Replies to post #65874 on Advanced Micro Devices Inc (AMD)

[alan81]

More on 2006 cost structure:
Pete noticed that AMD said:
about $150 million of incremental depreciation net, for next year,... Obviously it'll be heavier loaded in the back half of the year than the front half of the year
And earlier combjelly said:
they explicitely stated today that they are going to start production wafers in two weeks.
And this article:
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh73889_2005-11-16_00-39-17_n15...
said:
Rivet also projected gross margins next year of 51 percent to 57 percent
From this I conclude:
Fab 36 ramp is really a little later (2 months) than I expected.
Fab 36 ramp will be much slower than I expected.
There will not be a dramatic shift to dual core at AMD next year.
Based on the "second half" comment regarding depreciation, it looks like fab 36 does not really ramp significantly until the merom/woodcrest/conroe time frame. I think next year is going to be VERY interesting!
--Alan