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

To: pgerassi who wrote (106944)	4/20/2000 10:02:00 AM
From: Elmer	Read Replies (1) \| Respond to of 1573857

Re: "Total Wafers from all CPU fabs is about 50K to 60K a week. Thus Intel was at 10% conversion max at week 1. They said they were more than twice that at start of Q1. Thus usuable yields must have been less than that" When Intel says 10% conversion that applies only to the fab capacity allocated to processors. They are not talking about total fab capacity. For example they said they would be near 100% .18u by the end of the year but they will still be manufacturing many many millions of other products, some on much older processes such as .25u .35u and even .6u & .8u. Re: "They said the shortage would be over in Q4, then Q1, and now say Q2. The old saying applies, "I will believe them, when I see it". Their creditability is very low" They also said that the demand was above their expectations. Why aren't you taking that into account when you accuse them? Q4 is normally far and away the highest volume quarter and Intel completely depleted their inventories, meaning they used more than the full output of Q4 to meet demand. Those units were also free because they had been expensed in a prior quarter so profits benefited in Q4. Yet in Q1 shipments remained flat with Q4 meaning they shipped an equal number of processors without having an inventory to tap into. All this says higher capacity in Q1 to me. Does this Q1 demand seem like a normal situation to you? Had the demand slacked off as expected the constraint issues would have been over too. This discussion could go on and on forever but I don't expect to convince you and I can't provide data that isn't publicly available. EP