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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?


To: srvhap who wrote (8312)5/12/1998 9:04:00 PM
From: Samuel R Orr  Read Replies (2) | Respond to of 11555
 
It's fun to read these articles with just a bit of understanding. These aren't counterfeit Intel Pentium II microprocessors at all: they're simply older, slower parts without internal error correction circuitry that have been repackaged to a slight degree and sold as higher frequency units. The gray market is the place excess inventory gets dumped. What may not be understood is that a 233MHz Pentium(or any integrated circuit) has to have some additional margin so it will operate that fast at higher temperatures and lower voltages. At nominal temperature and voltage, it might operate at 300MHz. That kind of thing used to be done with DRAM and probably still is: 60 ns devices are run at 50 ns. All the PC assembler does is to crank up the clock speed, and he has a 300 MHz computer that sells for $1600 with a 233 MHz Pentium II that cost him two hundred bucks rather than five hundred. The crook pockets the extra profit. In lots of ways, it sounds to me just like insider trading and parking stocks. Boesky and Milken did that for really BIG money.

If Intel hadn't included the error correction circuitry on board, no-one could easily tell the difference unless the chip was taken out and its package speed read off the markings. The other area that's amusing is the comment that 1,000 counterfeit Pentium IIs costing millions of dollars were just discovered in Taiwan. About a sentence later, the writer mentions that Pentium IIs range from $650 to $450 or so each. As I remember from about sixth grade(just a bit over eight weeks ago), a thousand times a thousand is a million, so the total swindle might have been worth $650K. Our gullible writer unblinkingly told us each of those Pentium IIs was worth several thousand bucks. And they say we're not dumbing down! Boy, don't believe everything you read.

To paraphrase, Intel didn't get its proper pound of flesh on those Pentiums, and while they could overheat when run at the higher clock speeds, they most likely won't. If they pay for a $600 toilet seat, that's what the government wants. IDTI's integrated circuits will be misused in the same way, pushed to whatever speed they'll tolerate. You have to admit, the world is quickly catching up to our free enterprise system.