Intersil CorporationISIL

Morningstar Rating

Stock Research and Analysis

by Brian Colello, CPA

Intersil is a midsized designer and manufacturer of high-performance analog (HPA) and high-volume semiconductors. Although the chip industry downturn has slowed Intersil's revenue growth in the near term, we believe that the firm has room to grow in Read more

Bulls Say

Intersil competes in the analog industry, one that is characterized by stable pricing, long product lives, and high gross margins.

Intersil has one of the better dividend policies of semiconductor firms.

Although Blu-ray players face competition from movie downloads, Blu-ray recorders may still gain adoption because of the increased storage capability. Intersil's focus is on recorders, not players.

Intersil's focus on ambient light sensors should serve the firm well, as these sensors help improve power usage in handsets and laptops. Read more

Bears Say

More than half of Intersil's chip sales come from two segments, consumer and computer, which have been hit particularly hard by the economic downturn.

Intersil focuses on application-specific analog chips, which tend to have lower margins than general-purpose analog chips.

Intersil operates in the cyclical semiconductor industry and, despite its strength as an analog company, is subject to the same volatility faced by other chipmakers. Read more

Strategy

Intersil's long-term strategy is to grow the midsized chipmaker into a larger analog firm like TI. The firm is investing heavily in the industrial and communications sectors, in terms of internal R&D Read more

Management

David Bell became CEO in February 2008, replacing Rich Beyer, who left to become CEO of privately held Freescale. Bell joined the firm in March 2007 as president and COO. Before that, Bell served in various executive positions at Linear Technology, Read more

Profile

Intersil makes high-performance analog integrated circuits. The firm offers a diverse array of products targeting applications in the consumer, computing, communications, Read more

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