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To: Kathleen capps who wrote (24677)	12/3/1997 2:54:00 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 53903

great article. some key points: 1. Letting optimism triumph over experience, the companies building those 64-meg DRAM plants in the U.S. all think they are going to get to market soon enough to enjoy a brief period of decent prices. Observes Mitch Tyson, president of PRI Automation, a Massachusetts maker of fab-plant equipment: "You miss that early market window when prices are high, you've lost a chance to recoup your investment quickly." OPTIMISM VS EXPERIENCE. HMMMM... 2. As early as 1999, industry observers say, falling prices will force the chipmakers to bring out a 128-meg DRAM or, more likely, a 256-megabit model, which can be produced in the same fabs now ramping up 64-meg production. Not long thereafter the industry will probably need to roll out a 1-gigabit memory chip. WHAT ABOUT THOSE WITH NO MONEY 3. So it goes. Carl Johnson of Infrastructure sees no escape for the DRAM makers from what he calls a "big no-limit poker game." To stay in the business, he says, "you have to invest in leading-edge manufacturing capabilities to attain sufficient capacity. The acceleration of 64-megabit capacity is part of a normal transition to higher-density parts. If you're sitting at the poker table, you have to play the hand. Like any other transition in memory chips, 64-megabit will be profitable for a while, and then another hand will be dealt." NO LIMIT POKER GAME. HMMMM. HE WHO HAS THE MOST CAPITAL WINS? ME THINKS SO we'll have to see how long investors play chicken with reality. mu, tanks for da memories...