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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (3920)	1/24/2000 5:12:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 5867

A sign of the times in Chipland: PC Makers in Taiwan Forced to Buy Intel CPUs from Black Market January 24, 2000 (TAIPEI) -- Taiwan's PC makers have begun to feel the impact of the short supply of Intel Corp.'s Pentium III 500/550 CPUs for desktop PCs and Celeron 400/433 chips for notebook PCs. Due to the supply lapse during the transition between Pentium II and Pentium III chips, Intel has been disappointing local PC makers in terms of their requests for timely resumption of Pentium III shipments. Shipments of PC makers with smaller outputs have been affected since last November. Twinhead International Corp. said that it has been able to ship only 70 percent of its scheduled output due to the problem. Acer Inc. and Acer Sertec Inc. have experienced relatively limited impacts, thanks to a stronger leverage in procurement due to the sheer size of Acer. However, Acer executives said that there will be a crisis if Intel fails to address the problem. To keep shipments in line with schedules, Arima Computer Inc., Alpha Top Technology Corp., Clevo Co., and Twinhead International Corp. are being forced to purchase Pentium III CPUs from the black market, which charges a premium of 10 percent-20 percent more than Intel's prices. Responding to the situation, Intel's Asia-Pacific market officials explained that the short supply is a result of the stronger-than-expected demand in global PC markets. Also, Intel pledged to resume normal supplies in the second quarter. However, because Intel made the same promise earlier to bridge the lapse in the first quarter, most of its local clients have expressed little confidence and are over-booking supplies. (Commercial Times, Taiwan)