eddiewg wrote:
Check it out IRB. TXN has been focusing on ICs for the last couple of years and they are going to need fusion systems. Looks like LTX could be in the running.
Do you have any evidence to support that statement? I have not heard of TI's buying any LTX Fusion testers, though it's possible they are evaluating it. Keep in mind that TI's (publicly advertised) focus is on digital signal processing (DSP) solutions, not necessarily systems-on-silicon (SOS). SOS is a growing market, to be sure, but TI could just as easily be planning to use Teradyne's Catalyst mixed-signal tester. All I'm saying is, don't assume that TI's growth will translate into revenue growth for LTX.
Although I have heard good things about Fusion's capabilities, the best technology doesn't always win. One important question to ask is, assuming TI wanted to use Fusion, whether LTX could manufacture enough testers to satisfy the demand as production ramps up. Also, does TI already have a large investment in a competing tester platform? If so there will be resistance to a switch. Such decisions are often made by management in seeming contradiction of the technical recommendations of the engineers, and usually for sound business reasons. (Most IC testers are hugely expensive at >$1M each.)
On the other hand, LTX's share price is substantially cheaper than TER's, which might balance the risk somewhat. Any thoughts?
Happy investing,
The Irb*
Austin, Texas
*mild-mannered electrical engineer by day, dabbler in investing by night |
