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

To: Sully- who wrote (73064)	5/16/2001 8:09:30 PM
From: Don Green	Read Replies (2) \| Respond to of 93625

Micron cuts DDR module price to match SDRAM By Jack Robertson, EBN May 16, 2001 (2:16 PM) URL: ebnews.com Micron Technology Inc. Wednesday cut the price of its PC2100 double data rate modules to the same level as single data rate SDRAM PC133 DIMMS. Micron's module subsidiary, Crucial.com, Meridian, Idaho, announced PC2100 DDR modules priced at $41.39 for 128-megabytes and $79.19 for 256-Mbytes in volume shipments. A spokeswoman said the PC2100 prices are virtually the same as comparable memory size PC133 modules. This is the second time Micron made such a move. Earlier, the company priced its PC1600 DDR modules at parity with DIMMS using single data rate PC100 SDRAMs. That move angered competitors who had priced their DDR modules at premiums well above comparable single data rate SDRAM DIMMS. Rivals argued that in the early product life cycle with lower yields and sales volumes, the initial DDR modules should carry premium prices. Competitors also argued that Micron's DDR module parity pricing was a publicity ploy, alleging the firm couldn't make large volume shipments even at the lower prices. A Micron spokeswoman rejected such allegations, claiming the Idaho memory firm is making volume shipments of both PC1600 and PC2100 modules to meet all order demands. Micron has also validated its PC1600 and PC2100 DDR modules with Smart Modular, the industry-designated source for validating all double data rate modules. The maverick DDR vendor said DDR chips and modules can be produced at nearly the same cost as single data rate SDRAMs, since very little extra processing is required. "As volumes increase, our costs also come down, allowing us to offer DDR at a parity with PC133," said Scott Heimgartner, Crucial product marketing manager. The spokeswoman also said Micron wants to establish DDR market leadership as the new memory ramps up. Selling at parity with single data rate DIMMS when many competitors still have premium prices is the best way to put the firm in the market lead, the spokesperson added. Micron, along with Infineon and Hynix, has a price advantage over some other memory producers because they have so far refused to pay DDR royalties to Rambus Inc. It was recently disclosed that Samsung is paying 3.5% royalties to Rambus on DDR sales.

To: Sully- who wrote (73064)	5/16/2001 8:10:14 PM
From: Don Green	Respond to of 93625

Intel samples Tualatin processors, based on 0.13-micron process technology By Mark LaPedus, Semiconductor Business News May 16, 2001 (12:04 PM) URL: siliconstrategies.com SANTA CLARA, Calif. -- Intel Corp. is quietly sampling its first products based on its 0.13-micron process technology--a microprocessor line for use in notebook and low-end PCs, according to analysts. The new processor line is designed to fend off competitive threats from Advanced Micro Devices Inc., Transmeta Corp., and Via Technologies Inc. Intel's new chip, code-named Tualatin, is a long-awaited, 0.13-micron version of the company's Pentium III processor line. At present, the Pentium III is based on a 0.18-micron technology, but the processor family is running out of steam, analysts said. At a recent press briefing in Hillsboro, Ore., officials from Intel confirmed the existence of Tualatin, saying that the product will be rolled out in July. But Intel denied the company was experiencing problems in ramping up its 0.13-micron technology. Last month, chip-equipment vendor Silicon Valley Group Inc. confirmed a three-to-four month delay in shipment of its new scanner, which is based on 193-nm, argon-fluoride (ArF) laser technology (see April 25 story). The delay is impacting Intel and other customers. Company executives also denied reports that said SVG's tool delay would impact Intel's migration to 0.13-micron technology (see April 27 story). "The various press reports are wrong," insisted Sunlin Chou, senior vice president and general manager of the Technology and Manufacturing Group, during a question/answer session at a briefing last Friday. The SVG tool delays "have not impacted our migration to 0.13-micron technology," Chou told reporters and analysts. "Our 0.13-micron migration is doing well." While Intel did not elaborate, Tualatin will solidify the company's position "in the mobile and value PC markets," said analyst Nathan Brookwood, principal of InSight 64 Research in Saratoga, Calif. On the mobile front, Intel's Tualatin will come in two speed grades--1.16- and 1.26-GHz. These chips will eventually replace the older Pentium III MPUs in the mobile arena. In the value PC segment, Tualatin will be offered at 1.13- and 1.2-GHz. Over time, these chips will replace the Celeron, Brookwood said. In fact, Tualatin is already in the hands of key OEMs. "If Intel plans to announce the product in July, then I'm sure that they began sampling months ago," Brookwood said. On the mobile front, Intel's Tualatin is expected to compete against products from AMD and Transmeta. In fact, on Monday, AMD claimed the lead in high-performance processors for portable PCs with the launch of a 1-GHz AMD Athlon 4 and new speed grades of Duron chips for lower cost systems (see May 14 story ). AMD's new Athlon 4 portable PC central processing units push CPU speeds to 1 GHz, while the Duron takes performance up to 850 MHz in the "value" segment of portable personal computers. The 1-GHz Athlon 4 hits the market at a price of $425 each in quantities of 1,000, while the 850-MHz Duron is priced at $197, said the Sunnyvale company. In the notebook space, Transmeta has been making the most noise by garnering an impressive list of design wins. Many of its OEMs are Japanese PC makers--which are also Intel's best customers. Earlier this month, notebook PC giant Toshiba Corp. announced a new notebook PC based on Transmeta's x86-compatible Crusoe microprocessor line (see May 7 story). The introduction is seen by industry observers as the biggest design win yet for Santa Clara, Calif.-based Transmeta, which is attempting to compete with giant Intel Corp. and carve out a position in portable PCs. Toshiba said it will make its Crusoe-based notebook available in Japan on May 18. The 2.4-pound computer--called Libretto L1/060TNMM--will offer 14 hours of battery life using a 600-MHz central processor from Transmeta. On the value side, Intel's new chip will compete against AMD's Duron and Via Technology's Inc.'s MPUs. In this segment, Taiwan's Via recently disclosed its new microprocessor roadmap, including plans to develop an x86-based product with speeds up to 1.2-GHz (see May 1 story ).

