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smooth2o

11/16/09 8:29 AM

#85392 RE: DewDiligence #85360

Dew: 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.

That goes both ways. For companies who count on massive profits and top end revenues to drive a fab model to push the envelope, losing only 20%-30% of the world market or those top end revenues can devastate your business plan.

Smooth