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

To: Profits who wrote (29059)	2/27/1998 11:50:00 AM
From: John Peterson	Respond to of 1573973

Don't know if we need spin doctors or not, but here are the bid and ask sizes I just saw go by on AMD. bid size =90000; ask size =10000, bid size=1000; asksize=100 bid size=186000; ask size=55000. Looks like the big guys are getting out. I was hearing that yields are improving out of fab25. This fab deal comes into effect Q3 which means that they have to last out 4 months on whatever fab25 outputs. So, it might be that yields are improving and that cpq might want them to ramp up sooner rather than later.

To: Profits who wrote (29059)	2/27/1998 12:39:00 PM
From: Jim McMannis	Read Replies (5) \| Respond to of 1573973

Profits, RE: The only "conflicting information" on AMD is from your posts. You keep trying to spin every news release on AMD to make it seem bad. Rather than stating "AMD adding IBM as a foundry must mean that they've thrown in the towel on Fab 25" you should be stating "AMD's yield problems are resolved, it wasn't a K6 design problem but rather a process related issue. IBM will build it in their Fab now that yield issues have been resolved." First you quote me as saying something I never said and then you proceed to tell me what I should have said...I guess I'm supposed to be your puppet. Hummm... Here lies the confusion...maybe you can clarify everything.... 1. If Yields at FAB 25 are improving why does AMD need IBM to FAB chips..? possile explanations.... a. AMDs yields aren't improving as much as they need and AMD is bringing on IBM as a security blanket. b. AMD hasn't enough confidence in their yields so they are bringing IBM on as a security blanket. c. AMD anticipates demand they can't meet (due to low yields) so they are bringing on IBM... d. AMD wants to keep IBM as a customer so it's letting them have chips for the cost of manufacturing. e. AMD really appreciates IBM for using K6's so they want them to keep half the chips that IBM makes as a gift. <G> f. AMD wants to get in on IBMs copper technology and maybe learn of IBMs superior process technology. The first four deal with yields... Now let's look at possible benefits to IBM... 1. IBM gets a good supply of cheap K6's 2. IBM might be able to sell K6's on the open market...cost being manufacturing costs and no R&D costs. They could even compete against AMD... 3. IBM can increase margins on PCs with K6s 4. IBM also benefits from using alternate (to Intel) Chips by further commoditizing the cpu market....assuring that Intel doesn't further monopolize the market. 5. If the K6 bombs they can just shift production to other chips so their risk is limited to possibly idle chipmaking equipment instead of trashing all the R&D costs of developing a new chip... So you tell me...who is the Shark here? IBM or AMD? Where does this add to AMDs bottom line? Jim