3DFX Message Board - Msg: 7547550

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Technology Stocks : 3DFX

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To: Joe C. who wrote (10363)	1/29/1999 6:07:00 AM
From: Michael G. Potter	Read Replies (2) of 16960

Joe C. (& Pat), 3Dfx has publically stated that they're looking for a European partner for the V3 launch. They'll have some problems as it'll probably only be for the V3, but it will also be a good source of profits for the cardmaker so they probably will be able to strike a deal. With only one chosen, the gray market problem may not be too severe. They also plan on selling many of the V3-2000's to motherboard makers in Taiwan. That means that Juarez's capacity will not be needed for those sales. Finally, there are a fair number of contract board houses (Solectron, Jabil Circuit, and EFTC come to mind right away) that could be used if additional capacity is needed. The cost may not be all that more than making it themselves. The real benefit to being able to make the 500K boards is the volume leverage you get. Michael

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