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I would love to know more about the context behind Ruiz' use of the word "dud" to describe Itanium.
Listen to hector at 2 hours and 3 minutes (give or take a minute) into the webcast or replay.
Hector call the itanium "disconnected" from the marketplace and a "dud" as far as innovation.
I guess the hammer is really innovative with their 8 additional registers. gotta laugh at that one.
Hector and Dirk sounded like they are fearful for their jobs.
Maybe they will be part of the "subsatntial" layoffs that hector is promising.
-SZ
More bad news for AMD - Dirk Meyer was pressed to give the clock speed of the hammer when it will be introduced. He got all huffy-puffy complaining that he had, in his prior presentation, explained why clock speed was not important.
He stated that the hammer will come out with a modelnumber in the mid 3000 range (AMD can define model number any way they want just to make it look not so bad) but the clock speed would only be in the range of 2 gHz.
Even more bad news for AMD's mirrorbit technology - their flash guy explained that the read-write cycle endurance was only 10000 cycles and they were trying to get it up to 100000 cycles.
Doesn't sound too reliable to me.
Hetor Ruiz of AMD has single handedly guaranteed the success of Intel's Itanium.
In his summary speech today at the AMD analyst meeting, he publicly called the Itanium a "dud".
This is the precise word that Jerry Sanders used to describe Intel's Pentium 4 - which subsequently went on to leave AMD almost a GHz behind in speed and with 5 consecutive quarterly losses - leading to AMD's loss of half their market share in x86 processors - and a massive restructuring that is just beginning.
Basically, Hector and AMD are scared shitless.
Dirk Meyer appeared thin, gaunt, tense and obviously under huge pressure after his hammer chip has slipped by nearly two years and still isn't in the market place.
If body language is any key, AMD is in a world of hurt - and they know it.
-SZ
November 06, 2002 12:00
Gordon E. Moore to Receive Lifetime Achievement Award from Semiconductor Industry Association
Jump to first matched term
SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 6, 2002--The Semiconductor Industry Association will honor Gordon E. Moore, co-founder and Chairman Emeritus of Intel Corporation, with the SIA 25th Anniversary Lifetime Achievement Award, to be presented at the SIA's Forecast and Award Dinner this evening.
In selecting Dr. Moore as the recipient of its Lifetime Achievement Award, the SIA Board of Directors took note of his lifetime contributions to the information technology industry, the community, and the Semiconductor Industry Association as a Board member and Chairman.
"Gordon Moore is an innovator and industry legend, he is a superb leader, motivator, businessman, philanthropist, and educator," stated SIA President George Scalise. "There is no one in the Valley who has not been impacted by his work, his entrepreneurial spirit, and his uncanny ability to foresee the pace of innovation in the chip industry."
With the articulation of Moore's Law in 1965, which observed that the number of chips on a transistor, and its raw computing power, was doubling roughly every couple of years, and that computing capability would not require a commensurate increase in cost, Moore captured the essence of semiconductor technology: relentless, geometric growth in chip power, accompanied by a proportionate decrease in cost.
Moore has authored the foreword to a new book on the semiconductor industry, released by the SIA as part of its 25th anniversary celebration. Thinking back to the late 1950's, when Silicon Valley was still a dozen years from a name, Moore writes "What if we had been told then that in our lifetimes that all the computer power then in the world would be available on a single descendent of those little transistors we were designing -- and that someday that device would be built by the hundreds of millions each year? Would we have believed it?"
In July of 2002, Moore was selected by President George Bush to receive the National Medal of Freedom, the nation's highest civilian award, at a White House ceremony, for his career contributions to the development of the microprocessor and the computing industries. "Gordon Moore has been instrumental in the development of the microchip, which has profoundly changed the way we live, work, play and communicate," stated George Scalise, in extending the SIA's congratulations to Dr. Moore.
While perhaps best known as an entrepreneur and innovator, with lasting contributions to the semiconductor industry and the technology revolution, Gordon Moore will be remembered as a champion of both technology and civilization. The Gordon and Betty Moore Foundation funds initiatives in four major areas: higher education, scientific research, the environment, and select San Francisco Bay Area projects. "Those of us who have been very fortunate in this system have some obligation to give and it's nice to see that there are opportunities where present philanthropy looks like it really makes a significant difference with some of the things going on in the world," Dr. Moore stated in an interview after the White House award ceremony.
In choosing the SIA's 25th anniversary to honor Dr. Moore with the industry's Lifetime Achievement Award, the SIA Board of Directors joins in thanking him for his lifelong record of innovation, service and leadership in an industry he himself defined as "an economic and cultural phenomenon, a crucial force at the heart of the modern world." The Board recognizes Gordon Moore as a superb role model for future generations of business leaders, exemplifying business skill, technical knowledge, and a willingness to participate and share within the industry, the community, the nation and the world, while maintaining the highest level of ethics.
