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To: jim kelley who wrote (42487)	5/18/2000 11:33:00 AM
From: pompsander	Read Replies (1) \| Respond to of 93625

The Intel/Dram summit should be expected by everyone. This is a "come to Jesus" meeting for both sides. Intel has its cards on the table. It needs more RDRAM production pronto. The Dram guys, unaccustomed to having any leverage - much less the kind of leverage they have right now, are poor-mouthing the situation. "Gee, we can't turn our lines over to RDRAM production with all these great SDRAM profits to be made. But, Intel, we feel your pain. What can we do to help? How can we make this a win-win situation?". At this point the Dram guys stare at the Intel guy's wallet. Silence ensues. Eventually a deal will be struck. Intel will get its production commitments and will structure some price point guarantees for a period of time. What Intel really wants is for Micron to get on board, as this would crack the "cartel" so to speak. Without Micron Samsung is the key. Intel needs one big player to move, then the others will try to tag on, because with the price point assurances in place it is going to be a much sweeter production period than running the risk that SDRAM prices will fall again. Intel will offer the services of the new Kingston testing process to try and improve yields and keep margins up as the ramp up occurs. Got to be a great meeting. Wish I was there. Note it is a two day meeting. The real deal will take place on the night of the first day, when everyone is paranoid about each other and no one knows who will crack first. Intel will not leave this meeting without some kind of commitment. Bet on it.