Replies to post #85351 on Intel Corp (INTC)

[Elmer Phud]

It is amazing to me that anyone thinks that going fabless
will improve AMD's ability to hold let alone expand the
~17% of the x86 processor market it has now

Hey it's no problem. What's wrong? Didn't you see AMD's PP slide show?

[Joey Smith]

re:It is amazing to me that anyone thinks that going fabless
will improve AMD's ability to hold let alone expand the
~17% of the x86 processor market

Intel has basically given AMD a new business model by allowing them to go fabless. AMD can sell its investmnet in GloFo if they wanted to. No longer does AMD have to fight tooth and nail to get volume. It could now focus on niche, high margin markets/products where Intel doesnt compete directly and be very profitable. Its a win-win for both shareholders if Dirk is smart.

[DewDiligence]

Re: Fab vs fabless business model

For companies who have plentiful cash flow and ready access to the capital markets (e.g. INTC), in-house fabs can be expected to produce a better product with a higher gross margin for the reasons cited in #msg-43570640.

For companies who struggle to pay their bills and can borrow money only on draconian terms (e.g. AMD), the fabless business model is clearly preferable.

You’re probably thinking, “Well, duh!” but it seems that some readers of this board haven’t yet put this together.