Microsemi Foresees Bright Future For Its New Human Eye-like Chip; Light-sensing chip could be used in car rearview mirrors and PC displays.(INTERNET & TECHNOLOGY)

Byline: JAMES DETAR

Machines are about to get a bit more like people.

Microsemi is rolling out a new microchip that's designed to act just like a human eye. It senses light in the same way as the eye's rods and cones, the company says. Devices can then use the sensor's data to make adjustments, such as darkening a notebook computer screen.

One use for the chip is in rearview mirrors. It can replace the little lever that people flip when it gets dark at night. With Microsemi's chip, the mirror switches automatically -- based on the light available.

"The days of flipping that switch should be gone forever," said Chief Executive Jim Peterson.

For Microsemi, the chip is just one of the many cutting-edge products it's banking on. The Irvine, Calif.-based company's innovative electronics are helping it post steady gains in sales and earnings.

At the same time, Microsemi has slimmed down its manufacturing operations. That's helped it increase its gross margin -- its profit margin minus the cost of goods sold -- for nine straight quarters. And the stage is set for growth in 2005, says Caris & Co. analyst Nick Aberle.