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

To: Chuck Mowery who wrote (9051)	10/31/1998 9:37:00 AM
From: MileHigh	Respond to of 93625

From EE Times (11/2) Micron chairman Appleton: .................On Intel Corp.'s $500 million investment: Asked about reports that Intel actually was willing to invest a larger sum in the DRAM market, Appleton replied: "I don't know what amount Intel was planning to invest in the [global] memory industry. If Intel had wanted to invest more in Micron, that would have diluted our stockholders' shares. We had to balance how much we would accept compared to how much this would dilute Micron stock." On manufacturing Direct Rambus DRAM: "It will be a major challenge to produce Direct RDRAM on the same cost basis as double-data-rate SDRAM. There's no doubt that Intel is looking to Micron to work on all the Direct RDRAM technical challenges. "We can get a smaller Direct RDRAM die size by going to a 0.18-micron, or even to a 0.15-micron, feature size. Because Micron is far ahead of any other DRAM manufacturers, ... we expect to have the most cost-effective chip on the market." On Double-Data-Rate SDRAM and SLDRAM: "It's difficult for us right now to know where alternative [wideband memory] architectures will end up. We'll make whatever DRAMs our customers want. It appears DDR-SDRAM might go to the [PC] server and workstation market. We're still doing work on SLDRAM." On NEC Corp.'s Virtual Channel Memory: "We're looking at Virtual Channel. It can have some advantages if customers move to 133-MHz SDRAMs. We'll be watching the market." On Micron's 1999 capital investment: "Micron had capital expenditures of $920 million in its 1998 fiscal year [ended Sept. 3], and we expect to have about the same level in the 1999 fiscal year. We have $1.7 billion cash resources available-$500 million from the Intel equity investment, $700 million from Texas Instruments financing, and $500 million from our cash on hand." On process-technology migration: "Micron is now producing virtually all 64-Mbit DRAMs at 0.21 micron. We're starting 0.18 micron, and next year most production will be at that generation. We'll have limited early production at 0.15 micron by the end of next year."

To: Chuck Mowery who wrote (9051)	10/31/1998 9:51:00 AM
From: MileHigh	Read Replies (1) \| Respond to of 93625

Thread, They're going down kicking and screaming! <gg> Seriously, if RMBS does not make this any more paletteable, then the dissention will come back to haunt them. It seems no one wants to do this (besides RMBS and INTC) and when they (DRAM manu's) get the chance, they will rub it in RMBS's nose in a big way. Am I the only one who thinks this? Who's in RMBS public relations anyway <gg> MileHigh ----------------------------------- November 02, 1998, Issue: 1133 Section: Viewpoints -------------------------------------------------------------------------------- Do Rambus licensees have clause for concern? Andrew MacLellan Intel Corp.'s $500 million investment in Micron Technology Inc.-and the Boise, Idaho, company's subsequent capitulation to the Direct Rambus DRAM camp-could trigger a royalty windfall for technology architect Rambus Inc. Having taken the king's shilling, Micron will do the king's bidding and accelerate its ramp-up of Direct RDRAM into next year's PC market. The investment will allow Micron to fulfill its capital-investment agenda and will likely guarantee that a few million more Rambus chips hit the street in 1999. However, Micron's surprise endorsement comes at a time when other DRAM suppliers are starting to chafe under what they say is a moratorium on free speech imposed by Rambus as part of its Direct RDRAM campaign. According to several license holders, the Direct RDRAM contract that each vendor must sign contains a clause that prohibits licensees from criticizing the architecture in public. This policy may have served a purpose in the early stages of design by confining engineering issues to the development teams, where they rightfully belonged. But with the Direct RDRAM launch date rapidly approaching, Rambus' spin control is causing dissension among chip suppliers. Unable to broach unresolved issues publicly, these companies have had to rely on Rambus, and to an extent Intel, to speak for them. Even though both companies have done a credible job of keeping to their time lines-and claim to have responded to criticism with complete candor-memory vendors have privately professed unease at the degree of control Rambus and Intel are exercising over such a delicate technology transition. Moreover, the Rambus policy has had a secondary and potentially more damaging effect by spawning a conspiratorial cottage industry bent on exposing what are believed to be hidden truths central to the Direct RDRAM program. Thermal issues, packaging availability, module costs, die size, production capacity-all have been identified at various times as representing a possible threat to the Direct RDRAM master plan. Like a Louis XIV-era court intrigue, or an episode of "The X-Files," Rambus' censorship decree has prompted back-room gossip and allegations of cover-ups that have overshadowed its larger message. If Rambus is to herd this new high-speed architecture to market-and if Intel wants to reap the performance benefits-then it's time to lift the DRAM community's gag order and let the information flow where it may. At September's Intel Developer Forum, the event's host encouraged suppliers and OEMs to work together to build a more honest supply/demand forecasting model. By allowing unrestrained dialogue among DRAM vendors, their customers, and the public at large, Rambus could push the industry toward that goal. -Andrew MacLellan (amaclell@cmp.com) is EBN's managing editor, West Coast. Copyright ® 1998 CMP Media Inc.