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

To: Petz who wrote (28992)	2/26/1998 8:58:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1573922

John, I think with friends like IBM ME, AMD no longer needs enemies. I would not be celebrating, until some details of the agreement come out. The worst case scenario some sort of 1 for 1 deal, where IBM gets 1 chip for every one chip they sell to AMD. AMD will lose an existing paying customer (IBM will use their own "free" chips), and AMD price will be undercut when IBM decides to sell excess chips. The other customers may be reluctant to use K6 in their systems, since they will know IBM is getting better deal. The comment is stupid because IBM wouldn't be talking about making the K6* if they weren't convinced the yield problems were solved. The fact that the ARE talking is proof that the yield problem.... ISN'T anymore. I am not sure if this proves anything. IBM may structure the deal where the payments to IBM will not be dependent on yield. If you are a consumer, IBM deal is a good news. There will be a plentiful supply of chips with good performance at bargain basement prices. But as an AMD investor (long term), this may end up as a negative. Unless all you want is to get out at a better price. As a long term investor, all you have to look forward to is a stream of disappointments. Here is an example of something that apparently came from NSM investor relations: messages.yahoo.com@m2.yahoo.com The IR representative at NSM told me ten days ago that the #1 problem at Cyrix has been IBM's inability to get good yields at .30 microns. The discussion on this thread seems to imply that IBM has the fab of choice, but I'm not sure this is the case. Joe

To: Petz who wrote (28992)	2/27/1998 1:06:00 AM
From: Paul Engel	Read Replies (2) \| Respond to of 1573922

Petz - Re: "The fact that the ARE talking is proof that the yield problem.... ISN'T anymore." Your analyses have shown that AMD could produce up to 65 million K6's (more or less) per year from Fab 25 ALONE - assuming there are no yield problems. If there were no yield problems, it follows that AMD would not need help from IBM to meet K6 demand. Now, is AMD experiencing a demand greater than 65 million K6's per year? Hardly! The IBM deal is required PRECISLEY BECAUSE AMD has an ongoing, as yet unsolved yield problem. Pure and simple logic. Paul