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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (3781)	6/18/1998 6:40:00 PM
From: pat mudge	Respond to of 6180

Charlie -- There were dozens of questions asking for clarification. In short Micron gets $750M in financing from TI, which is equivalent to the convertible and subordinated notes. All are 7 years. About 20 minutes before the end of the call, one analyst summarized his understanding of the entire transaction and asked if he was correct. Someone from MU responded and if you listen to the replay, you'll get it all: 402-220-0101. It appears to be a win-win. TI gets out of DRAM and MU becomes the number one supplier world-wide with the joint venture. A few highlights: TI lost $129M last quarter from DRAM. This will end at the closing and after restructuring. "Will improve margins from here." MU plans to upgrade facilities to .21 and .18 as quickly as possible. Lubbock will be closed. Products moved to Dallas facility. TwinStar will become inoperable. Abazanno (?) and Singapore --- will take $1B over 3 years to put .21 in place. JV will finance capital spending. MU -- 4 weeks finished goods inventory right now. "Trending in right direction." 64 mg will surpass 16 mg in Sept. "We gambled on shrink and it paid out." PC100 -- 64 mg movinig to 100% as we bring on .21 product. First .18 is out. Looks good. Sample by end of summer. 128 mg DRAM. 68,000 sq. millimeters. (This is all Greek to me.) SLDRAM out of faba nd sampling now. 1.6 gigs per sec. Products late '98, early '99. .21 in production. All by 2Q 99. Micron Electronics royalties are also eliminated. Gotta run. (Still haven't had lunch. :)) More later. Pat