Intel Corp (INTC)

[Snowrider2]

Just speculating on the speculation:

If AMAT bought AMD it would be a very, very, tricky integration. Here are some reasons why:

1. Intel is AMAT's largest customer, AMAT would essentially become Intel's largest customer and competitor. How do you manage that?
2. AMAT tests a lot of their new tools in Intel's development factories (RP1 and D1D) prior to releasing them to other customers (TSMC, TI, etc). They may loose this benefit.
3. Intel and AMAT collaborate heavily in developing new manufacturing processes. In other words, there are a ton of AMAT Field Service Engineers in D1C and D1D working side by side with people like Ronster. How will AMAT ensure that Intel's process development design doesn't get leaked to the AMD business units? Can you say huge lawsuit potential?

There are many others, but this would be very tricky for AMAT to manage because many of their current customers (including INTC) wouldn't want AMD having access to their process technology (tool selection, configuration, etc..)

Snow