Advanced Micro Devices Inc (AMD)

[bobs10]

I heard that. My worry is that if demand for INTC processors starts to slow down, for whatever reason, INTC will be under intense pressure to keep the fabs busy. I think it was Andy that mentioned something about moving production to the 12" lines and closing one of the 8" fabs if a cut in production was needed. This would probably make a lot of sense if costs were significantly lower in the 12" fabs.

It does seem reasonable to assume that since there's just the two of them they should be able to find a solution, but things often have a way of getting out of hand and when that happens you can forget reason. Realistically, I don't think AMD is going to be too much of a threat until fab36 comes online. Of course if IBM starts fabing for AMD then you have another source of production that has to be dealt with.

So far ASPs seem to be holding up but INTC definitely has an inventory problem that needs to be dealt with.