Advanced Micro Devices Inc (AMD)

[conductor]

To tecate and chipguy,

I am not sure if you are joking with your posts regarding the IBM deal.

If you are please forgive me for pointing out the obvious.

AMD is paying cash to IBM over a few years, that is true. But IBM is "hosting", and the costs of developing 65nm and 45nm processes are considerably more than double what AMD is paying. Yes, AMD may be contributing additional funding beyond these payments, but without knowing these variables like cost of process development, additional funds paid by AMD, such as staff salaries, it is not rational to simply say that because AMD is paying some cash, they are not getting the better part of the deal. They may not be, but that is not a basis for making the claim.

Again, if you're speaking tongue-in-cheek, I am wasting my time, pointing out the obvious to you.

One thing that all would agree on, I presume, is that it would cost AMD considerably more money to develop the 65nm and 45nm nodes on their own than it will cost them working together with IBM.

So it is a wise business decision.

conductor