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Technology Stocks : SMSC Standard Microsystems
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To: dwight vickers who wrote (163)6/10/1997 1:02:00 PM
From: peter lo   of 335
 
Do you know what is the reason the Intel invest in SMSC? Because
Intel infringed SMSC's IO patent on Intel's mother board(There are
two other companies infringed SMSC's IO patent also. But they need
to pay loyalty). To avoid law suit and pay loyalty to SMSC( not good
for Intel face), they settled by investing money on SMSC and promsis
to buy IO technoloy from SMSC in near future. I feel SMSC lost a
lot during the settlement. But nothing SMSC could do. Law suit may
take long time to settle and need a lot of cash. SMSC was short of
cash due to recent bad earning. Even was a bad with INTC, SMSC need
to do it.

Hopefully, the SMSC will be able recover soon.

Peter
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