Advanced Micro Devices Inc (AMD)

[bobs10]

OK I'll ask.

If flash is such a dog, just why is Spansion contracting for more capacity?

I've mentioned many times that I thought Hector was far from giving up on flash. Indeed it's looking more and more like the Spansion IPO was more of a way to reduce the heat than anything else. In the end, if there is an IPO, the most probable thing to come out of it will be a change in the way AMD accounts for its' controlling interest.

Personally, I still think in another year or so we will be wondering why everyone was so hot to get rid of Spansion. To me Spansion looks about where AMD was a couple of years ago. The difference this time is that there is absolutely no competition from INTC and AMD has the potential to be the gorilla in the market.

The real questions are the usual suspects, namely whether Spansion can produce the products they have planned in the quantities needed. The TSMC thing seems to be an answer to the capacity issue.