Replies to post #7863 on Advanced Micro Devices Inc (AMD)

[yourbankruptcy]

wbmw, "I'm sure the fine print says that AMD can use it for building microprocessors, as long as they give IBM a fee for each wafer".

You see, that will fail if AMD will go into some bigger troubles and will only marginally use the fab. So, either IBM is completely sure that AMD has very bright and stable future and will pay the bill in time, or they are getting something out of this relationship even in the case AMD just can't pay straight money.

That was the point of my original post. I'm sure IBM is getting something without the president face imprinted.

[kpf]

wbmw

Although what you assume the agreement could be is very different from a foundry-model, I would agree it is one of the best of many possibilities to play it - if IMB building a fab for AMD is accurate at all, that is.
Sort of a very creative synthesis of pros and cons of manufacturing versus outsourcing, very favourable for AMD.
As well a synthesis in respect of some of Jerry's most famous statements:
"Real men have fabs" - "We are very good in using other people's money"

K.