Kash, thread, according to this article, IBM plans a straddling act on the Rambus usage or not issue, with one foot in each stirrup. Hope for their sake the stirrups aren't on two different horses. Ouch!
IBM said today that it plans to use PC-133 in its low-end PCs to be
introduced in the second half of this year, though higher-end expensive PCs
and workstations released at the same time will be based on Intel computer
chips and Rambus products
news.com
Rambus falls on IBM concerns
By Bloomberg News
Special to CNET News.com
June 1, 1999, 2:05 p.m. PT
Rambus, a designer of high-speed computer chips, fell as much as 13
percent on concern that IBM may choose a competing technology for
its personal computers.
Rambus fell 10 to 67 1/2 in late trading, after touching 67 1/4. Yesterday,
Cahners Business Information's Electronic News, citing unnamed sources,
reported that IBM decided to drop support of Rambus technology in its
personal computers in favor of a competing technology called PC-133.
IBM said today that it plans to use PC-133 in its low-end PCs to be
introduced in the second half of this year, though higher-end expensive PCs
and workstations released at the same time will be based on Intel computer
chips and Rambus products. "It's no secret that IBM has been a supporter of
PC-133, but they have not come out against Rambus," said David Wehner, a
Hambrecht & Quist analyst who rates Rambus "market perform."
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Gary Harmon, Rambus chief financial officer, said that he expects the major
supporters early on will be Dell Computer, the world's biggest direct-seller of
PCs, and Compaq Computer, the No. 3 computer maker. "We didn't
consider IBM to have considerable volumes this year," Harmon said.
Mountain View, California-based Rambus licenses its high- speed
technology to computer memory and microprocessor makers and will
receive royalties once production begins.
Intel, the world's biggest semiconductor maker, is
promoting Rambus technology to the computer
industry and has given tens of millions of dollars to
memory chipmakers to upgrade their factories.
"We think it is highly unlikely that IBM will drop
Rambus entirely," said Seth Dickson, a Warburg
Dillon Read LLC analyst, who rates Rambus a
"strong buy."
Intel needs to ensure that computer memory and
other personal computer components keep up with
the speed of its new microprocessors. It is using
Rambus's technology in its new Camino chipset,
which acts as an intermediary between a
computer's memory and processor.
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