To: Pravin Kamdar who wrote (76700 ) 4/9/2002 12:17:49 AM From: Dan3 Respond to of 275872 Re: $50 million seems like a steal for Alchemy Maybe instead of buying Alchemy for $50 million, AMD should have let Intel pay $500 million for it, then micromanage the engineers until they quit and went to AMD anyway.Intel has nonetheless been beaten to market, as in the case of Atheros Communications Inc.'s 802.11a chip, which Intel is using in lieu of its own. It's also been outdone, as when its Gigabit Ethernet PHY proved inadequate, prodding Intel to use a PHY from Marvell Semiconductor Inc. (Intel is "very happy" with the Marvell relationship, Maloney said, but he refused to comment on whether Intel still hopes to produce its own Gigabit Ethernet PHY.) Those might seem like small setbacks, but they get magnified in the communications arena, foreign turf for Intel and a world where it can't call the shots. "They're used to being the de facto standard in everything, but standards have to be in place first in communications, and that takes away their natural advantage," one analyst said. Intel has been good in areas where it controls the infrastructure, but "when it's an open-market jump ball, they do less well," said Gauna of UBS Warburg. For example, he noted that Intel's chips for 10-Gbit/second Ethernet have found one major buyer — Intel's own network interface card — while the rest of the market has embraced Broadcom Corp. It's not just individual products that have fizzled. Acquisitions have stalled as well, or failed to produce the results Intel wanted. DSP Communications, for example, was supposed to be Intel's ticket into the CDMA market. But those plans faded when Qualcomm Inc. stole DSP Communications' lone customer — Kyocera Corp. — and held its lead in CDMA. Separately, the Basis acquisition yielded some digital subscriber line chips that have already been discontinued, analysts said. eet.com