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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: kapkan4u who wrote (62253)	6/18/1999 12:30:00 AM
From: Charles R	Read Replies (1) \| Respond to of 1571485

Kap, "How about the costs of converting four FABS to 0.18u and have them wait for the process to be re-qualified? And in addition the conversion to 0.18u is taking capacity away from 0.25u which apparently they will need back now to continue to build PeeIIIs for three or more month. So now they have to convert some capacity back to 0.25u. This makes FDIV look like a walk in the park IMHO." I am general agreement with you but for one minor difference. The CPU players (AMD+Intel) have excess capacity. The company with the better selling processor is in a better shape than the other guy. For the last 2 quarters, that was Intel. Barring unforeseen circumstances, the game will change starting Q3. Intel may not need that capacity as much as they did before and it will probably go a long way keeping the ASPs up - good for both parties. IMHO, there was a higher risk of ASP erosion with Intel's 180nm process. Now, Intel neither has the excess capacity or the cost structure to keep pushing hard on the ASPs - should go a long way in helping INTC holders retain most of their wealth and make us AMD stockholders prosperous. Chuck

To: kapkan4u who wrote (62253)	6/18/1999 12:34:00 AM
From: kash johal	Read Replies (3) \| Respond to of 1571485

Kapkan, Re:" How about the costs of converting four FABS to 0.18u and have them wait for the process to be re-qualified? And in addition the conversion to 0.18u is taking capacity away from 0.25u which apparently they will need back now to continue to build PeeIIIs for three or more month. So now they have to convert some capacity back to 0.25u. This makes FDIV look like a walk in the park IMHO." It sure is a golden opportunity for AMD. I am amazed at this f*ck up. They have been running the 0.18 for soem time and had bragged to the analysts that they were ramping ahead of plan!!! They have had previous revs of the Coppermine taped out and should have known what the speeds looked like. They have admitted that the current 0.18 Coppermine design is yielding at 500Mhz and not at all at 600Mhz. In addition they had started risk production silicon that they have to junk!!! This type of ineptness has been de rigeur from AMD, but to see it form Intel is incroyable!!! Intel has moved from a period where it performed flawlessly to where recently everything is late and screwed up and we haven't even got to the RAMBUST issues yet!!! If those profits start vanishing-due to AMD kicking some BUTT we could see a run on the stock that we haven't seen in a long long time. Regards, Kash