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Elmer Phud

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Elmer Phud

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Re: kpf post# 7872

Wednesday, 07/02/2003 11:56:50 AM

Wednesday, July 02, 2003 11:56:50 AM

Post# of 97585
K -

A simple lease of a fully equipped fab is a possibility as well. Or in a more sophisticated sale and leaseback - structure. Or one of many many other possibilities. Which ones will be feasible and which one will be the structure of choice can hardly be judged from today's viewpoint. However, I agree in the core of your posting: IBM is confident in its development partner. Maybe even confident enough to leave the definitive agreement open until 2005.

I'm more skeptical myself. IBM must have a plan that considers the possibility of default. There is just too much chance of that fab being handed back to them in the future and IBM has to have a use for it that doesn't rely on AMD.

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