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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hippieslayer who wrote (6929)	2/21/1998 3:50:00 AM
From: Deryck Jordan	Respond to of 11555

All very good points I put together a few systems and with slot one you pay more for the chip, more for the case, more for the RAM and more for the motherboard I see intel and a few other getting rich but not from me. Deryck

To: Hippieslayer who wrote (6929)	2/21/1998 7:57:00 AM
From: joe smith	Respond to of 11555

thread, this may be part of whats driving up the price of idti these days. Three Intel-exchangeable MPU makers, AMD, Cyrix and Integrated Device Technology (IDT) have decided to share the 3-D computer graphics (CG) high speed management technology which is built into MPUs. The companies are aiming to set the standards for 3DCG, which are expected to grow in demand, and to expand their share of the MPU market. AMD is planning on launching their K6-3D MPU with the 3DCG feature by August of this year. AMD's MPU is said to be almost two times as fast as Intel's MMX technology PentiumII processor. AMD will be keeping their 3DCG technology open to Cyrix and IDT. The three companies will combine their independently developed technologies and make them uniform by the middle of the year. this came out of news on lombard/ discovers web site. itlooks like the little guys are banding together to go after the big kahuna. you gotta pull for the underdog. its like a rocky movie. js

To: Hippieslayer who wrote (6929)	2/21/1998 2:51:00 PM
From: Rob S.	Respond to of 11555

Regarding IDTI overtaking Intel in the uP business; The old idiom, "build a better mouse trap and the customer (market) will be knocking on your door", first implies that you can build the mousetrap. IDTI has demonstrated that it can build a couple hundred thousand parts and it plans to ramp up to be able to produce 3-4 million parts per year. That is less than 5% of the overall market demand. Intel has several billion dollars invested in several manufacturing plants. IDTI is a low cost supplier now, but there is no guarantee that they would remain so if they borrowed billions to scale up plants to manufacture millions more parts and to spend hundreds of millions on the marketing needed to take on AMD & Intel. Selling large quantities of parts is not as simple as having one or two hot versions of uPs at a low price. Intel has massive marketing muscle to support several targeted versions of their parts. IDTI will do well to capture 5%-10% of the growing market (~17% growth rate) over the next five years. Neither AMD or Cyrix/NSM are out of the picture and by the time IDT gets production ramped enough to be a factor with OEMs, both of these competitors may have successfully migrated production to higher yielding 0.25 um production. Another scenario that some analysts have discussed is that the uP market could be headed for a major over-supply situation by early '99. As INTC, AMD, NSM and IDTI ramp up production at 0.25 um, overall production will double or tripple from the current rate, flooding the market with products that have similar performance. That could cause a price war the likes of which the industry has not recently seen. That may sound awfully grim but the scenario plays well for IDTI/Centaur in many repsects. Centaur's C6 design philosophy is to make the parts simpler and easier (less costly) to manufacture. Intel's philosophy, so far, has been to out-market it's competitors. IDTI should fair well as the low-key (no huge advertising outlays aimed at the general public), low-cost manufacturer pegged against Intel's less efficient, higher profile position and more directly against AMD and Cyrix. IDTI's greatness in the uP market for the next several quarters will be severely production limited. Even taking on a major FAB or OEM won't change that picture for several months.