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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (56730)	12/1/2001 1:34:04 PM
From: Cary Salsberg	Read Replies (3) \| Respond to of 70976

Sam, I have "watched" Synopsys and Cadence for a long time. Cadence for about 11 years. These companies don't have the kind of leverage that the rest of the chip industry has. They license their software, they don't get royalties on their intellectual property like the IP companies. They have relatively slow growth rates. They are very profitable. They have some barriers to entry, but the dynamic progress of chip making puts their enterprise at risk, continuously. I have concluded that the winners don't really get adequately compensated for their risks and their success. The real beneficiaries of these companies skills are companies like ALTR, XLNX, and LSI which provide the platforms and leverage off EDA, IP, and advances in fab processing to build cheaper, faster, smaller, and better.