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.

Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (3048)	5/24/1999 1:12:00 PM
From: Mani1	Respond to of 3645

Mad2, I do not have any inside information on NeoMagic. RE <<NMGC's mfg difficulties>>, Every process at any fab has to be "qualified". This qualification process is rather extensive on smaller dimension such as 0.25. Every step must be fully understood including its tolerances and distributions. When a chip is designed is assumes certain process technology (not just the 0.25 dimension). If the process technology is not up to par with the design, the yield will be poor. NeoMagic's foundry fab is currently going through the qualification process. Once every steps in their process meets the design requirement, manufacturing can quickly ramp after that. There are number of the unknown and risks in the process technology, that is why you see delays from every semi company including the best of them, Intel. During the qualification process, the fab can not be fully utilized, which I think is the reason as to why NeoMagic will ship a lot less parts. Re <<specifically Would their higher cost with the .25 mu process lead to higher reject and be responsible for the margin erosion.>> The cost per processed wafer at 0.25 is several thousands of dollars for an 8 inch one. This is significantly higher than a wafer processed at 0.35. The cost for each die however, should be less in a 0.25 than a 0.35 since you can get about twice as many part from a 0.25 wafer. If ASP's remain flat (probably will not happen), margin would eventually improve once the process matures. Mani