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To: Elmer who wrote (4026)	1/22/1998 11:33:00 PM
From: Yousef	Read Replies (1) \| Respond to of 6843

Elmer, Re: "AMD continues to lose money. AMD continues to have manufacturing problems. AMD remains 2-3 speed grades behind Intel and that gap may soon widen." Very good analysis ... AMD is falling further behind as we speak. Intel will soon be delivering the 350mhz/400mhz/450mhz Deschutes (PII .25um). Where will AMD be then ... struggling to get the 266mhz .25um K6 ramped up in volume for <$1000 systems. It is possible that AMD could fall 4 speed bins behind Intel late in '98. Make It So, Yousef

To: Elmer who wrote (4026)	1/23/1998 1:15:00 AM
From: Adrian Wu	Read Replies (2) \| Respond to of 6843

Elmer: The current K6 based on 0.35 micron process has a die size of 188mm^2, the new K6+3D will have a die size of 133mm^2. The die size of the K6-3D will be 88mm^2. All the die sizes are smaller than the corresponding Intel products because AMD uses a 5-layer CMOS process vs. Intel's 4 layers. The K6-3D is already sampling and there are already benchmarks on this processor. AMD had 20% of the market during the 486 era. The failure of the K5 was because of poor microprocessor design, not a manufacturing problem. AMD is developing a relationship with DEC, judging by their committment to use the Alpha bus protocol for the K7. There is nothing to stop them from partnering with someone like Texas Instruments if the K6 gains widespread acceptance and when AMD capacity becomes limited. The Dresden fab will also come on line in 1999 which will greatly increase capacity. There are always teething probelms with each new generation of design and process. Have you forgotten about the yield problems Intel had with the Pentium MMX when they were moving to a 0.35 mircon process? I invested in Intel for a long time and got out several months ago before the 20% drop. I will go back in again when things look more clear, but ultimately, Intel will not crush AMD, and AMD will not make too much of a dent on Intel either. Speed grades don't matter that much any more. It is the pricer-performance ratio. I doubt you will see a dramatic difference between the PII-333 and the K6-300/100 for the extra $450 that you pay. If you look at the market share graph in the Christmas issue of PC Magazine, you will see that sub-$1000 computers accounted for 45% of all units sold. Units > $2500 only accounted for ~5%. Adrian