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Xilinx vs. Altera: Which Is the Real Growth Stock?

seekingalpha.com/artic...

Xilinx vs. Altera: Which Is the Real Growth Stock?

Soon after joining the company this year he articulated how it now costs $70 million to design a new ASSP, using the latest process node. This requires a billion dollar plus market for such an endeavor to be viable.

Xilinx believes they need to focus less on being a technology innovator in order to create market opportunities, but instead pursue a business platform leadership position. This strategy appears to make sense since the last couple years analysts have pondered why ASIC designs have not seen a mass migration to FPGAs as expected. Instead ASIC starts have migrated more to ASSP products. This creates a huge opportunity for platform FPGAs to take market share from mid to low volume ASSPs.