Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

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To: niceguy767 who wrote (68716)	1/23/2002 8:22:18 PM
From: Petz	Read Replies (2) of 275872

I think the "private" aspect of the CV bond sale makes it even more likely that the bonds will be given to UMC for use of it's fabs in expanding AMD's capacity. If AMD is optimistic about yields and market demand, they are better off prepaying for the partial output of a fab, rather than paying for each part. EDIT - another reason this makes sense is that, if AMD is correct and there is high demand for the output of the UMC fab(s), then AMD stock price will rise and UMC will also gain extra profit from the deal. Has something like that ever been done at a foundry? Petz

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