AMD's 4th Quarter earnings...

[SlowSpyder]

If only AMD could convince Intel to give them $1.25 billion every year. It seems to help their bottom line a bit.

 

[Lonyo]

That statement does not make much sense. Look how high Intel's margins are and they have their own fabs. If anything losing their fabs could hurt their margins because instead of making their own chips they will have to buy them from a company that will need to add profit to the cost.

Economy of scale.
Intel has it, AMD doesn't. Globalfoundries will (should...).
It's only if GF doesn't sort itself out to be a world leading fab that AMD will run into problems, and by buying Chartered, it would seem like that's not hugely likely to occur.

 

[EarthwormJim]

That statement does not make much sense. Look how high Intel's margins are and they have their own fabs. If anything losing their fabs could hurt their margins because instead of making their own chips they will have to buy them from a company that will need to add profit to the cost.

I think his point was that AMD having fabs hurts the company, and that fabless companies can do just as well if not better than AMD is right now.

 

[Wreckage]

I think his point was that AMD having fabs hurts the company, and that fabless companies can do just as well if not better than AMD is right now.

Maybe. I hope so. I like AMD CPUs. I have several. I guess we will find out over the next year or 2.

 

[Traxan]

I think his point was that AMD having fabs hurts the company, and that fabless companies can do just as well if not better than AMD is right now.

"Their ten-year CAPEX [capital expenses] were $1.1 billion per year. Now it's $100 to $200 million a year. So they just took a billion a year out of CAPEX. They've gone from $3 billion a year to $2 billion for OPEX [operating expenses] with the Globalfoundries spinout. So $2 billion a year of costs have been taken out of a company generating six billion a year in revenues. So that to me is transformative."

http://www.internetnews.com/hardware/article.php/3849131

 

[lothar]

Anyone would be a fool to buy most tech stocks.

Fixed.

The only tech stock I've seen that's worth any investment is HPQ.
Google? Yahoo? Intel? AMD? Nvidia? Rambus? Surely, you must be joking.

 

[Rezist]

If GF fails to attract new customers AMD will fail with GF. If GF does well it will help AMD. I wonder if GF's new customers will feel they give priority to AMD.

 

[Martimus]

If GF fails to attract new customers AMD will fail with GF. If GF does well it will help AMD. I wonder if GF's new customers will feel they give priority to AMD.

Right now AMD pays 100% of the GF CAPEX. If GF is able to attract enough customers to their SoC line to reduce the figure to even 70%, then that will save AMD about $200M a year. Of course that isn't a given, and the costs may even go up as GF is going to be producing more than just SoC wafers in the future and will pass all operating costs to its customers (which would increase AMDs wafer cost if they don't have enough customer base to offset the additional tooling.) Moving ATI to GF versus TSMC will help as well. While this won't reduce AMD's percentage of GF's CAPEX expenditures, it will reduce AMDs payment of TSMC's CAPEX costs, with no real increase in that area (since they are already paying for the GF costs with their CPU business.)

I am sure IDC will come in and let you all know how wrong I am, but I feel comfortable with my conclusion for now.

 

[formulav8]

I'm not sure if anyone would know for sure, but if GF went under and croaked, what would AMD do?? I'm sure it takes alot of time to tweak and setup another fab company for their cpu's and it could be a very long wait???

Just wondering I guess....


Jason

 

[drizek]

So when is TSMC going past their current 40nm(or was it 44)?

ATI/GF should be producing 28nm by the end of the year AFAIK.

 

[drizek]

dp