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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (12432)	5/11/1999 12:13:00 PM
From: Marc	Respond to of 16960

From a report on NMGC today downgrading it "This downgrade is based upon capacity constraints from key foundry suppliers.". Marc PS: And ATI sold it stakes in UICC yesterday and note: "The company has secured ample capacity to fulfill current demand from these facilities, in addition to additional allocations for any increases in its requirements should this materialize."

To: Sun Tzu who wrote (12432)	5/11/1999 12:26:00 PM
From: Obewon	Respond to of 16960

Based on the last annual report, 3dfx has not in the past entered into any capacity guarantees with TSMC. They pursue purchase orders with the fab. I also do not believe that TSMC gives 3dfx any sort of "sweet" deal. 3dfx uses TSMC because they are the highest quality, lowest cost fab available (for anyone, including Nvidia who gets TSMC to make its hips as well). That being said, the current restructuring brought on by the merger may have changed management's mind on this issue. One of the reasons capacity could be seen as constrained is that maybe 3dfx entered into a longer term deal that took capacity out of the marketplace. Obewon PS Raw material cost for the chip fabs are also going up due to worldwide gap in supply & demand for large silicon wafers.