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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Dealer who wrote (515)9/11/2000 8:27:12 PM
From: Jill  Read Replies (2) of 65232
 
This just came into my inbox, on rmbs thread:

Intel to Give PC Makers Rebates to Use Rambus Memory Standard
By Cesca Antonelli
Santa Clara, California, Sept. 11 (Bloomberg) -- Intel Corp., the world's biggest chipmaker, will give personal-computer makers rebates to use the Rambus Inc. memory standard in machines based on the upcoming Pentium 4 chip, a spokesman said.

Manufacturers have been reluctant to embrace Rambus because memory chips using the new design cost more to build. Intel spokesman Michael Sullivan said PC makers will get rebates, though he declined to comment on how large they'd be.

``We are planning a program to help with the initial ramp of the Pentium 4 to ensure there's memory available to enable manufacturers to hit their price points,'' Sullivan said.

Intel for years endorsed the standard developed by chip design house Rambus as the only one capable of meeting the memory requirements to process video, sound and other data fast enough for high-end Internet and other applications. As Rambus remained expensive, other companies began offering equivalent chips at cheaper prices. In July, Intel dropped its Rambus-only strategy.

Still, the chipmaker maintained that Rambus was best for the applications that need the powerful Pentium 4 processor. Intel began working with PC makers to find a way to make systems using Pentium 4 and Rambus available at the right price for business users and some consumers. Though Intel wouldn't say how much it expects the PCs to cost, high-end machines can run about $2,500.

Pentium 4 chips running at 1.4 gigahertz will be available in the fourth quarter.

Shares of Intel, based in Santa Clara, California, fell 69 cents to 64.69 and have added 57 percent this year. Mountain View, California-based Rambus rose 3.56 to 79.25 and has more than quadrupled over the same time.
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