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

To: Yousef who wrote (28445)	2/11/1998 11:11:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 1573028

Be happy to. IDTI has over 50% margins on the C6 but has only just started producing enough to make any difference to the bottom line. for that matter it realy won't have much impact this quarter - they will be producing just over 100,000 per month. They are currently seeing 60% yields according to two reports and comments made to me by the company. IDT plans to ramp to at least 1 million C6s per quarter within 12 months and may accelerate that ramp to satisfy OEM demand. Take a look at my posts on the IDT thread for a discussion of the particulars of the yields and product build costs. Unless I missed something, semi companies are in the business of making parts that they can sell for a profit. Esoteric discussions about how great one part is versus another is childish unless those objectives hinge on that issue, which it doesn't. Nexgen made some beautiful uPs and boards for a while but lost money until AMD bought them. Good technology alone is not enough. In fact, its expensive. IDTI has the most appropriate technology for the markets and cost points they are targeting because they can produce the parts with very good yields. It just does not matter at all that they will not service some high performance sectors of the market. As long as they are selling what they can make at a good profit, which they are, they will be successful. As they ramp production the profits will increase. No, profits up until now have not been that good. They have at least made money while investing in the C6, ClearLogic, the yet to be announced graphics chip, and lots of other parts.