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

To: E. Graphs who wrote (13467)	7/9/1998 3:48:00 PM
From: Moonray	Read Replies (1) \| Respond to of 25814

TI chief sees '98 chip market shrinking Posted at 3:00 p.m. PDT Wednesday, July 8, 1998 DALLAS (Reuters) - Texas Instruments Inc. Chief Executive Officer Tom Engibous said Tuesday he expects the global semiconductor market to shrink this year as Asia's economic crisis and weak chip prices bite into sales. Texas Instruments executives had earlier this year predicted the global chip market would grow 10 percent and later lowered that estimate to about 5 percent, but Engibous said even that was now unrealistic. ''Unless something picks up, it looks like it is going to be negative,'' Engibous said in an interview with Reuters. ''I think the number will be more than 1 or 2 percent negative.'' Continuing oversupply and weak prices for memory chips, Asia's economic troubles and weaker-than-expected demand for personal computers have all hurt U.S. chip makers in recent months. Engibous said the recovery of Asia's demand will likely determine how quickly, or slowly, the industry can recover as multinational companies, which are concerned about their Asia operations, have cut back discretionary spending on computer upgrades. ''There is no question that the personal computer growth rate has slowed this year,'' Engibous said. ''We see the follow-through when it gets to modems and disk drives, which are peripherals for those products.'' With increasingly commoditized DRAM memory chip prices slumping dramatically since late 1995, Texas Instruments has refocused its attention on more specialized chips, especially digital signal processors (DSPs) used in cellular phones, modems and hard drives. That strategy has paid off as the global DSP market has been growing at around 30 percent, although Engibous said Tuesday even that market has seen a slowdown in recent months. He said figures from the end of March or April showed the DSP market, which Texas Instruments dominates with a share of about 45 percent, growing at an annual rate of 22 percent. ''It is less than 30 percent so far this year but in a market where the rest of total semiconductor business -- with and without memory -- is negative, 22 percent is not bad,'' Engibous said in the interview at TI's headquarters in Dallas. He said the so-called ''mass market'' for standard DSPs and demand from cellular telephone customers remain ''very strong'' but that sales to disk drive and modem manufacturers have been hit by weak markets for those products. o~~~ O

To: E. Graphs who wrote (13467)	7/9/1998 4:26:00 PM
From: DavidG	Read Replies (1) \| Respond to of 25814

E I still think LSI is looking good. It held above the 50DMA today even though it was a down day on low volume. LSI is expected to show some resistance before going through the 200DMA as it was trying to do since yesterday. As I said before down days are low volume and up days are high volume. askresearch.com DavidG