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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Brian Moore who wrote (27231)	4/5/1998 2:00:00 PM
From: Knighty Tin	Respond to of 132070

Brian, We will see how many of those fabs do not get built. There is some logic to his argument, but he misses a few things. One is that pc boxes are no longer big sellers, so memory cannot rise to any price it wants without a dropoff in sales. And many cos. announce closedowns and slowdowns as a gambit to get other cos. to shut down so they can make money. An old trick. And, MU shut down operation on the Lehi fab, but it increased its Mbit output by 100 pct. last year. Production becomes more efficient even without new fabsand breakeven drops in price rapidly. So, my take is that until there is a pickup in price elasticity for pcs, there will not be a sustained bounce in DRAM prices. MB