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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: DavidG who wrote (10780)	3/11/1998 10:35:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 25814

David: If making the customer happy is, in the final analysis, the sign of a successful business relationship then Sony is very happy with LSI. That Toshiba thing has come up so many times it's a joke. Remember mid last year - an imminent announcement that Sony would give the deal to Toshiba. I must have missed the release! Also I posted here that Business Week quote that Sony next generation PlayStation will be in the Year 2000. That's a long long time way. Also the PlayStation as again I posted here will likely sell around another 15 million units over the next 6 months. Sony also gets 25% of its income from the PlayStation. More proof that they are very happy with LSI. Again Sony went to LSI to develop the DVD chip. DVD is another biggie down the road. Everything to me points at a happy happy customer and an acknowledgement by Sony (that has its own semiconductor operations) that to do the tricky stuff, the cutting edge stuff, give it to LSI or give it to no one else. This is a 6 year profitable relationship and there's no point breaking profitable relationships. It's bad for business, it's bad for Sony. --- Finally those Korean companies will go back to DRAM in 1999 and don't have much money and definitely do not have the expertise and design libraries to make the type of ASICs that LSI can make. So I'm ignoring them - it's not ASICs, it is standard cells and those are even more difficult no much more difficult for the Koreans or anyone else for that matter to make. If LSI projects 5 times longer to make the high end designs you can bet the new companies will be not attempting the high end designs anytime soon. This is LSI's longer term niche and the things are in place or getting there for LSI which has taken years to cultivate the nec. expertise. Let the Koreans try to duplicate this over the next up cycle. I'll be watching but not anticipating. ---- Shane.