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To: Earlie who wrote (30461)	3/17/1998 7:55:00 AM
From: Skeeter Bug	Read Replies (3) \| Respond to of 53903

earlie, the bulls have overlooked two points. 1. the initial investment is so big the fabs MUST RUN. 2. the only way to compete is to lower costs and the ONLY WAY TO REDUCE COSTS SUBSTANTIALLY IS INCREASE OUTPUT. these two facts are all one needs to know to be able to predict that the blood letting will continue for some time... my view said nobody would be piling on to buy mu after this report. am i right?? ;-)

To: Earlie who wrote (30461)	3/17/1998 1:22:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 53903

Earlie, I do not disagree in principle with you, yet last year, if memory serves, the average PC was shipped with 90% more memory than the year before. I do not know what MS 98 will do to memory demand, and what 3D graphics in PC will require. But if you add these and take of 30% of the capacity off, you "might" get a balance even if the surviving 70% double bits shipped, and if the increase in bits per PC is held at 50% relative to last year, these conditions might even create some tightness. Of course, a lot of players will have to fold to take off that 30%. Zeev