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

To: Jim McMannis who wrote (80747)	5/26/2002 3:45:26 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Jim: "It still begs the question..."Why is AMD relying on UMC for Athlon production in the first place."? If they are going to farm out anything, why not Flash? Isn't that the easiest to make?" Yes it does...the UMC financial deal seemed awfully hurriedly put together, almost like AMD unexpectedly discovered a need for immediate UMC production...about the time JS was talking "holy grail" and Hammer was up and running in Redmoond...Hmmmm...Free up Dresden for Hammer maybe???

To: Jim McMannis who wrote (80747)	5/26/2002 10:37:02 PM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: Why is AMD relying on UMC for Athlon production in the first place. AMD needs to rapidly increase their production capacity so that they can supply 30% to 40% of the CPU market by the end of next year, growing to 50% to 65% by the end of 2005. At the same time, they need to increase their flash production so that FASL can supply 50+% of the flash market by the middle of next year. So, they took on a FAB partner. When you're the only company with a 64-bit X86 desktop chip, in a world of 32-bit chips, you need lots of capacity to satisfy your customers. Remember how quickly the market lost interest in the 286 for anything but bottom feeder systems once the 386 was shipping in volume? It really hurt AMD's 286 business - thank goodness AMD didn't have high costs back then like Intel does now...

To: Jim McMannis who wrote (80747)	5/27/2002 4:18:57 PM
From: Yousef	Read Replies (1) \| Respond to of 275872

Jim, Re: "It still begs the question..."Why is AMD relying on UMC for Athlon production in the first place."?" I have covered this before, Jim ... AMD can't afford 300mm production at .13um or future generations. This is why they are relying on UMC at this technology node and for all future technologies. You're right ... "Big Gamble". BTW, I predicted this even before Hector came to AMD. Hector tried to "valiantly" do this at Motorolo ... Couldn't overcome the "politics" there. Make It So, Yousef