Intel Investors - Intel and Analog Devices to Announce a Joint Effort - This may be a thrust into the DSP - Digital Signal Processing arena for Intel.
Any ADI shareholders should benefit from this !
Paul
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dailynews.yahoo.com
Tuesday February 2 6:55 PM ET
Intel, Analog Devices To Announce Joint Venture
SAN FRANCISCO (Reuters) - Semiconductor giant Intel Corp. (Nasdaq:INTC - news), andAnalog Devices Inc. (NYSE:ADI - news) are expected to announce Wednesday a jointdevelopment venture which is expected to mark Intel's entry into the booming digital signalprocessor arena.
The two companies are expected to announce plans to develop embedded chips for handheld computing devices,according to industry sources.
A spokesman for Santa Clara, Calif.-based Intel declined to provide any details, except to confirm that the twocompanies will hold a press and teleconference Wednesday afternoon.
Analog Devices Inc,. based in Norwood, Mass., is a developer of analog chips and digital signal processors, one ofthe fastest growing areas of the semiconductor industry. Digital signal processors are used in everything from cellularphones, pagers, digital cameras and modems to video equipment.
''One of the big holes in Intel's product line is in the DSP area,'' said Drew Peck, an analyst with SG Cowen. ''Nothaving DSP technology is a problem and the barriers to entry are enormous...This is also obviously going to be asign of endorsement of ADI's technology.''
Last June, Motorola and Lucent announced they were joining forces to develop next-generation digital signal processor technology to accelerate development of advanced chips for communications, transportation and consumer electronics devices.
Also in June, International Business Machines Corp. (NYSE:IBM - news) announced that it would compete directly with Texas Instruments Inc. (NYSE:TXN - news) in the digital signal processor market. TI currently controls the approximately $3.1 billion DSP market with an estimated 45 percent share.
''Anything that gives ADI greater legitimacy is obviously a negative for TI and Lucent,'' said Peck. ''Those three companies dominate the market and are clear competitors.''
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