EXHIBIT 99.1

REPORT OF KPMG LLP

To the Board of Directors and Stockholders:

     We have audited the accompanying consolidated balance sheet of Dallas
Semiconductor Corporation and subsidiaries as of December 31, 2000 and the
related consolidated statements of income, stockholders' equity, and cash flows
for the fiscal year then ended. Our audit also included the financial statement
schedule listed in the Index at Item 14(a) as of and for the year ended December
31, 2000. These consolidated financial statements and schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements and schedule based on our
audit.

     We conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Dallas
Semiconductor Corporation and subsidiaries at December 31, 2000, and the
consolidated results of their operations and their cash flows for the fiscal
year then ended, in conformity with accounting principles generally accepted in
the United States. Also, in our opinion, the related consolidated financial
statement schedule as of and for the year ended December 31, 2000, when
considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.


                                        /s/ KPMG LLP


Dallas, Texas
January 12, 2001, except for Note 7
  which is as of January 28, 2001