Let's Debate: The Case FOR and AGAINST
Reply 41 of 41
December 23, 2001 3:22AM
mslee - The problem with an IBM MOT alliance is that they don't crossover much. MOTdoesn't have much to offer IBM except money.
Motorola will not use IBM as a foundry for two reasons:
I. IBM makes their own chips. If they need the fab space, they get it. Imagine if there's a sudden upswing in demand for Power4 systems. All of a sudden Motorola's new G5's are swept off the line and they can't get them produced any more. They'll be as screwed as they were with the 500MHz fiasco.
II. IBM is the most expensive fab out there. It will hurt Motorola in a bnig way to rent their facilities.
An AMD-MOT deal seems much more likely. They have a history of trading tech, including Mot's copper process for something I've forgotten of AMD's. Also, AMD has an unknown partner for a new fab producing 300mm wafers. AMD is selling their processors as fast as they can make them, so a new fab is important for them. At the same time, they're not striking any huge deals like Intel has with Dell, so a whole new big fab might be excessive capital outlay for them. If they partnered with someone, it'd be a win win. Each gets a new fab to make the latest stuff with, while getting to divide the one time costs that starting up a new top of the line fab has.