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Technology Stocks : LSI Corporation

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To: Marc Bourgault who wrote (9159)1/26/1998 11:45:00 AM
From: shane forbes  Read Replies (1) of 25814
 
Thanks Marc. Hard to say re: impact on PlayStation. Sony has one of the bigger semiconductor operations around. When the 32 bit version of the PlayStation was announced many many moons ago, I recall reading that the Sony big-wigs said Sony would develop the next generation chip. I have no idea what has become of this. There are benefits to using LSI as the OEM that likely place LSI in a good position to build the 2nd gen. chip. Not least of which is letting LSI do all the capital spending! This logic is the same as WDC letting guys like HTCH, INVX, KMAG do all the capital spending and then WDC reaps the rewards of their R&D and cap. spending by buying cheap components from these guys.

But who can tell. The current gen. chip should last quite a while so I'm not too concerned. Product introductions can really cannabalize existing sales so Sony has to balance the pros and cons carefully. Right now the 32 bit version is selling well. Besides some were hinting that Toshiba would play a part in the chip development. So maybe the Fujitsu announcement is ancillary to all of this. Who knows?
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