To: Sully- who wrote (73064)	5/16/2001 8:10:18 PM
From: SBHX	Read Replies (1) \| Respond to of 93625

wstera_02, On already paid sdr/ddr royalty payments. I'm guessing that the sdr/ddr royalty payments amount to about 20M or so. (Is this right? I spent a few minutes on their income and cash flow statements from the annual and lastQ report, but with your impeccable credentials as an auditor, you'd probably do much better than some joe shmoe like me). If the worse case scenario unfolds for rmbs and the fraud conviction is not overturned, (1) why won't Hitachi be able to sue for the return of these payments. (2) Since 20M is not a small amount, during the court proceedings to reclaim some of that, if a manufacturer makes both drdram & DDR/SDR, why won't they take the difference between the drdram royalties and the paid up sdr/ddr royalties in escrow or in trust until the court proceedings are completed. I would expect that they could apply to the court to ask for this arrangement. ---- As an auditor, in your professional opinion, do you consider this a common practice when there is a dispute over a contractual obligations that awaits resolution in the courts? Respectfully, SbH

To: Sully- who wrote (73064)	5/16/2001 8:12:43 PM
From: Don Green	Respond to of 93625

The blue-chip Dow Jones Industrial average led the way, recording an impressive gain of more than 300 points to 11216.12 - marking its first close over 11000 mark since last September. In the tech arena, biotechs and chips were strong gainers, as the Philadelphia Semiconductor Index surged 39.03, or 6.5%, to 642.58. With the exception of Rambus (RMBS) and Micron Technology (MU), the closely watched index's other 14 components recorded hefty gains, including KLA-Tencor (KLAC) and Novellus Systems (NVLS) surging double-digits in percentage terms.

To: Sully- who wrote (73064)	5/16/2001 8:43:05 PM
From: r.edwards	Read Replies (1) \| Respond to of 93625

"Pentium-blews, I know you are an amdroid, so I am going to type slowly and carefully. See if you can follow this. Read the article again. Note what they are saying about SDRAM pricing right now--it's below cost. It's well below cost. It's subterranian. Waaay to much supply, not enough demand. A year ago, everybody cranked up the fabs and built a bunch of PC133 for a continuing boom in PC sales than never happened. By the end of the last quarter, Micron (and the rest) had been dumping dram for 2 quarters, and still had 2 quarters of production in inventory. Micron lost $500 million in six months. Net assets went from $2.5 billion to $2.0 billion between August and March. Eight more quarters of that and there is no more Micron. Hyundai is $8 billion in debt and hemmoraging $200 million every quarter. Nanya lost $50 million last quarter making DDR, which was selling for 3-4 times as much as SDRAM. Care to guess what they lost on SDRAM production. infineon lost $200 million just on DRAM operations in the past quarter. These guys were COUNTING on DDR-SDRAM margins to generate profits this year, and instead DDr-SDRAM prices are falling to parity with PC133, which has HIT A NEW LOW IN THE SPOT MARKET EVERY DAY FOR THE PAST TWO WEEKS. Breakeven point for the industry on PC133 is about $4.25. It's about to go through $3.00 per 128Mb chip. do the math--they are losing money on every chip. They could stop making DRAM today and there is enough sloshing around in inventory to last for another quarter, minimum, and maybe well into 2002 if the PC market and the telecom market don't turn around as expected. Why is DDR-SDRAM falling to parity with PC133? Because there is no demand for it. They can't turn it around easily and use it for video card memory--the organization is wrong, and the speeds are too low. Is it because Micron and Infineon, and Hyundai are great big ol' charities that want to make DDR "affordable" for Pentium_Blew and his buddies? Hell no! It's falling to parity because it is competing as an equivalent commodity with PC133. Get it? In terms of performance, DDR-SDRAM = PC133 +10% So in terms of pricing, at best, DDR-SDRAM = (losing a shitload on every chip) + 10% = losing 90% of a shitload. DDR doesn't compete with RDRAM. If you want an Athlon PC, it doesn't matter how much you might love RDRAM; there is no such a thing as an RDRAM chipset for the Athlon. If you want a Pentium-4, same thing. You are buying RDRAM. you have no choice. If you want an Athlon and don't want the flakyness and memory limitations of DDR, you can buy PC133 and get most of the bang with none of the bugs. Overall Athlon sales are ahead of Pentium-4, probably in the neighboorhood of 2:1. But Pentium-4+RDRAM are selling at least 2:1 over Athlon+DDR (because the overwhelming majority of Athlon/Duron PCs sold are using SDRAM. Try to find one DDR PC at any retail outlet. If you are rooting for DDR-SDRAM to succeed at main system memory, you should not cheer DDR-SDRAM price decreases. It's going from being a marginally profitalbe commodity to a commodity that is losing $ on every sale. Generally, products with that pricing history aren't around very long."" From a yahoo<g>