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Report: LSI may exit consumer electronics biz

Posted: 10 May 2007 ?? ?Print Version ?Bookmark and Share

Keywords:consumer electronics chips? mobile phone industry? networking and communications?

LSI Corp. is considering to whether or not to continue its CE business, consisting of sales of chips for DVD recorders, STBs and portable devices, according to an IDG News Service report.

Philip Brace, LSI senior VP for corporate marketing, however, disclosed that the company will continue to focus on its chips for mobile phones, with Samsung Electronics as its key customer. He added that the LSI is evaluating all strategic alternatives in the consumer business.

According to Brace, the semiconductor business requires scale and LSI's consumer business is still small. LSI will examine the investments required in for the long-term success in the business and whether is it prepared to make the investments.

In April, LSI finalized its merger with Agere Systems Inc., a vendor of semiconductors for the communications, networking and mobile phone industries. Brace said close to 60 percent of the revenue of the combined company continues to come from its storage chips and systems business.

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