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To: Clarksterh who wrote (3551)	6/6/1998 4:02:00 PM
From: Maui Jim	Read Replies (2) \| Respond to of 6565

From Wired News: A Chip for Every Occasion by Gene Koprowski Makers of Smart Phones, WebTVs, and other consumer information appliances using Windows CE want a new kind of manufacturing flexibility: The ability to produce a new digital device every time a shift in the market mood appears. To do so, they are quietly collaborating withspecialty chip design houses to produce new"processor cores" -- embedded chips that can be built quickly, to reduce design time and speed delivery of the myriad devices to market. VLSI Technology and Advanced Risc Machines (ARM) are two of the companies working with information appliances developers, primarily in Europe, to develop the new chips for forthcoming digital devices that use the Windows CE operating system. These new development platforms are expected to enable a new level of integration of chips. "The days are over when engineers have to accept a one-size-fits-all processor," said Ray Slusarczyk, director of marketing for VLSI's embedded processor group. As most applications require a mixture of control and signal processing functions, these different requirements have to be balanced on each chip. VLSI's development platform environment lets a chipmaker integrate the appropriate control and signal processors so that customers, and end-users, pay only for the processing power that they need. "What we are trying to get across here is that anybody can put functional system blocks on a chip and bolt them together," said Slusarczyk. "The buzz in the industry has been about creating systems-on-a-chip. These cores are at the center of the system-on-a-chip." So who are the companies poised to move forward with these newfangled chips? "I can't tell you that yet, but yes, it is all there. Especially as Microsoft puts its thrust in the Windows CE marketplace. We are watching that very closely, and platforms that support those kinds of products are certainly in planning stages," Slusarczyk said. Earlier this month, ARM introduced two new high-performance, low-power chip cores with virtual memory support for handheld devices, network computers, smart phones, and other processor-intensive applications. One of them, the ARM920T, has new features intended to optimize the performance of systems using the Microsoft Windows CE operating system, said Carl Schlachte, ARM's vice president for North America. The model for the consumer information appliance-makers has derived largely from the cellular phone market. During recent years, cell phone manufacturers have been able to add new features quickly after market researchers determine just what consumers want. Encouraged by the development of the new flexible chip cores, many cell phone-makers like Wavecom S.A. are plunging into the consumer information appliances market. "The VLSI team was instrumental in helping us quickly develop our GSM [global standard for mobile communications] module with their responsiveness and flexibility," said Aram Hekimian, CEO of Wavecom S.A., a leading French maker of wireless technologies. "In a highly competitive market like GSM, time-to-market is a key success factor. Our relationship with VLSI gives us a competitive edge by providing unmatched experience and leading technology that allows us to get our products to market faster than our competitors."

To: Clarksterh who wrote (3551)	6/7/1998 7:42:00 AM
From: shane forbes	Read Replies (2) \| Respond to of 6565

(DIVX - why only one chip supplier?, early adopters are home-theatre folks, weak distribution channels for DIVX & weak international presence(?)) Clark, Trey: thanks - that's what I thought was the case. Interesting that there are no others - DVD has quite a few companies in the chip area involved. Can see this 2 ways - VLSI set to explode as far as DIVX chips are concerned or no one else believes it will be a success or the market is just not big enough at this point. Should keep an eye on sales. Another point not in favor of DIVX is the later release date cp. to DVD. Clark, I have serious doubts about your 5 million players sold in the next few years (unless few means over 5). One I am not convinced of its eventual success and secondly (unless as Trey correctly points out - we get some recording capabilities incorporated) DVD sales estimates should be coming down. I saw something that said 30 million DVD players by 2002 - I am not so sure any more (unless it takes off internationally say in China - no "replacement" issue like we have with VCRs in the States). The early adopters are the home theatre folks and I think they are into DVD these days and not at all amused by the DIVX threat. what about DIVX internationally? DVD has an interntaional presence but with only the one US retailer in charge will DIVX fly overseas? really think DIVX needs sales channels and unless they get it very soon, the nails will be in the DIVX coffin soon enough. Trey: not sure about a 100k in unit sales this year. One not enough distribution channels, two only 6 months left, three weak international presence, four not enough big consumer electronics companies out there supporting, five DVD sold pitifully in first few months of release, six consumers do not understand what DIVX is, seven with consumer electronics and VCR replacement issue a $100 premium over DVD is significant etc etc... <g> regardless the sales figures will be out soon enough... shane.

To: Clarksterh who wrote (3551)	6/8/1998 6:12:00 AM
From: Kevin Hay	Respond to of 6565

<< VLSI, as of the last cc, was the only supplier for DIVX chips. Clark >> Beware, VLSI had an exclusive on DirecTV chips in the beginning too. And they didn't let us know that it wasn't exclusive until after earnings were out..., during Dec-96 earnings release..., 1/97. I believe LSI became the secondary supplier. Secondary suppliers are very common, my problem was with their lack of disclosure on loosing the exclusive. My point is even if DIVX is selling like hotcakes, and you've been following everything you can get your hands on about the co, don't assume the deal is still exclusive. My hope for vlsi is that they're away from pc's enough that they'll bounce sooner than other semi's. I also think CE, and 'a bunch' of Christmas-type announcements to come are a huge source of hope. The reports I've heard from Asia is that they're still buying cell phones. But how long can this go on? things seems to be deteriorating over there. At the beginning of the year I had a strong conviction that there was an over-reaction to asia -- did well buying from the scared. Right now smells similar, yet I have much less conviction. Due to the increasingly seasonal nature of VLSI's revenue I'd say it's nearly given that sales will pick up some what in the second half. But will it be enough? and will it be visible a month from now? hoping I don't get any more 'buying opportunities' with this one. happy monday..., -Kevin