Advanced Micro Devices Inc (AMD)

[jhalada]

econo,

Your comments make sense. Another issue is that AMD has a fab that is capable of producing competitive chips well into 2005 on 90nm, before any costly upgrades will be needed. AMD doesn't have an option of not using Dresden to the fullest extend. The depreciation charges are hitting the income statement every quarter, and will continue to do so for some time.

Before we talk about production (even though there can be some production at IBM), AMD needs to figure out if they are going to adapt IBM's 65nm process to 200mm equipment in Dresden or if they are going to switch to 300mm. In late 2004 / early 2005, there should not be any premium for 300mm capable equipment.

Joe