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To: Richard Russell who wrote (28235)	2/12/1998 1:11:00 PM
From: Kerry Phineas	Respond to of 53903

RR, in the near future there will be enough players to fill demand for DRAM chips, but in the "long term," assuming MU remains a player, things are definitely better if some of the more aggressive players are out or at least wounded. In my mind, though, the fact that there are Korean companies that are hurt bad bodes ill for MU in the short term. Personally, don't think outsiders can have a really good idea what MU's prospects really are, but I think there's uncertainty as to whether they can come up with enough money to stay competitive.

To: Richard Russell who wrote (28235)	2/13/1998 8:50:00 AM
From: Thomas G. Busillo	Read Replies (2) \| Respond to of 53903

RR, if it was one or more of the Asian players bailing out of the market, that would be fairly significant. Don't know what the market share of the JV is but it's probably not a lot. I don't know it's fully analogous to the type of capitulation that occurs in a selling climax on the markets (as I think Kerry pointed out, you never know who's going to view it as a potential opportunity), but if I see some of the big guys going "We're getting our heads handed to us. Time to fold up shop. We're done." that's when I'd start feeling a lot better about the industry and MU. As bad as things have been and maybe will be for the next several quarters, this is a cyclical industry. It hasn't experienced the type of shakeout that should (?) have occurred due to the rather interesting brand of capitalism and free-market economics of some foreign nations that seems to hold that "free-markets and competition are fine, as long as my cronies don't lose", which IMHO is perverse. Maybe that lack of a good healthy competitive pruning leaves a lot of deadwood on the industry that aggravates the effects of the down cycle. Good trading, Tom