Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Engel who wrote (29078)	2/27/1998 1:37:00 PM
From: High Desert	Read Replies (4) \| Respond to of 1573435

"...bail out..." Those on this set of comments have used the term "bail out." This implies that the yield problems experienced in F25 cannot be solved. I have news for you - thay can be solved and have been solved. Simply put the only way to look at this deal with IBM is to see it as incremental capacity to F25, a filler of incremental capacity until F30 comes on stream, and a good deal for IBM's low end Aptiva where they can skim off K-6 products (of course, accounted for properly) for their own use. This is what I think they mean when they say "somewhat augment..." This is a simple deal and no more and the Stockies of thw world just don't get it.

To: Paul Engel who wrote (29078)	2/27/1998 7:53:00 PM
From: Profits	Read Replies (1) \| Respond to of 1573435

Paul, Why does Intel have 6 Megafabs? Are Fabs 4 through 6 to bail out Fabs 1 through 3? AMD stated back in 1997 that at full capacity, Fab 25 was capable of building 15MU in 1998. They obviously had difficulty ramping Fab 25 in the 2H97 and in Q198 (as so many of you Intelafelons have been so kind to point out). The yield fix which will produce results with April wafer outs, will not be able to make up for Q198. So if AMD is going to have any chance of building 15MU in 1998 they have to add additional fab capacity. Ultimately, AMD has a goal of achieving 30% marketshare. In order to do so, AMD must produce around 25MU. Fab 30 will not be on-line until 1999. So why not "somewhat augment" capacity in the 2H98 with the IBM foundry arrangement? Why is this so difficult to understand? Profits