Replies to post #44393 on Advanced Micro Devices Inc (AMD)

[kpf]

wbmw

..IBM still has about $250-280 million worth of IP per quarter that they are putting into the project greater than what AMD can offer

An adventurous take.

The payments have really nothing to do with IP imo. I look at it as basically just AMDs contribution to the costs of running a development fab with all bells and whistles. The amount is fairly small because processing of development-wafers (and analyzing, etc) is done within IBMs foundry currently.

K.

[conductor]

To wbmw,

IBM and AMD are both paying money in the form of paychecks to their process engineers, as well as any necessary equipment.

This is probably correct, but we cannot assume they are paying equal amounts. Given that IBM is "hosting", I would suggest that it is more likely that they are paying the lion's share.

IBM still has about $250-280 million worth of IP per quarter

Several posters have already pointed out your error. Perhaps this explains why you did not see the agreement as a very good deal for AMD. Would you have a different opinion, now realizing that AMD's quarterly payments amount to less than one-tenth of what you believed them to be when making your earlier statements?

I would not say that AMD clearly has superior process technology in all areas, or even, perhaps, in an overall sense. But it would not be too far-fetched, I think, to suggest they have areas in which their expertise surpasses that of IBM.

Yuri/conductor

[Dan3]

Re: This statement of the obvious only contradicts the fanatical claims of some on this thread that between AMD and IBM, it is AMD which offers the superior process technology. As Chipguy pointed out to those individuals, this is obviously a false ideology.

IBM is leasing a significant chunck of a 0.9/0.65 300mm FAB space to AMD for ~$20 million per quarter for use in development.

That may not even cover the monthly power and water costs for the space.

You think AMD could build and a run a new 0.9/0.65 300mm FAB for development for $7 million per month? Dream on....

IBM and AMD have come up with mutually beneficial agreement, and there's a lot more to it than the one listed cash payment.