A native of California, Gordon Moore received a BS in Chemistry from the University of California-Berkeley and a Ph.D. in Chemistry and Physics from the California Institute of Technology. He was a founder of Fairchild Semiconductor in 1957 as part of a group of leaders known as the Fairchild Eight and co-founded Intel, with Bob Noyce, in 1968. Moore became chief executive officer of Intel in 1975, was elected Chairman and CEO in 1979, served as CEO until 1987 and was named Chairman Emeritus in 1997.
About the SIA
The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise approximately 90% of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people. More information about the SIA can be found at www.sia-online.org.
CONTACT: Semiconductor Industry Association
Molly Tuttle, 408/436-6600
mtuttle@sia-online.org
"Does enabling hyperthreading curb scaling/overclockability?"
3.066 GHz isn't fast enough for you - you want to overclock it?
That will be difficult if you need to borrow the $700 to buy one.
-SZ
3.066 GHz Pentium 4s are becoming available.
http://www.wiredzone.com/itemdesc.asp?CartId=1-ACCWARE-0681800XOWQK31&ic=30326727&tpc
3.06GHZ PENTIUM4 SKT-478 533FSB 512K-BOX
$ 707.68
Dew - "But that’s an artificially low figure because it’s not adjusted for the effects of AMD’s buyback of excess inventory from the OEMs."
Then AMD's own market share numbers for the second - and probably first - quarters of 2002 were lies and need to be restated - since AMD based their claim on CPUS shipped in those quarters - many of which did NOT sell through and which had to be bought back by AMD.
Moreover, as AMD's CPUs fall behind Intel's CPU speeds, the value of those AMD chips that AMD repurchased will be dropping to very low numbers - necessitating a write off - or a write down - or whatever.
Look for AMD to greet shareholders with even more bad news when they properly account for the gargantuan channel stuffing.
By the way - 11.6% market share means AMD only shipped about 3 or 4 million CPUs in the third quarter - pretty pathetic.
-SZ
Moore's Wall - "It's the factory, stupid."
http://www.fortune.com/indext.jhtml?channel=print_article.jhtml&doc_id=210012
INTEL
Intel's $10 Billion Gamble
Tech's ailing, yet the chip king is opening plants and entering new markets. Its bet: that no competitor can afford to keep up.
FORTUNE
Monday, November 11, 2002
By Brent Schlender
The labyrinthine vastness of Intel's nearly completed D1D semiconductor factory in Hillsboro, Ore., is every bit as breathtaking as the microscopic intricacy of the microprocessors it will soon start making. Step into the sprawling subbasement of the $2.5 billion facility, and it feels like taking a fantastic voyage into the heart of a computer chip: Thousands of workers and technicians purposefully dart about the dense concrete catacombs like electrons coursing through a chip's aluminum and copper pathways--testing mazes of high-voltage circuits, connecting miles of meandering pipes and ducts, and installing exotic support gear for the actual fabrication area two floors above. There, in a gleaming clean room the size of three football fields, dozens of equipment specialists scurry about in bunny suits and hardhats. Some painstakingly maneuver delicate chipmaking machines the size of Zambonis into position on dollies that glide on a cushion of compressed air. Next spring, when the place starts cranking out silicon wafers the size of a medium pizza--each embedded with hundreds of state-of-the-art microprocessors, containing nearly a quarter-billion transistors apiece--D1D will officially become the world's most prolific chip "fab."
But D1D is more than a Brobdingnagian metaphor for the Pentium. It's also the latest steel-and-concrete embodiment of Moore's Law, the guiding principle for the entire semiconductor industry that Intel co-founder Gordon Moore articulated 37 years ago when he first suggested that every year or so, chipmakers should be able to double the number of transistors and electronic components they can etch on a chip. Likewise, D1D is the physical manifestation of Intel itself, a company whose mission statement could well be "It's the factory, stupid." That's because D1D and three fabs just like it that Intel plans to build by 2004 represent a controversial $10 billion bet that the company can erect what might be called Moore's Wall. Intel is gambling that by pushing the state of the art in chipmaking faster than rivals are able to, it will reach a point where it can use sheer manufacturing prowess and capacity to undercut any competitor in price, performance, and variety. That means not just fending off would-be archrival Advanced Micro Devices and continuing to dominate the business of making chips for PCs, but also challenging Texas Instruments, IBM, Motorola, and a spate of smaller competitors in chips found in everything from cellphones to cars.
"Capacity is strategy," says Andy Grove, Intel's chairman and former CEO. "Henry Ford used it to revolutionize the automobile industry; the Japanese used it to push us out of the memory-chip business 25 years ago; we used it a decade ago to ignite the explosion of the PC industry. Now we're using it again so we can broaden our business beyond the PC."
