Replies to post #3567 on AMD strictly moderated (AMD)

[CombJelly]

"IF AMD is going to double their capacity in the next six months, if everything is so rosy, why contract with Chartered?"

What seems to be the case is that AMD is going to start the ramp to 65nm by years end. At the same time, they will ramp Fab30 down and start to convert it to 300mm as capacity exceeds supply. Chartered will be used to produce low cost Semprons as needed. If they managed to lure Intel into blowing out their P4s at $30 a pop, then they can just not order as many from Chartered. Because if 80% of Intel's production is selling for $30...

[highlandpk]

Something doesn't smell right here. IF AMD is going to double their capacity in the next six months, if everything is so rosy, why contract with Chartered?

That is something Intel shareholders should be very concerned about. AMD can make an astounding profit on $90-$100 ASPs; Intel can not. AMD now has the capacity in place to go after the fat part of the market and if they are content with $100 ASPs, they are going to get a pig piece of it. I particularly enjoyed Hectors comment in the last CC about Intel and AMD ASPs converging:

It is important to highlight that as we put pressure on the market, so that there is perhaps an operation of ASPs converging, I think the only people, the people that win are the customers, and the end user. And I think that will be healthy. I think healthy for everybody. Certainly healthy for us for sure.