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Technology Stocks : LSI Corporation
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To: patrick tang who wrote (19282)7/14/1999 4:41:00 PM
From: shane forbes  Read Replies (1) of 25814
 
That's a good story.

I have always felt that this is a lot more difficult that most people believe. Complexity goes up at a much greater than linear growth rate. If for no other reason than the growth in interfaces is much faster than an O(n) process - more like n! (n factorial). Since the number of gates is doubling every few quarters this means it is getting more and more complex at a faster and faster pace. Even if it is not n factorial fast in the real world, it is I bet a lot more tricky than an O(n) process.

Incidentally this also highlights why it is wise to be vertically integrated as LSI is. You are in full control and you have tested and fine tuned your building blocks, development process, and process technologies. This should mean fewer headaches.

All of this equates to a high barrier to entry and that is a good thing.
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