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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Maui Jim who wrote (3096)	3/3/1998 10:44:00 PM
From: Maui Jim	Read Replies (1) \| Respond to of 6565

Two VLSI news pieces out Monday: edtn.com VLSI draws from within to create an ASIC unit: Silicon Valley- Having clearly defined a custom-silicon strategy and target markets, VLSI Technology Inc. is launching an ASIC division to pull in customers from outside its core businesses and re-energize its existing custom activities. The ASIC strategic business unit is the final phase in VLSI's return-to-roots strategy, which in less than two years has transformed the San Jose-based company from a stale PC chip-set vendor to an invigorated custom-silicon supplier focused on dynamic new markets. The group, to be formed today, is expected to revitalize VLSI's general-purpose ASIC business by drawing on IP blocks from product sectors that until now have been outside the company's scope. At the same time, the division is chartered with advancing VLSI's custom design capabilities and channeling that back across the company's existing product lines, said Scott Parker, vice president and general manager of the ASIC business unit. One of the unit's goals for 1998 is to slash VLSI's ASIC time to market in half. Today, the time to get from "known-good blocks" to prototype averages about 40 weeks, according to Parker. To reduce that, VLSI will address all areas of the design flow, starting with developing closer ties with ASIC tool vendors and building up local design support. The company already has many of the pieces in place, Parker said. VLSI indicated it may also be developing verification tools in-house. A slight reshuffling of people and revenue enabled the creation of the ASIC group out of VLSI's other business units, which encompass products for wireless communications, networking, and consumer digital electronics. Before joining VLSI to head the ASIC unit, Parker was in charge of telecommunications products at National Semiconductor Corp., Santa Clara, Calif. VLSI did not disclose how much of the company's business will come out of the ASIC unit. However, having separated general-purpose ASIC activity from specific product lines, it said the group should grow more than 20% annually. To make that happen, VLSI will have to break out of the competitor pack. VLSI's edge will be to offer speed and local flexibility, according to Parker. "In the general-purpose ASIC market, service is a key thing," he said. "We will make sure we're keeping that flag in front of the company."