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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Len Roselli who wrote (66120)10/9/1998 11:33:00 AM
From: Tony Viola  Read Replies (2) of 186894
 
Len, your post of a post by Michael Gat over on AMAT, excerpts from it (if Michael is reading, apologies about using your words without your permission):

AMD has definitely been having yield problems with the K6-2.

Unfortunately, many of the process problems manifest themselves
in the form of intermittent failures which may not be caught before
shipment.

As a result, the field failure rates on K6-2 are significantly higher
than on other microprocessors.

Supposedly the problem has been fixed, and new product they are
shipping will be OK. But it doesn't say much for their quality
control.

Bottom line is that manufacturing was never AMD's strength and it
still isn't. That's a killer problem in an increasingly high-volume
and lower margin business.


Michael is describing a cause/effect phenomenon that I've been trying to stress several times here. This is that poor yields will result in product (the ones that test "good") that will have poor reliability compared to product that comes off a well yielding line. DOA's (dead on arrivals) and ELF's (early life failures) are the twin tales of woe that befall customers that buy from a vendor with yield problems.

Tony
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