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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (34146)	3/29/2001 11:34:51 PM
From: THE WATSONYOUTH	Respond to of 275872

Do they really have a hard lock, or is it like AMD's long term flash contracts? (My understanding is AMD flash sold cheaper then what they could have had for it when flash supply was very tight and now is selling for less then it did last year but still above what the market price would have been.) Also if it is a hard lock is it a hard lock at less then $50 a chip? Engel is blowing hot air. He has no access to any details of such a deal. Those kind of deals are not based on Intel pricing at any point in time. They are based on Intel's cost to make 733MHz P3s. That will not change much until they move to .13um and/or 300mm. And they won't be using .13um capacity for this any time soon. Presently, Intel can process a wafer thru their .18um process (6 level metal) for less than $2K per wafer. (I would guess about $1500) They should yield a bare minimum 180 good P3s per wafer. So it costs them less than $10/chip. Add the Package costs (anyone know a good estimate) I would bet they sell these for about $25-$30 a chip. I know a similar deal IBM has with Nintendo (about a 60mm2 chip on .18um) went for somewhere in the low $20s/chip. AMD can't compete at those levels at this time. THE WATSONYOUTH