IDTI - an IC Play on Growth Markets Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Hippieslayer who wrote (6331)	2/8/1998 4:56:00 PM
From: Rob S.	Read Replies (3) of 11555

IDTI has had discussions with a few potential fab partners but they said that they are not very interested in partnering with anyone at this point. On the plus side would be increased capacity but on the minus side would be more effort needed to get the new fab operation up and running and the fact that they would have to pay more for the parts than their internal costs. What is frustrating is that after spending money on the Oregon fab and then finding a climate (back in 96-97) that forced the company to cut spending to outfit the fab, they don't have the needed capability to ramp the part quickly. I expect the situation to work itself out to the positive side. However, competing in the uP wars is much more than having the better mousetrap. The problem that a lot of Intellectual Property rich companies find themselves in is that by the time they have their products ready for market and start to ramp up their own production, the market momentum quickly shifts away and they face new design & build cycles. I hope that IDTI moves quickly to take advantage of market opportunities. I wish I knew what the best way was for them to go. Maybe it is either to go after protectable nitch markets, such as embeded customized X86 processors, or somehow ramp quickly to be able to stay abreast of the mainstream Pentium class PC market. A fab partner would certainly help them to produce parts but that is no quaranttee that the effort would be profitable. IDTI has moved up more than 40% recently - that's not bad but I know we would like to see it move much higher. Maybe my concerns are overblown, but I think it is what will keep IDTI stock from moving much higher. Once their success in new products is better understood, the stock should move accordingly. Until then, there are no certainties that they will not meet with production problems or be out-flanked by Intel or others. The C6 is a great part, even brilliant. I would hate to see the vision for the part end up as a minor footnote in uP history. Go IDTI! Get those fabs into high gear!!!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next