Rich,
Don't know whether you saw this or not, but it bears repeating, imo.
o: +unclewest (19918 )
From: +Tom Warren
Tuesday, May 11 1999 2:18PM ET
Reply # of 22042
Understanding Rambus FUD
Wading through the sea of bad press over the last month, I felt
compelled to produce a roadmap. There are at least 5 centers of “self
interest” involved in this campaign.
First are the dram manufacturers that put in place advanced production
capacity at .22 or .20 micron. Micron Technology is the prototype for
this group. While attempting to lower their manufacturing costs on
64-Mb parts they almost accidentally created parts that operating at
133 MHz. They would love to sell those parts at a premium price, but
can't without support from a chipset. They cost no more than 100 MHz
parts off the same line so the premium could be entirely profit. Micron
is interested enough in this possibility to attempt entry into the chip set
business.
Second are the “Open Standards” groups. The memory committees of
JEDEC are the prototypes for this group. If Rambus becomes the
standard for memory, they are out of business. A proprietary standard,
completely specified and maintained by Rambus obviates the need for a
public body specifically for memory and weakens the general power of
these groups. It is small wonder that the heads of the two of these
committees Desi Rhoden and Bill Gervasi are quoted repeatedly as
sources of negative information regarding Rambus.
Third are the graphics and chipset manufacturers who are directly in
Intel's path. VIA and S3 are prime examples. Whitney, by incorporating
graphics on the chipset, raised the heat substantially. This group needs
(in some cases desperately) an edge or a niche in which to compete with
Intel. They hope that PC133 or DDR SDRAM will provide that niche.
The battle between AMD and Intel might just create some short term
opportunities for this group. VIA hosts a website for the PC133 group.
Visit and you will find all the names mentioned here dutifully engaged in
their crusade against evil.
Fourth is the priesthood. This group will save us for a fee. The In-Stat
group is the prototype. They are the organizers of a series of forums /
conferences promoting Rambus alternatives. In-Stat employees Bert
McComas and Steve Cullen are frequently quoted in Electronic News
with anti-Rambus opinion. Cahners owns both In-Stat and Electronic
News. If you didn't understand the editorial position taken by Jonathan
Cassell in “Tilting at Windmills” in the May 3 issue, you should now.
Fifth are the shorts. Sorry I can't name names or cite specifics, but I
think it is important to recognize that there is another group out there
with a huge vested interest in Rambus falling on their face. If they
don't directly generate “news” their existence has and will continue to
generate media interest just to watch the fight.
In the interest of honest disclosure, my investment partner is Stuart
Steele and we are both very long on RMBS. |
