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To: gcrieff who wrote (21135)	5/30/1999 4:12:00 PM
From: Zeev Hed	Respond to of 93625

coving, I am not sure that over capacity will be healed that rapidly, in the last year MU increased capacity by about 80%, and NEC announced they will increase their capacity by 150% (from a believe 12 MM/month to 30 MM/month, if memory serves). The important think is not so much what the unit ASP will be, but what the overall DRAM market is going to be and what percentage of the DRAM market will be RDRAM. I think a relatively safe estimate for next year DRAM market in the $20 Billion annually can be taken. An argument could be made that the appearance of the RDRAM would mitigate the pricing pressures on the DRAM market and thus provide better margins (allowing another round of capacity expansion and another collapse?) and stability in average selling prices. Zeev