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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (3256)	3/9/1998 12:47:00 PM
From: REH	Read Replies (2) \| Respond to of 93625

I got this response from someone who follows rmbs very closely: "The reason why some manufacturers are holding back is to force Intel to interface their Rambus asic (processor chip)to dram also. When they did that Intel realized there was a danger that if it insisted on a total Rambus roll out, there would be a Rambus memory shortage. This would in turn increase prices on Rambus memory which is the last thing Intel wants to see. There are basically two problems which bother dram manufacturers: The recent memory price drops are already squeezing margins and the pacific rim currency problems have made the situation worse. Now these guys have to invest hundreds of millions in expensive Rambus testing and retooling equipment. The second problem is while a few manufactures agree with Rambus that they are loosing only about 5 % yield per wafer, Some claim they are loosing 20%. It's a question of manufacturing efficiency which comes from ramp up of scale.. As a result Intel decided last week on a strategy of less risk, averting a Rambus memory shortage. If Intel would not have this dual strategy it would push a huge amount of business to Amd and Cyrix. That would be as stupid as IBM,s decision to stop making 286's and stick only to 386's. That decision made a Fortune 500 Company out of Compaq. Bottom line is it makes no difference whatsoever over the long run." I concur and noted todays news with delight - Imagine the potential market for rmbs if you add up the PC-market, the Games-market and the TV-market. This is a rocket in the making - get ready!