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

To: shane forbes who wrote (12644)	5/27/1998 6:04:00 AM
From: shane forbes	Read Replies (2) \| Respond to of 25814

I've been making the case that LSI in the next few quarters is going through a kind of transition to a high-volume chip manufacturer of relatively fewer chips (vs. a relatively low-volume manufacturer of a large number of chips in the old days). Examples of these chips are the GSM, DCAM and DVD chip (also the DTT chip?) alongwith some CoreWare designs like those FC cores, Gigabit Ethernet and ATM cores. If anyone noticed in FY 1997's annual report, for the first time we had a mention of an ASSP. Then we saw a mention of an MSOC in that techweb article. The premise is the same: cut down on those design costs, stop reinventing the wheel, sell millions of one kind of chip instead of 1000s or even tens of 1000s of many kinds of chips (the INTC model does work!). ---- Here's some new proof of this shift going on at LSI: lsilogic.com one that I think the market is missing and one that I hope for my sake is the essence of the whole shebang. ---- Ironic that a company with so much IP as LSI does worse than a company like MU with no IP (in the last few years - ROE wise). MU does a billion of one thing, LSI does not. MU is commodity, LSI is as far away from that as one can be. LSI burning up the R&D cash to reinvent the wheel for every new design (roughly), MU does not... Well the game will be changing soon. Lots of IP and millions of chips - that is the winning combination - not one to the exclusion of the other. ---- shane. (of course this does not mean that ASIC implementations die or all those non multi-million chips of LSIs die - it just means the ASSPs and these other high volume babies will be much more important. you make money by getting a spark of brilliance and then doing a billion chips with that one spark not by continually looking for sparks of brilliance over and over and over again - won't work - no company is that smart. It takes one great idea to make a fortune not one thousand. One great l/t buy and hold stock to make a portfolio not one hundred s/t ones.)