Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (116202)	6/18/2000 2:48:00 PM
From: Dan3	Read Replies (2) of 1572211

Re: Couple this with Intel's lower cost FC-PGA packaging (plastic) compared to the expensive multi-layered CERAMIC packaging... How many of Intel's cheap chips fail for every one they are able to ship? What's that do to the average cost of production? Isn't it just this penny-wise approach that has caused Intel problems for the past year? They save $10 on a board that uses rambus's lower pin count, then pay $500 extra for memory. They save $10 on plastic packaging, then have to throw half the chips into the dumpster because they fail in testing, doubling production costs. Timna will save the $15 production cost of a .25 chipset by doubling the $25 production cost and size of a .18 CPU. It's a recurring pattern - I'm afraid that some pernicious incentives have become ingrained in the culture at Intel. The same thing happened at GM years ago, and they've never been able to get rid of them. Maybe Intel will be able to do better. Remember when GM completely dominated the market, the antitrust division was investigating it, and it seemed inconceivable that that could ever change? Do you think GM will ever again get its market share above 30%? Dan

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