In overheated computer-chip world, tradition melts; business plans fade, unusual partnerships form; will party continue?

Article Abstract:

Both large and small semiconductor companies strive to meet increased chip demands by establishing unusual partnerships, developing new business plans and building new factories. Foundry chip makers, which provide production services to companies without factories, have many customers willing to pay to help build new manufacturing facilities in exchange for options on the foundries' output. Semiconductor companies without chip-fabrication plants find investments for option arrangements and joint manufacturing agreements present hidden costs. Chip developers and manufacturers Intel, AMD and National Semiconductor have long felt that their manufacturing abilities provide a competitive advantage. Industry cycles indicate that such building explosions are often followed by chip shortages. Some industry analysts fear this will happen again, but the majority of analysts are optimistic that PC sales and demand for laptop and desktop computers will remain strong.

Analysis, Forecasts and trends, Industry trend, Integrated circuit fabrication

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National Semi swings to solid profit; first-period results exceed forecasts

Article Abstract:

National Semiconductor reported $70.1 million in net income for first quarter ended Aug 24. The 45-cent share increase exceeded analysts' projections and demonstrated that firms can still profit from manufacturing low-priced semiconductor chips. This compares with $207.6 million in company losses, or $1.51 a share, which includes sold operations. National Semiconductor proved that it could fill demand significant demand for analog technology in markets that include radio waves, temperature, sound and power. CEO Brian Halla said the company raised its sales of analog chips for cellular telephones by more than 100% in the period. Halla ultimately plans to steer National Semiconductor's production from commodity semiconductors to more versatile systems on a chip that can power an array of inexpensive PCs and appliances.

Finance, Company sales and earnings, National Semiconductor Corp., NSM, Company Sales/Revenue, Company Earnings/Profit

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Intel mounts response to sub-$1,000 PC pressure

Article Abstract:

Intel Corp. is presenting a genuine response to sub-$1,000 personal computers. However, the semiconductor market is concerned about the possibility of even less-expensive PCs. In August 1998, Intel will unveil a new microprocessor chip line that will be the company's best chance to rebound in terms of market share in the sub-$1,000 personal computer market.

Comment:

Presenting a genuine response to sub-$1,000 personal computers in the form of a new chip line

United States, Product information, Company Planning/Goals, New Products/Services, Intel Corp., Article

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