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

To: Bob Howarth who wrote (112637)	5/25/2000 11:21:00 AM
From: Petz	Read Replies (1) \| Respond to of 1571172

Bob, re:<Where will AMD get the 2 billion + bucks to build a 300 MM FAB for .13/copper by 2002 to compete with the one INTC announced yesterday?> Even Needham said yesterday AMD will have well over $1B in cash by the end of the year. And the average analyst estimate for AMD has profits of $900M a year ($5.50 x 175m shares). With a year of earnings like that, AMD could easily borrow $4B in 2001, but they might be able to pay cash. There is plenty of room at Dresden for a second fab, but currently its operating at about 12% of capacity. AMD should respond to Intel's "shortages until 2002" press release by pointing out that AMD's wafer fab capacity will DOUBLE in the next 12 months. Petz