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

To: Don Green who wrote (42210)	5/15/2000 10:41:00 AM
From: Don Green	Respond to of 93625

Infineon To Up Capex In 2000 To Above 30% Of Revs Dow Jones Newswires May 15, 2000 BARCELONA -- Infineon Technologies AG's (IFX) Chief Executive and President Ulrich Schumacher said the company plans to increase its capital expenditures this year to at least 30% of revenues. Schumacher said: "We are now in discussions with the board to increase that level over 30% but the exact level hasn't been decided yet so investment this year will be about 30% of revenues." Schumacher said it was obvious that the semiconductor company's previous level of 25% spending, in an industry where spending is more than 30%, was inadequate. The semiconductor industry is seeing Dynamic Rapid Access Memory chip contract prices at a level in a range of $6 to $6.50 with a slight trend upward in the last six weeks and Schumacher said he hopes for a small increase this year. DRAM at inventory levels is down to two weeks and in the first quarter it is about five weeks. Schumacher said the levels are the same for his competitors. Infineon plans less than 10% of production in Rambus chips, he said. Rambus is a memory chip technology that allows speedier access and increases the speed of new microprocessor computers. "We don't believe that in the long run that Rambus is the answer to the bandwidth issue in DRAM. Rambus give 5% better performance at 30% more cost." Infineon, the former semiconductor unit of Siemens AG (G.SIE), was the largest technology initial public offer when it floated in March. The company will join the German blue-chip DAX index in June. The benefits of the company's independence are now beginning to show, Schumacher said. Infinion has found it difficult to win contracts with competitors of Siemens in other areas like mobile phones but "that situation is changing now." Schumacher was speaking to Dow Jones Newswires at the Credit Suisse First Boston European Technology Conference in Barcelona. -By Karen Chan; 44-207-842-9269; karen.chan@dowjones.com