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-  THE FRIDAY LETTER  -

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for friends and subscribers)

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 | http://www.gilder.com/ | Issue 263.0/September 8, 2006

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HEADLINES:

-  The Week / The Semiconductor Stocks’ Wall of Worry
-  Friday Feature / Escape the Software Development Paradigm Trap
-  Friday Blogger Bonus / George Gilder on Qualcomm
-  Readings /

 

The Week / The Semiconductor Stocks’ Wall of Worry

Excerpted from posts to the Gilder Technology Report subscriber-only message board.


GTR Subscriber (9/8/06):
I believe it would be a worthwhile exercise to list the potential problems that could befall EZchip and prevent its success. That way, we can identify the problems if and when they creep up.

For example: Who are EZ’s likely competitors? Could they siphon off some of the sizzle? 


George Gilder (9/8/06): These are questions creating a wall of worry that all semiconductor stocks must climb.


EZ's chief rivals are Cisco, Juniper, and an array of other OEMs that have the capacity to design their own network processors or hone their own ASICs (application-specific integrated circuits) to gain a proprietary advantage. Other competitors include Broadcom, Bay, Wintegra (moving up), Greenfield Networks (gaining programmability), Cavium, Raza Microelectronics, AMCC, Texas Instruments (adapting DSPs), Marvell, Agere, Freescale, Xilinx, Altera (using field-programmable devices) and there are more--possibly NetLogic. The horizon is filling with communications processors and cell processors (IBM-Sony) of various kinds.


However, EZchip is the most focused and agile and cost effective of the bunch. And, once you are designed into a network node, it entails a costly redesign, with new code, to install other processors. So I am still an EZchip (LNOP) enthusiast …


To read the complete post and others by George Gilder and the Gilder editors and subscribers, log on to http://www.gildertech.com/ with your subscriber ID today.   

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Gilder/Forbes TELECOSM 2006
October 4 - October 6
The Resort at Squaw Creek | Lake Tahoe, CA

Featuring:


Rick Adam
, Chairman, Adam Aircraft
Luiz Barroso, Distinguished Engineer, Google
Gordon Bell, Media Presence Research Group, Microsoft
Matt Bross, Chief Technology Officer, BT Group

Charlie Burger, Gilder Technology Report
Josh Coates, President, Mozy.com, Berkeley Data Systems

Tod Cohen, VP and Deputy General Counsel, eBay
John Day
, Staff Scientist, Essex Corp.

Alex Dickinson, President and CEO, Luxtera

Brendan Dixon, Computational Biologist, Biologic Institute

Steve Forbes, Editor in Chief, Forbes magazine

Eli Fructer, President and CEO, EZchip

Frank Galuppo, Chief Executive Officer, Amedia Networks

Apostolos Gerasoulis, Co-Inventor, Ask.com
George Gilder
, Editor in Chief,
Gilder Technology Report
Steve Goldman
, Chairman, Power-One

Monte Hancock, Chief Cognitive Research Scientist, Essex Corp
John Hasnas
,
Trapped: When Acting Ethically is Against the Law

Phil Hester, CTO, Advanced Micro Devices

Peter Huber, Senior Fellow, Manhattan Institute for Policy Research; Co-founder, Digital Power Capital

Omar Javaid, Senior Director, MediaFLO, Qualcomm

Kevin Kahn, Director, Communications Laboratory, Intel

Rich Karlgaard,Publisher, Forbes magazine

Andy Kessler, The End of Medicine: How Silicon Valley (And Naked Mice) Will Reboot Your Doctor  

Alan Klapmeier, Founder, Cirrus Design

Susan Kunz, President and Co-founder, Solidware

Fred Leonberger, Principal, EOvation Technologies


Lawrence Lessig
, Professor of Law, Stanford Law
Michael Luby
, Co-founder and CTO, Digital Fountain

Paul McWilliams, NextInning Technology Research
Carver Mead
, Internationally known author & educator; Holder of the National Medal of Technology; Foveon, Founder; Professor of Computer Science, CalTech
Michael Milken, Chairman, Milken Institute; Chairman, FasterCures / The Center for Accelerating Medical Solutions

Robert Mundell, Economics Nobel Laureate

Lane Patterson, Chief Technologist, Equinix
J. Tom Pawlowski, Chief Technologist, Micron

Vern Raburn, President and CEO, Eclipse Aviation 

Justin Rattner, CTO, Intel

Jerry Rawls, Chairman, President and CEO, Finisar

Atiq Raza, Chairman and CEO, Raza Microelectronics

Michael Ricci, Senior VP, Optical Comm. Group, JDSU

Arthur Robinson, Professor of Chemistry; Founder, Oregon Institute of Science and Medicine

John Rutledge, Global Economist, Rutledge Capital; Forbes.com columnist; Fox News' Forbes on Fox and Cavuto on Business; CNBC's Squawk Box commentator
Dayne Sampson, VP, Ask.com
Steven Sprague, President and CEO, Wave Systems

Larry Sweet, Pres., Euclid Transformational Automation
Alexander Tokman, President and CEO, Microvision

Nick Tredennick, Editor, Gilder Technology Report
Terry Turpin, Chief Scientist, Essex Corp.

