Replies to post #68594 on Intel Corp (INTC)

[Elmer Phud]

Mas, you're entitled to your opinion but it just sounds like silly fantasy to me. You presented no reason why Abu Dhabi should come to the rescue of AMD's Jihad. They are acquiring expensive Fabs with high labor costs and an expensive SOI process running in them. At this point they have no customers to fill those fabs other than AMD and there is no reason to believe the masses will be knocking on their door to use an expensive SOI process. Nothing has happened to improve AMD's process, design or competitiveness. The Professor's point about starting a war with Asia is a good one. Nothing has changed other than acquiring more enemies.

[wbmw]

Re: They will fill their Fabs at *any* cost.

In general, filling fabs will reduce costs, but it can also increase costs if a large enough portion of parts are unsellable, or have to sell below cost.

It's quite simple: they will maximize making money, and fix the things in the AMD culture that are broken: primarily, the idea of leveraging ASP to gain market share, and spreading themselves thin by trying to compete in all segments. A properly managed AMD will pick and choose the battles where they will find the most financial success. Abu Dhabi will ensure that AMD is properly managed.