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To: DJBEINO who wrote (27469)	1/31/1998 2:48:00 PM
From: Number 4	Read Replies (3) \| Respond to of 53903

DJBEINO >> As normal you are a week late with the stories! However events have overtaken us and I have it on good authority that there has been a bizarre twist to this story! Taiwanese venture capital group China Development Corporation (CDC) is now set to buy over 50 percent of Samsung. However the twist in the story is that look set to sell/swap the semiconductor business of Samsung to Hyundai (What a difference a week makes!) Euro. David BTW does anyone know about a story that Vanguard is going to put one of its new fabs on hold?

To: DJBEINO who wrote (27469)	1/31/1998 5:39:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 53903

DJBEINO, I personally do not think that the big deal will fly. It is more likely that the losing facilities will be downsized or sold (but Hyundai stubbornly wants to stay in the DRAM business, so we'll have to see). Frankly, Samsung is the weak sister out there, and when a company is forced to borrow at 20% interest rates when their return on assets are under 5%, it is a prescription for disaster. I am waiting to see the next shoe fall, namely some massive closing of DRAM (and car production) capacity in Korea. If they do not, they'll bleed to death. If they do, the survivors (including MU) will do just fine. Could the recent strength of MU be in anticipation of a reduction in capacity? Zeev