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Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Joey Smith who wrote (5172)	3/22/1998 5:02:00 PM
From: Maxwell	Read Replies (2) \| Respond to of 6843

Joey Smith: <<Maxwell, you didn't answer the question...what would the effect on AMD be??? I think I know why you didn't answer <ggg>.>> My answer to your question is buried in the last sentence of my post. I thought you would figured it out. Anyway I will answer you. The 0.25um K6 die size is 63MM^2 and the PII is 131mm^2 of the same 0.25um process. According to Dr. Engel Intel gets very good yield at 140 dice/wfr (and probably more but the maximum is around 175 dice/wfr, the most that an 8" would have). According to analyst Kumar AMD 0.25um K6 yield is about 160. If AMD can sell a K6 0.25um of speed 266MHz and 300MHz for $100, AMD will make $16,000/wafer. The cost per wafer is around $4000-8000 to manufacture without packaging. If Intel sells at $100 a pop they WOULD BE DEAD! The slot 1 requires 2 SRAM of total 512K and a cartridge with resistors and capacitors. It costs about $40-$70 just to make a cartridge with 512K SRAM built in. Thus Intel can get only about $30-$70 for every PII they sell. AMD will make more money than Intel. If things heat up AMD can always work harder to get another 10-20% yield out where as Intel is already maxed out and limited by defect density. In the semiconductor industry, the winner is the one with the SMALLEST DIE SIZE, HIGHEST NET DIE/WAFER and LOWEST PACKAGING COST. So what is your next question for me? Maxwell