Intel is making its move amid the deepest slump in the history of the IT industry. The company's revenues--projected at about $26 billion for 2002--are running 25% lower than two years ago, dampened by the contraction of the PC business in the U.S. Neither Intel's sales nor its largest customers' fortunes show signs of an imminent uptick. At the same time another key consumer of semiconductors--the telecom industry--is barely breathing. And while Intel remains profitable, with an estimated $3.3 billion in net income this year, its earnings are down 8% from last year and 71% from 2000. Intel stock is down 80% from its all-time high of $74.87 in 2000.
Times are even tougher for rival chipmakers, many of which are bleeding red ink, laying off employees by the thousands, and scuttling plans for new plants. AMD is facing cash pressures due to unexpectedly wide losses. Other chipmakers, like Motorola, have announced intentions to eventually quit manufacturing chips altogether. Instead they will rely on so-called foundries in Taiwan that make chips for hire. That could mean having to take a number and stand in line to wait for capacity to open up, and settling for less-than-leading-edge process technology.
Which is one reason Intel is redoubling its efforts now. By investing heavily during a tech recession, Intel thinks it can leap a generation ahead in chip know-how and manufacturing ability. "This is the beginning of the consolidation and bifurcation of the semiconductor industry into a handful of leaders and lots of followers," says CEO Craig Barrett, who headed manufacturing before moving to the corner cubicle at Intel headquarters in Santa Clara, Calif. "There will be an equivalent bifurcation in products and profit margins. The products that should command the highest margins are those at the leading edge of design and performance, which result from only one thing--having the best manufacturing technology."
Sounds like typical saber rattling from a notoriously aggressive company. But there's a second motivation in Intel's bet on Moore's Law--a kind of nerdy idealism that includes a pure, simple faith in technological progress and a genuine desire to help revive IT and telecom. Intel thinks its manufacturing capabilities will speed the introduction of incredibly powerful chips that take the Internet to the next level, enabling hundreds of millions of computers, phones, and other devices to be always tied to wireless networks. "We're talking about a half-billion transistors on a chip, and perhaps even a billion," says Paul Otellini, Intel's president, COO, and likely the next CEO. "Suddenly there will be very little limit to what you can design into a single integrated circuit. If you want to talk about a golden age for semiconductors, that's when it will be, and the IT and telecom and consumer electronics industries will be the biggest beneficiaries."
Still, there's no guarantee that the golden age is imminent, and without it, Intel's profits and stock price could look pretty dull. Even if Intel widens its dominant 81% market share for PC microprocessors, it won't generate enough incremental sales to use all that new capacity, nor will it get back to growing at its historical double-digit rates. Telecom might benefit from Intel's creations, but it's unclear whether that industry--even after it finds its feet again--will use enough chips to keep Intel growing. Skeptics abound, especially on Wall Street. "Intel has a phobia about capacity," says Salomon Smith Barney analyst Jonathan Joseph. "They're very concerned that they'll miss the next upturn. But they clearly have too much capacity coming online; they aimed forward to hit the duck, and the duck isn't there. Sooner or later they'll have to adjust to maintain profitability, and that will mean closing some existing plants."
There is a certain relentlessness to Moore's Law: It predicts that technology will keep improving exponentially, no matter what the state of any one company, the tech industry, or the economy. For a chipmaker, falling off the pace of innovation is potentially fatal. Not that Gordon Moore ever intended his idea to have such an effect when he came up with it in a 1965 article for Electronics magazine. "I'm willing to take credit for whatever is associated with Moore's Law," quips Moore, now 73 years old.
Moore's original edict was simply an extrapolation of trends based on how quickly the nascent chip industry had been able to incorporate more components into a single integrated circuit. (Carver Mead, the renowned Caltech physicist, was the one who later would dub the prediction Moore's Law, which he has described as a "self-fulfilling prophecy more than a law.") When Moore wrote the article, the number of components was doubling about every year, but then again, that meant growing from, say, 16 transistors to 32. In 1975, with chips becoming increasingly complex, he adjusted the figure to every two years. (For more, see The Surprise Behind Moore's Law.) Lately Intel has been able to reduce the doubling period to about 21 months.
Doubling the number of transistors in a given space requires more than ingenious design. Chipmakers have to work with semiconductor-equipment manufacturers to devise manufacturing methods and gear that can etch transistors and other microscopic features that are one-third smaller than the previous norm. That entails developing better methods of lithography, finding more subtle ways to precisely deposit or remove minute quantities of metals and other materials on silicon wafers, and designing ever cleaner clean rooms. The transistors on the chips pounded out at D1D will be smaller than 90 nanometers across--so small that ten of them would fit in the diameter of a human hair--vs. 130 nanometers at the current state of the art.
