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Technology Stocks : LSI Corporation
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To: Tony Viola who wrote (13930)7/27/1998 8:53:00 PM
From: Tech Watcher  Read Replies (1) of 25814
 
I think most of us are very receptive to "alternate views" as long as they are not accompanied by vicious personal attacks. Let's all keep up the good work.

I'm sure I'll be corrected if I am wrong, but I believe both Altera and Xilinx are fab-less. This gives them the ability to take advantage
of cheap parts supply, much as the PC makers have made huge profits
due to cheap component pricing. They never have performed quite like
the rest of the industry.

Their programmable chips are sometimes used to be first to market or as a cheap fix if a company doesn't want to spend the money to develop a "hard-wired" solution. I think they benefitted by many new product cycles being initiated in a market where companies were fighting to keep development costs down. An overall improving market will actually not benefit Altera and Xilinx as much because companies will now make the initial investment in development (LSI's CoreWare Design) knowing that the cost per unit will be less for volume production.

- Tech Watcher
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