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To: kolo55 who wrote (1784)1/20/1999 9:13:00 PM
From: Creditman  Read Replies (1) | Respond to of 1845
 
Paul ... My understanding of ASICs is that they can be designed to replace a circuitboard by incorporating the functions of many components"monolithically" on a single chip. This process is expensive to design but once design costs have been paid, chips are much cheaper to crank out than are PCBs. See the fit? Multek is making lots of the same board and Orbit says "Let's make this monolithic". Then DIIG and the company who the stuff is being made for offer to sell these chips, splitting the profits, to the outside world.

Could that be the synergy they were seeking? The scenario is just a hunch of mine but maybe that was the plan.



To: kolo55 who wrote (1784)1/26/1999 10:57:00 AM
From: Nevin S.  Read Replies (1) | Respond to of 1845
 
Read on another message board that Nortel announced layoffs of 8,000 and drive to outsource more production in an effort to reduce costs. I couldn't find the reference to outsourcing in their latest press releases but I could find reference to headcount reduction.