Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (95182)	2/25/2000 5:35:00 PM
From: Joe NYC	Respond to of 1573435

EP, All these are good reasons but they were good reasons last quarter as well. Still not a thin dime of revenue from Fab30 after over 3 years. AMD has to go by their own demand. Prior to middle of last year, AMD did not have a very competitive processor (whee a big part of the silicon goes). Also, AMDs cash position was not that great, so they need to add capacity only as needed, never creating too much overcapacity. I don't know how much the Dresden building itself cost, but the real money goes for the equipment. That's where AMD has to be careful. Joe

To: Elmer who wrote (95182)	2/25/2000 7:04:00 PM
From: TGPTNDR	Read Replies (1) \| Respond to of 1573435

Elmer Re: < ...Still not a thin dime of revenue from Fab30 ... > I think I remember Sanders saying in the third quarter earnings conference call that FAB30 would not be put on line 'till FAB25 was at max capacity' -- that it made NO FINANCIAL SENSE to put product out of it before then since interest payments start at first production sales. Just a memory, I doubt I still have the tape. I do remember Jerry saying something like 'AMD has the capacity to take market share faster than most of you analysts believe is possable' at the 4Q call. I think and hope that is what is happening now. PS -- saw a HP INTC 800 at comp usa in Freehold, NJ. Floor sample -- not for sale. tgptndr

To: Elmer who wrote (95182)	2/26/2000 6:34:00 PM
From: tejek	Read Replies (1) \| Respond to of 1573435

All these are good reasons but they were good reasons last quarter as well. Still not a thin dime of revenue from Fab30 after over 3 years. EP, I do not think it would be wise to start up production in Dresden until they can utilize at least 50% of its capacity...your thin dime notwithstanding. As you well know, the repayment of the Saxony loan and construction costs begins when Dresden is operational...less than 50% capacity and Fab 25 will have to help support Dresden's overhead. Not a very smart proposition. But of course you know all that but you choose to ignore it so that you can cast AMD's mgmnt in the worst possible light. The good news is is that business must be good and getting better since the Q4 CC....because it looks like AMD has decided to move up the Dresden opening to before the second half. BTW did you know that this post comes to you courtesy of the Athlon.....THE FINEST MICROPROCESSOR IN ALL THE LAND ted