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Technology Stocks : Micron Only Forum

MU 207.36

+3.0%

Nov 21 9:30 AM EST

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To: zsteve who wrote (41824)	1/4/1999 7:26:00 AM
From: Carl R.	Read Replies (2) of 53903

I also note in that piece that like MU, Samsung plans to spend $1 billion on equipment this year. Increasingly I think this is turning into a two-horse race. As usual MU and Samsung are diverging on strategy, though. MU is using it's advanced technology (.21µ etc) to reduce production costs of existing products such as SRAMs, 16MB chips, and 64MB chips while Samsung is using their advanced production technology to produce next generation chips at low yields but with high prices. This is identical to what happened when Samsung began early production of 64MB chips while MU reduced costs at 16MB. Both are viable strategies, of course, and both worked reasonably well last time (relative to the other players in the industry like TI). I would suggest that the ones that will be hurt the worst by Samsung's decision to begin early production of 256MB chips are the Japanese makers who have indicated that they intend to take a half-step to 128MB chips. I suspect that 128MB chips will be caught between the volume chips (64MB) and the bleeding edge chips (256MB), and won't find much acceptance, but time will tell. Carl

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