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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 215.11+0.1%Dec 24 12:59 PM EST
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To: Yousef who wrote (49878)8/4/2001 11:13:04 AM
From: Dan3Read Replies (2) of 275872
 
Re: Please remind me again why AMD is using SOI

Well, AMD introduced their standard copper process about two years ago (a process equivalent to the one Intel introduced this month, but using the lithography equipment of the period). And AMD's market share has gone from around 12% to around 24% in those two years.

Having spent 2 years working on a new SOI process technology, while Intel was working on catching up to AMD's old plain copper process technology, AMD will once again, jump ahead of Intel and that will take AMD's market share from 24% to 36% over the next two years.

While just about doubling market share, AMD also increased its relative ASPs from about 1/3 of Intel's to about 2/3 of Intel's. Moving to SOI should also bring AMD ASPs into parity or better with Intel.

The beauty of it all, is that AMD has done this without greatly increasing its costs, so that it is able to do pretty well even in a horrible market during that brief 6 month when the FAB technology of AMD and Intel overlap. After next quarter, when AMD pulls ahead again, Intel will be left with high costs and low revenues, while AMD will continue to have low costs, but will also have high revenues.

You asked, yousef.
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