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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 204.87+0.1%2:46 PM EST

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To: richanfamus who wrote (34830)4/4/2001 3:09:09 PM
From: andreas_wonischRead Replies (1) of 275872
 
Rich, Re: Your comment reflects that of those who are very new to the semiconductor industry.

You are saying that to wrong person... For how many years is JC already running his site?

But suing your customer is not what is normally done in the semiconductor business.

Signing long-term contracts is also not what is normally done in the semiconductor business. But if you sign one, you have to stick to it. I don't know why this simple concept is so difficult to understand. A deal is a deal. Alcatel could have signed a deal with another flash manufacturer for a quarter or so, if they wanted (and had found one) but they decided to sign a two-year contract with AMD instead. AMD would have never provided them with flash (they could have sold it for more money at that time) if they knew Alcatel would breach the contract shortly thereafter. You don't get a reputation in the semiconductor business, if you are not honoring your contracts. IMO there's no excuse for Alcatel's behavior.

Andreas
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