Andrew Schmitt

How 100 Gigabit Ethernet Markets Will Differ from 10

"... any new fixed-function chip like an ASIC or ASSP will increasingly need multiple vendors over which it can recover nonrecurring development costs, which was not true five years ago."

And the problem is that Cisco is 60-70% of the market, they use ASICs, and will always use ASICs for high volume applications so long as they are 60-70% of the market.

Semis With Highest, Lowest Production To Sales Ratio

Trent:

Big error here. The production effect and the impact on gross margin applies only to companies that own their fab. Fabless companies do not see Gross margin move as 2000 wafers from TSMC costs the same as 1500.

You need to remove all fabless revenue to make this a meaningful study.