Replies to post #2415 on AMD strictly moderated (AMD)

[chipguy]

Yeah AMD is having sweet little run of a few great quarters
going but that isn't the big picture. Unless of course you
expect the industry to call it a game after 90 nm and stop
pushing ahead.

Have you seen this little gem in AMD's last 10-K regarding
its technology purchase agreement with IBM?

http://amd.edgarpro.com/redirect_frames.asp?filename=0001193125%2D06%2D040130%2Etxt&filepath=%5C....

page 55

"For example, we have a joint development agreement with IBM, pursuant to which we have agreed to work together to develop new process technologies through December 31, 2011. However, capital purchases by IBM necessary for the continued development of process development projects past December 31, 2008 are conditioned upon the approval by IBM’s board of directors. If such approval is not received by September 30, 2007, either party has the right to terminate the agreement effective December 31, 2008 without liability."

Even giant IBM seems to be hedging its bets whether it can
afford to stay in the chip business past 2008. If it can't what
does that say about the even smaller players who depend
on IBM for highly expensive R&D?