Advanced Micro Devices Inc (AMD)

[DARBES]

I know that $20 to $25 million/quarter cannot buy very much research in a corporate environment. It probably only pays for "rent and machine use and materials" (ie overhead) and the only reason that IBM is doing this is that it is getting more out of the arrangement than is AMD. AMD, for financial reasons, obviously needs the arrangement more than does IBM. If you do not believe me think about how much trouble such research mamouths as IBM and intel have had in their transition to the 90nm node while AMD has done so relatively effortlessly on a shoestring budget.

If my thinking is correct, it may even crop up in the media.