Replies to post #86301 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

It doesn't pay for any process development, unlike X86, AMD64 or Power. It doesn't pay for its development, unlike the others. Its doesn't pay for the equipment it is made on, unlike the others. It doesn't pay for the indirect labor charges, unlike the others. It doesn't pay for MG&A, unlike the others.

How would you know? What qualifies you to speak on this matter? You have no knowledge and no qualifications.

[chipguy]

Only in Intel boosters minds is it profitable. It doesn't pay for any process development, unlike X86, AMD64 or Power.

IPF doesn't have to pay for leading edge process R&D costs
on its own because it is not a standalone MPU business. It
is Intel's MPU offering for mission critical computing and has
relatively low unit volumes. Even if IPF reached 1% of Intel's
unit sales that means it would only consume perhaps 5% of
wafer starts. Can IPF pay for 5% of process R&D costs? I
think it can quite easily given its four figure ASP and MPU
sales already on the order of $1B a year.

OTOH it is clear that even pooling their resources together
that AMD and IBM can't pay for process development. AMD
and IBM Micro both lose money hand over fist. IBM Micro
only stays in the chip business because IBM subsidizes it
heavily from its mainframe services and software profits.
Of course with HP driving it IPF will continue to cut into
those profits more and more with each year that goes by.


Itanium's ROI is negative and it isn't getting any better.

LOL, I guess that is why Intel continues to dedicate more
and more resources to it year after year and will soon give
it access to leading edge processes at the same time as
Xeon. Odds are IPF will ship at 32 nm before Opteron.

BTW, are you illiterate? In my previous post I linked to
an article with a quote from an Intel manager that said
explicitly that IPF was profitable.


think what if Intel couldn't make any x86 or AMD64 CPUs anymore (for some reason), would Itanium be able to support Intel all by itself?

No it couldn't. No one but you is claiming that it could. IPF
is an incremental line of business in the world's dominant
semico and MPU vendor. It is the gross margin cherry on
Intel's huge x86 cake.

And in a prolonged downturn, most companies would be getting rid of dead weights. Itanium is a likely target.

Yet Intel continues to dedicate more and more resources
to it year after year. Keep dreaming Pete, keep dreaming.