Kash,
Why are you so confident that AMD can produce 4M-5M K6 next quarter (Q3/98)?
Jerry claimed an addition of 500K-1M, to the existing 2.6M this quarter (Q2/98), by Q4/98. When AMD started the 0.25um, if same yield as 0.35um, the vanilla K6 production would suddenly double. Now, with K6-2 becoming of more a main stream, the units per wafer has to decrease because of larger die size.
Over all, the most importance issue is whether AMD has solved its yield problem. To me, the answer is no. So, in order to deliver more units in the next few quarters, production must be ramped up. That would spell more spending and thus more loss, not to mention the ASP going down fast due to Intel's merciless price war.
Are we witnessing the slow demise of a great company (AMD)?
Regards,
Time Traveler |
