Replies to post #68005 on Advanced Micro Devices Inc (AMD)

[cantonese]

>> Capacity shortage.



the company has to forecast the demand and set up the pipeline accordingly.


Amd has $1B worth inventory. AMD can sell all the "packaged and tested parts". But, amd can do nothing about the "finished wafer" beyond the forecasted level. When demand exceeds the forecast, there is no "packaging and testing" capacity laying around.


Actually, there is a silent agreement among the "P&T" guys to increase their capacity lineraly. When the demand exceeds forecast, no semi co can find extra "p&t". Not even INTC.

I think this is good for the whole industry.

[jhalada]

bobs,

I don't know if it was Q2 CC or Q3 CC (AMD increased inventories in both quarters), but in one of them it was stated that the increase was mainly in CPUs.

Joe