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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 88.13+1.0%Nov 21 9:30 AM EST

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To: Skeeter Bug who wrote (24392)7/9/1999 11:33:00 AM
From: pompsander  Read Replies (2) of 93625
 
Skeeter....you missed my point on the Chipmakes taking Intel "BRIBES".

If the chipmakers felt that a, let's say, 500 million dollar cash infusion was a bad idea because it would require them to tool up in a way which, in the longer term, would harm, not help, their business, they would not do it. Of course, the Intel money allows the companies to put other resources to work in any direction they want.

Know what? Sure, they have explored other products and technologies, but they also have invested far more than the amount Intel infused into RDRAM production. (Sorry, I do not have the exact numbers). Why? Because Intel is telling them, contractually I am sure, that they will be a customer for the RDRAM product. Wow. Intel gives me money to build a product which Intel practically promises to buy (or, more correctly, direct to OEMs and others).

If this was a "bribe" it implies that the company would not move that direction without the cash infusion. I don't believe that at all...but it certainly made the picture clearer and cleared the decks for retooling and moving up production timelines....all strong news for Rambus.
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