ee times, 11/16/98 11:05 et Nowhere is that more apparent that in the storage
business, where chip companies are promising
customers their most advanced technologies, including
embedded DRAM, at such low prices that it's hard to
imagine how anyone can make money, according to
analysts.
"Doing business in storage today is hell," said Michito
Kimura, an analyst with IDC Japan who, for several
months, has been studying system-on-a-chip strategies
among Japan's top IC suppliers. Kimura said he
estimates the average cost for a CD-ROM controller --
complete with decoder, Atapi interface, DSP servo
controller, and embedded DRAM -- is roughly 800
yen, or less than $7. And that's after accounting for all
the extra mask steps involved in producing embedded
DRAM.
"Nobody can make embedded DRAM for 800 yen,"
Kimura said. "But they're doing it to stay in this
business." |
