Replies to post #7944 on Advanced Micro Devices Inc (AMD)

[sgolds]

wbmw, your argument - that IBM bailed out AMD's SOI means that AMD does not have SOI expertise of value to IBM - is simplistic. Of course, SOI is not a single idea but rather a set of technologies involving design, process and wafers which together make a solution.

Is it not possible that IBM had the solution to one very important AMD problem, and that AMD has developed other areas of SOI which IBM wants? This is the type of technology exchange which benefits both partners.

Now, I can believe that IBM and AMD developed expertise in different areas of SOI, and discovered that things work better for both of them if they share technology. That said, it would only explain the announced technology cooperation, and not explain the rumored fab agreement.

IMHO, IBM wants two things out of any fab arrangement:

1. A piece of the action, that is, a percentage of any selling price;
2. AMD's survival as a serious CPU maker so that the industry doesn't get in a stranglehold by Intel - that would be very bad for IBM (and other small creatures ... a play on an old 60s saying).

So, if there is a fab agreement, then it would be IBM's fab, and the terms in point (1) would be made more appealing because of point (2).

[DGagnon819]

WBMW,
As far as I knew, the agreement was for 65-nm and not much else. But it's been very difficult for me to find details. I haven't been able to find anything on AMD paying IBM $40 million to fix a broken process. If you could provide a link I'd appreciate it. As far as the joint agreement goes, AMD was doing low-k CVD dielectric in Dresden at 130-nm and working towards 90-nm. Didn't they say that in the fourth quarter of '03 they would be producing 90-nm product? This is pure speculation on my part, but it seems that AMD has solved many of the problems that plagued them late last year and that's partly what IBM is interested in. Anyway, I also read that IBM has mastered SiLK and that they would try and develop a hybrid of the two. I haven't heard any discussion on this possibility.

On a similar front, there has been talk of what AMD could possibly bring to lofty IBM. It has been said in some publications that AMD brings good engineering and outstanding incremental process improvement to the table besides low-k. I wouldn't be suprised to see some patents come out of this collaboration. I'm interested in your views and others on this board on this subject. Good luck,
D