Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: getgo234 who wrote (12104)	5/4/1998 12:21:00 AM
From: shane forbes	Respond to of 25814

Getgo and others: INTC is definitely coming. That realignment in Dec last year was meant to focus the company on these end segments. Now will it hurt LSI? Sure more competition is a bad thing. But some observations: (1) There was an article a few days ago about big bad INTC's encroachment into non-MPU areas - ex: flash, NICs etc. The punch line is that INTC has not exactly destroyed the competition when they entered new arenas. In fact they have lost m.share in flash. And 3Com is doing well with their NICs - not surrendering any of their position to INTC (as far as I know - outdated info.). In fact the further they stay away from the PC the weaker it seems their offerings get. This does not mean they are bad but just that once INTC is in it does not automatically mean others will roll over or die. (2) INTC has floundered in ASICs before. I'd be afraid if they start buying talent. (3) LSI will likely be on version 3 or 4 of its DCAM chip by the time Kodak's INTC version chip comes out. (I wonder if LSI was working with Kodak before?) (4) Ever noticed that, on the consumer side, LSI has several of the big Japanese companies in their corner. These companies are global terminators!! If LSI can continue to cultivate these long term relationships with these Japanese giants they will continue to have a market for their products with the big wigs and that says a lot for their long term viability. (5) As I've mentioned before, one of the key reasons I like LSI is the fact that the consumer electronics chip market will be a huge market down the road. Huge markets attract competitors. So not all surprised about them coming in. Wish INTC stayed out however! (6) LSI has a commanding position in the chip market for these cameras. (7) Figure LSI will be able to maintain its general leadership position for at least the next 3-5 years. That's the maximum length of my investment horizon. After that with the competition thing, things could get ugly - unless they take the right forks in the road - technologically speaking. --- Shane.