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

To: davesd who wrote (10513)	11/7/1997 12:51:00 PM
From: Rob-Chemist	Read Replies (1) \| Respond to of 70976

I think your concerns are valid. LSI is a small player relative to the overall chip market, but they are considered a leader in ASICs. Just as if one memory maker announces cutbacks in expansion, people worry about the overall market, if one major ASIC manufacturer announces cutbacks, people worry about ASICs. If that analyst is correct, it would be useful to know why LSI is cutting back so much. It has been rumored that they are having severe problems with their transition to 0.25 æm, hence reductions could be due to a slower ramp (i.e., a company specific problem). Alternatively, LSI might be contracting out some chips or they lost some major design competitions (someone else will buy the equipment). Finally, it could be due to greatly decreased demand for ASICs (seems rather unlikely).