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

To: Yousef who wrote (50993)	2/25/1999 7:56:00 PM
From: Yougang Xiao	Respond to of 1583467

Latest DLJ Report on AMD -- Thanks Albert: 08:58am EST 24-Feb-99 DLJ Securities (Kevin McCarthy) INTC AMD CSCO ETEK COMS TECH DAILY: TECHdaily@DLJ DLJ **** DONALDSON, LUFKIN & JENRETTE **** DLJ February 24, 1999 TECH DAILY TECHdaily@DLJ TECHdaily@DLJ Tech Talk o We spoke with AMD (AMD: $18.75) management yesterday, and believe the company may have turned the corner in its speed yield difficulties. Silicon containing a design fix is shipping today, and will essentially completely displace older "flawed" silicon before the end of the quarter. The company confirmed it is seeing improved yields of 350 MHz and 400 MHz devices. Unfortunately, the open market prices for these devices are approximately $85 and $145, respectively. With the 300 MHz and 333 MHz devices commanding prices of about $50 and $70, respectively, we believe AMD will have difficulty maintaining its Q4 blended ASP of $89. Although the company is yielding some 450 MHz devices (open market price of about $250), we believe the quantities are too small to have much impact on the current quarter. The K6-3 is shipping at 400 MHz and sampling at 450 MHz, with initial prices of $284 and $476, respectively. While the K6-3 could result in some improvement in AMD's blended ASP, the gradual ramp of the device will likely result in only modest ASP improvement in Q2. Furthermore, we believe Intel will cut its Pentium II prices on Monday following the launch of the Pentium III, which will likely force AMD to drop the price of its K6-3 in response. We think AMD has an opportunity to reverse the recent decline in its ASP and restore strong revenue and profit growth in the second half of 1999 if it successfully improves the performance of its K6-3 device and launches the K7 device on schedule in June. (Boucher/Bunn)

To: Yousef who wrote (50993)	2/25/1999 8:42:00 PM
From: RDM	Respond to of 1583467

<RDM, you are out of your "field of expertise" ... First, Intel's .25um process uses a 32A gate oxide (measured optically). > I am confused. I did not know that I had a "field of expertise". The point of my post was that the insulator thickness beneath the gate electrode of an MOS transistor affects the vulnerability of an MOS transistor to reliability issues. I believe that you would agree. However, my point was that I did not believe that you knew the current insulator thickness beneath both the Intel and AMD devices to be able to make an informed analysis. They number that you quoted me of 32A was the optically measure oxide thickness presumable after gate oxidation. This meaningful, but is probably not likely the insulator thickness of the finished device. I believe that you probably know that a finished device is different from this optical measurement. I personally doubt that the finished insulator thickness is effectively 32A and I personally believe that it more than 32A in the finished device. Your description of "potential" issues are interesting, but you have data that you have shared with us about the AMD devices. Without data we just guess. I would suspect that you are correct that AMD devices insulators must be thicker than Intels. I am sorry if I made you uncomfortable by discussing topics that you feel are in your "expertise".