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Politics : RAMTRONIAN's Cache Inn

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To: happygambler1934 who wrote (13149)4/27/2007 6:00:06 PM
From: NightOwl  Read Replies (3) of 14464
 
Thanks Mr. 1934,

I think I get it now and will accept Mr. Option-Bare Brown's inference that the price on the bare-die is paid up front. Not being finished goods I will also assume that the unit price is naturally, rather than unnaturally, much lower and the hit to margin minimal.

D-M is apparently taking Fujitsu wafers (cut or uncut, but not packaged) fabbed with RMTR's specs rather than Fujitsu's. They then work the die into their own IC designs some of which, if not all, are A/D designs similar to RMTR's Processor Companion ICs. D-M then would hopefully make their money on the value added mark-up rather than any discount given by RMTR.

I guess the only downside risk is that their value added chips take more design wins than ours... which I suppose is bad enough. Having to compete for a profitable "niche" is one thing; but having to compete for an unprofitable one is a little tough to take on a belly full of options.

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