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Technology Stocks : Vitesse Semiconductor

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To: jung, haeoh who wrote (380)1/7/1997 3:01:00 PM
From: SI-Shark   of 4710
 
Haeoh,

Will GaAs chips ever find niches that silicon chips cannot handle?

Ans : Silicon has lots of problems trying to do any analog functions above 2Ghz, especially if impedance matching is important. So that means microwave comms will stay GaAs. As will 10Gbit/sec optical comms. However, I think that everything down stream of the Tx/Rx functions will change over to silicon.

Will PCS phones use predominantly GaAs chips (like Ericcson's) or will silicon chips dominate PCS as well?

Ans: GaAs will continue to be used transmitter amplifiers for the next couple of years. On the Rx side 900Mhz will go over to silicon next year but the 1.8Ghz PSC will continue to be very much the domain of GaAs chips for the immediate future. In these areas actual die costs are not meaningful because package / test costs are often 10X die cost so you pick the best technology for the job.

One of the main factors in determining which chip gets the front end functions will be a change in the way that the major cell phone companies are buying chips. The trend is very much towards package deals. They basically want to work with semi suppliers that can offer the whole deal.

regards
Si-Shark
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