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To: dumbmoney who wrote (36487)	7/25/1998 10:05:00 AM
From: DavidG	Read Replies (3) \| Respond to of 53903

Hi Dumbmoney, Well I am not making up the facts. As I understand it and as many have reported it on this thread, prices for DRAM and SDRAM have been stabilizing and in many parts of the product line starting to creep up. 64mb chips still have the higher margin and they have certainly been moving up and those are certainly required for the 64mbyte modules. This is the Minimum memory requirement you will see for Win98 equipped systems. Anything less is silly. ...also the PC100 compatible chips are still limited by a select number of manufacturers and they still enjoy a premium and are required on the 350MHZ and higher systems which are being pushed out the door right now by DELL, CPQ, MUEI etc. It was reported there is a shortage of this type. MU also indicated recently that 70% of their wafer starts were PC100 compatible so they seem to be doing all the right things. Now remember MU's manufacturing costs have been reducing dramatically with the fab upgrades and although at one time the prices were dropping faster than the costs, this has apparently stopped and with prices reversing slightly upward again MU may start to show a profit. Lehmans report is observing this and for this reason sees a change in the profitability picture for MU. Of course time will tell if it stays that way but certainly the Koreans have just as much reason to make it happen b/c they are certainly on the ropes right now without making any money on chips in the past few years and are now in financial trouble. Good Luck DavidG