Advanced Micro Devices Inc (AMD)

[Andy Grave]

Way behind what? On the last process node, AMD was roughly 2 quarters behind Intel (which represented narrowing of the gap).

Since and including the .25um generation, the last AMD part from a given generation has out performed the last corresponding Intel part. The advantage was very small at .25um and has increased each generation until at 90nm, it is quite large. I would ask......what choice does Intel have but to ramp the next generation faster? Where would they be competitively if they didn't? Well, history will tell you. They screwed up big time at the .25um to .18um transition by not having enough .18um capacity soon enough coupled with a much lower initial yields at .18um than required by the market conditions of the time. AMD gained share like no other time I recall. Intel decided not to let that happen again by building up large over capacity for processors. This allows them to introduce any future process generation at less (probably much less) than mature yields if the competitive situation warrants. Just a very expensive insurance policy which AMD didn't have. Of course, AMD would be at extreme risk if they fell behind competitively. But, their new fab and the added capacity will mitigate some of that risk.

Andy Grave