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To: Skeeter Bug who wrote (34514)	6/7/1998 7:29:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 53903

Skeeter, efficient can also mean lower cost of capital and lower overhead costs (or distribution of overhead over larger production MU+TXN even without increasing the total of MU+TXN). Of course, if this deal goes through, MU would be stupid not to bring this facility to its own level of productivity (meaning as you said, more output). Zeev

To: Skeeter Bug who wrote (34514)	6/7/1998 9:21:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 53903

Let us say that MU can buy the TI facility for a low price because no one else wants it. That implies exceptionally low capital costs. Then if MU can lower the costs at TI to their own exceptionally low costs (and that is a big "if"), they have low operating costs and more volume. They don't need a larger sales staff, or much more in the way of office/administrative cost to move the chips, so the bottom line question for now is, can they sell the chips for more than the marginal cost of production. Or let's look at another scenario, MU buys the TI facility for next to nothing and shuts it down. Nahh.... Carl