Barcelona puts chips in trash cans

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Barcelona puts chips in trash cans

The Korean memory maker, Samsung Electronics Co. Ltd., says it cannot deliver the 10 million 128Mbit equivalent RDRAM chips that Intel Corp. wants the company to produce each month. Running at full capacity, Toshiba can produce only 6 million to 7 million per month at the current time. Efforts to expand production capacity will, the company says, result in 20 million 128Mbit equivalent of RDRAM chips per month by December.

Intel’s promotion of the RDRAM-supported Pentium 4 through aggressive price cuts is responsible for the increase in demand. Though increased production should eventually bring prices down, the shortage in Rambus memory has resulted in a short term price jump to $18 per unit, as opposed to the SDRAM equivalent prices which are about $6 each. Toshiba says its profit margins are much higher for Rambus than other memory types.

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