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

To: Kenny who wrote (61268)	11/15/2000 3:05:59 PM
From: SBHX	Respond to of 93625

Intel may not be able to produce DDR-SDRAM until 2003 without affecting is current "sweetheart" deal with Rambus regarding RDRAM. It would be serious consequence if, indeed, RDRAM is the architecture of choice long term. Via is under no similar legal obligation. A hypothetical quandary would be for intc to license the P-IV cpu bus to Via (perhaps be not so aggressive in going after them), sacrificing their chipset division which has to live under this deal for the good of maintaining cpu sales if it looked like amd was going to increase their mkt share at the P-IV's expense. There was a good reason why intc went after via --- their PC133-SDR chipset went into the PIII chipset mkt like a knife through butter, decimating i820 sales. Since the P54C, no non-intel chipset has won the best-selling crown on MBs, so via's feat is quite remarkable and improbable if you looked at a historical perspective. Someone looking after strategic direction in intc screwed up here. In this scenario, if there is resistance to P-IV adoption because of price, anyone who offers a workable solution will probably win some sales. And if intc has no product (or is not legally allowed) to counter that (like they did with i815)... It's fair to say that the K7 had a much harder battle to survive if it wasn't for the whole i820, socket370+slot1-licensing mess. Normally, I would have imagined that 1999 and 2000 was when intc finally gets rid of almost all of their cpu and chipset competition. Never thought that they'd step into so many potholes. SbH

To: Kenny who wrote (61268)	11/15/2000 4:13:36 PM
From: mishedlo	Read Replies (1) \| Respond to of 93625

Kenny I believe you are correct but the "deal" was also re-negotiated I believe. I do not know what the current deal is. Speculation: INTC will pay royalties now when they did not have to before on SDRAM chipsets, etc. In return INTC can produce DDR chipsets etc. Thus the comment fron INTC on the "toll booth"! It was OK when INTC had an advantage but perhaps they do not like it now. I also do not believe they will collect on the warrants. That will be a huge influx of one time cash if that is true!