Chip company Advanced Micro Devices has hit its target of selling 1.3 million K6-III/400s this quarter and is now out of stock of the devices, sources close to the company claimed. While that's good news for AMD in one sense, the reports highlight the vulnerable nature of chip production. AMD would prefer to sell millions and millions of the Athlon K7 but won't really be able to ramp up supply of these until its Fab 30, in Dresden, comes onstream in Q1/Q2 2000. Although it is believed that AMD still has fabbing agreements with IBM Microelectronics, the unit price of the K6 family doesn't deliver the sort of margins that the Athlon can. AMD could not be contacted at press time for comment. ®