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To: Zeev Hed who wrote (4183)	12/29/1997 12:12:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 10921

Re: some companies are withdrawing from DRAM (Japan Steel?) and moving into foundry services for logic devices. That might keep the slight oversupply there for some time. Zeev, If JS moves out of DRAM and into foundry services, won't this have the effect of reducing the supply/demand imbalance sooner than had they remained in the biz? One less player in DRAM; please explain how you arrive at your conclusion. I of course assume that you mean DRAM since I know of no foundries which are suffering the same overcapacity problems such as the DRAMers currently are. Regards, Brian

To: Zeev Hed who wrote (4183)	12/29/1997 2:14:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 10921

Zeev - Agreed, some DRAM makers are attempting to move into the foundry business, but that was threatened 2 years ago as well, and ultimately it did not happen. It is a lot harder than it looks. In some of my past posts I have listed URL's of articles telling about this transition and how hard it is. And, again, DRAM isn't the big swinger it once was - i.e. if 10% of the DRAM makers move over to the foundry business, it would mean a lot less than it would have 2 years ago since the DRAM makers have shrunk in comparison to the foundry business. Clark