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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (172531)	1/17/2003 7:25:18 AM
From: Joseph Pareti	Read Replies (1) \| Respond to of 186894

AMD AND IBM COOPERATE ON NEXT-GEN CHIPS Note the deal is on the 65 nm node, nothing is said on 90 nm (and Dresden FAB30 is not equipped for that, AFAIK). So that AMD has to rely on their "Taiwanese friend" for that technology (while at the same time the lion share of Intel capex IS on 90nm/300mm, as per Tuesday con call). All this speaks for itself, doesn't it ? :-) =============================================================== From: HPCwire [mailto:hpcwire@tgc.com] Sent: Friday, January 17, 2003 9:44 AM To: Pareti, Joseph Subject: 104210 AMD AND IBM COOPERATE ON NEXT-GEN CHIPS 01.17.03 AMD AND IBM COOPERATE ON NEXT-GEN CHIPS 01.17.03 COMMERCIAL NEWS HPCwire ============================================================================== AMD ratified a pact with IBM to jointly develop next-generation microchip technologies, with an eye toward making faster, more efficient chips. The companies noted their joint focus on advanced chip structures and materials, such as silicon-on-insulator (SOI) transistors, copper interconnects and improved "low-k dielectric" insulation. They plan to produce 65- and 45-nanometer chips, which will be made available on 300-millimeter wafers. Much of the work will focus on improving the processes by which the chips are made. Work is scheduled to begin by the end of January, with initial development taking place at IBM's Semiconductor Research and Development Center in East Fishkill, New York. However, the companies said their first 65-nanometer chips likely will not become commercially available until at least 2005. Terms of the three-year development deal were not disclosed. But it drew the attention of New York Gov. George Pataki, who said in his state of the state address that AMD will invest "hundreds of millions of dollars" in New York as a result of the pact, creating dozens of high-tech jobs in the process. AMD said that prior to the deal, it already had plans to begin production of 90-nanometer chips in the fourth quarter. <joe's note> (where ? :-) <end of joe's note> "We are now expanding process-technology development efforts for our next generation of processors targeted at 65nm and below," said Bill Siegle, senior vice president of technology operations and chief scientist at the company. He noted that working with IBM will enable AMD to control the costs of pushing the limits of technology. Aberdeen Group analyst Peter Kastner told NewsFactor that AMD may be searching for another competitive toehold against Intel, which recently has begun to erode AMD's gains in the low-end processor market. With this deal, Kastner noted, AMD may have found a key partner in IBM, which builds servers and other products that contain Intel processors but has also had some friction with the leading chipmaker. AMD runs a distant second in the microprocessor sector with about 10 percent market share, compared with Intel's 80 percent. AMD may be seeking more market share in part because the overall outlook in the processor market is for slow growth. The Semiconductor Industry Association recently said chip sales grew slowly in late 2002 and will increase only slightly in 2003.