Advanced Micro Devices Inc (AMD)

[chipguy]

Why do you believe in IBM's manufacturing capabilities? When in their history have the they ever proven that they can fabricate millions of complex chips per year with high, stable yields?

I agree with your basic point that IBM has little to teach AMD about high volume, low cost uP
processing. But I think you are being unfairly harsh on IBM Micro.

IBM used to manufacture huge quantities of DRAM for its internal consumption. At another
time they manufactured the industries best high performance video RAMDACs and sales
of these device was likely in the millions. Today they are manufacturing 4xx series PowerPCs
and PowerPC SOC devices for the embedded control market in quantities that are likely well
into the millions per year.

I don't have first hand experience with IBM Micro as a foundry but from what I hear they are
a relatively stable and reliable manufacturer with yields well under control. When TSMC was
having its teething troubles at 130 nm more than a few fed up fabless semicos turned to
IBM Micro despite its higher costs.

BTW, the split supply of PowerPC processors to Apple isn't due to IBM capacity issues. That
arrangement is at Apple's behest. It is called multiple sourcing and it used to be standard
practice in the industry (how do you think AMD got into the x86 business? . It allows Apple
to play IBM and Mot off against each other to keep its cost low.