Each generation usually involves building whole new factories or completely refitting old ones. Not surprisingly, the cost of fabs over the years has risen on a Moore's Law-like curve, as has Intel's capital spending. But the payoff can be as stupendous as the cost. Denser chips translate into higher capacity and output; open a new, state-of-the-art chip plant, and the cost of producing a chip usually falls by about a third literally overnight. That's not all: The smaller parts perform better. Says Moore: "It's a funny technology. By making everything smaller, everything gets better. But it also means if you lag behind your competition by a generation, you don't just fall behind in chip performance, you get undercut in cost."
In that statement lies the tyranny of Moore's Law. "Every time we don't live up to Moore's Law, somebody else does," says Andy Bryant, Intel's chief financial officer. "If you stumble, something bad happens."
And that's why, as Barrett puts it, "we don't adhere to Moore's Law for the hell of it. It's a fundamental expectation that everybody at Intel buys into. We dangle Moore's Law in front of the new young minds that come here to work and say, 'Hey, your predecessors were smart enough to figure this out for the past 20 or 30 years--why the hell aren't you?' We simply don't accept the growing complexity of the challenge as an excuse not to keep it going." For Barrett, Moore's Law is a very big yardstick that he wields mercilessly.
The man responsible for the actual enforcement of Moore's Law is Sunlin Chou, a courtly, 56-year-old Intel lifer who is senior vice president and general manager of the company's technology and manufacturing group. Barrett gives him plenty of resources to work with, including nearly half of Intel's R&D budget, which this year will top $4 billion, to develop the manufacturing methods that wind up in fabs like D1D. (That R&D figure is yet another number at Intel that has grown nearly exponentially over the years.)
Chou's endeavor is an endless loop. D1D's 90-nanometer fab isn't even up and running yet, and already his researchers are devising the manufacturing methods and working with equipment suppliers for the next generation of Moore's Law, which will reduce feature size to 60 nanometers, and which Intel hopes to begin rolling into fabs in 2004. Moreover, starting with the 90-nanometer fabs, Chou is introducing processes that will allow the factories to be more than one-trick ponies dedicated to a particular kind of chip. Processors, flash memory, and communications chips all have subtly different fabrication processes, but the new plants should handle all of them without slowing overall output.
Chou also chose the 90-nanometer generation to coincide with the once-a-decade segue to a larger wafer size at Intel's new fabs, a shift many chipmakers around the world have put on hold to save money. From now on, new Intel fabs will handle wafers 300 millimeters (about one foot) in diameter, vs. the 200-millimeter wafers (about eight inches) at ten existing fabs. Explains Chou: "You increase the wafer size to offset the increasing cost of process complexity as you shrink feature sizes. It's purely an economic enabler. It gives you more than twice as many chips per wafer yet again, and that further reduces the cost of an individual chip."
One of Chou's most important duties is to make sure the manufacturing process and fab design of D1D will be replicated precisely in the other three 90-nanometer facilities that will come online in the next 18 months (one in New Mexico, one in Ireland, and another in Oregon that will be retrofitted). This discipline--called the "copy exactly" technique--is something CEO Barrett pioneered during previous big fab build-outs to ensure that each new factory is immediately productive when fired up.
The secret to the copy-exactly strategy is counterintuitive--tying the hands of the design engineers. "Once we come up with a manufacturing process, we don't let the chip design team tinker with it," says Chou. "Believe me, it takes enormous discipline for the designer not to try to tweak things, because it goes against an engineer's very nature."
The net result of Chou's efforts will be a double gain in productivity for Intel as D1D and its lookalike plants go online. Not only will Intel more than double its chipmaking capacity, but it will also be able to make chips that perform markedly better--Pentiums will bump up from today's 2.4 gigahertz to nearly five gigahertz--and that cost on average a third less to produce. The same will go for Intel's other big products, such as flash memory used in cellphones, handhelds, and digital cameras, and for the network and communications chips that the company hopes will power its next round of growth. That is, if Intel can come up with competitive designs--and if it can find customers willing and able to buy them.
Developing new markets is where Intel might find Moore's Wall as hard to build as the pyramids. If no one's buying, the technological advantage gained by the new plants will simply be academic. Wall Street doesn't assign premiums for good intentions.
That's not to say there aren't opportunities for Intel to expand its business in PCs, which today account for 80% of its revenues. Servers built around Intel's Pentium 4 and Xeon microprocessors are gaining market share thanks to the growing popularity of Linux and the increasing penetration of Windows software into enterprise computing. And Intel's high-powered new Itanium processor, for specialized servers, which have sold poorly so far because of performance problems, may yet catch on when 90-nanometer versions hit the market. (At up to $4,300 a pop, the Itanium could generate serious revenues.) Then there's mobile computing. Sales of notebook PCs continue to grow by 15% annually, and Intel has big plans to put even more of its silicon inside each and every one of them.
But communications chips are what Intel thinks will drive its growth. The chips allow notebooks to speak wirelessly to networks, enable cellphones to make calls, and help route web pages, e-mail, and streaming media around the Internet. Intel thinks it can win business by finding a way to marry computing and communication, quite literally on the silicon chips themselves.
