Mary, Charlie Smith to whom you addressed your note may have a different perspective, but.... COMS makes modems and network interface cards. FORE makes ATM (Asynchronous Transfer Mode - high speed communications) switches used in networks.
On the other hand TXN DSPs (Digital Signal Processors) are pre-programmed silicon chips used as components in - among other things, COMS modems (or were last time I checked) and routers, hubs, and other electronic gear. DSPs also appear in your car, your refrigerator, your toaster oven, and so on. Companies that make DSPs fight with each other over the market; and also fight with ASIC makers (VLSI); who believe that their silicon can do the same thing better and faster because unlike a DSP, an ASIC can be customized for a specific application very easily.
COMS sells their products to companies and to consumers. FORE products are purchased by companies - not consumers. TXN sells DSPs to other companies who use them to make their products functional. Each are in different market segments with different customers and each has a completely different profile.
To the comment about 'voice taking over', the only thing I can think he is referring to is ADSL communications technologies; which several telephone companies have announced they are deploying this year. ADSL, unlike current voice communications is - digital.... and can carry both voice and data concurrently at high speeds. TXN silicon has a presence there as well. Other than that, I don't have a clue what he is talking about. (I need to say that I'm not sure your technophile is somebody you should be listening to regarding investment alternatives.) DSPs are everywhere.
It isn't a war between voice or data but a competition between the technologies that can deliver the most bandwidth to the home (or business) for the least cost - that can carry both voice and data. If you want a play on modems and other technologies that connect individual workstations to networks and communications lines, then COMS or their competitors are your play - and they have many. If you want backbone networking, then CSCO, Bay, and other similar companies might be your targets. If you want the people who make the silicon that makes these kinds of products work then TXN, ADI, VLSI, and other chip makers are who you should be looking at, in my opinion.
The TXN DSP market forecasts are published on the TXN website; and I highly recommend you take a look at them. Most people, I think, don't disagree with their growth forecasts of the DSP market in general. |
