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

To: The Insider who wrote (3192)	3/18/1998 5:42:00 PM
From: DanZ	Respond to of 6565

Insider, I'm not really sure what you are asking but I will give you my perspective on what Mr. Beyer said. He talked about three business models: 1. The current ASIC model where VLSI and the customer design the chips together and VLSI manufactures and packages them. 2. The customer contracts out the design, documentation, manufacturing, and test of the chips to various companies. In essence, the customer acts as the general contractor and is responsible for all phases of the project. 3. VLSI acts as the general contractor and either does the work themselves or subcontracts all or part of it to other companies. The other companies are the partners that Mr. Beyer spoke about. Every company has its strengths and weaknesses and the third approach would be appealing to customers who don't want to expend their own overhead to see a project all the way through the design, production, testing, and packaging process. Additionally, the responsibility for the project would probably be on the "general contractor" and not the customer. This alone could make the approach appealing to customers because their costs would be fixed. I liken this approach to building a house. You can act as your own general contractor and design the house, hire somebody to pour the slab, hire framers, sheet rock workers, carpet layers, electricians, plumbers, etc..., or you can hire a builder to manage everything for you. This should be a high margin business and give VLSI a competitive advantage over companies that don't have the expertise or reputation to pull it off. By the way, I'm disappointed in VLSI's closing price today but the volume was so low that it has little significance. I'm still confident that the next big move will be up but I'm beginning to doubt if it will happen before options expire on Friday.