Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Profits who wrote (29158)	2/28/1998 10:37:00 AM
From: Jim McMannis	Read Replies (2) of 1574005

Profits, RE: "Do you think the folks at AMD just fell off the turnip truck. They aren't going to give chips to IBM. It's a pure foundry arrangement." When you're desperate you tend to fall off the turnip truck. Having not seen the agreement I can't say for sure what the agreement is but I can assure you that IBM has some kind of escape clause. Maybe it won't be a 1 for 1 chip deal and AMD will purchase the chips from IBM and then sell them back to IBM, but this takes money and I'm not sure AMD has that kind of money. IBM could finance them but it's a lot simpler for IBM just to get a chip for everyone they give to AMD. But for arguments sake let's say that it's a pure agreement and AMD is buying all the chips from IBM. You know that IBM isn't going to start production without some letter of credit lest they be stuck with a bunch of chips AMD can't pay for...so trust me, there are some escape clauses in there for IBM...like if you don't pay for the chips, or you can't take the chips, then IBM can dump them... Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next