |   | 2,767,000 |   | 38.21 |
| $ 39.24  -  $ 40.88 |   | 2,632,500                 |   | 40.26                           |   | 3.02 |   | 2,632,500 |   | 40.26 |
| $ 40.90  -  $ 50.25 |   | 3,035,750                 |   | 46.75                           |   | 1.21 |   | 3,035,750 |   | 46.75 |
| $ 52.94  -  $ 52.94 |   | 669,500                   |   | 52.94                           |   | 0.56 |   | 669,500 |   | 52.94 |
| $ 55.88  -  $ 55.88 |   | 587,950                   |   | 55.88                           |   | 0.31 |   | 587,950 |   | 55.88 |
| $ 22.74  -  $ 55.88 |   | 25,436,140                |   | $33.83                          |   | 2.85 |   | 20,294,210 |   | $36.64 |

```

```

----

```
Restricted Awards
```

|                             |   | Restricted Awards Outstanding |       |   | Weighted-Average Grant-Date Fair Value |   |
|----------------------------------|--------|-------------------------------|------------|--------|----------------------------------------|--------|
| Outstanding awards, 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 |   |
| Non-vested 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 |   |
| Non-vested at June 28, 2009      |   |                          | 5,296,490  |   |                                   | $      | 30.72 |   |
|                             |   |                          |       |   |                                   |   |   |   |
| Granted                          |   |                          | 1,962,317  |   |                                   |   | 29.86 |   |
| Vested                           |   |                          | (1,519,048 | )      |                                   |   | 32.03 |   |
| Forfeited                        |   |                          | (130,340   | )      |                                   |   | 28.83 |   |
| Non-vested at June 27, 2010      |   |                          | 5,609,419  |   |                                   | $      | 30.10 |   |

| 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                                                                                                       |   | $                     | 140,044         |   |              | $      | -                     |   |   | $ | 140,044 |   |
|    Investments in municipal bonds,     obligations of U.S. government-     sponsored enterprises and commercial     paper |   |                  |     - |   |              |   |     651,728 |   |   |   |      651,728 |   |
| Total assets measured at fair value                                                                                                                                                                                 |   | $                     | 140,044         |   |              | $      | 651,728               |   |   | $ | 791,772 |   |

| 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 27, 2010              |
|------------------------------------------------------|----------------------------|
| In thousands                                         | Amortized                  |   | Unrealized |   | Unrealized |   | Fair |
|                                                 | Cost                       |   | Gain |   | (Loss) (1) |   | Value |
| U.S. Treasury securities                             | $   61,074  |   | $    135 |   | $        - |   | $   61,209 |
| Obligations of U.S. government-sponsored enterprises | 106,630                    |   | 532 |   |  (1) |   | 107,161 |
| Municipal bonds                                      | 407,068                    |   | 2,387 |   | (1) |   | 409,454 |
| Corporate debt securities and other                  | 134,892                    |   | 229 |   | (8) |   | 135,113 |
| Money market funds                                   | 78,835                     |   | - |   | - |   | 78,835 |
| Total                                                | $ 788,499                  |   | $ 3,283 |   | $   (10) |   | $ 791,772 |
|                                                 |                       |   |   |   |   |   |   |
| Amounts included in:                                 |                       |   |   |   |   |   |   |
| Cash equivalents                                     | $   129,557 |   | $         - |   | $        - |   | $   129,557 |
| Marketable securities                                | 658,942                    |   | 3,283 |   | (10) |   | 662,215 |
| Total                                                | $ 788,499                  |   | $ 3,283 |   | $   (10) |   | $ 791,772 |

```

```

----

```

```

|                                                 | 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 |

|   | The estimated fair value of investments in debt securities by effective maturity date, is as follows: |
|--------|-------------------------------------------------------------------------------------------------------|

|                                   |   |     |    |   |     |   |
|----------------------------------------|--------|----------|---------|--------|----------|--------|
| In thousands                           |   | June 27, |    |   | June 28, |   |
|                                   |   | 2010     |    |   | 2009     |   |
| Due in one year or less                |   | $        | 393,350 |   |     | $      | 268,139 |   |
| Due after one year through three years |   |     | 268,865 |   |     |   | 383,554 |   |
| Total                                  |   | $        | 662,215 |   |     | $      | 651,693 |   |

| In thousands             |   | June 27,            |   | June 28,            |
|--------------------------|--------|---------------------|--------|---------------------|
|                     |   | 2010                |   | 2009                |
| Gross carrying amount    |   | $  56,570 |   | $  56,570 |
| Accumulated amortization |   | (41,484)            |   | (35,828)            |
| Total intangible assets  |   | $  15,086 |   | $  20,742 |

