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Technology Stocks : Vitesse Semiconductor

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To: Gerald L. Kerr who wrote (148)7/1/1996 2:38:00 AM
From: Marshall   of 4710
 
Having been a past owner of VTSS and TQNT (both GaAs companies) I'll bet the reason for the recently increased interest in VTSS is the fact that MCI, as well as others, are "upping" their main internet backbone lines to full OC-12 622.5 Mbps speeds. This kind of speed is pretty much only attainable with GaAs optical receivers and switching circuits, both of which Vitesse makes.

GaAs was originally developed for military radar applications thus the reason the the few companies that are in it were originally military suppliers. These have been very expensive semiconductors to make for years but some recent advances have been made in yield improvements thus lowering costs. You will find GaAs circuits in all sorts of equipment from satellite to PCS but Vitesse mainly concentrates on the specialty stuff.

It is also interesting to note that many of the Cray supercomputers were full of GaAs circuitry!
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