EXHIBIT 99.1

FOR IMMEDIATE RELEASE                                JUNE 30, 2003

      Investor Relations Contact:                    Media Relations Contact:
      Diana Matley                                   Kevin Brett
      408-433-4365                                   408-433-7150
      diana@lsil.com                                 kbrett@lsil.com

CC03-82

                LSI LOGIC UPDATES SECOND QUARTER BUSINESS OUTLOOK

                  Q2 Revenues Expected to Grow About 9 Percent

      MILPITAS, CA - LSI Logic Corporation (NYSE: LSI) today updated its second
quarter 2003 top-and-bottom line expectations, and announced the decision to
sell the company's Tsukuba, Japan manufacturing facility.

      LSI Logic anticipates that second quarter revenues will increase
approximately 9 percent sequentially, near the high end of the previous growth
guidance.

      LSI Logic also announced a series of actions, completing the revamping of
the company's global manufacturing strategy. These steps enable the acceleration
of the final disposition of LSI Logic's Tsukuba and Colorado Springs
manufacturing facilities. The company anticipates reporting $140 million to $160
million in special items, compared to previous guidance of $50 million to $70
million in special items. LSI Logic expects a GAAP* net loss of 43-50 cents,
compared to the earlier range of a net loss of 23-31 cents.

      On a pro forma basis, the company's second quarter net loss expectation
(excluding special items**), improved by four cents to a range of 6-8 cents. The
bottom line performance reflects better-than-expected gross margin expansion and
accelerated benefits from the company's expense control and cost-reduction
programs.

      "These actions focus our internal manufacturing on our world-class
Gresham, Oregon campus," said Wilfred Corrigan, LSI Logic chairman and chief
executive officer. "Going forward, LSI Logic will supplement its Gresham
facility with foundry


engagements. Both will play key roles in the success of LSI Logic's
RapidChip(TM), ASIC and standard product businesses."

      LSI Logic will report its second quarter 2003 financial results Wednesday,
July 23 after the close of market. At that time, LSI Logic will provide guidance
for the 2003 third quarter.

     * Generally Accepted Accounting Principles

     ** Acquisition-related amortization, restructuring and other special items.

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS: This news release and the statements
by LSI Logic management include forward-looking statements that may involve a
number of risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially from
the actual future events or results. Forward-looking statements include
projections of growth in the storage components, storage systems, consumer and
communications businesses, estimates of revenue growth, operating expenses, net
other income, earnings, gross margins, tax provisions, capital spending,
depreciation, acquisition-related amortization, restructuring expenses, other
special items and common share count made in this news release. The company's
actual results in future periods may be materially different from any
performance suggested in this news release. Risks and uncertainties to which the
company is subject include, but are not necessarily limited to, fluctuations in
the timing and volumes of customer demand, the rate of depletion of customer
inventory buildup and the company's achievement of revenue objectives and other
financial targets. Other risks and uncertainties that may affect the company's
actual results include, but are not necessarily limited to, the development of
new products, the timing and success of new product introductions, the continued
availability of appropriate levels of manufacturing capacity, the realization of
benefits from the company's strategic relationships, competing technologies,
products and other competitive factors and investments and disruptions in
general economic activity due to worsening global business conditions or caused
by the effects of terrorist activities and armed conflict. The extent to which
the company may not realize the cost savings it expects from the reduction in
workforce and operating expenses may also impact its future performance. The
company operates in an industry sector where securities' values are highly
volatile and may be influenced by the cyclical nature of the industry, the
unpredictability of the economy and other factors beyond the company's control.
For additional information, Readers are referred to the documents filed by LSI
Logic with the SEC, and specifically the most recent reports on Form 10-K, 10-Q
and 8-K. In the context of forward-looking information, reference is made to the
discussion of risk factors described in the company's SEC reports filed during
the past 12 months.

ABOUT LSI LOGIC

LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of
communications, consumer and storage semiconductors for applications that
access, interconnect and store data, voice and video. In addition, the company
supplies storage network solutions for the enterprise. LSI Logic is
headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com.

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Editor's Notes:

1.    All LSI Logic news releases (financial, acquisitions, manufacturing,
      products, technology etc.) are issued exclusively by PR Newswire and are
      immediately thereafter posted on the company's external website,
      http://www.lsilogic.com.

2.    The LSI Logic logo design is a registered trademark of LSI Logic
      Corporation.

3.    All other brand or product names may be trademarks or registered
      trademarks of their respective companies.