), an original equipment manufacturer (OEM) of a broad range of
high-reliability and analog/mixed signal integrated circuits,
announced that several of its field programmable gate arrays
(FPGAs) and customizable system-on-chip (cSoC) solutions have been
qualified for use in extreme temperatures of 150 to 200 degree
FPGAs, or field programmable gate arrays, are semiconductor
devices that allow programming/reprogramming even after the device
has been installed. This flexibility makes the devices more
expensive relative to regular programmable logic devices (PLDs), so
their use is relatively restricted.
SoCs or System on Chips are integrated circuits that incorporate
programmable logic, temperature or power sensing and management
plus communication functions into a single, low-power device.
Microsemi's high-reliability products have already been deployed
in down-hole drilling products, space systems and avionics
equipment. Management believes that its newly qualified products,
such as the ProASIC and IGLOO FPGAs and SmartFusion cSoCs will be
particularly useful in drilling operations because of their
resistance to very high temperatures, physical shock, pressure and
magnetic field disruptions.
Given that the complexity of drilling operations and depth of
wells will increase over time as the availability of oil declines,
there will be a growing demand for increased efficiencies and
limitations on cable usage. This is where Microsemi's chips are
expected to prove extremely useful.
As per research conducted by Marketline, the oil and gas
industry is expected to grow at a 7.0% compound annual growth rate
(CAGR) to roughly $3700.0 billion by the end of fiscal 2015.
Another research report by 2B1st Consulting Group suggests that
$75.0 billion will be invested in drilling rigs in the next 5
years. Therefore, Microsemi is likely to be one of the
beneficiaries of this growth.
Microsemi's revenue in the second quarter of 2012 was $249.3
million, up 3.5% sequentially and 20.2% year over year. The
defense, aerospace and medical markets largely consume Microsemi's
high-reliability chips, while the other markets use its
analog/mixed signal products.
Currently, Microsemi Corporation has a Zacks Rank of #3,
implying a short-term Hold recommendation.
MICROSEMI CORP (MSCC): Free Stock Analysis
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