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Avago purchases LSI Corporation

Really! My network of spies is falling down on the job! I found out Monday morning from another ex LSI Logic employee now at Mentor. ...
 
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I read about the Oasys acquisition on SemiWiki. Those guys are on the ball.

Avago acquiring LSI?!?!?! I would have lost that bet! Any thoughts as to why?
 
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According to the releases, Avago wanted to get in on Networking and Storage (wired connectivity) to complement their wireless infrastructure business. Avago believes "The Cloud" is where it's at these days. From the LSI side, it's not as obvious to me. LSI turned a decent profit last year, so why get bought? Maybe they wanted a parent with deep pockets. Maybe LSI figured out they had a lot more design capacity than they needed and it would be better to become the Design Department of a larger company than to downsize that valuable infrastructure. Overall, it does seem complementary. Maybe Avago figured the team at LSI would be more capable of dealing with the difficulties at advanced nodes, and LSI was concerned about the sheer cost of moving to those advanced nodes.
 
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