Advanced Micro Devices Inc (AMD)

[sgolds]

Elmer,

A huge 12" just came on line (F11X) plus another ready and waiting to turn on the tap at 90nm (D1C) and 3 more in construction/conversion, (D1D, F12 & Ireland). What is Intel thinking? What do they anticipate that AMD doesn't?

Perhaps they expected (and still expect) Itanium to take off?

IMHO, Intel has been planning their 300mm 90nm with the expectation that Itanium would be a growing presence on the desktop by now, and they really haven't brought their factory build plans in line with realistic expectations.

They also expected the market to improve by now. Remember their pledge to build through the downturn to be better positioned for the upturn?

If my suspicion is correct then Intel will not open all their new conversions on the expected timetable. They will not man overcapacity to the point where they can not cover the costs of production, and I just don't see what they are going to produce with all that capacity.