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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Orion who wrote (38724)	3/22/2000 7:32:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 93625

Orion, what I think he meant to say was that since currently the yields on RMBS chips are somewhat lower than on SDRAM, you need more wafer starts for the same number of chips. There is also a "Si Real estate" premium of about 15% for RMBS vs SDRAM, but that should have a minimal impact. The fact of the matter is that MU inventory has gone from close to $400 MM to more than $650 MM (from memory so check it), this by the way, on lower cost chips, thus more chips. Furthermore, MU itself plans to increase capacity by more than 40%, and the new NEC joint venture is not standing still. Last Samsung is increasing its capacity at breaking neck as well, I think that the thesis of shortage in DRAM's was dreamed up to get the price of MU stock high enough to a, convert existing convertible debt to stock and b, issue another $ billion in convertible debt (MU just filed a registration statement to that effect, thus this part of the scenario is evolving as planned). Zeev