To: StockMan who wrote (29474 ) 3/4/1998 2:55:00 PM From: Jim McMannis Read Replies (3) | Respond to of 1572259
Stocky, Just as I suspected...AMDs real reason for teaming up with IBM was to get technology. At 70% yields we knew that AMD didn't really need IBM for volume reasons. Keep loading up...100/share is right around the corner..techweb.cmp.com AMD may get copper technology from IBM By Anthony Cataldo SUNNYVALE, Calif. -- While IBM Corp.'s recent agreement with Advanced Micro Devices Inc. was properly described as a means for AMD to gain much-needed foundry capacity, the partnership could also allow AMD to gain access to IBM's groundbreaking copper-interconnect technology, which AMD could use in future processors, the companies said. AMD has its own copper-interconnect R&D efforts under way, but a company spokesman said AMD hasn't ruled out working with IBM. "We're in agreement [about] the wave of the future. If you want to stay in this game as a volume manufacturer, you'll need copper," he said. "We will continue to talk about other opportunities, and moving forward we'll do whatever is in the best interest of the two companies." An IBM spokesman said IBM is not interested in licensing its technology to outside companies, but will work with custom ASIC and foundry customers to incorporate the technology on its next-generation 0.18-micron process. "If someone came to us, such as in a foundry situation, and asked us to take existing designs and build a product to the ground rules using copper, we would certainly entertain that," the spokesman said. "While this is a straight foundry agreement, we'd be open to possibilities and discussions in which we could employ some of our latest technologies." AMD has utilized technology from IBM in the past. The company today uses IBM's back-end production facilities for the flip-chip packaging technology for the K6. In the meantime, IBM said it would start ramping up the first K6 processors using its 0.25-micron fab in Burlington, Vt., starting in the third quarter. While the companies declined to discuss the volume of K6s that IBM intends to manufacture, the two-year agreement should help AMD produce more K6 processors with clock speeds of 266 MHz and above, including the forthcoming K6 3-D and K6 with integrated L2 cache. AMD's 0.25-micron, 266-MHz K6 devices--all of which are being used by IBM today--are being produced at AMD's R&D design center in Sunnyvale, Calif., while its 200- and 233-MHz devices are manufactured at its high-volume Fab 25 in Austin, Texas. In recent months, AMD has reported difficulty in obtaining sufficient yields for its K6 lines.