Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: jopawa who wrote (7444)	9/25/1998 6:45:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 93625

I did not see this posted, notice the comments about RMBS, sounds as if RDRAM is not the critical aspect of this deal... MileHigh Intel Considers Taking Stake In Micron (09/25/98; 4:03 p.m. ET) By Jack Robertson, Electronic Buyers' News Intel is currently negotiating with Micron Technology to take a minor equity stake in the DRAM maker, a move that would give Intel a steady supply of memory, and Micron capital to pursue its expansion plans, Electronic Buyers' News has learned. Spokespeople at both Intel (company profile) and Micron (company profile) declined to comment. The outcome of the negotiations was still uncertain Friday. And whether Intel's infusion would be provided through financing or a private securities purchase was also unclear. Sources close to the companies, however, said both Intel and Micron are leaning toward a cash transfer. Byron Walker, an analyst at BT Alex.Brown in New York, said he didn't believe the Intel-Micron arrangement when he first heard it. "I checked it out and now believe there's some validity." While it is unclear how Micron would use the funds, the company has several fab projects under way. For one, its long-delayed fab in Lehi, Utah, needs to be equipped. Micron also needs to upgrade three of the Dynamic RAM fabs it recently acquired from Texas Instruments. The Boise, Idaho, company's ambitious expansion plans could make it the overwhelming leader in the global DRAM market, analysts said. Intel's stake in Micron could ensure the microprocessor maker a continued supply of DRAMs, prevent another shortage, and keep DRAM prices from rising again. Some industry observers said it would give the Santa Clara, Calif.-based company the highest leverage in the DRAM market. Major global DRAM competitors would be forced to accelerate their DRAM yields to keep up with low-cost Micron chips. Intel would also co-opt one of the most aggressive rivals to its Direct Rambus DRAM wideband memory standard. Although Micron is developing a Direct RDRAM chip as a backstop strategy, it has made little secret of its plan to promote SLDRAM wideband architecture as an alternative to Direct Rambus DRAM. While the deal would also give Intel an assured supply of Direct RDRAMs, that part of the possible cooperation is not as critical, since a bevy of top-tier DRAM suppliers are already committed to ramping Direct RDRAM output starting with pilot production this fall. One observer hinted Intel might partner with Micron on some of its 300-mm-wafer development technology that could be deployed in the Lehi facility. The technology would let Micron launch the next-generation wafer size in tandem with other chip makers when the new technology moves into the market. Financial sources this week gave more credence to the Intel-Micron report than to the earlier spate of rumors that emanated from South Korea last spring, including Intel's $1 billion cash infusion of Samsung, which never came to pass.