Replies to post #56062 on Advanced Micro Devices Inc (AMD)

[woggut]

I hope that when AMD's Fab36 and Chartered capacity comes online, that they don't 'just dogmatically' drop prices.
...as they will "then" be in a position to set good (slightly higher) prices and be able to supply the volume.

My bet is that they'll settle into a duopoly mode, but Intc may play hard ball and try to starve AMD of capital for the next generation. Some analysts have projected that the semi world will consolidate to 2-3 virtual consortia around fab technology since Intc about the only company left that can afford the cost and risk of dropping $4 billion on a fab. AMD-IBM-Chartered seems to be converging on a common fab technology.
AMD's virtual gorilla strategy may prove the key to long run success. Intc's focus on platform strategies has to concern the Taiwanese companies, 5 years out they have no market if AMD is gone. I can imagine the state of technology if Intc's driving the rate of innovation (we'd all be on Rambus by now). Putting Fab 30 & 36 in Dresden was another great move, never underestimate Europe's own sense of superiority and willingness to engage in protectionism.