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To: Ed Beers who wrote (24203)11/17/1997 11:16:00 PM
From: DavidG  Read Replies (2) | Respond to of 53903
 
Ed,

Yes, I agree one of the problems was the sheer volume increase in their products was causing their inability to move the product out the door. They have been reducing their prices to increase their market share.

But This was part of the reasoning behind MU opening up their Lehi Plant to increase their testing capacity. Now The SDRAM was already being tested and procedures were in place to do limited testing of SDRAM but the additional equipment and resources necessary to perform these functions may not have been in place.

I am not sure what other test system development is requiered to further their ramp up needs but certainly the test systems itself must have a leadtime that is an unknown.

I would certainly appreciate some input on what is an overall SDRAM percentage for this quarter to assist in calculating an earnings number. Any number with reasonable support would be welcomed.

Thanks Again,

DavidG



To: Ed Beers who wrote (24203)11/18/1997 10:01:00 AM
From: mike iles  Respond to of 53903
 
Ed, thanks for the comments ... confirms what management said on the call, i.e. that they would work thru the assembly capacity issues sometime later this (calendar) year and would work thru the test capacity issues some time in the first of next year. I think Appleton made these comments. At another point in the call they said it would take about 2 quarters to catch up with the fab ramp-up (for SDRAM). So I think you're right about them having bottleneck problems again this quarter.

regards, Mike