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Local firms eye Intel’s communications-chip strategy, in the Technology column



Conexant Invests in Designer; Consultant Opens Irvine Office

Sean Maloney, executive vice president of Intel Corp.’s communications products group, recently talked up his company’s ambition to dominate the communications chip industry.

“Our goal is to cement our position as the No. 1 supplier of communications building blocks,that’s silicon and software,for the industry,” Maloney told CNET Networks Inc.

Now in any other market, Intel’s comments might seem innocuous. But they resonate here in Orange County, where Broadcom Corp., Conexant Systems Inc., Intersil Holding Corp. and others make up a cluster of communications chip makers. Intel’s bid to expand in the communications market stands to be watched closely here. OC chip makers are smaller rivals to Intel, and Broadcom has sparred in court with Intel over intellectual property.

One way Intel could expand is through acquisitions. Like other chip makers, Intel’s shares aren’t what they used to be, limiting its ability to go shopping. But Maloney told CNET that while Intel’s acquisition pace in the communications chip sector has slowed, the fever will pick up again.

Could OC chip makers be on the radar? With Broadcom’s market capitalization dipping below $2 billion,down from as high as $55 billion six months ago,OC’s communications chip giant looks cheaper than ever. Conexant and Intersil, too, are at the low ends of their market value ranges.

In the case of Broadcom, an Intel buy would face some big hurdles, including likely scrutiny by federal regulators. Moreover, Broadcom Chief Executive Henry Nicholas and Chief Technology Officer Henry Samueli together hold about 26% of the company,enough of a stake to block a sale. Each says they will not consider selling, referring to Broadcom as their baby.


Conexant Invests in Designer

It’s more popular these days to design chips and have somebody else deal with actually making them. Analysts seem to praise companies that focus entirely on the schematics of a microprocessor. To that point, Newport Beach-based Conexant Systems Inc.’s Internet infrastructure division,Mindspeed Technologies,has invested in chip designer Tensilica Inc. The investment is among the first for Mindspeed, which is slated to be spun off later this year.

Conexant was among several other high tech names to participate the $31 million round of funding for Tensilica of Santa Clara. Other participants include Japan’s NEC Corp., Foundation Capital of Menlo Park, Oak Investment Partners of Palo Alto and Worldview Technology Partners of Palo Alto.

Though Conexant refused to disclose the amount of money it invested, the company did announce it struck a multiyear pact with Tensilica to develop new chip platforms and license Tensilica technologies.

“We are very pleased to link with Tensilica in this enterprise that will lead to the design and development of new application platforms and DSP implementations,” said Raouf Halim, the Conexant senior vice president set to become chief executive of Mindspeed Technologies. “Tensilica’s advanced compiler technology will allow us to continue to deliver high-density platforms and products, enabling us to ‘build it first.’ ”


Consultant Coming to OC

Technology consultant Outland Technologies Inc. just signed a lease with The Irvine Company for 21,528 square feet of space in Irvine. The new facility is set to house the Canadian company’s research facilities. The company still hasn’t determined how many people it will employ in Irvine, but it plans to hire a new staff in OC.

“This new facility will assist us greatly in accelerating the development of our technology for different applications. Southern California is a center in the world for advanced engineering as well as for capital,” said Outland Chief Executive Terry Martin. “We believe it will also help us in obtaining the skilled personnel for our growth and provide us with the profile befitting our corporate destiny.”


Ingram Micro Repeats on Fortune 500

Though the company has watched inventories build up in its warehouses as computer product sales slow, Santa Ana-based Ingram Micro Inc. continued its appearance in the Fortune 500 list. As it happens, Ingram just barely scored a spot for the second consecutive year in the top 50 of the Fortune 500, coming in at 49.

“We remain laser-focused on delivering solid financial results to our shareowners and continuing to lead the technology industry’s transformation by driving costs out of the supply chain,” said Ingram Micro Chief Executive Kent Foster in a statement. Ingram has reported slower sales as consumers and businesses have slowed technology purchasing in recent months.


IPNet Adds Regional VP

Newport Beach-based IPNet Solutions Inc appointed Richard A. Jenoriki to regional vice president for the Northeast, the company announced recently. He will be responsible for both direct and channel sales and will report to Craig Stavert, vice president of North American sales, the transaction software maker said.

“Rich is a proven executive with an impressive history of developing and expanding sales opportunities in e-business, application software, systems integration and professional services,” Stavert said. “His experience in the financial, manufacturing and energy markets will prove instrumental in helping IPNet achieve its next level of growth.”

Jenoriki has more than 20 years of business software sales experience. He joins the company from Mercator Software where he was vice president of sales. He has also worked with larger companies such as BEA Systems and Oracle Corp.

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