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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!

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To: dr_elis who wrote (3252)3/31/1998 6:47:00 PM
From: Rob-Chemist  Read Replies (1) of 6565
 
I don't think the simple fact that other companies will be using the Hitachi core for ASICs is good or bad news for VLSI. If the other companies use this core to make products that will directly compete with VLSI, then this could be bad news if the resulting products are better than VLSI's. Given the huge number of ASICs and roles for ASICs, it seems more likely that most or all of the chips produced by these other companies will not directly compete with VLSI.

Likewise, I do not think that Sony using this core will significantly affect their chip purchases from other companies. Designing a new chip is very time consuming. Thus, if another company already has a chip that meets all of your needs, it is unclear as to why you would try to replace this chip. An example of this is IBM. They have an extremely large ASIC division with perhaps the best chip manufacturing technology in the world. Yet, they buy huge numbers of ASICs from other manufacturers.
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