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To: unclewest who wrote (8784)	10/19/1998 7:18:00 AM
From: Shumway	Read Replies (1) \| Respond to of 93625

USA Today article: Intel invests in Micron Technology NEW YORK - Intel, the largest maker of computer microprocessor chips, is paying $500 million for a 6% stake in Micron Technology, a big maker of memory chips. The cash investment - Intel's largest equity stake in an outside company - gives a needed infusion to Micron, which is struggling against mounting losses stemming from sharply depressed prices of chips that store a computer's programs and data. The stake disclosed Friday is part of Intel's strategy of encouraging development of new technology that will fuel from demand for its silicon microprocessors, which supply the brainpower for more than 85% of the world's personal computers. In Friday's deal, Intel wants to spur the computer industry's adoption of a speedy type of chip technology known as R-DRAM, which transfers data far faster than conventional memory chips. The chip was designed by Rambus, a Mountain View, Calif. company that licenses its memory designs to other semiconductor companies that manufacture the chips. Micron is expected to start making the R-DRAM chips next summer, which will be used to boost the ability of computers to handle three-dimensional graphics, multimedia and other intensive functions. Santa Clara, Calif.-based Intel used to make memory chips, but exited the business in the 1980s amid a global oversupply that pushed down prices to unprofitable levels. Its investment in Micron reflects concern that the current glut will discourage memory-chip companies from making investments in more advanced technology. The glut has hammered Micron Technology and other memory-chip companies recently. The Boise, Idaho-based company last month reported losses of $89.1 million last quarter and $233.7 million for the past year, a nearly 180-degree turn from its 1997 performance. Micron's stock rose 1/4 to close at 32 on the New York Stock Exchange. Intel shares edged lower, down 13/16 at 83 3/4.