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

To: David Semoreson who wrote (9076)	7/3/1998 2:30:00 PM
From: kash johal	Respond to of 11555

There are major sea changes coming in the business. I am personally not convinced Motorola has the strategy in place to be sucessfull. The capital Investments are so huge to be on the leading edge that IMHO the medium sized semiconductor company will vanish in the next 5-10 years. There will be many more smaller specialized companies leveraging their IP (intellectual property). Public examples would be folks like ARTI, RMBS, ARM semi etc. There will be a few MEGA foundries like TSMC, UMC, Chartered etc. It is impossible for a companies in the $ range of $100M to $0.5 Bn to effectively own their own fabs in a few years. This mean trouble for folks like IDTI, CY, VLSI. Small fabs like tower semi probably will also be in trouble. 10 years ago $100M per year company could afford their own fabs, now $500M/yr is range and this number is growing ever larger. If you look at IDT it is unlikely that they can grow large enough to have their own foundry and their new fab could be a major problem in next few years if they cannot fill it. Their will almost certainly be major consolidation in the industry and IDTI would be a very attractive buyer or partner for someone else. The general semi industry is going to undergo major changes, and hence presents major opportunity. If IDTI's plan id to get the $1-2Bn in sales by selling CL products, WChip processors that are 1-2 yrs behind the market in speed grades, and specialist SRAMs I thing they are in for a rude awakening. regards, kash