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Politics : Formerly About Applied Materials
AMAT 249.89+3.1%Nov 26 3:59 PM EST
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To: Teri Skogerboe who wrote (14352)1/10/1998 10:55:00 PM
From: Big Bucks  Read Replies (2) of 70976
 
Hi Teri,

Re: "Die shrinks may decrease dram going forward."

I'm not exactly positive I understand the inference of this statement
but am guessing that as more devices get built into the dram chips
it actually is cheaper to build more memory for less cost. A factor
of scale, you get more chips per wafer, with more devices per chip
at the same or less net cost per wafer/chip. With manufacturers
trying to sell as much as they can, to outsell the competition, they
get very price competitive and keep prices low, eeking out slim
margins just on sheer volume of sales. It is conceivable that
consumers could buy 64Meg Dram for the same price as 16 meg
cost a year ago.

If anyone interprets this differently please clarify it for me and
Teri.

Regards,

BB
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