Fred Weber, President and CEO, MetaRAM
AND MORE …
Check out the complete agenda.

REGISTER BY OCTOBER 3 TO SAVE OVER $500
Register BEFORE 10/2/06 to SAVE BIG

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Friday Feature
/ Escape the Software Development Paradigm Trap

When I'm reading a magazine from the software or electronics industry, I almost always run into an article hammering on the subject of software quality. The topic, which warrants plenty of hammering, is usually illustrated with abundant examples of the poor-quality software that irritates our everyday lives. These articles either focus on the negatives (horror stories or why software development is so stinkin' hard) or issue pleas for development teams to use more "best practices" to mitigate some of the challenges. But through it all we tend to accept that software development will always be hard, that code will always be buggy, and that the very best to which we can aspire is some statistical reduction in how far we fall short of success.

I don't buy it.

I don't think that software development has to be such a quality disaster. Software development could be far more disciplined, manageable, and credible than it is today…

Read Mark Bereit’s Complete Article:
http://www.embedded.com/columns/showArticle.jhtml?articleID=186700597

***Join us on Oct. 6 for the
Combinatorial Software: Applying Silicon Design Technology
to Produce Fail-safe, Modular Software” panel
at Gilder/Forbes Telecosm 2006. ***

Details: http://www.gildertech.com/public/Telecosm2006/Agenda.htm


A N N O U N C I N G :  The Gildertech Blog
Logon to
http://blog.gildertech.com/ to see what’s new.


Friday Blogger Bonus
/

George Gilder (9/5/06): Qualcomm Kaput?

While I was away, wireless analyst Andy Seybold (
www.outlook4mobility.com) and a chorus of others propagated the conclusion that wireless has entered a new era. Technology doesn't matter any more. It's all software and content. Although Seybold does not say it, the implication is that the industry is moving beyond Qualcomm's (QCOM) strengths. Texas Instruments (TXN) tout Jim Faulkner opined that the Qualcomm has even lost its technical edge. Others presented indications that "CDMA" (code-division multiple access) has fallen hopelessly behind "GSM" (global system for mobile) in the "Second World," from India to Brazil. Widespread was the view that with Sprint Nextel (S) and Korea turning toward WiMax (worldwide interoperability for microwave access), Intel (INTC) technology was usurping 3G and obviating much of the Qualcomm edge for future generations.

Qualcomm has already gained back a lot of its losses. Although GSM retains some 80 percent of the global market in units and may still be making gains at the low end, GSM still entails WCDMA (wideband-CDMA) for the next generation. Wherever you look for the next GSM generation, Qualcomm is all over it. That's why Q's rivals are afraid of the future and want to perpetuate their current Indian summer with retarded technologies and FUD (fear, uncertainty, and doubt) suits at the International Trade Commission.

As new Qualcomm strategic chief Jeff Belk told me, he reread his old "Why Max?" paper and it rang truer than ever …
 
Read George’s Complete Qualcomm Blog on the GilderTech Blog Page:
http://blog.gildertech.com/

RELATED READING

Texas Instruments Racing To Develop Chips For Cell Phone TV Recorders
http://www.technologyreview.com/read_article.aspx?id=17477 
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Readings /

Organizing The Web: Del.icio.us
http://www.technologyreview.com/TR35/TR35.aspx?TRID=432

 

Semi Industry’s Next Killer App

http://www.edn.com/article/CA6369630.html?partner=enews&nid=2019&rid=2052959400

 

The Chip That Changed The World
http://www.edn.com/article/CA6364229.html

 

What Intel’s Layoff Means For Chip Design

http://www.edn.com/blog/1690000169/post/960004496.html

 

Fastest Supercomputer To Be Built
http://news.bbc.co.uk/1/hi/technology/5322704.stm

 

Time To Bulk Up On Accomplishments
http://article.nationalreview.com/?q=YjM0MmVhMzUwNjBjOWVmMzQ2YjY4NTE4NmExNDhmOGE=

 

Europe Rising?
http://www.tcsdaily.com/article.aspx?id=090806B

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