Chief technology officer Pat Gelsinger dubs the strategy Radio Free Intel. Simply put, he wants Intel to incorporate, right into many of its processors, radio transceivers that can automatically detect and connect to hot new Wi-Fi wireless networks and even cellphone networks. "How can we beat Texas Instruments or Motorola, companies that have decades more experience than we do in communications technology?" Gelsinger asks. "By changing the rules and defining a new architecture for integrating communications into smart devices. We want to make a radio transceiver something that you expect to be just another feature of just about any device with a microprocessor."
The most accessible market for Intel's radio-enhanced processors is mobile PCs. By the end of the year Intel will begin shipping samples of specially designed chip sets for notebooks that include ultra-low-power Pentium processors, graphics chips, and other support circuits, and a built-in ability to attach to a Wi-Fi network. These chip sets will enable a notebook computer to sense and connect with wireless networks as its owner moves around, and even switch from one network to another on the fly. "In mobile computing, to focus on the processor performance as we have in the past would be missing the point," says Anand Chandrasekher, the vice president in charge of the product line. "The trick is to make all the extra performance that wireless requires invisible, so it just works, and the user can count on it."
A second big target for the Radio Free Intel initiative involves cellphones and PDAs--markets Intel competes in but doesn't dominate. This year 400 million cellphones will be sold, and many of them will contain Intel's flash memory chips. But phones are also getting smarter and beginning to resemble PDAs in their ability to handle address books, calendars, and the like. Meanwhile Intel's XScale processor is the brains for most PDAs that use Microsoft's Pocket PC software, and it recently won the support of Palm. It has a shot at becoming an industry standard, much as the Pentium is the standard processor in the PC.
Intel's grand plan is to couple its XScale chip with flash memory as a way to get more of its chips into cellphones. It also plans to use the same part, attached to a new Wi-Fi chip, to make PDAs more versatile communicators. Ultimately Intel wants to put everything--the communications transceiver for both Wi-Fi and voice cellphone service, the XScale processor, and loads of flash memory--into a single part that would function equally well as the heart and soul of a PDA or a cellphone. Creating that can be achieved only if Intel can make chips with much smaller transistors, and if it can learn how to place radios, logic circuits, and memory in the same chip package without having their electrical signals interfere.
To make headway in cellphones Intel will have to usurp entrenched rivals like TI. The worldwide leader in communications chips, it commands more than 50% of the market for the processors in cellphones. "When another company, even Intel, announces its intentions to enter your space, your customers don't just roll over," says a TI spokesman. "Our relationships with cellphone-handset makers are well established." Plus, while success in the microprocessor business depends largely on continually optimizing a single, complex chip and a few support circuits, big players in the communications chip business make their money by developing and supporting dozens of different kinds of more specialized chips, many of which don't really need the latest, greatest manufacturing process. Then there's the problem that profit margins for these chips--unlike those for Pentiums--are slim.
Intel has another major target in mind for its communication chips: the iron deployed by telecom carriers and equipment suppliers. Over the past four years Intel has spent $10 billion acquiring 27 companies that are involved in various aspects of networking technology, from network processors to wireless technology to optical-switching systems for fiber-optic networks.
Now Intel is focused on creating a network processor that would be the telecom world's equivalent of the Pentium. Network processors are the superfast switching circuits at the core of the gear that routes digital data around the Internet. So far the world has no network processor standard; companies like Lucent, Nortel, and Cisco buy specially designed chips and create their own software tools, each in hope of gaining an edge in switching performance or programmability. The other appeal of this proprietary approach is that customers tend to stick with one supplier once they've become familiar with its programming tools.
That kind of diversity has to end, argues Sean Maloney, executive vice president for the Intel Communications Group. "I don't deny that competition is good, but the telecom industry has never really benefited from Moore's Law because most of those proprietary network processors weren't made in large enough volumes to warrant leading-edge manufacturing technology. A standard part made with state-of-the-art manufacturing technology, coupled with a set of standard programming tools that are derived from PC software tools, could finally bring Moore's Law to telecom."
Maloney's group recently announced a high-performance network processor chip called the IXP. Designed to be a key component in routers and digital switches, the IXP is capable of processing up to 6.6 gigabits each second of web pages, e-mails, streaming media, queries, and other Internet traffic--that's roughly equivalent to the capacity of 4,500 home broadband lines.
There's a little problem, though. For now, at least, the telecom industry is comatose, and nobody's buying much gear from anyone. Indeed, revenues for Maloney's business for the quarter ended Sept. 28 totaled $482 million, or barely 7.4% of Intel's total sales. Worse, sales were off 17% from the year-earlier quarter and down 10% from the previous quarter. That's not a very encouraging way to begin broadening Intel's business or driving growth. "We had higher volume predictions than we actually have now," concedes CFO Bryant. "'When will it start growing?' is more a macroeconomic question than a technology question, but we do believe there will be a return to growth."
