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Politics : Formerly About Advanced Micro Devices

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To: Elmer who wrote (36839)	9/9/1998 12:09:00 PM
From: Maxwell	Read Replies (3) of 1571088

Elmer: <<What should AMD's business plan be? Isn't it obvious?>> You are wrong. AMD has the best flash technology to date. It has the highest density/mm^2 and the lowest $/MB. AMD flash is capable of read and write simultaneously and has the lowest operating voltage and power consumption. The amount of R&D in that sector speaks for itself. The reason AMD flash business is not doing well is not an isolated incident. Worldwide flash margin is dropping fast and flash is quickly becoming a commodity. In the time of the worldwide excess chip inventory and the Asian flu AMD flash is still profitable (not as much as it used to be) whereas Intel is losing money in the flash market. AMD communication is taking a big it as well in this crisis although they should explore into other communication sector. AMD is probably not very strong at cracking in new territory. They probably need help and new blood in this area. Thus this leads us to to microprocessor. This is a lucrative market where Intel hold 95% of the market and charge people > 4X-10X of what it worths. AMD has been doing CPU as long as Intel has. Thus this is the area where AMD has the most experience and customer base. It was a logical decision to invest heavily in the microprocessor. Had this wasn't done AMD would have been finished in this Asian flu. Had it not been for the microprocessor sale AMD revenue Q2 would have been $300M! Q3 would probably be less than $300M but now with the CPU AMD will have a shot at $700M+ in Q3. AMD stock would have been in the same dog house as Cypress had it chosen to kill the CPU like you suggested. AMD would have been nothing more than a commodity chip maker. AMD has gone a long way of having 0% customer base to 38% of the retail market in less than 1 year. It was mission impossible a year ago. A year ago people even doubted that a Tier 1 would pick AMD. Well AMD got 7 out of 10 top tiers in less than a year (no DELL, GTW, and Packard Bell). K6-2 is so good that Intel had to dispatch a team called "COPY EXACT 3DNOW" to copy and modify 3DNOW and calling it KNI after they saw what AMD presented at the Microprocessor Forum last year. The reason AMD is losing money because they opted to build a new Fab30 in Germany. They understood that with good CPU chip design but without the capacity will gain no ground in competing with Intel. This is a wise decision (look back at how the Korean went form 0%-50% of the world market share of DRAM) and partnering with Motorola ensured AMD of completing its plan- a good design, good processing technology, good capacity, and good customer base. By next year all the pieces of the puzzle will come together. AMD K7 will be the world fastest X86 processor and an item which everyone wants. Not only that AMD would have the capacity to mass produce it cheaply so that every family can afford one. You will then understand why AMD took the risks they took. You and the rest of the Intellabees on this thread have no vision. Had you been the CEO of AMD the company would have gone belly up by now. You all are so short sighted. You need to fix your glasses. Let me remind you what those Intellabees have said: #1) No tier 1 will adopt K6. #2) AMD can't make notebook K6. #3) AMD can't make 0.25um K6. K6-300 is a phantom chip. #4) AMD can't make CPU that plays QuakeII like the PII. #5) AMD can't reach 350MHz. #6) AMD can't achieve volume on the 350MHz. #7) AMD yield on the 0.25um process sucks. #8) AMD will never reach the 400MHz and 450MHz. #9) AMD will miss the Christmas season of the 400MHz. #10)AMD K7 is vaporware. #11)No software support for 3DNOW! #12)No tier 1 will adopt K6-2 #13)CPQ will not adopt K6-2 #14)CeleronA will kill K6-2 .... .... .... They said a lot of things but none can remember of the events which they said and have been proven wrong. Maxwell

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