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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (76773)	10/25/1999 3:29:00 AM
From: tejek	Read Replies (2) \| Respond to of 1572941

NOW IBM IS GETTING INTO IT: ______________________________________________________________________ IBM Web Site for Computer-Memory Developers May Hurt Rambus Armonk, New York, Oct. 25 (Bloomberg) -- International Business Machines Corp., the No. 1 computer maker, is starting an Internet site for developers of memory chips that compete with Rambus Inc. products, a challenge to the troubled company. The Web site will include designs and technical information for double data rate, or DDR, memory, IBM said. Memory helps a computer's main chip process information faster. Delays in chips that support Rambus technology have weighed on the company's stock, which has fallen 34 percent since reaching a high of 115 1/4 on July 15. IBM's move to foster DDR development may hurt people's faith in Rambus, an analyst said. ''This sends the message that there are other memory types out there,'' said Sherry Garber, a memory chip analyst at Phoenix- based Semico Research Corp. ''Investors may get nervous about Rambus.'' IBM's move comes as Intel Corp., the world's biggest semiconductor maker, today unveils new Pentium chips that had been delayed by manufacturing problems. The new Pentiums work with Rambus memory chips for workstations and servers. Workstations are high-powered computers used for designing products, and servers control networks of personal computers. Mountain View, California-based Rambus licenses its high- speed technology to computer memory and microprocessor makers and will receive royalties once production begins. Intel is promoting Rambus technology to the computer industry and has given tens of millions of dollars to memory chipmakers to upgrade their plants. Rambus shares rose 9 13/16 to 75 5/8 on Friday on news of Intel's new chips. Competing Standards IBM's Web site plans follow the Armonk, New York-based company's decision in June to use PC-133, a memory chip technology that competes with Rambus, in some of its personal computers. The move helped drive Rambus shares down 14 percent on June 1. IBM said it decided against using Rambus in some of its PCs because the technology is expensive. Double data rate memory will be used for workstations and servers, IBM said. ''IBM is committed to the success of DDR as a mainstream memory solution,'' said James Karl, a manager in IBM's Microelectronics unit. IBM said in June that it would use Rambus memory in higher- end PCs and workstations based on Intel processors. Seth Dickson, a Warburg Dillon Read analyst, said he expects that as double data rate is developed, it will have at least the same amount of problems as Rambus has had. ''I think double data rate development is well behind Rambus, even with the delays by Intel,'' said Dickson, who rates Rambus ''strong buy.'' Still, double data rate chips may compete head-on with Rambus processors in the future. The IBM Web site ''shows that people are looking at DDR as the next major'' memory chip technology, Semico's Garber said. Oct/25/1999 0:08 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.