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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: RMP who wrote (3722)	6/11/1998 12:36:00 AM
From: EUGENE LO	Respond to of 6180

TI (NYSE:TXN) downplays IBM (NYSE:IBM) challenge on DSPs Reuters, Wednesday, June 10, 1998 at 20:58 DALLAS, June 10 (Reuters) - Texas Instruments Inc. (NYSE:TXN) on Wednesday downplayed news that International Business Machines Corp. (NYSE:IBM) will compete directly against TI in the digital signal processor market for cellular phones. "We don't see this as a threat to our No. 1 position," TI spokeswoman Donna Coletti said. "We believe we are doing the right thing to maintain our market share." IBM earlier announced a $100 million investment in initiatives to help fuel its custom microchip business. The investment centers on the addition of more than two dozen chip "cores," including one that provides full compatibility with a Texas Instruments digital signal processor (DSP). Texas Instruments controls roughly 45 percent of the $3.13 billion global DSP market but Coletti said the Dallas-based semiconductor giant was well-placed to withstand IBM's challenge. "We've been shipping that chip in high-volume production for several years and we have a well-established infrastructure including software tools and a third party network that is far more extensive than anything our competitors have," she said. "Having an infrastructure is crucial for winning in the DSP market and it is not built overnight." TI shares dropped 3-11/16 on the New York Stock Exchange on Wednesday amid concerns that the company faces stiffer competition in the DSP marketplace, which it has identified as its key business for the future. But Coletti said TI has technology years ahead of that of its competitors. "This (the IBM announcement) is a good indication from a competitor that TI has the best DSPs on the market. That's why they cloned it," she said. Copyright 1998, Reuters News Service