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Politics : Formerly About Advanced Micro Devices
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To: Shane Geary who wrote (53942)4/2/1999 4:34:00 PM
From: Yougang Xiao  Read Replies (2) of 1571363
 
Shane G and PB:

The following is directly taken from the recent AMD 10-K:

5.7. Foundry Support.

a) In the event that Motorola has the HIP5L or HIP6L process in production earlier than AMD, providing AMD
is in good faith attempting to qualify such process
in its Dresden Fab 30 facility, at AMD's request,
Motorola will manufacture utilizing HIP5L or HIP6L,
up to *****, or such greater amount as the parties
may agree to, until AMD's Dresden Fab 30 facility is
prepared to provide production volume using those
processes. The parties will negotiate and execute a
separate foundry services agreement which shall
include commercially reasonable terms and conditions,
including pricing, in connection with the sale of
such wafers.

(b) AMD represents and warrants that it has "have made"
rights from any necessary third parties for products
to be manufactured under Section 5.7(a) to enable
Motorola to undertake such manufacturing. In the
event a claim is asserted against Motorola relating
to AMD's "have made" rights, AMD will indemnify and
defend Motorola from and against any such

***** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Page 23

AMD/Motorola Technology Development and License Agreement
December 3, 1998 - Execution Document

*************************************************************
Could you two please shed lights as to what are the significances of the HIP5L or HIP6L process in relation to copper thing at Fab 30?

TIA
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