Intel Corp (INTC)

[Tenchu]

FPG, there is a huge problem with the "equally-efficient competitor" argument when it comes to semiconductors. Due to the very high fixed costs and relatively low marginal costs, volumes of scale will ensure that the only "equally-efficient competitor" out there is one that has the same volumes as Intel.

The other problem with the "equally-efficient competitor" argument is that it contradicts one of AMD's charges, that it was not able to give away one million processors to HP for free. A competitor that does that is not "equally efficient," but rather considerably desperate. AMD and the EU makes the assumption that their products should have been accepted by HP without considering the possibility that AMD is dumping inventory for market share.

Tenchu