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 : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Tuna who wrote (8811)	6/9/1998 12:14:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 11555

Charlie, they do have IBM involved right now. IBM has already taped out the WC 2 and will follow behind IDTI's own facilities in production by about 4 weeks. This amount of time is needed to tweak the processes to account for the differences in IBMs fabs. That is "to be expected" and there is no way to have gotten around it that I know of. IDT will have IBM supplying parts and able to ramp up quickly. The market is turning very price competitive. It will cost IDT about 1/3 more for the manufacture of good IC die to get them from IBM than what the incremental cost of manufacturing them internally. Since they have the capacity burning a whole in profits, it makes sense to use up that capacity as much as possible before using IBM. By bringing up both simultaneously, they will be much more assured of getting a good mix of low price and high volume. That will make it more feasible to go after a few large OEMs. As everyone can see, this is, perhaps, the most critical juncture in IDT's history. If they fail to ramp up the WC 2 and get high yields out at 266 Mhz by this fall and 300 Mhz by the 4th quarter, then Perham and company have failed to do their jobs and should have their benefits (golden parachutes) cut out and be booted out on the street. One or two mis-calculations (battles) among successes are OK, but to loose this war will be a serious mistake.