Replies to post #70687 on Advanced Micro Devices Inc (AMD)

[woggut]

Lastly are you sure that the cost structure of Spansion did not in fact increase permanently because of the separation?

I'm pretty sure Spansion didn't need the SDC in Sunnyvale and they probably didn't need Fab 25 in Austin. I believe AMD did some strategic asset shedding on this one. Spansion probably could have run all their profitable product through the JV fabs in Japan, now they have to fill the fabs with marginally profitable products. Assuming this is true, they have alot of potential for improved mix (ASP) if ORNAND or the integrated RAM/Flash takes off.

[wbmw]

Re: Well where do you think the bonusses of Intel flash people and some other indirect costs are kept?
Don't you think separation of Spansion might have cost some money?

Spansion's loss as indicated in the previous figures do not include the costs of divestiture or additional employee compensation.