Replies to post #81689 on Intel Corp (INTC)

[Elmer Phud]

Windsock -

This is the question. There must be competition but what requirement is there that the competition be competitive? Apparently the answer is none but neither the EUC or it's apologists want to touch this one. Eventually they will have to. How will the EUC deal with an eternal money loser when it has been granted market share but still cannot be viable?

[Tenchu]

Windsock, > The core of the EC pursuit of Intel is the desire of the Trade Commissioner to regulate market share -- nothing more, nothing less. The rest is just a bunch of fluff and nonsense to disguise the regulation as modern "economic theory".

Exactly. The EC makes a bunch of assertions and judgements without backing any of it up with sound legal arguments. They mention concepts like "equally efficient competitor" without even defining how it applies here. All they do is say, "We know what an 'equally-efficient competitor' looks like." Kind of like porn; they can't define it but they know what it looks like.

Bottom line is that there is no clear standard that Intel can follow, except to simply cede market share to AMD. FPG is just repeating what the EC said without actually considering the possibility that the EC might be full of it.

Tenchu

[subzero]

"about 2 years from now when AMD has run through the injection of capital from Abu Dhabi and goes Tango Uniform. Bye, bye "Efficient Competitor".

Your expectations are too simplistic - and ignore history and finance.

The various Abu Dhabi Arab investments in AMD are already around a couple of billion dollars, give or take. If AMD went Tyts Up, Global Floundries would be left with 2 or 3 huge fabs and NO REAL volume customer, in all probability.

Simple economics says that the Abu Dhabi Arabs won't let that happen and will prevent that just by advancing AMD some more cash to keep operations going.

The generated cash flow will flow back to Global Floundries to pay for the wafers and fab operations. So, Abu Dhabi will avoid a mega Billion dollar loss just by "loaning" AMD a few hundred millions of dollars to perpetuate the "then" status quo.

This will avoid two things - a wipe out of existing Abu Dhabi investment in AMD and a complete loss of customer(s) at Global Floundries.

Expect Abu Dhabi to just float new loans to AMD - in return for more ownership.

Don't forget - Iran needs a guaranteed source of Opterons for their Supercomputers to challenge America - and Abu Dhabi will add the money to insure this for their Arab brotherhood.