No Tim, YOU are absolutely incorrect.
1) Immediately after the announcement in October, Micron stated that they will use the cash infusion to improve the recently purchased TXN facilities (bought for $881m). Micron also indicated then that some of the cash could be used to getting the Lehi plant up and running.
2) Wow, all that legal jargon in the SEC filing is confusing isn't it? If you read the SEC filing PROPERLY, You will notice that not one of the First Minimum Production Milestone, First Minimum Required Production, First Production Milestone Date, Maximum FGI, Minimum Qualified expenditures etc etc etc have ANY NUMBERS OR DATES FILLED IN. Hmmmmm.
Anyway, that didn't satisy me, so I would like to draw your attention to the following paragraph towards the end of the document (did you read this far?):
"In the event that the Company's ability to achieve the Qualified Expenditure Milestone by the Qualified Expenditure Date is significantly impaired by events or circumstances outside of its control, such as Force Majeure or limited availability of required equipment or materials, the milestone date will be appropriately postponed."
It goes on of course, but we don't need to go into it that deeply. But this basically states that if MU can't supply a minimum amount of RDRAM to Intel by a certain date, they agree to try harder. That's it.
3) INTC has given $500m to MU to support the development and supply of next generation memory products. As part of this deal is an non-binding agreement to accelerate MU's development of RDRAM. The money, however, will be used by MU as they see fit, it will not be exclusively used to develop RDRAM. There is no qualification or quantification of targets that you mistakenly thought were part of the SEC filing. It is a "best efforts" agreement between MU and INTC. The only agreement that has a quantitative factor attached to it is that MU has allocated a certain percentage of RDRAM output to Intel, as soon as they can ramp up. If you wish to confirm this, call Investor Relations at Micron.
Whoops, sorry for babbling...
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