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

To: Maverick who wrote (28980)	2/26/1998 6:40:00 PM
From: StockMan	Read Replies (1) \| Respond to of 1574048

Maverick, Re -- Had AMD not discovered some subtle masking step mistake, the IBM deal would not materialize. The technical problem was not the 0.25 um process specific such as the deep ultraviolet photolithography. The IBM deal, if signed, would save AMD lots of money for not having to open another billion-dollar 0.25 um or 0.18 um fab to satisfy the demand. I suggest you stick to posting news articles. Stockman

To: Maverick who wrote (28980)	2/27/1998 1:26:00 AM
From: Robert Walter	Respond to of 1574048

Maverick, RE:IBM has been an expert at submicron mfgr including the 0.18 um that AMD can hardly afford to build on its own. You just hit the nail on the head. The reason why AMD needs and co-production deal with another manufacturer is the K7. You and Albert are right. AMD needs all its cash to get the K6 ramp up to speed and help pay off all the expense it is occurring at Fab 25. This cash drain will hurt AMD's ability to execute the ramp up of FAb 30 especially if the yields do not improve dramatically soon. Therefore AMD is shopping for an insurance policy for the K7. I have posted my opinions on IBM buying out AMD but this accomplishes the same thing. IBM which probably will eventually lose rights to manufacture NSM future CPU'due to NSM bringing the manufacturing inhouse and at TSMC. IBM will then have a new processor that can compete with Intel's best at a lower cost. IBM can also help AMD using older Fab equipment manufacturer K6's for the sub $1000 dollar market because as we have all seen this is the fastest growing segment of the market and by the time IBM gets up to speed manufacturing the chip thats what the K6's primary market will be. In the mean time AMD must continue to improve yields at FAB 25. Robert