AMD's earnings prospects are strongly dependent on how fab costs and under utilization charges are split between AMD and GF.
Intel's ability to control and crush AMD's pricing power while continuing to take unit market share is more likely to increase next year rather than decrease. With AMD processor ASPs under ever increasing pressure manufacturing costs will be critical as AMD rolls out hex core desktops and dual die MCM server chips.
If GF achieves *true* cost plus basis pricing of wafers spun for AMD it will IMO be hard for the latter to generate profitability. If Abu Dhabi is happy to let GF sell wafers to AMD at artificially low prices and suck up the loss themselves then AMD could "earn" quite a few bucks. The cost efficiency of AMD+GF has not been improved by divesture, it has been made worse by a larger corporate overhead. It is simply an acounting matter of who gets to take one for the team.
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