To: Investor A who wrote (8254 ) 5/7/1998 5:10:00 PM From: Rob S. Respond to
Now, now. CYRX had NO, ZIP, Nadda internal production capacity and they designed their parts for generic production at TI, SGS or IBM - whichever flavor of mfg. happened to be able to produce their difficult parts. IBM was the only mfg. who was able to produce SOME good parts in the early going of M1 and M2. Although Cyrix improved in their ability to design parts for manufacturability, the overall effort caused severe yield problems. You can't blame IBM. Cyrix had a choice of mfgs. to negotiate with to try to make the parts but has only recently achieved consistently high yields. That lack of ability to mfg. parts at high yields, and no wonder given the complexity of the M2 design, has resulted in a very high mfg. cost per part. When NSM bought out Cyrix, they intended to more quickly shift manufacture over to their internal production facilities. It is only because of the lousy manufacturability of the Cyrix parts that they have negotiated an extension of the IBM agreement and continue to mfg. there. Sure they are improving after all these years but do you honestly compare IDTI's situation to that experienced by Cyrix - come on Fuchi, you should know better than that.
