>>NEW YORK (CBS.MW) -- LSI Logic Chief Executive Wilfred Corrigan said the Internet has replaced the personal computer as the primary driver of business. "We're seeing some fairly profound changes, he told investors at the Goldman Sachs Technology Investment Symposium.
Milpitas, California-based LSI Logic (LSI), makes custom-designed high-performance semiconductors that enable its clients to build complete electronic systems on a single chip.
Net effects
Demand is coming from the growing acceptance of the Internet and the demand for a sophisticated infrastructure to support it, he said.
To illustrate his point, Corrigan pointed to rate-of-adoption curves for mass media introduced this century. Radio took 35 years to become commonplace, while television took 13 years and cable television took 10 years, he said. The Internet has taken only five years to gain a major foothold as a mass medium, Corrigan said.
Still, he questioned whether investors are grasping that concept, expressing doubt that "the sheer speed with which the Internet is being accepted" is being recognized.
Chip pickup
Corrigan also said a recovery in the chip industry is beginning. Demand is picking up in Asia, he said. He told CBS.MarketWatch.com that sales in the region are being driven in part by increasing consumer demand in China.
He said he sees $30 million in revenue from China in 1999, jumping to as much as $100 million in 2000. DVDs and set-top boxes are among the products that are generating sales in the region, Corrigan said. He said he sees total sales for LSI Logic breaching $2 billion in 1999. "We have a reasonable shot at that," Corrigan said.<<
cbs.marketwatch.com |
