Bill - Re:" With IBM making the chips supply will be assured and IBM will cut prices for their parts they make for AMD apace with celeron price cuts. "
EARTH TO BILL
EARTH TO BILL
EARTH TO BILL
IBM ISN'T MAKING DIDDLY SQUAT FOR AMD - THE DEAL WAS CANCELED BEFORE IT EVER GOT STARTED
Read below - and catch up on LAST JULY's NEWS !
Add this tidbit to your AMD - Gateway CONFUSION !
Paul
{=================================================} ebnews.com
AMD's Sanders Expects Profit Turnaround
(11:05 a.m. EDT, 7/30/98)
By Ismini Scouras
Advanced Micro Devices Inc.'s W.J. Sanders III said his company should return to profitability in the fourth quarter.
To do that, Sanders is relying on increased sales of AMD's 3D graphics-based K62 microprocessor, the competitive offering to Intel Corp.'s Pentium II, to get AMD into the sub-$1,500 PC space.
Speaking at the BancAmerica Robertson Stephens semiconductor conference Wednesday, the chairman and chief executive said AMD will ship about 3.5 million and 4.5 million K62 devices in the third and fourth quarters, respectively, bringing the total number of K6 unit shipment to 12 million this year.
AMD is comfortable with its yields, which is why it terminated its foundry agreement with IBM Corp. this month, Sanders said. “Our manufacturing problems are definitely solved,” he said.
The company hopes to have a 30% share of the microprocessor market in 2001. “With our cost structure, we should be able to grow market share and return to profitability,” he said.
AMD will introduce its K62 microprocessor with 256-Kbytes of Level-2 cache, dubbed Smarttooth, in the first quarter of 1999.
AMD's manufacturing prowess, he claims, makes it the lowest-cost microprocessor producer, citing Sharptooth's die size of 117 mm2 versus Intel's Celeron device with L2 cache at 135 mm2. The smaller the die size, the lower the cost, he said. “Die size will make a big difference,” he said.
Sanders also expects to introduce a 1-GHz microprocessor, based on copper technology it from Motorola Inc, in 2000. The part will enable AMD to compete in the server and workstation market.
Whether AMD will manufacture microprocessors based on the Alpha architecture remains to be seen. “We'll keep an eye on Alpha,” he said.
Meanwhile, Sanders said has no plans to retire before his contract is up in 2003. |