Jim Anderson: LSI recipe for success and opportunities

After years of painful trial and ADS7861E datasheet and explore the sweet, the help of a bold restructuring and ADS7861E price and merger, LSI successfully created in the network and ADS7861E suppliers and storage semiconductor market leader in image, completed since 2005, as LSI Abhi Talwalkar Logic president and CEO after the magnificent turn. Reported a 2008 full-year revenue of 2.68 billion U.S. dollars LSI, an increase of 3%, and has up to 11 billion in cash reserves. Unlike many caught in the financial crisis peers, this result is undoubtedly compelling. But this expensive for the worlds top ten fabless semiconductor company established vendors are still trying to further optimization, the latest move is the beginning of 2009 the company has decided to field its two major storage and networking semiconductor products sector exposure to single line Under the semiconductor division. "We hope to be able to achieve different product technology sharing between departments." LSI has just three months into his department of semiconductor solutions for the global sales and marketing vice president Jim Anderson recently talked about the changes in Shanghai, said.

"If you pay attention, you will find LSI used in many products, such as storage, Serdes, serial connectivity and embedded processing and other basic technology is very similar. LSI that the reorganization will help speed up the sharing process and the long-term technological innovation. "Anderson said. But if its a series of exploration in recent years with the LSI linked to the restructuring may be more far-reaching significance: the large-scale acquisitions and mergers come to an end after it had remained relatively independent so that the various departments together really so as to LSI in the storage and networking semiconductor market dominance lay a more solid foundation.

Secrets of success

ISuppli Corporation report released in 2008, global semiconductor market by 5.2% over the previous year. Many semiconductor companies have suffered different degrees of decline. However, LSI is an exception, especially in the performance of the entire industry fell sharply in the fourth quarter of 2008 even more evident this exception: including IBM, Dell, Fujitsu Siemens, Intel, NEC and Sun, the six leaders, including selected The 6Gb / s SAS solutions, in addition, the company also won the Seagate and Hitachi, the new SoC design contract, and increased the IBM DS5000 mid-range storage systems, which greatly stimulated the growth of the storage business ; and in the network business, with Huawei, Ericsson, Nokia Siemens has also made between the win-win.

LSI Semiconductor Solutions worldwide sales and marketing vice president Jim Anderson

Driven by these positive, LSI quarter income $ 610,000,000, non-GAAP gross profit is up 45% (annual increase of 47%). "We are very strong financial position. LSI not only have sufficient cash, and earnings is quite good." Anderson believes that these successes can be attributed to the company in the past 2 to 3 years in the practice of concentration and sustained investment strategy. And it is thanks to this strategy, the company which they are engaged in almost all areas have achieved industry-leading position.

Anderson said that in the storage market, LSI has been a leading supplier in many fields. In addition to storage systems and software (OEM RAID solutions, value-added RAID and data management software) ranked first, the storage semiconductor market is still ahead: the SAS standard products, custom solutions, SAN (HBA and switch) and other sub- market, the company has sit tight in the first, as HDD chip market, Anderson said its company is acquiring more market share, and hope in the next few years, ranked second in the jump from the current first. In the network market, in addition to winning content inspection (Content inspection) and the crown notebook Modem market outside, LSI also network processors, wireless infrastructure and overall Modem DSP market in second place.

2008 Nian , LSI will account for 24% of the total annual revenue funding for the research and development, highlighting the companys leading technology to drive business development ideas. And even in the current economic downturn, LSI continues to invest in ongoing research and development. Anderson stressed that this is the secret of success lies LSI - LSI has the technology, talent and key capabilities in areas such as leadership continued investment focused. "In terms of innovation, we are always one step ahead than our competitors."

Growth Opportunities and Strategies

From Ciscos data show that between 2007 and 2012, global IP traffic will be 46% compound annual growth rate (CAGR) expansion, the monthly IP traffic will grow from 2008 to 10 EB (1EB = 10243GB) soared to more than 40 EB. "It means more connections, more data and higher demands for real-time QoE. For LSI, it means more opportunities." Anderson said. He said the demand for mass data storage business will not only create opportunities, passing the data and business development for the network to bring power.

The latest 6GB / s SAS as an example. IDC predicted that, with a variety of SAS components and devices come out one after another, and full production line OEM manufacturers with 6Gb / s SAS technology, server, 6Gb / s SAS market will be ready in the second half of 2009, and before the end of the year Start the server and the popularity of external memory. In addition to previously mentioned a number of international manufacturers, not long ago from the Taiwan server makers such as Acer, Asus, Gigabyte, Inventec, MSI, Quanta, also announced the start of use of LSIs 6Gb / s SAS Technology for the new generation server. And since the inception of SAS technologies, LSI has introduced covering the controller IC, expanders, host bus and MegaRAID adapters, ROMB solutions and storage systems and other rich products. With a variety of screen sizes

the emergence of wireless terminals, on-demand transcoding (On-Demand Transcoding) application needs to be a lot aroused. Anderson said both the LSIs advanced communications processors, StarPro media processor, Tarai content processor (content inspection and security processing), or the next business link processor LLP, will therefore benefit. It is reported that at the MWC in Barcelona conference, LSI to demonstrate such a program. The illusion of a notebook for the data center, a 4CIF format, the image is turned into three-way H.264 real-time transmission from the signal, of which two to CIF @ 30fps and QCIF @ 15fps resolution and frame rate success on a laptop reproduction, while the frame rate 15fps Zeyi sent all the way to the QCIF size of the mobile phone screen.

Is also rapidly developing Chinese market, where opportunities for LSI. Addition to Huawei, ZTE, UT Starcom, Lenovo, wave and other local clients, many of LSIs global customers are growing here. Chinas 3G market is also very excited to Anderson - figures show that, despite the growth of Chinas telecom industry in 2008 compared to 2007 has slowed down, but the stimulation of 3G licenses, will be achieved 6% growth; In addition they carry to the value-added services will grow by about 10% to reach 2,500 billion yuan; and information security are increasingly important issues of concern to the government - no doubt, these are areas of expertise LSI. Anderson said: "Almost all the equipment in the Chinese 3G market, companies have adopted the LSI solutions."

Multi-core market is a must that content. Freescale and TI are strong competitors on the market. LSIs strategy? Anderson said that although people need more computing power, multithreaded computing, parallel processing, "but the most important thing is, you can not just stacking the nuclear simple." He said, "multi-core chips from both companies must also software point of view, as well as system vendors standing in the stand thinking. and more methods will be used as multi-core and hardware accelerators, and other chips such as the ability to combine together to improve overall performance. "

"One thing is LSI unique." Anderson concluded by stressing, "you can not find any other company has such a wide range of standard products, but also provide customized products. I think for big clients such as Huawei It is an important point is that suppliers can not only provide a certain product, but rather should be able to provide a set of capabilities with a variety of product lines. "