Hi Lynn,
-=> On 22 Mar 98  00:06:00 Lynn Nash said to Jonathan Michaels <=-
 LN> K6 is from AMD by the way.  It is a very good chip but I worry if AMD
 LN> can hold the line.  They just reported again, for another quarter,
 LN> that they are still losing money on each chip that they ship, due
 LN> of manufacturing yield problems.  Their bail out deal for IBM to make
 LN> chips for them is still months away.  Intel on the otherhand says
 LN> their yields are better than planned.  Seeing blood, Intel has
 LN> announced a 20 percent price decrease on most of their chips.  If AMD
 LN> has to reduce their prices another 20 percent and they are losing
 LN> money at the current levels, big trouble is brewing for them.  It is
 LN> already bad enough that their credit rating was lowered last week.
 
However, AMD are major manufacturers of other types of chip than just
CPUs, like EPROM, memory drivers, buffers, drivers, gates and PALs. 
They are often the preferred supplier of these parts, on grounds of quality.
They may well be capable of sustaining a loss indefinitely on CPUs if they
want. (Perhaps retaining the product to keep their chip designers in the
leading edge).
Having said that, I have no idea what proportion of their turnover derives 
from
which product. I just specify their PALs at work.
Andrew
... Congress: Latin from: 'con' (a swindle) and 'digress' (off subject).
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