So how does AMD pull this one through?

[desura]

So I don't get this.

They spin off GF to better focus on their "core competency" of chip design.

Fine.

Then they sign like a 20 year exclusive supply contract?

This doesn't sound like a spinoff. It sounds more like those deals where a company sells the building and then leases it back to itself.

 

[inf64]

So I don't get this.

They spin off GF to better focus on their "core competency" of chip design.

Fine.

Then they sign like a 20 year exclusive supply contract?

This doesn't sound like a spinoff. It sounds more like those deals where a company sells the building and then leases it back to itself.

Except they don't need to give 1.5-2 billion per year as investment into the node in order to remain competitive. And where else could they make their MPUs exactly? TSMC? Maybe, but for high performance I doubt they would be happy with the end product. Intel? Yeah like that will happen.

 

[Idontcare]

This doesn't sound like a spinoff. It sounds more like those deals where a company sells the building and then leases it back to itself.

AMD sells its Austin HQ for $164 million to raise some quick cash

The perpetually struggling AMD announced Tuesday that it would sell and lease back its corporate campus in Austin, Texas to generate $164 million in cash. It’s a quick way to make a buck, but it could raise questions about the long-term viability of the company.

They did that too.

 

[desura]

Except they don't need to give 1.5-2 billion per year as investment into the node in order to remain competitive. And where else could they make their MPUs exactly? TSMC? Maybe, but for high performance I doubt they would be happy with the end product. Intel? Yeah like that will happen.

They're probably paying that 1.5-2 billion in higher costs anyways, because a spinoff company has another like echelon of bureaucracy and cost structures.

TSMC...yeah I dunno, but a lot of people here are bemoaning that they're moving GPU production to GF from TMSC, so there you go. Anyways, the whole point of a spinoff is to allow for more freedom in supply decisions.

 

[mrmt]

So I don't get this.

They spin off GF to better focus on their "core competency" of chip design.

No, they spun off GLF because they couldn't afford to pay debts *and* retool the fabs to 32nm and beyond. That crap about focusing on core competence, unlocking shareholder value, this is all marketing smoke. Have in mind that in corporate language when you overpay a lot for something, e.g., f**k up badly, you call it goodwill in your balance sheet.

 

[Ajay]

Have in mind that in corporate language when you overpay a lot for something, e.g., f**k up badly, you call it goodwill in your balance sheet.

Yes, I either laugh or get mad when I hear that (mad when I own shares). What an absurd name - HP is going with this right now over the Autonomy Corporation acquisition. I seriously believe that it takes skill, i.e. a deliberate action, to f**k up that badly

Here's another BoD that seems to be brain dead, or bought off...

 

[Idontcare]

Here's another BoD that seems to be brain dead, or bought off...

Yep, and it is easy to see it just by looking at the craptastic parade of CEO's they have put into the captain's chair (starting with Fiorina).

The bad CEO's are a symptom of the disease. The disease is the BoD.

AMD has had the same disease for nearly the same duration.

 

[marees]

I can think of a few scenarios...

- Miracle R&D. Unlikely, but possible. Maybe Intel will do some crazy x86/ARM mashup that will utterly face plant, giving the tried and true AMD designs to go through

- ATI gets greater prominence, AMD chip R&D is reduced, relegated to bargain bin status. If that ever happened, I'd anticipate that the Fusion series would be the only offerings.

- Gets acquired by some other company, say, Samsung? I mean, the AMD designs are pretty darn advanced, it's just the Intel ones are more.

- Simply dies, liquidated.

16 member Bobcat/jaguar (fabbed on TSMC) team designing the PS4 save AMD from bankruptcy

The rest as they say is history

 

[adroc_thurston]

16 member Bobcat/jaguar (fabbed on TSMC) team designing the PS4 save AMD from bankruptcy

They didn't.
But consoles kept people employed.

 

[marees]

They didn't.
But consoles kept people employed.

It is a linked in claim

Take it with the necessary quantities of sodium chloride or potassium iodide or whatever

https://www.linkedin.com/in/rfragale/details/experience/

 

[DrMrLordX]

12-year thread necro? Whew.

 

[511]

Lmao I was looking at the dates and shocked lol

 

[gdansk]

It's a pleasant read. So much negativity rendered moot in time.
So, I guess they did the first path (miracle R&D)?

 

[marees]

It's a pleasant read. So much negativity rendered moot in time.
So, I guess they did the first path (miracle R&D)?

Miracle R&D on TSMC fabs

Global Foundries gave up
Mubadala got suckered into buying it

 

[gdansk]

Miracle R&D on TSMC fabs

Hmm, nah. Zen turned things around enough even on GF/Samsung.

 

[positivedoppler]

Necro magic was used to revive AMD, just like this thread

 

[511]

It was a Dr who revived the thread totally make sense only a doctor can do that

 

[DAPUNISHER]

12-year thread necro? Whew.

Am I the only one having a good time reading all of the old Nostradumbass and shaking the magic 8 ball posts?

 

[DrMrLordX]

Am I the only one having a good time reading all of the old Nostradumbass and shaking the magic 8 ball posts?

Sorry, I was too busy rereading the "cold with solution" post to notice.

 

[adroc_thurston]

So, I guess they did the first path (miracle R&D)?

Neither, they went back 2 basics.

 

[gdansk]

Neither, they went back 2 basics.

This is a loaded thread. That wasn't an option.

 

[adroc_thurston]

That wasn't an option.

It was?
Zen was just a normal ass CPU core.
They went and just built a normal good CPU core and here they are now.

 

[marees]

It was?
Zen was just a normal ass CPU core.
They went and just built a normal good CPU core and here they are now.

Normal ass CPU core - yes

But also a hail Mary pass

 

[gdansk]

It was?
Zen was just a normal ass CPU core.
They went and just built a normal good CPU core and here they are now.

It was always an option but doomers just doom and require a miracle. Same crap is happening to Intel now.

 

[coercitiv]

Idontcare nailed it without even trying.