The ebullient Maloney, as might be expected of a man who once ran Intel's sales and marketing group, thinks there's a silver lining for Intel in the telecom collapse. Says he: "My telecom customers have laid off 270,000 people in the past two years. A lot of them are engineers who designed their proprietary networking equipment. The telecom companies will never have that much engineering capability again. Our proposition will be to let us take care of developing the core components so that they can concentrate on tailoring gear and services to particular markets. Then they can ride along on the coattails of Moore's Law just as the computer industry has."
Such optimism may sound weird coming from a company whose unofficial mission statement has long been "Only the paranoid survive." But optimism about Moore's Law runs just as deep in the Intel psyche. Time and again pundits have warned that chipmaking will top out as circuits shrink to the size of atoms. But Sunlin Chou and his peers in the chip industry keep finding new ways to cram even more transistors onto silicon. "Opportunities aren't dwindling, they're exploding," says Chou. Besides, he adds, "in the end, Moore's Law is a philosophy as well as a strategy. It gives us the confidence to believe in the future."
Just ask Andy Grove, the Hungarian emigre who, for all his success and notoriety, has seen his share of dark moments. You have to have faith, he says, and extrapolate where technology could lead, much as Gordon Moore did 37 years ago. In his original article, written when telephones still sported rotary dials, and color TV was a novelty, Moore presciently predicted that "integrated circuits will lead to such wonders as home computers, automatic controls for automobiles, and personal portable communications equipment."
Here's Andy's prediction: "You know that saying, 'The Internet changes everything'? People now are backing away from it, but I say, Just wait five years. Hundreds of billions of dollars we now spend on voice telecommunications will become a freebie--just like [Cisco CEO] John Chambers has said. That's Moore's Law at work. The entire entertainment industry will be digitally distributed over broadband networks. [Media companies are] going to tip over, because one of them, with its back to the wall, will make the transition, and the others will have to follow. That's Moore's Law at work. Houses will be wireless, broadband will be delivered wirelessly, and home and portable computers and consumer electronics are going to be built to facilitate all of the above. Okay, it hasn't happened in the first five years; it's going to take ten. And there will be a lot of pain for some. But it will happen, and we'll all benefit."
That's why, at a time when other chipmakers fear that living up to Moore's Law might be a bridge too far, Intel still believes it's the only way to go.
The Road Back: Part 3
Tech's in a deep depression. This story is the third in a series examining tech's problems and what might get it growing again.
you asked "Hey what do you think about what Pravin says here:"
What do you think of Pravin's great prognostications in December 2001?
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=16741578
To:Dan3 who wrote (64892)
From: Pravin Kamdar Tuesday, Dec 4, 2001 12:36 AM
View Replies (2) / Respond to 64895 of 64945
Dan,
It's starting to look a lot like the .25 to .18 transition + Athlon, isn't it?
Yes, it is -- but better.
Intel doesn't have a counter for the mobil T-bred. AMD will own the high performance laptop space by mid next year. News of high performance parts coming out of UMC will shock the market. Hammer excitement will be building all year. And then we get another boost when the 0.13u T-bred moves to SOI. Next year should be a great year for AMD. I'm 20,000 share long in anticipation. I'd like to buy more, but I also took big positions in some other great prospects (ATYT, RDRT, BORL, and SUNW).
-----
Maybe you can ask Pravin how he likes his 20000 AMD shares at $5 nad SUNW at $2.50.
I predicted this a few weeks ago.
http://www.investorshub.com/boards/read_msg.asp?message_id=518050
Maybe tomorrow will be a good time to pick up some AMD on the cheap(er).
"My fear is that AMD will post another large loss and Moody's will downgrade AMD's debt."
Boy did I ever call this one.
Sumbuddy pat me on the back.
Anybuddy know what qualifies as junk bond status?
Reuters Market News
Moody's revises Advanced Micro Devices outlook
Monday October 7, 5:18 pm ET
(The following statement was released by the ratings agency)
NEW YORK, Oct 7 - Moody's Investors Service changed the ratings outlook of Advanced Micro Devices, Inc. (AMD) to negative following its announcement of significantly lower than expected revenues and a substantial loss for the third quarter. With cash flow from operations less capital expenditures in the first half of the year of negative $268 million; over $400 million of planned capital expenditures in the second half of the year, significant revenue and earnings weakness in the third quarter; and no signs of market strengthening over the near term, the negative outlook reflects concerns that liquidity will be further pressured.
