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InfiniCon Annuls ASIC Activity

Just as Infiniband startup InfiniCon Systems Inc. was wrapping up a whopping $15 million funding round last month, the company was quietly abandoning its project to develop a proprietary application specific integrated circuit (ASIC) and laying off the handful of engineers that had been working on it (see InfiniCon Corrals $15M Round).

Chuck Foley, InfiniCons CEO, confirmed today that on Sept. 1, the company dropped a project to create its own ASIC for its InfiniBand-based gateways. The company had been aiming to complete the project -- which was already two years in development -- by 2005, he says.

At a time when most the remaining InfiniBand players are struggling to convince the world of their validity, the revelation that InfiniCon is aborting half-baked projects and is slashing headcount is perhaps an unfortunate one (see our report on Whither InfiniBand?).

“All of the Infiniband players’ revenues were creamed,” says Taneja Group analyst Arun Taneja. “Every InfiniBand vendor has had to take a really hard look at what they’re doing.”

Foley, however, insists that the decision to drop the ASIC program and to lay off approximately five engineers (he wouldn’t say exactly how many had been let go) doesn’t reflect a struggle to make ends meet, but is rather a sound business decision.

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