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

To: dougSF30 who wrote (191977)	4/4/2006 3:19:43 PM
From: Petz	Read Replies (1) \| Respond to of 275872

(EDIT, bottom) Here's an interpretation of that curiously worded quote below. AMD will try both 90nm and, beginning mid 06, 65nm. They will use whatever process gives them the most output. Maybe initial yield will be 2/3 as high as 90nm. Then they would switch quickly. If it's half the yield, they'd optimize until it makes economic sense to switch. re: "AMD officials said Chartered's Fab 7, which is operating at 90 nanometer scale, will begin converting over to more efficient 65 nanometer production by the middle of 2006. Under the venture, AMD is entitled to an undisclosed amount of that production capacity, which AMD said it intends to maximize." I think they are describing a contract where AMD is basically renting the machines and the fab space. Whatever output they get from it is their own, likely with no "per-piece" royalty. I.e, "undisclosed amount of production capacity" means they get X of this machine, Y of that machine, Z square feet and do with it what they want. Petz