To address the networking market, TI has announced new ASIC technology with standard and reusable engineering products in the form of system-core functions. Available in 1997, they will vastly improve the system designers ability to produce better products faster. With this technology, the advanced traffic capabilities and sophisticated network management functions required to support hundreds of gigabits per second will be implemented in silicon. The second element of our strategic direction is to add stability and reduce uncertainty in our business. Imposing stability on our semiconductor business is a key priority.
DRAMs are responsible for most of the semiconductor market instability.
This strategy has been effective in giving us the capacity to gain market share, save cash and reduce the volatility in semiconductor profitability. Through joint ventures, we share the risks and rewards of the memory market. While these supply arrangements were unable to fully comprehend an environment like what has happened so far this year, the approach of sharing in the risks and rewards of DRAM production has helped cushion the impact of lower memory prices on TI's bottom line. Even so, we are not satisfied with our exposure to this volatile side of the semiconductor market. We are looking for opportunities to further improve this situation and in executing our JV strategy.