Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Investor A who wrote (31730)	4/12/1998 1:28:00 AM
From: Brian Hutcheson	Respond to of 1578501

Fuchi , re. why AMD wants so much capacity when .25 fixed It appears that only the .35 needed fixing from AMD's statements about a geometric step on the .35 ONLY which caused the trouble . According to AMD the .25 process did not have that particular step . Also AMD would not want to have spend more money developing plant for non CPU business until it starts generating real revenue from the K6 series imho. regards , Brian

To: Investor A who wrote (31730)	4/12/1998 4:06:00 AM
From: Profits	Read Replies (1) \| Respond to of 1578501

A, re: "Vantis signed a 5 years foundry agreement with UMC group to fabricate FPGA VF1 with .25u process in UMC plants. It is interesting that some street talks said that AMD might place K6 orders with UMC to increase its capacities. Wonder why AMD needs so much of chip capability if the yield on .25u process has been fixed. Another question is why await so long to take this outsource action. IMHO, AMD should have UMC manufactured K6 last year. However, it is still not too late to adopt the K6 outsourcing policy now." First of all, the 0.25u process at the SDC and Fab 25 is dedicated to building processors, not FPGAs. In case you haven't noticed, the price of processors is much higher than FPGAs, resulting in higher net revenue per wafer. Secondly, AMD cannot use UMC to build K6 processors. AMD can only outsource K6 or K7 production to a company that has a cross license agreement with Intel (like IBM). Otherwise, Intel would sue them. Profits