----

| In thousands                                 |   | June 27, |      |   | June 28, |   |
|----------------------------------------------|--------|----------|-----------|--------|----------|--------|
|                                         |   | 2010     |      |   | 2009     |   |
| Liability components                         |   |     |      |   |     |   |
| Principal amount of the Note                 |   | $        | 1,240,917 |   |     | $      | 1,405,644 |   |
| Unamortized discount of liability component* |   |     | (81,031   | )      |     |   | (125,027 | ) |
| Carrying value of liability component        |   | $        | 1,159,886 |   |     | $      | 1,280,617 |   |
|                                         |   |     |      |   |     |   |   |   |
|                                         |   |     |      |   |     |   |   |   |
| Equity component-net carrying value          |   | $        | 122,639   |   |     | $      | 127,723 |   |

----

| In thousands                                |   | June 27, |   |   | June 28, |   |   | June 29, |   |
|---------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                                        |   | 2010     |   |   | 2009     |   |   | 2008     |   |
| Contractual coupon interest                 |   | $        | 41,825 |   |     | $      | 47,087 |     |   | $ | 51,875 |   |
| Amortization of debt discount               |   |     | 29,003 |   |     |   | 30,738 |     |   |   | 32,095 |   |
| Amortization of debt issuance costs         |   |     | 3,521  |   |     |   | 3.913  |     |   |   | 4,391 |   |
| Total interest expense related to the Notes |   | $        | 74,349 |   |     | $      | 81,738 |     |   | $ | 88,361 |   |
|                                        |   |     |   |   |     |   |   |     |   |   |   |   |

| In thousands                     | June 27,       |   | June 28,       |   | June 29,       |
|----------------------------------|----------------|--------|----------------|--------|----------------|
|                             | 2010           |   | 2009           |   | 2008           |
| Number of shares of common stock |           |   |           |   |           |
| repurchased                      | 519            |   | 1,014          |   | 14,074         |
| Total cost of repurchase         |  $ 14,671 |   |  $ 29,116 |   |  $ 98,964 |

| In thousands             | June 27, |   | June 28, |   | June 29, |
|--------------------------|----------|--------|----------|--------|----------|
|                     | 2010     |   | 2009*    |   | 2008*    |
| United States operations | $357,382 |   | $279,742 |   | $393,824 |
| Foreign operations       | 133,028  |   | 89,159   |   | 115,035  |
|                     | $490,410 |   | $368,901 |   | $508,859 |

----

| In thousands           | June 27, |   | June 28, |   | June 29, |
|------------------------|----------|--------|----------|--------|----------|
|                   | 2010     |   | 2009*    |   | 2008*    |
| United States federal: |     |   |     |   |     |
| Current                | $126,524 |   | $68,186  |   | $107,731 |
| Deferred               | (4,309)  |   | 4,694    |   | 22,095   |
|                   | 122,215  |   | 72,880   |   | 129,826  |
| State:                 |     |   |     |   |     |
| Current                | 6,227    |   | 6,049    |   | 6,256    |
| Deferred               | 359      |   | (1,303)  |   | 1,186    |
|                   | 6,586    |   | 4,746    |   | 7,442    |
| Foreign:               |     |   |     |   |     |
| Current                | 455      |   | 2,284    |   | 4,160    |
| Deferred               | (186)    |   | (216)    |   | 308      |
|                   | 269      |   | 2,068    |   | 4,468    |
|                   | $129,070 |   | $79,694  |   | $141,736 |

| In thousands                                            | June 27, |   | June 28, |   | June 29, |
|---------------------------------------------------------|----------|--------|----------|--------|----------|
|                                                    | 2010     |   | 2009*    |   | 2008*    |
| Tax at U.S. statutory rate                              | $171,644 |   | $129,115 |   | $178,101 |
| State income taxes, net of federal benefit              | 3,989    |   | 2,664    |   | 4,095    |
| Earnings of foreign subsidiaries subject to lower rates | (31,925) |   | (20,281) |   | (25,692) |
| Tax-exempt interest income                              | (3,355)  |   | (5,363)  |   | (5,304)  |
| Domestic manufacturing deduction                        | (6,930)  |   | (10,139) |   | (4,172)  |
| Research and development credit                         | (3,034)  |   | (9,602)  |   | (4,280)  |
| Settlements                                             | -        |   | (6,697)  |   | -        |
| Other                                                   | (1,319)  |   | (3)      |   | (1,012)  |
|                                                    | $129,070 |   | $ 79,694 |   | $141,736 |

| In thousands                                                       | June 27,  |   | June 28,  |
|--------------------------------------------------------------------|-----------|--------|-----------|
|                                                               | 2010      |   | 2009*     |
| Deferred tax assets:                                               |      |   |      |
|   Inventory valuation                                    | $10,582   |   | $10,310   |
|   Deferred income on shipments to distributors           | 12,402    |   | 10,487    |
|   Stock-based compensation                               | 37,810    |   | 33,897    |
|   Accrued compensation and benefits                      | 6,510     |   | 3,751     |
|   Other                                                  | 18,001    |   | 19,780    |
|      Total deferred tax assets            | 85,305    |   | 78,225    |
|                                                               |      |   |      |
| Deferred tax liabilities:                                          |      |   |      |
|    Depreciation and amortization                    | $1,111    |   | $1,496    |
|    Unremitted earnings of subsidiaries              | 18,848    |   | 12,463    |
|    Convertible senior notes                         | 86,535    |   | 89,790    |
|    Other                                            | 2,171     |   | 3,766     |
|       Total deferred tax liabilities | 108,665   |   | 107,515   |
|    Net deferred tax liabilities                     | ($23,360) |   | ($29,290) |