ADVERTISEMENT
The ratings outlook affects the following: Senior implied rating -- B2 Senior secured shelf registration -- (P) B2 Senior unsecured shelf registration -- (P) B3 Subordinated shelf registration -- (P) Caa1 Preferred stock shelf registration -- (P) Caa2 At June 2002, AMD had $1.1 billion of cash and marketable securities. Debt maturities relating to its microprocessor facility in Dresden, Germany (Fab 30) approximate $100 million in the rest of calendar 2002 and $216 million in calendar 2003. The company had $75 million outstanding under a $200 million secured revolving credit facility that matures July 2003. AMD's $500 million senior convertible note (with a $23.38 conversion price relative to its current stock price of around $4) does not have its first put date until 2009. The prior stable outlook had anticipated weak demand in the personal computer sector as well as intense microprocessor price competition from Intel, which would contribute to near term losses for AMD. These trends, however, have been more severe than expected. To the extent that liquidity weakens and sufficient sequential improvement does not occur in the seasonally stronger fourth quarter, the credit ratings would likely be reviewed for possible downgrade. Advanced Micro Devices, Inc., headquartered in Sunnyvale, California, designs and manufactures microprocessors, flash memory, and other semiconductors products.
"How would you like to be the person that cost your company $622M? ^_^"
You talkin' about Hector at AMD?
AMD going to zoom on this good news.
Dell confirms it may use AMD processor in server
By Jack Robertson, EBN
Sep 30, 2002 (1:03 PM)
URL: http://www.ebnews.com/story/OEG20020930S0056
Dell Computer Corp. on Monday confirmed that it is considering selecting the Advanced Micro Devices Opteron Hammer MPUfor an upcoming server product. A decision is due by the end of the year, a Dell spokesman said.
Dell has always used Intel processors for its PC, workstation and server lines, to the exclusion of AMD. Adding the Opteron chip would be a major breakthrough for AMD, which has long sought to crack the solid Intel phalanx at Dell.
The Dell spokesman said the computer firm is also looking at Intel's Itanium enterprise server processor, but has made no decision on designing that chip into any new product.
EBN earlier reported comments by Jonathan Joseph, chip analyst for Salomon Smith Barney, San Francisco, that AMD was thinking about using an AMD processor for the first time. At the time, a Dell spokesman declined to comment on the report. Joseph said Dell may be using AMD as leverage in its pricing negotiations with Intel.
The first indication from Dell that the AMD Opteron MPU was being considered appeared in the New York Times last Sunday, in a story on Intel's Itanium processor. That story contained comments by Randy Groves, vice president for the enterprise systems group, that "This is the first time AMD has had a value proposition that is more than just price. That's something we have to take seriously." The Dell spokesman confirmed the quote today.
Bacchus II - My fear is that AMD will post another large loss and Moody's will downgrade AMD's debt.
These debt downgrades always wreck havoc with the share price, so I am quite nervous about my position.
What are your thoughts?
SZ
This don't look too good for AMD.
September 27, 2002 01:06 PM
AMD's Meretsky leaves
By Tom Krazit
ADVANCED MICRO DEVICES (AMD) Fellow Wayne Meretsky has left the company, an AMD spokesman confirmed Friday. Meretsky was a driving force behind AMD's efforts to promote its forthcoming Opteron server chip.
Friday is Meretsky's "effective" last day with the company, said Morris Denton, an AMD spokesman.
"He announced a couple of weeks ago that he was leaving on his own accord, for personal reasons," he said. Meretsky may provide consulting services to AMD in the future, he said.
Meretsky spent about four years with the company, Denton said, managing the software team within AMD's Computation Products Group in the BIOS, diagnostic and driver area. His most significant contribution to the company was the creation of the plan for 64-bit tool development for the Linux community, Denton said. He previously worked for Apple Computer in its Macintosh Operating System Group, and was noted for his work on the PowerPC and PowerMac products.
"In many ways, he was an AMD evangelist. He spent a lot of time with our partners, educating them on benefits of AMD," Denton said.
AMD is trying to convince users to switch their server infrastructure from RISC (Reduced Instruction Set Computing) chips to a low-cost setup using Linux and Opteron chips based on its Sledgehammer technology. Meretsky, who also held the title of director of software research and development, was a visible proponent of those efforts, speaking at conferences and trade shows.
The timing of Meretsky's departure might hurt AMD, as it gears up for the launch of Opteron in the first quarter of 2003. There have been no further delays or problems with the Opteron launch, since AMD announced it was delaying the launch of its Barton and Clawhammer desktop cores earlier this month, Denton said.
AMD Earns Samsung's `Best Supplier' Award
Second Time AMD Named for Prestigious Honor
Monday September 23, 12:01 am ET
SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 23, 2002--AMD (NYSE:AMD - News) today announced that it has been recognized as one of the best suppliers of Flash memory devices for the first half of 2002 by Samsung Electronics Co. Ltd. This is AMD's second such prestigious award from Samsung. AMD earned the "Best Supplier Award" from Samsung in 2000.
