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

To: Petz who wrote (83213)	12/15/1999 11:33:00 PM
From: Elmer	Respond to of 1580179

Re: "Eventually, 2/3 of Dresden will not be enough capacity for all the Athlons AMD can sell. I suspect Motorola will become a second source for the Athlon." But Moto is hurting for fab space themselves. That's why the talk of Moto leasing fab space from Dresden.Where are they going to get the capacity to second source Athlons for AMD? EP

To: Petz who wrote (83213)	12/15/1999 11:33:00 PM
From: greg nus	Respond to of 1580179

Followed by a MOt buyout of AMd.

To: Petz who wrote (83213)	12/16/1999 12:39:00 PM
From: Charles R	Respond to of 1580179

Petz, <I think the fact that Fab 25 will soon be used for chipsets and flash is .....> I am not sure if this is going to happen in H1 2000. Also, it sounds highly unlikely to me that AMD will do their chipsets at Fab25 in y2k. Economically they are probably better off letting UMC continuing to fab that kind of low-margin stuff. <...an indication that the Dresden Cu process is going so well that AMD feels they don't have to make Athlons in Fab 25 anymore.> If the Gary Shane (??) was right about steppers, Fab30 will take a while to get to that level. <Eventually, 2/3 of Dresden will not be enough capacity for all the Athlons AMD can sell.> Man, you are talking about a situation where AMD will lose market share. AMD needs processors from both the fabs to grow market share. And if they don't do that in the next 12 months then they would have lost a golden opportunity. <I suspect Motorola will become a second source for the Athlon.> What will AMD get in return? I seriously doubt this unless someone can comeup with an explanation on what Mot can offer. With every passing day the chances increase that AMD may do no deal with Motorola on Fab30. If AMD is getting good response on the business SKUs then the management would be hard-pressed to justify sharing capacity with Mot. My 2 cents. Chuck