Advanced Micro Devices Inc (AMD)

[Dan3]

Re: that would seem to be a strange way to interpret Intel's apparent decision

Could be. But that speculation was from the article, it wasn't my own.

I suspect that the flash division at Intel has been allowed to write off some it's fixed costs, which will let them lower prices, but they've also been told that further investment will only come if they start making respecatable profits (with the new, lower cost structure).

I'm not sure Intel can make it in a low margin business like flash. Over the years, AMD has become a very efficient producer, since it had to survive when its competitor was getting $175 for parts AMD was getting $60 for.

Intel's marketing and administrative cost structure may result in the flash business being an area that they are better off letting fade away.

We'll see how it works out over the next couple of years.