Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 91.86

+4.2%

11:21 AM EST

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To: unclewest who wrote (17889)	3/27/1999 6:44:00 AM
From: unclewest	Read Replies (2) of 93625

re my previous message to shibumi... how does this affect us? not at all. rdram is a profitable product to mfr. the demand will be filled by someone. i have rethought that statement. i believe mu's reluctance to do the rdram dance could be good for rambus. there is no longer a shortfall of dram mfrs willing to jump out front in rdram production. in fact they are all scrambling to grab market share. i no longer believe that mu's production is critical to the rdram ramp-up long term. too many others are now willing to produce rdram's in volume. lots of rdram production announcements by others since the mu deal came public. according to the rmbs ceo, intc drove a hard bargain in terms of royalties. one would suspect that the intc/mu connection would have driven a hard bargain for mu as well. since intc gets 6% of mu for the $500 illion investment, lower royalties from mu to rmbs help intc's bottom line. assuming that the other dram mfrs do not have the intc clout and are paying higher royalties to rmbs, the lower the mu rdram production and the higher the rdram production of the other mfrs, the more earnings for rambus. this would explain the willingness of the rambus ceo to hold the mu ceo's feet to the proverbial contract fire. rmbs may no longer care if mu steps to the plate or not. isn't this fun? still hiding in north carolina. man it is cold here. unclewest

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