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: Mani1 who wrote (55025)	4/9/1999 8:01:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1572777

Here's what I have to say. I seriously doubt that AMD can exceed even 5 million units per quarter in 1999 before the new Dresden fab ramps up. The K6-III and K7 ramp-ups are certainly going to take a toll on AMD's current manufacturing capabilities. That means that all hopes are resting on the K6-III and the K7 boosting ASP back to the original $100 target. But it also means that the K6-2 production has to drop significantly, meaning that AMD must sacrifice its 50% retail marketshare (where it's impossible for AMD to make a profit) in order to move up the ladder to K6-III and K7. This will be a tough balancing act, because one K6-III produced means two K6-2's not produced due to lower yields and larger die sizes. The K7 will be even tougher. And remember, this is all dependent on AMD making no more manufacturing mistakes. Who knows? Maybe AMD can pull it off, but I'm in no hurry to jump in. Tenchusatsu