Sr K,
Since there's more than one chip inside the PS2 and since the actual manufacturer of the chip can differ from the company selling the chip to SONY, we can't really tell whether that's bad news for LSI, unless we know that IBM is designing and manufacturing the chip that LSI is currently designing and manufacturing. LSI lost the main processor in going from PS1 to PS2, but they still put one of their chips into each PS2. I believe Toshiba, or some other Japanese company, is doing the main chip. I think there was some "buy Japan" motivation behind that move, and I think that it would be unlikely that IBM would get that chip as result, which makes the news slightly scary, because it increases the likelihood that if IBM is getting involved it will be at LSI's expense. Still, it's hard to believe that Sony would throw over LSI after all of these years. SONY is LSI's only 10% customer right now.
FWIW, I sold my trading position this morning for a small profit. Don't know why the market is surging so much today.
Andy |