----

| In thousands                                 |   | Unrecognized Tax |   |
|----------------------------------------------|--------|------------------|--------|
|                                         |   | Benefits         |   |
| Balance at June 29, 2008                     |   | $                | 57,423 |   |
| Net additions                                |   |             | 2,636  |   |
| Settlements                                  |   |             | (5,617 | ) |
| Balance at June 28, 2009                     |   | $                | 54,442 |   |
| Net additions for current year tax positions |   |             | 4,134  |   |
| Settlements                                  |   |             | -      |   |
| Balance at June 27, 2010                     |   | $                | 58,576 |   |

----

----

----

```
Note 12. Quarterly Information (Unaudited)
```

| In thousands, except per share amounts |   | June 27, |    |   | March 28, |   |    | December 27, |   |   | September 27, |   |
|----------------------------------------|--------|----------|---------|--------|-----------|--------|---------|--------------|--------|--------|---------------|--------|
| Quarter Ended Fiscal Year 2010         |   | 2010     |    |   | 2010      |   |    | 2009         |   |   | 2009          |   |
|                                   |   |     |    |   |      |   |    |         |   |   |          |   |
| Revenues                               |   | $        | 366,165 |   |      | $      | 311,324 |         |   | $      | 256,364       |   |   | $ | 236,135 |   |
| Gross profit                           |   |     | 287,071 |   |      |   | 242,523 |         |   |   | 194,743       |   |   |   | 176,552 |   |
| Net income                             |   |     | 124,506 |   |      |   | 100,612 |         |   |   | 75,536        |   |   |   | 60,687 |   |
| Basic earnings per share               |   |     | 0.54    |   |      |   | 0.44    |         |   |   | 0.33          |   |   |   | 0.27 |   |
| Diluted earnings per share             |   |     | 0.54    |   |      |   | 0.44    |         |   |   | 0.33          |   |   |   | 0.27 |   |
| Cash dividends per share               |   |     | 0.23    |   |      |   | 0.23    |         |   |   | 0.22          |   |   |   | 0.22 |   |
| Stock price range per share:           |   |     |    |   |      |   |    |         |   |   |          |   |   |   |   |   |
| High                                   |   |     | 31.37   |   |      |   | 30.96   |         |   |   | 30.77         |   |   |   | 28.05 |   |
| Low                                    |   |     | 26.61   |   |      |   | 26.10   |         |   |   | 25.88         |   |   |   | 22.55 |   |

| 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                             |   |     | 51,358  |   |      |   | 49,302  |         |   |   | 86,240        |   |   |   | 102,307 |   |
| Basic earnings per share               |   |     | 0.23    |   |      |   | 0.22    |         |   |   | 0.38          |   |   |   | 0.45 |   |
| Diluted earnings per share             |   |     | 0.23    |   |      |   | 0.22    |         |   |   | 0.38          |   |   |   | 0.45 |   |
| 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 |   |

```

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

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

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

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

| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

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

| 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 |
|-------------------|----------------------|

```

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| 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 June 29, 2008         |   | $          | 1,775  |   |       | $      | -      |          |   | $      | 23         |   |   | $ | 1,752 |   |
|                             |   |       |   |   |       |   |   |          |   |   |       |   |   |   |   |   |
| Year ended June 28, 2009         |   | $          | 1,752  |   |       | $      | 38     |          |   | $      | -          |   |   | $ | 1,790 |   |
|                             |   |       |   |   |       |   |   |          |   |   |       |   |   |   |   |   |
| Year ended June 27, 2010         |   | $          | 1,790  |   |       | $      | 291    |          |   | $      | 38         |   |   | $ | 2,043 |   |

|   | (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) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.36 | 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 | 2009 Executive Bonus Plan, as amended July 20, 2010. (*) (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) |
|-------|--------------------------------------------------------------------------------------------------------------|

| 10.57 | Employment Agreement dated August 11, 2009 between the Registrant and Lothar Maier. (*) (1) |
|-------|---------------------------------------------------------------------------------------------|

| 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 the Registrant’s current report on Form 8-K filed with the Securities and Exchange Commission on August 17, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 June 27, 2010. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

```

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