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Politics : Formerly About Applied Materials

AMAT 281.58

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Jan 8 3:59 PM EST

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To: Gottfried who wrote (27894)	1/26/1999 8:48:00 PM
From: Xpiderman	of 70976

Samsung Snares $100M From Intel Benefit for ensuring Rambus capacity; others may follow By Peter Brown Santa Clara, Calif.--Intel Corp. threw more bucks at the Rambus equation last week, signing a letter of intent to invest $100 million in Samsung Electronics Co. Ltd. after Samsung said it would produce half a million D-RDRAMs chips a month before June. The financing is Intel's second major investment in a leading DRAM manufacturer in four months. The first came in the form of half a billion dollars invested in Micron Electronics, Inc. for ensuring that the company would commit to buying front- and back-end equipment for D-RDRAMs (EN, Oct.19, 1998). Several analysts expect this to be only the beginning of this cash-for-capacity bonus that Intel is handing out to DRAM manufacturers. "With the DRAM guys not willing to spend the money on back end equipment and get the capacity in place for Intel's processors, Intel has found a way to get them to spend a little quicker," said Steve Cullen, senior analyst at Cahners In-Stat Group, a market research firm in Scottsdale, Ariz. electronicnews.com

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