Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jim kelley who wrote (42510)	5/18/2000 7:12:00 PM
From: pompsander	Read Replies (1) \| Respond to of 93625

Hey everybody, it is about leverage, pure and simple. Intel used to have the leverage, now the DRAM guys have it. As an old Teamster negotiator once told me: "when you are at the bargaining table and its ten minutes to midnight and the pickets are on the line you better be sure management sees them out there and believes you will strike. Its worth an extra ten cents in the wage package right then". The DRAM guys may never be in this sweet spot quite the same way again. They will make Intel bleed green, but they will give them what they want, and must have. Carl, you never, never put your opponent out of business. You try not to insult him. What goes around comes around and you may need him badly in a year's time. That, "eat scrap and die" nonsense shows me you don't have a much idea how the world works outside your engineering cubicle. Leverage, leverage, leverage

To: jim kelley who wrote (42510)	5/18/2000 9:21:00 PM
From: Joe Donato	Read Replies (2) \| Respond to of 93625

Jim, they will build RDRAM if their risk is insured and as long as they can make AT LEAST as much money as they would have if they had made SDRAM. Remember from the manufacturer's point of view, it's the amount of REVENUE per Wafer & the amount of TIME through the FAB. With RDRAM yielding poorly to 800Mhz, the problem is what are the slower yielding parts worth. How much total revenue per wafer is this worth (relative to a wafer of SDRAM whose price is rising). Also, with regards to the TIME issue RDRAM is much more difficult to handle and test - it creates a bottleneck through the backend thus costing even more - for example the trade off might be 2 SDRAMs packaged and tested for every 1 RDRAM - this exacerbates the cost structure even more since there is a multiplicity effect on the number of SDRAMs that they could have put in the market. Joe