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Microsemi to grow Actel lines

Posted: 12 Oct 2010 ?? ?Print Version ?Bookmark and Share

Keywords:Microsemi? Actel? FPGA?

Microsemi Corp. will not cut any of Actel Corp.'s product lines, according to Russell Garcia, executive VP of marketing and sales, Microsemi, discussing the completion of the $430 million tender offer the company made for Actel.

"These products are so differentiated in the marketplace," explained Garcia, "We want to take full advantage of that and continue to grow and build on it."

Garcia said that Microsemi would not seek new design wins in segments where the appeal of Actel products is not sufficient to command high margins. Garcia noted that Microsemi would instead channel engineering, marketing and sales resources to applications where Actel's low-power, mixed-signal and radiation-hardened FPGAs offer the most value to customers, thus generating maximum profitability to Microsemi.

"The only reason you don't get the value for your differentiation is that the customer doesn't see the valuation," Garcia said. "Otherwise they are willing to pay more for it."

Garcia noted that applications where Actel's technology is sufficiently differentiated to command higher margins include military and aerospace end markets, medical, industrial and even some consumer grade applications.

"We just aren't going to compete one on one in a mass market arena where our low power differentiation is not valued," Garcia said. "It's that simple."

Garcia's comments were given two days after James Peterson, president and CEO, Microsemi made comments in a conference call with analysts to discuss the $430 million tender offer, that many took to mean that Microsemi would discontinue some Actel product lines where it was trailing the leading programmable logic vendors, Xilinx Inc. and Altera Corp.

Although Peterson did not state outright that Microsemi would kill some Actel product lines, he said

"Where we can differentiate and add value while driving high-growth opportunities we will do so," Peterson said. "Where dollars have been spent chasing an entrenched incumbent, we will disengage." He had also said during the call, "I intend to walk away from commercial business that dilutes profitability." Later, he suggested that Actel might have taken on some business in an effort to "take down the two big dogs" and said that in some areas Microsemi wouldn't chase Xilinx and Altera.

- Dylan McGrath
EE Times

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