Bret, maybe, but the semi stocks hammered the most specifically by the IBM announcement two days ago were TXN and LSI.
Let me tell you a little bit about IBM. THEY HAVE CHANGED, DRAMATICALLY. They no longer are the upstate New York, we're better than anybody, we developed this and it's all you need to consider to buy because we have no competition...company. They now solicit product requirements, features and functions, from their customers, as well as anybody. They then bring product to market swiftly, as well as anyone, and have excellent product support and services. Do you know who LSI picked to bring up and run their corporate computer center and networks? IBM. I know, we are talking about semiconductors here, but IBM has exhibited corporate goals to make money wherever they can. And, of course, IBM has the best semiconductor development and fab capability of anyone in the world. Bar none.
Like I said, I couldn't find an IBM report that broke out semiconductor, specifically ASIC type chip, sales. But, whatever it is, they have the resources to get big fast, hopefully, however, not at our expense. It's something like Intel getting into the network interface card (NIC) business. They got some business away from 3COM, the leader in that field, 3COM got a lot of it back. But, 3COM sits at 30% of their high of two years ago. 3COM was overpriced, LSI probably under, so I don't expect anything like that. However, I didn't need to see IBM going after ASICs, with their 0.18, their copper, their best of breed yields and reliability, and their new attitude. Not exactly junkyard dog, but...
Tony |
