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

To: uu who wrote (10895)	3/15/1998 11:01:00 AM
From: Michael F. Donadio	Respond to of 25814

To All: Is LSI in Intel's sights? Interesting article in SmartMoney: "Who's on Intel's Shopping List" (http://www.smartmoney.com/smt/screen/index.cfm?story=19980313intro) about which companies Intel may be shopping around for. LSI logic is mentioned, though VLSI is more likely: (Also talks about companies like Cirrus Logic and Aware to name a few). Intel's attempts to get into the application-specific integrated circuit (ASIC) business have been disastrous, so buying companies such as VLSI or LSI Logic (LSI), a competitor, is a dicey business. Both companies are working with DRAM vendors such as Hitachi and Samsung to develop integrated DRAM products. LSI has too broad a portfolio, while Intel recently divested its investment in VLSI, apparently over management disputes. If Intel decided to take another look at VLSI, it might cost them around $750 million at today's prices. Throw into the bargain the fact that VLSI could offer Intel expertise in Gigabit Ethernet, a next-generation technology for data networking that will increase bandwidth on corporate networks tenfold. Intel is already working on a chipset for Gigabit products, but VLSI's added expertise could be useful. All the best, Michael