AMD and IBM are playing extra time Posted on 23/09/2004 at 13:49 by Marc
- source: Form 8-K de AMD
AMD and IBM have just extended for three years their technological partnership. This technological partnership started more than one and a half year ago and was supposed to finish at the end of 2005. Initially this partnership was made for the 65 and 45 nm fabrication processes and the 300 mm wafers.
This new agreement doesn’t indicate if the two manufacturers will collaborate on the 32 nm fabrication process (planned for Intel in 2009) but indicates that if they do, AMD would have a license for this technology. Additionally AMD is allowed to produce 90 and 65 nm products in a factory that doesn’t entirely belong to them (or even not at all).
Costs connected to a factory construction are enormous and AMD’s production capacity even with the next FAB36 factory couldn’t be enough if the demand increase strongly.
We have to notice that IBM is bringing more to AMD on the technology area, and it is no less than $250 to $280 millions that should be transferred to Big Blue between September 2004 and December 2008 date when this agreement should end.