Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 207.48

+2.1%

11:00 AM EST

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To: burn2learn who wrote (56443)	9/25/2001 11:16:23 PM
From: Dan3	Read Replies (1) of 275872

Re: I would not equate old fabs to being fat and obsolete I think the main problem is that unutilized foundry capacity in Taiwan is approaching 50%. Companies there will do almost anything to avoid layoffs, so they are willing to run wafers for the cost of electricity and materials. The question for anything other than the leading edge of contract FABs during the next year is not if they will price below their cost of production, but how far below the cost of production to set the prices they will charge. AMD can't afford to be in a business like that right now. Even Intel, which after expanding all those FABs during the semi collapse must have literally acres of idle FAB space at the present time, just announced a new service in which it will help companies to arrange to have their parts FABed in Taiwan. Intel knows that they are better off with their lines shut down and staff cut through attrition or layoffs than to try to sell FAB services into the current foundry market.

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