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To: Larry Loeb who wrote (54293)	4/23/1998 3:27:00 PM
From: Tony Viola	Read Replies (4) \| Respond to of 186894

Larry, all. Oh, good grief, now the FTC is ordering (too strong a word?) Intel to license the alpha chip manufacturing rights to AMD and Samsung (Samsung already had it). Just heard this on CNBC. Yet another case of the government sending it's murky cloud into the free enterprise arena? This is not as bad as the gummint refuting the Strongarm chip as being part of the deal, where Strongarm rights would go over to Intel. Article in the San Jose Mercury News (aka the Murky News) said this refuting (word?) was being speculated upon by analysts. The alpha chip being available to AMD might be a godsend to Intel. If AMD couldn't even build their own design K6 with decent yields for a year, or so, what in the world will happen when they try to build another company's chip. Might be a moot point, since who's buying alpha based systems anyway. Tony

To: Larry Loeb who wrote (54293)	4/23/1998 8:15:00 PM
From: Mo Chips	Respond to of 186894

<<It's not a fall off in demand, as you suggest>> I didn't mean to suggest a fall off in demand but a change in the nature of the demand. For example, a demand curve is obviously a graphical representation of the fact that at lower prices more is demanded, and conversely, higher prices means lower quantity demanded. But fundamental changes can cause a complete shift in the demand curve. I propose that due to the lack of value added from more expenses processors (at this time) a fundamental shift inwards for leading edge cpus has occured. The result is lower prices to drive the same level of demand. This is not to say that there are not changes in the supply side of the equation. Technological progress also causes outward shifts in the supply curve. This results in more supply at a give level of prices. This can be done because producers are more efficient. The new 0.18mu process is an example of a factor that causes this shift. The end result of these two sides of the equation is falling prices for a given level of unit demand. This is not to say that an increased supply will not effect the equation, but engel's supposition that the AMD and Cyrix chips sold below cost are the cause is, in my opinion, insignificant relative to the forces of technological advancement and fundamental changes in the nature of the demand. Mo