Replies to post #69860 on Intel Corp (INTC)

[Sarmad]

>> Therefore, TFC will have to remain a Subsidiary for AMD to use the license to cover the TFC foundry manufacture.

I don't see how AMD can meet this condition. If the NY fab is built at a cost of $4B, AMD will have to come up with half. AMD does not generate the internal cash flow, and borrowing in the current climate is impossible.

It looks to me that AMD's only hope for keeping up with x-86 compatibility is to negotiate better terms for the next x-license. At that time the trial of AMD vs Intel will have started. As others are saying, maybe continuing x-86 compatibility is not critical to AMD's suruvual.

But more immediately, if TFC actually starts to build the NY fab in April of '09, AMD will have to come up with money, or see its interest in TFC be reduced significantly. That will immediately violate the existing x-license.