Both, as I understand it (and I am not a tech person). C7 is their
new, smallest feature size process of their proprietary fabrication process technology.
There is no question that design capability and performance is what I am most worried about. (While we are adding to the list of past issues, recall when Mr. Klein announced a commodity product strategy at the beginning of 1997, a tacit admission that he could not do it on the proprietary products.)
However, I have been buying more stock recently. On our key concern, I point to the IBM/LU allusion. I also point to the 2 new fab deals. Think about it. They are using Xicor technology, which probably costs some bucks to set up. They don't want to do that with a company either going under or giving them an occasional small production run of a fancy $5 part.
Sometimes in investing you have to go with your gut before you know
all the pieces of the puzzle. This reminds me of the game for kids where a picture is totally covered to start, with it gradually uncovered until a player accurately guesses the picture. I am guessing that the information, such as it is, in the preceding paragraph will end up displaying a nice picture -- of large volume production of a lower cost part with proprietary features and good margins. |
