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Technology Stocks : Microchip technology (MCHP) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Tuck who wrote (301)	4/6/1998 8:35:00 AM
From: Frank Roso	Read Replies (1) \| Respond to of 475

Richard, I agree with you regarding Intel. The rumor was purported to be accurate and came from several sources. So, I decided to ask the other investors. Microchip does indeed think that they are big enough to have a direct sales force. It seems that the CEO, Steve Sanghi, believes that they need to pattern themselves after their biggest competitor, Motorola. Since Motorola is direct, well . . . . He seems to believe that this will get them into the major accounts. The reps have a slightly different opinion, naturally. What keeps them out of major accounts now, particularly telecom accounts, is the lack of appropriate product. The PIC does not have near the processing power of the CPUs currently used there. MCHP is also not a broad enough line to get in the back door either. This thing is destined for disaster. In Texas they are replacing 16 people with 3. There are too many customers for them to cover. As a stockholder, I am concerned about the expenditure on direct sales force and I am concerned about the business they will almost certainly lose. The distributors are also in an uproar.