Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (28257)	7/18/2000 12:23:22 PM
From: sditto	Read Replies (1) \| Respond to of 54805

In today's world it's inevitable that your biggest potential partner could also be your biggest potential competitor. INTC certainly falls into that category for QCOM and a decision to help them build CDMA products needs to be treated with care. The approach I find preferable at this point is the relationship CSCO has developed with companies like SLR who focus on contract manufacturing for others as their core competence rather than domination of a specific industry segment, system, or product. The same model seems to be developing in the semi world where companies like TSM have evolved from providing fab for excess demand on simple products to now being the primary fab provider for some complex products. If you outsource your manufacturing to someone like TSM you get their expertise and still capture the value of the end product. If you sell your manufacturing to INTC you strengthen your value chain but give up the value of the end product and potentially lose control of the architecture if they flex their Gorilla muscles. Call me greedy but I want to win the season and the world series too.