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To: Joss who wrote (23975)	11/12/1997 11:08:00 PM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Texas Instruments (NYSE: TXN -) today issued the full text of a speech given by the company at the Prudential Securities 14th Annual 1997 High-Technology Conference yesterday in New York. The speech was given by Kevin McGarity, senior vice president of TI's semiconductor group. Very interesting speech summarizing World Semiconductor Market , Asia Pacific SC Market and others.Here what he said about DRAM market (also see the graph): ti.com ti.com (graph) Price declines, which are far beyond the normal learning curve cost reductions, have put pressure on the industry. They have slowed the growth rate of the overall semiconductor market. But there is no doubt that the demand for memory continues to grow. Bit growth sold with each personal computer shows a steady and dramatic increase. It's up more than 90 percent this year - well ahead of the rates we've seen during the last four years. PCs shipped this year will have an average of 32 megs of memory. This compares with 20 megs last year and an average of about 8 megs only three years ago. The projection for 1998 is a substantial increase per PC. More powerful operating systems will demand more memory - and as the PC is used for video communications - the memory will escalate. Some of the new Pentium II PCs are being shipped to customers with 64 meg of memory. So, while is impossible to know when the memory imbalance will correct itself, there is little doubt that the demand for more megs of memory will continue to grow. The currency situation also may play a role here. One of the fallouts with the Southeast Asia currency crisis may be a reduction in capital spending for DRAM wafer fabs by Taiwan, Korea and other Southeast Asian countries. Construction will be stretched out or postponed, and the appetites for governments to subsidize these facilities appears to be diminishing. Let me add here that capital spending for conversion to 0.25 micron equipment, particularly for advanced logic, is expected to remain strong.