The award from Samsung acknowledges AMD for its "outstanding contribution by supplying excellent products manufactured through continuous technology improvements and innovative cost reduction efforts, which allowed Samsung Digital Media System Business revenue growth and win-win business management during first half of year 2002."
"AMD remains committed to delivering innovative memory solutions and maximizing customer value," said Dr. Bertrand Cambou, group vice president of AMD's Memory Group. "We are thrilled to once again receive this high honor and are more motivated than ever to serve such a great corporation."
Samsung traditionally selects its best suppliers semi-annually. AMD was selected by Samsung's Digital Printing Division at Digital Media Network Business. Dae Je Chin, president and CEO of Digital Media Network Business for Samsung, presented the award at their headquarters to Chol Chong, Director of Asia Regional Marketing Operation, AMD's Memory Group.
About AMD Flash Memory Devices
AMD's technology is employed by the world's largest producer of Flash memory devices, Fujitsu AMD Semiconductor Ltd. (FASL). AMD Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. AMD Flash memory customers represent leaders in the automotive, networking, telecommunications, and handheld mobile terminal markets. AMD offers many Flash memory products, such as the award-winning simultaneous read-write (SRW) product family; super low voltage 1.8V Flash memory devices; and burst- and page-mode devices. AMD developed the robust Known Good Die (KGD) program and the patented negative gate erase technology, and developed highly reliable Fine-pitch Ball Grid Array packaging.
AMD's Flash memory products have received numerous other customer service, quality and technology awards. Cisco Systems, Nortel Networks, Samsung, the Bosch Group, and Volkswagen have all awarded AMD their top supplier awards.
About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD - News).
AMD on the Web
For more information about AMD products, please visit our virtual pressroom at www.amd.com/news/virtualpress/index.html. Additional press releases and information about AMD and its products are available at www.amd.com/news/news.html.
AMD, the AMD Arrow logo, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies.
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Contact:
AMD
Ron Dusek, 512/602-9514 (PR)
Email: ron.dusek@austin.rr.com
or
Mike Haase, 408/749-3124 (IR)
www.amd.com
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Source: AMD
AMD CEO Hector Ruiz: Time for a New Business Model in the Semiconductor Industry
-- FEI Forum on Finance and Technology, Las Vegas --
Monday September 23, 12:01 am ET
SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 23, 2002-- In a keynote address to financial leaders at the FEI Forum on Finance and Technology Friday, Hector Ruiz, AMD (NYSE:AMD - News) president and Chief Executive Officer, asserted that, in order to succeed, semiconductor manufacturers must reinvent their business models to forge tight connections and collaborations with end-users, customers and partners.
"In traditional relationships between suppliers and customers, the lines that define where one company begins and the other ends are very clear -- and can be very disruptive," said Ruiz. "I believe this old model is broken. To be successful, we believe that semiconductor companies must build relationships with customers and partners that truly blur the lines, and create a 'complementor' relationship where the companies are connected and invested in each other's success."
Ruiz highlighted aspects of AMD's "connected business model" which is focused on forging extremely connected relationships with partners, customers and end-users.
"Our industry is in the midst of a fundamental change that will redefine the classic definition of a semiconductor company and rewrite the metrics used to evaluate its success," said Ruiz. "Changes in end-user expectations, increased dependence on silicon to define and differentiate products, the adoption of external value chain integration, and an increasing focus of intellectual property (IP) development based on customer needs rather than manufacturing efficiencies are changing the way AMD does business."
Metcalfe's Law, which says the overall value of a network increases exponentially as devices are added to it, is a guiding principle behind AMD's business model. "Just as the value of a physical network like the Internet increases as more users have access, AMD's value and strength will be enhanced by the number of relationships we forge with companies that we will work with to share in a common success."
He cited AMD's collaboration with UMC on cost-effective, high-volume manufacturing of leading-edge microprocessors as an example of a "complementor" relationship where the two companies are connected and invested in each other's success. Ruiz also stressed that semiconductor manufacturers should not stop investing in improving manufacturing capabilities, but rather that companies need to focus on high-impact areas such as transistor development, advanced process control (APC), and silicon-on-insulator (SOI) technology where the IP investment can be directly linked to specific customer needs.
"The ability to lower the intensity of capital expenditures, share success with customers and partners, and continue to deliver innovative solutions will be the metrics by which we need to judge semiconductor companies in the coming years," Ruiz continued.
Ruiz's presentation is available in AMD's virtual pressroom at www.amd.com/virtualpress/speeches.
About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD - News).
AMD on the Web
For more AMD news and product information, please visit our virtual pressroom at www.amd.com/news/virtualpress/index.html. Additional press releases are available at www.amd.com/news/news.html.
Note to Editors: AMD, the AMD Arrow logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies.
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Contact:
AMD
Mary Ellen West, 512/602-3600 (PR)
maryellen.west@amd.com
Mike Haase, 408/749-3124 (IR)