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To: RikRichter who wrote (56391)	5/11/1999 9:21:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Broadcom unveils new fast networking chip By Scott Hillis LOS ANGELES, May 11 (Reuters) - Communications chip maker Broadcom Corp. <BRCM.O> on Tuesday unveiled a new chip to enable faster delivery of video, voice and data without using expensive fiber optic cables. The new chip, to be used in local network switches, moves data along traditional copper wires at speeds of one gigabit, or 1,000 megabits, per second, the Irvine, Calif.-based company said. Such networks now are limited to speeds of 10 megabits to 100 megabits per second, and higher speeds have been attainable only by investing in fiber optics, which have been too pricey for most consumers. "This is probably the most significant technology demonstration in the history of the company," Broadcom Chief Executive Officer Henry Nicholas said in an interview. "Now your data network ... will allow you to deploy not only voice and data but maybe real time video. That opens up a whole new range of applications," Nicholas said. Broadcom stock soared $8.69 to $92.69 in trading on the Nasdaq stock exchange on Tuesday. The company made the announcement in Las Vegas at an industry exhibition after the close of trading. Nicholas said companies including Cisco Systems Inc.<CSCO.O>, 3Com Corp. <COMS.O> and telecommunications firm Nortel Networks Corp. <NT.TO> already had created working products that will feature the chip when production starts in the third quarter. The chip would be used in switches, adapter cards, uplink modules and motherboards found in servers and commercial desktop computers, Broadcom said. "The market this chip is addressing is going to drive a large percent of the growth in networking over the next four to five years," said Greg Collins, a senior analyst at the Dell'Oro Group. Collins said the market for gigabit "ethernet" -- the most common kind of local network -- would grow to $4.8 billion in 2002, from an estimated $1 billion this year and $270 billion last year. "Copper products will comprise the vast majority of ports shipped," Collins said. "They (Broadcom) already have a very strong position and that further cements their position in the market". Broadcom has moved aggressively to build a reputation as a leading player in the communications gear market. Last month it said it planned to buy Epigram Inc., another network equipment maker, for $316 million in stock to boost offerings of high-speed communications to a broader range of home and small office consumers. REUTERS Rtr 20:18 05-11-99