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To: Chas who wrote (38107)	9/3/1998 8:15:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

chas, please, if it was that easy they would have done it a long time ago. you probably think opec was a blazing success! ;-) what do you think shutting their fabs down 1 week a month does to their cost per unit? i bet it SIGNIFICANTLY adds to their cost per unit. maybe even 20-40%. therefore, prices have to rise even further requiring even more cutbacks and goosing cost per unit again. mu, on the other hand, keeps producing into this price increase and dumps all their inventory. remember, mu is a big player with txn output. in addition, i wouldn't be surprised if the koreans are building and storing - you know, like they did just before we went fro $10 to $1.50 ;-) will korea ramp 33% wehn they start earning money? of course. does this put a very heavy lid on dram werll into the future? of course. the economics dictate that once marginal costs are surpassed you start building. well, marginal costs are not net costs, bro. this means that they wiull start building when they make a profit on each additional part - NOT ON THE WHOLE. this is a dram death spiral. btw, fund outdlows are now the rule... exchange2000.com