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

To: Jim McMannis who wrote (34140)	7/9/1998 12:28:00 PM
From: Pravin Kamdar	Read Replies (2) \| Respond to of 1570843

Jim, Jerry said that AMD will be able to make all the K6 chips it can sell. They will not be needing capacity from IBM. I think they struck that deal when they were unsure about resolving their yield problems. Pravin.

To: Jim McMannis who wrote (34140)	7/9/1998 1:06:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1570843

McMannis - Re: "That coupled with better yields and cheaper die cost of .25u one would expect good profitability for the K6 complex going forward. " Do you really believe your own BullSh*t? Look down at the bottom of your screen - nobody else is believing it. Paul

To: Jim McMannis who wrote (34140)	7/9/1998 1:13:00 PM
From: Time Traveler	Read Replies (1) \| Respond to of 1570843

Time Traveler disagrees once more. 3.2M to 3.7M units this quarter (Q3) is not conservative at all! In fact, it is way too optimistic. The mix, as you have mentioned, is going to weigh heavily towards K6-2 which has a bigger die size. That would tend to drive down the unit quantity. Kumar is right saying in Q3 and Q4, K6 production would hit a wall. Jim, what else is your secret source being telling you about how rosy AMD is? Is the yield still 90% and rising sharply every day? Time Traveler

To: Jim McMannis who wrote (34140)	7/9/1998 1:29:00 PM
From: Jeff Fox	Read Replies (1) \| Respond to of 1570843

Jim, re:"Now, AMD is completely on .25u." You realize this means boxcars full of .35 micron equipment sitting idle but still on the books? Equipment never paid for... "This doesn't even include IBM coming online." And IBM comes on at what cost? You can bet IBM is not going to sell wafers at a proportional loss! AMD will help pay for IBM's fab while Fab 25 burns the remaining AMD cash. Effectively AMD shareholders are subsidizing IBM What a hoot! "SO despite dropping CPU prices in general...one might expect the ASP for the K6 complex to actually rise." This is absolutely unreal! Processor prices don't rise even in good times. And you think Intel is going to slow its performance treadmill? Expect AMD to fall further behind and ASPs to decrease. "So when Jerry hedges about breaking even in the third quarter can see where he's coming from. ... Coming off a -.45 quarter, breaking even, would be a major victory. ... some recovery in Asia would go a long way from the macro point of view." Jerry's delusion is obvious to everyone. Look at the chart and realize losses are accelerating. Suggest you plan for Q3 losses exceeding $.45 per share. Jim - perhaps you should reevaluate your position here. You have shown your an intelligent guy in your post, but really, your going where only Albert, Fuchi, and Ali will choose to venture... Jeff