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

To: Merlo who wrote (31393)	4/8/1998 2:23:00 AM
From: Maxwell	Read Replies (1) \| Respond to of 1576243

Merlo: You missed the biggest point. Even though it is a huge loss for AMD, AMD has solved their yield problem and will completely convert FAB25 to 0.25um by MAY! These 2 factors will quickly bring AMD to profitability and ensure a piece of the pie in the X86 market. At 0.25um, K6 is a very competitive chip that can aggressively compete with Intel in terms of price and performance. K5 was a losing cause because die size was too big. K6 0.35um was not competitive to Pentium 0.25um because die size was too big. But at 0.25um there is a whopping 350 possible K6 dice/wfr. The die size is smaller than Pentium and Pentium II at 0.25um. AMD will not waste any silicon on 0.35um by MAY. For every 0.25um wafer AMD makes AMD makes money. Best of all 0.25um yield is good and the 0.25um process will be around for the NEXT 2 YEARS! 0.18um is still too far out. Processing equipment are not here to do 0.18um yet. So now the production problem is over, what about OEMs and consumer demand for K6. Well OEMs want all the K6 AMD can make and consumers like cheap and powerful computers. Puzzle is solved. What about INTC? Well INTC will have to deal with AMD. If they cut their price their revenue will decline. If they introduce the Celeron then consumers may forget the expensive PII altogether and go for cheap computers. That would not help their revenue. If they start a price war then AMD and INTC will both be in the dog house. Do you know what happen when INTC report a LOSS????? AMD has been there many times and investors are used to it. INTC on the other hand...... Bottom line is INTC is in trouble in maintaining their anemic growth. They are at sky high and losing altitude rapidly. AMD is already buried in a hole but has digged their way out. Maxwell