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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: otter who wrote (2989)	2/5/1998 3:38:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 6180

[comment on downdraft] Ray --- I have no doubt your synopsis is more accurate than what I suggested. That's not to say the Street isn't taking TI down on the news, anyway. Ordinarily news of a closed fab means market slow-downs. In this case it means cutting their losses. The following press from ALA will benefit TXN. Amati licenses its ADSL to them with some royalty streams involved. I remember during the negotiations being told that ALA was more generous than they might have been with a large company. In the scheme of the universe, this can be filed under "no big deal." Pat <<Alcatel Microelectronics Targets System-On-Chip; New Division Will Market Intellectual Property and SOC Solutions Worldwide Business Wire - February 05, 1998 15:18 %ALCATEL-MICROELECTRONCS %CALIFORNIA %COMED %COMPUTERS %ELECTRONICS %TELECOMMUNICATIONS V%BW P%BW ------------------------------------------------------------------------ Jump to first matched term SAN FRANCISCO--(BUSINESS WIRE)--Feb. 5, 1998--Alcatel today announced a new division, Alcatel Microelectronics, to market intellectual property (IP) and "System-on-Chip" application specific standard products (ASSPs) for wireline and wireless access solutions worldwide. Alcatel Microelectronics, formerly Alcatel Mietec, will market Alcatel IP and design services to original equipment manufacturers (OEMs) building highly integrated communications products. Alcatel's expertise in telecommunications systems and mixed-signal semiconductors creates a "one-stop shop" for OEMs, said Johan Danneels, president of Alcatel Microelectronics. "We are launching more than just a new ASIC division," Danneels said. "It is our ambition to become the leading supplier of System-on-Chip (SOC) solutions for the access network. We want our customers to get to market faster with superior solutions." "Alcatel Microelectronics' international marketing push will include a full line of wireline and wireless access solutions. We will offer POTS, ISDN and ADSL wireline solutions and zero-IF based GSM and DECT wireless solutions," Danneels said. Key to the strength of Alcatel Microelectronics is its direct access to the intellectual property developed by over 10,000 telecommunications sytems designers at its parent organization Alcatel. Besides this strong IP base in communications, Alcatel Microelectronics has also licensed IP from leading vendors worldwide, including the ARM processor core. "Alcatel is a leader in the design and manufacture of telecommunications ASICs. With this new division, Alcatel Microelectronics is capable of providing higher levels of support for OEMs that want to build ARM-based telecommunications systems," said Robin Saxby, CEO and president of Advanced RISC Machines Ltd., UK. Alcatel Microelectronics will emphasize advanced methodologies to manage, develop and assemble its IP using architectural templates that will support "plug and play" design. These hardware/software codesign techniques will allow the company to integrate its IP portfolio in new SOC solutions with continuously shortened design cycles. To realize this vision, Alcatel Microelectronics will team with Synopsys, the leading vendor of design reuse solutions. Alcatel Microelectronics' manufacturing strategy will support the IP and System-on-Chip marketing efforts with an approach that maximizes value. The company will employ its own advanced mixed signal manufacturing technology for designs requiring the highest level of analog and digital functionality on a single chip. A network of CMOS foundries with experience in producing Alcatel Microelectronics' devices will be employed to lower costs when advanced mixed-signal capabilities are not required. "This hybrid approach is based on an understanding of where we provide the greatest value," Danneels said. "It allows us to offer the greatest value at the lowest cost. We can add substantial value with our optimized mixed-signal manufacturing technology for analog front-ends and also considerably improve cost effectiveness in digital functions through efficient design and low-cost worldwide foundry services." >>

To: otter who wrote (2989)	2/5/1998 7:05:00 PM
From: JMD	Respond to of 6180

Ray, I'm not usually this agreeable but your post caused a smile on a down day. Let's see: I run a company with a major division producing product that is generally agreed to be, at least temporarily, in extreme oversupply. Other manufacturers are reducing production runs, mothballing plants, and pretty much battening down the hatches awaiting a correction in the oversupply condition. I elect to defer some R&D spending on a next generation product with a j.v. partner that is presently experiencing a nasty case of the shorts. (This is a technical high finance term.) Mr. Market decides this confirms that (a) the management of this division is not acting rationally since they should obviously be priming the pumps to make more product since this shows a bullish attitude on future prospects for the industry segment and (b) cutbacks mean bad things and that the rest of the company will be dragged down in consequence notwithstanding that the supply/demand picture for other divisions/product lines are as distinct as T.V. sets and tractors. Of course! Why didn't I think of that? Regards, Mike Doyle