Can the K7 chip save AMD?

AMD is expected to announce grim news - manufacturing snafus have driven down yields of the company's most lucrative processors, leaving AMD with too few to sell.

Revenues are expected to slide to $630 million on an average selling price of $78 per chip. Previously, chairman and CEO W. J. Sanders III said that AMD needs to earn $100 per chip on average to be profitable.

Despite the news, AMD's PC-making customers are betting that the chip company will be able to get its manufacturing back under control. Why? The industry still likes AMD's K6-2, K6-III and coming K7 products.

The full story is posted at http://www.zdnn.com .