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To: Kevin K. Spurway who wrote (4642)	3/1/1998 4:05:00 PM
From: DRBES	Read Replies (2) \| Respond to of 6843

re: "Is Intel becoming a fabless company if it outsources production of its new graphics chip?" Who knows? Sounds like a good idea to me. DARBES Tuned!!!!!

To: Kevin K. Spurway who wrote (4642)	3/1/1998 5:26:00 PM
From: StockMan	Read Replies (3) \| Respond to of 6843

Kevin and AMDites, Here are some facts, however I dont expect you to come up with any reasonable results, given that you are AMDites. -- Jerry says that the conversion of Fab 25 to .25u is high risk. AMD is "pregnant" and must go on. -- .AMD says that its cash will be depleted by 2Q 98. -- AMD gets IBM to make chips starting in 3Q 98 to "somewhat augment" their process This is what AMD is thinking, they are putting all their chips on a high risk conversion of Fab25, and will be all out of cash by 2Q 98. If this gamble works out, things will be fine, but if they dont very unlikely, they will dump their fab (which is already highly mortgaged), and outsource their K6 production, becoming a fabless company. Instead of going the route of bankruptcy they will restart starting in Q3. Unfortunately the 300Mhz will be selling < $100, and AMD wont make a profit even by the end of the year (profits are elusive). However the IBM deal may have saved them from bankruptcy. Stockman