To: Scrapps who wrote (2242 ) 10/5/2000 1:16:04 PM From: Jim Oravetz Read Replies (3) | Respond to of 2882 You can learn more about ADI on the web at www.adilink.com. Wrong ADI! Broadcom Enters ADSL Market With Acquisition By Semiconductor Business News Oct 4, 2000 (9:10 AM) URL: techweb.com IRVINE, Calif. -- Broadcom Corp. has gained entry into the consumer-oriented DSL chip business by acquiring a small, fabless-IC design house in a stock deal worth $600 million. Element 14 Ltd., Cambridge, England, was formed by former executives of Acorn Computers Ltd. in 1999. Its 68 employees are developing what is anticipated to be the industry's first 12-port, full-rate ADSL solution for the central office. "We believe this acquisition will position Broadcom as a leader in the ADSL market," said Henry Nicholas III, president and chief executive of Broadcom, Irvine, Calif. "Together, our combined product lines will offer the most comprehensive portfolio for copper twisted-pair broadband delivery." The move propels Broadcom (stock: BRCM) into a competitive but booming market. Rivals include Alcatel SA (stock: ALA), Centillium Communications Inc. (stock: CTLM), GlobeSpan Inc. (stock: GSPN), Intel Corp. (stock: INTC), Integrated Telecom Express Inc. (stock: ITXI), Lucent Technologies Inc. (stock: LU), PC-Tel Inc. (stock: PCTI), Virata Corp. (stock: VRTA), STMicroelectronics NV (stock: STM), and Texas Instruments Inc. (stock: TXN). The acquisition also gives high-flying Broadcom the missing piece in its broadband strategy. Until now, the company has focused its efforts on the rival broadband technology to DSL-cable modems. In fact, it is the world's leading supplier of chipsets for the booming cable modem business. Broadcom is no stranger to DSL, however. For some time, the company has been selling chips based on Very High Bit Rate DSL (VDSL) technology, a high-end, ADSL-oriented scheme that utilizes fiber-optic cabling to bring voice, data, and video into the home or business environment. VDSL is in its infancy in the market, while ADSL is exploding, analysts said. In fact, carriers are struggling to keep up with demand for their ADSL services, they added. Combined with Broadcom's position in home and enterprise networking, Element 14's technology will be used to develop standalone ADSL-enabled chipset products as well as integrated solutions for residential gateways and related products. "Broadcom is already the market leader in VDSL and cable modems, and we are now positioned to provide every means of delivering broadband access to the home and business," Nicholas said. "Additionally, Element 14's world-class [digital signal processor] technology can be leveraged across all our business units." I'm a little suprised that ADI (the real one!) did not show up in the list of people making xDSL chip sets. Is not Aware a big user of ADI devices? Jim