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

To: Yougang Xiao who wrote (27888)	1/14/1998 4:29:00 PM
From: greg nus	Respond to of 1572423

Xiao, It's an economic driven decision. Without .25u no one will buy your chips. so the sooner you get there the better off long term... no matter what the short trem cost are. Assuming you have a long term future. This is where competion will fall by the way side in asia. Without access to the capital very few will be able to convert. The shortages of componets will hold back the enite market form adviacing at the speed of light it used to travel at. They will have to travel at the speed of sound for forseeable future untill Asia can catch up again. Japan is on the ER room table undergoing ressutation. No one want's to delclare it dead. Clear!. Zap no response!. Clear!...

To: Yougang Xiao who wrote (27888)	1/15/1998 2:13:00 AM
From: Yousef	Read Replies (1) \| Respond to of 1572423

Yougang, Re: "Assuming AMD taken steps as you suggested (their internal organization realignment recently announced), what are the odds for a successful 0.25 conversation at Fab 25?" The odds on a successful conversion of Fab 25 to .25um will really depend on a couple of things: 1) How well was the .25um process characterized in Sunnyvale before transfer. Is this process running stable with Cpk's greater than 1.33 on all electrical and physical parameters. 2) How closely does Fab 25 equipment match the equipment set in Sunnyvale. This would be a good question for someone to ask AMD IR. This could give us a real clue to the difficulty that might come up at Fab 25. Re: "Do you think AMD's decision of fully going to 0.25 a RIGHT one?" I doubt that AMD has much choice ... If you look at an earlier post where I look at productivity and efficiency of employees, AMD ranks very low in the metric of revenue$/employee/year: Message 3139869 Thus, AMD has a couple of choices ... dramatically raise the ASP and thus the revenue while keeping headcount constant. OR, dramatically cutting headcount while slowly building revenue. To raise the ASP/revenue, AMD needs to have a K6 in the .25um process for both notebooks and high-end desktops/workstations. (They really need to get into the server business as well) So to get the stock price back up to $40 - $50, AMD needs to bring the .25um process on ASAP ... AMD won't achieve these stock prices by downsizing!! Make It So, Yousef