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

To: Profits who wrote (29158)	2/27/1998 7:52:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 1574004

Profits, IBM got that kind of deal with Cyrix, where they could keep some chips for their own use, and even sell them on open market. But it appears that the agreement with AMD is different: Message 3555970 The deal does not give IBM rights to use the chip. Joe

To: Profits who wrote (29158)	2/28/1998 10:37:00 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 1574004

Profits, RE: "Do you think the folks at AMD just fell off the turnip truck. They aren't going to give chips to IBM. It's a pure foundry arrangement." When you're desperate you tend to fall off the turnip truck. Having not seen the agreement I can't say for sure what the agreement is but I can assure you that IBM has some kind of escape clause. Maybe it won't be a 1 for 1 chip deal and AMD will purchase the chips from IBM and then sell them back to IBM, but this takes money and I'm not sure AMD has that kind of money. IBM could finance them but it's a lot simpler for IBM just to get a chip for everyone they give to AMD. But for arguments sake let's say that it's a pure agreement and AMD is buying all the chips from IBM. You know that IBM isn't going to start production without some letter of credit lest they be stuck with a bunch of chips AMD can't pay for...so trust me, there are some escape clauses in there for IBM...like if you don't pay for the chips, or you can't take the chips, then IBM can dump them... Jim