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To: Patrick Koehler who wrote (28231)	2/12/1998 12:05:00 PM
From: yousef hashmi	Respond to of 53903

DOW JONES 90-DAY NEWS/RETRIEVAL Int'l News & Research Services Sequence Number : 1046 Story Date : 98/02/12 3 07:12 T =Texas Instruments May Cut Stake In Taiwan Acer Chip Venture By Russell Flannery TAIPEI (Dow Jones)--Texas Instruments Inc. (TXN) and Taiwan's Acer Inc. (Q.ACE) are in talks that may lead to a cut in the U.S. semiconductor maker's stake in a Taiwan-based memory-chip joint venture, a senior Acer executive told Dow Jones Thursday. The disclosure comes after TI last week said it would end a memory-chip manufacturing joint venture with Japan's Hitachi Ltd. (HIT or 6501) and take ownership of a US$500 million plant they built, a move analysts said is aimed at lowering TI's exposure to the memory chip market, analysts said. Acer, one of the world's 10 largest personal computer makers, and TI are at a crossroads after Texas Instruments-Acer Inc., 48% owned by Acer and 33% by TI, predicted in December it would post a NT$4.60 billion corporate loss for 1997, one of the largest on record in Taiwan. TI-Acer said the loss resulted from a collapse in prices of dynamic random access memory chips, or DRAM, the mostly widely used type of personal-computer memory chips. Average international spot prices for 16-megabit DRAM plunged to roughly US$2 in December from about US$9 in the second quarter because of slower-than-expected demand and a fall in the value of the Korean won, analysts said. South Korea is the world's largest DRAM maker. 'We are in discussions about the future of TI-Acer,' said George Huang, corporate general controller for the Acer Group and a member of TI-Acer's board of directors. 'There are many different alternatives. No decisions have been made.' Currently a specialized DRAM maker, TI-Acer wants to inject US$300 million into its capital for the purchase of equipment to boost its technology and competitiveness, Huang said. A decision on the investment is expected this month, he said. So far, TI hasn't decided to participate in the capital infusion, Huang said. If it doesn't and Acer arranges the needed funds, TI's stake in TI-Acer would fall. (MORE) DOW JONES NEWS 02-12-98 07:12 AM (Corrected 7:39 AM)

To: Patrick Koehler who wrote (28231)	2/12/1998 12:07:00 PM
From: yousef hashmi	Read Replies (1) \| Respond to of 53903

DOW JONES 90-DAY NEWS/RETRIEVAL Int'l News & Research Services Sequence Number : 1071 Story Date : 98/02/12 2 07:16 T =Taiwan/TI-Acer/Stake -2: TI Seen Reducing DRAM Exposure As part of the current talks, TI and Acer are also discussing the possibility that TI-Acer would no longer focus making on DRAM chips exclusively for TI, and would enter new product lines, Huang said. Eric Wang, a technology analyst at Hong Kong-based Clarion Securities, said diversifying its product mix would be a good move for TI-Acer, which is wholly dependent on DRAM for profit. A reduced role for TI might also allow the company to add new customers and develop new sources of technology, he said. For TI, the negotiations may lead to further reductions in investment exposure to DRAM products. 'TI wants to reduce their investment in DRAM, there's no doubt,' said an executive familiar with the talks. TI's office in Taipei said it couldn't immediately comment on the talks. TI-Acer's unexpected loss last year contrasts with its success during the first half of the 1990s when the company thrived on rising demand for memory chips and was a cash cow for Acer Inc. Net profit at TI-Acer, founded in 1990, peaked in 1995 when the company earned NT$6.5 billion. Confident about TI-Acer's future, TI in 1996 exercised an option to raise its stake in the company to 33% from 26%. Yet profits at the company begin to fall later. In 1996, TI-Acer earned NT$1 billion as global DRAM prices declined amid an increase in supplies. TI-Acer isn't the only specialized Taiwan DRAM maker to look to add new products to its mix to boost profit. Vanguard International Semiconductor Corp., a 27%-owned affiliate of Taiwan Semiconductor Manufacturing Co. (TSM), has raised production of SGRAM, or synchronous graphics RAM, used with its 3-D technology and video applications, to nearly 10% of its total in the past year. Powerchip Semiconductor Corp., another specialized DRAM maker, which is 13% owned by Mitsubishi Electric Corp. (J.MBE), plans to start making other types of chips this year. -Russell Flannery; 8862-502-2557 (END) DOW JONES NEWS 02-12-98 07:16 AM

To: Patrick Koehler who wrote (28231)	2/12/1998 12:12:00 PM
From: TREND1	Respond to of 53903

Patrick (1)My real time system has corrected the MU low to 35 3/8 or 35 5/16. (2) The "no follow through" has caused computer to say "wait for tomorrow"... (3) The end of the day should clear up picture. I hope ! (4) Daily MU = down Larry Dudash

To: Patrick Koehler who wrote (28231)	2/12/1998 1:03:00 PM
From: TREND1	Read Replies (1) \| Respond to of 53903

Patrick and DavidG (1)It is about this time that Micron should start leading the "BIG BOYS" about what the earnings will likely be. (2)Since we are not the BIG BOYS, we will have to watch MU's price action for info. (3)Now let's see, was MU saying some thing important today ? Larry Dudash

To: Patrick Koehler who wrote (28231)	2/12/1998 2:49:00 PM
From: DavidG	Read Replies (2) \| Respond to of 53903

Patrick and Larry, I decided to sell longs at 36 7/8 but am waiting to buy any PUTs. What does the shadow and Hal say<g> Good Luck Trading Davidg