LSI Corp.
(LSI) recently said it would collaborate with Aricent to accelerate the deployment of its wireless and wireline networking infrastructure and enterprise networking systems.

The companies currently offer pre-integrated software stacks for multi-service business gateways that run on communications processors developed by LSI. They have now extended their collaboration to wireless and additional wireline infrastructure applications.

Headquartered in California, LSI designs, develops and markets complex high-performance semiconductors and storage systems. Aricent is a global innovation, technology and services company focusing exclusively on communications.

LSI and Aricent expect the pre-integration of their products to enable Original Equipment Manufacturers (OEMs) to reduce cost of developing products and marketing time by half. Telecom OEMs generally integrate software and hardware components from various suppliers in order to create next-generation systems for service provider networks. LSI expects that this collaboration will help it to provide pre-integrated, pre-optimized solutions to OEMs that reduce the time and cost of delivering systems.

Meanwhile, Semiconductor Industry Association (SIA) recently said that while monthly worldwide sales of semiconductors rose 5.3%, the year-over-year rate of decline had moderated. The improvement in chip sales reflects improving demand in the consumer sector, particularly for products like netbook PCs and mobile phones.

SIA also said that although sales of Information Technology products to the enterprise sector continue to be hurt by caution and longer replacement cycles, there was evidence of a return to seasonal industry patterns.

LSI’s modest exposure to the PC/server market is expected to allow the company better flexibility than its competitors, Adaptec Inc. (ADPT) and Applied Micro Circuits Corp. (AMCC), which are experiencing some softness in end-market demand for PCs and servers and related storage products.

Last month, LSI posted better-than-expected results for the second quarter due to growth in both the storage and networking businesses. With the recovery in chip market, many companies are boosting their quarterly projections. We expect LSI’s top line to improve after a significant decline in the second half of 2008.

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