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To: David O'Berry who wrote (4366)	2/11/1998 9:59:00 AM
From: Matt Webster	Respond to of 6843

David, the thing with AMD using the Alpha motherboard bus design was the key thing that started me thinking along this line. Then, the acquisition of DEC by CPQ with all the talk of huge revenue increases and the importance of worldwide support. Why do you need support if you're not doing anything unusual? Anyway, the problem is timing. AMD fabrication sucks. Fab 30 is not up yet. What their problem is I have no idea. When your run of the mill Taiwanese can get a fab running, I can't see what excuse they could have. I hope we're right. But I hope we see 15 first to present a real buying opportunity, Matt

To: David O'Berry who wrote (4366)	2/12/1998 3:12:00 AM
From: Robert Walter	Read Replies (1) \| Respond to of 6843

David, Matt & Greg Dave, Matt, IMHO I do not look at AMD as being the best fit for Compaq as a takeover canidate. IMHO I look at big blue as the being the company that could most benifit from a merger with AMD. Here is an earlier post reflecting some of my thoughts on it. Message 3336548 IBM is much more involved in semiconductor manufacturing business than Compaq. IBM developed the process that AMD is using to manufacture the K6 and IBM licensed it to AMD so if any one can help fix the problems at Fab 25 it would or should be IBM. IBM is branching out into the consumer cellular phone chip business. Witness todays news regarding this transaction. wired.com infoworld.com Combine this with AMD's flash technology and you have a very powerful marketing combination able to compete with MOT and LU. Factor in the time factor. If AMD's ramp up of their 0.25 micron process at Fab 25 runs into trouble AMD will need help immediately. means by August or Sept AMD will need cash badly. Is Compaq ready to pull the trigger again on a another block buster deal when it won't even have finished digesting DEC? IMHO I say no. AMD has the number one market share in LAN based chips which would fit very nicely into IBM's networking IC products with limited overlap. Vantis could be incorporated into IBM's new Blue logic ( chips.ibm.com or sold off. AMD's communication products could also be incorporated very easily. IBM is so much more involved in AMD's core business and it makes a much better fit than Compaq. Just check out amd.com and chips.ibm.com and compare product lines and decide yourself. I in no way no if this is going to happen. It very well might not ever be considered or AMD may succeed in its 0.25 micron ramp up and not need the cash. Or another white knight might ride in and save the day heck maybe even Microsoft,SGS Thompsons, TI or one of the Japanese companies. Robert