To: TWICK who wrote (57613 ) 2/22/1999 11:20:00 PM From: SEMIHH Respond to of 119973
SMSC/INTC agreement was non-disclosed... The terms of the agreement were never published between SMSC and INTC. There was a disclosure at the time that they MADE an agreement, however. Check your news on SMSC and you will discover that the company announced it's first peripheral chipset device last quarter. Chipset competitors SIS and VIA were granted exorbidantly priced royalty-based licenses to produce slot-1 based chipsets for the Pentium. I believe that the Chairman is providing the guidance that SMSC would be able to offer these chips to the market without paying the high fees that INTC charges per Chipset, moreover - the disclosure gives a hint of how extensive the cross-licensing agreement is between SMSC and INTC. SMSC has a history of providing cornerstone process and device technology to silicon based CMOS semiconductor firms... Oddly enough, one of the reasons SMSC was able to fully penetrate the PC peripheral product, was as a direct benefit from a cross licensing agreement the company exploited with NSM. Considering all of this, now try to price the value of the INTC agreement... the potential is mindboggling. SMSC is the #1 company in Super I/O chips in the World, thanks to Brian Halla's (CEO of NSM) decision to acquire X86 producer Cyrix... INTC immediately started pulling the NSM Design wins for Super I/O chips in the Intel PC Motherboard Company and placing the new orders with SMSC... They also decided to make an investment in SMSC, buying 10% of the company, they have an option to buy another 10%. The future of the company hinges on it's ability to execute in combining their I.P. franchise in Super I/O with the North and South Bridge PC Chipsets into integrated chips. They also have a major opportunity to provide additional I.P. delivered to the PC via licensing products/technologies to this integrated peripheral chip. One example of this is their recent agreement with WAVX. SMSC is also the #1 in the Super I/O at #1 in PC Volume OEM, CPQ, who would like to have more alternatives to the standard INTC chipsets... There's a lot of potential here....