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

To: Paul Engel who wrote (42968)	12/8/1998 1:27:00 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 1572988

Paul, RE:" McMannis - Re: "that you will sell AMD at the peak prior to the launch of the K7 at or near the peak? " Yes. Re: "That AMD won't be able to deliver the K7 at a profit for 18 months?" Yes. Re: "Even at 184mm2 the K7 will have a silicon cost 40-60 bucks conservatively...depending on yields of say 50%." The K7 will have a cost of $120 to $150 if the yields are 25% - including packaging expenses." ----- OK, I guess you'll just have to find the peak then. This is where a TA program could be of some help to you. You seem to believe that AMD will re-live past yield problems on the K7. I hope I will have better information than just hoping that history will repeat itself but since you don't, I can see your concern. If the package costs $20 and yields are in the 25% range then your estimates for price/chip are OK...but is there any reason to believe that yields on the K7 will be a lot less than on the K6-2 where they are "reportedly" well over 50%? BTW, all things equal, how much do you lose by going to a larger die? Is there a formula? Jim