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To: Tony Viola who wrote (109170)9/1/2000 11:52:53 AM
From: willcousa  Respond to of 186894
 
Looking at 99 and 2000 capital expenditures for new fab capacity amd is not there. So no significant new fabs and great demand mean amd has to lose market share if intc simply continues producing existing products.



To: Tony Viola who wrote (109170)9/1/2000 12:19:43 PM
From: Elmer  Read Replies (2) | Respond to of 186894
 
Re: "I hear that, but AMD is making good profits still. Is that because their overhead is low, or because they don't have any future potential superstar (network/broadband/wireless) products that are money losers now?"

AMD is doing well and I am an investor however I think the overzealous are ignoring some obvious problems.

AMD has 2 other fabs to manufacture their legacy products yet their K7 production remains anemic.

amd.com

Possible cause of low volumes:

1. Yield problems
2. Low demand
3. Management decision to hold back K7 production in favor of other low margin products. (Why would they do that?)
4. Inability to obtain needed fab equipment due to huge explosion in fab expansions. Perhaps equipment suppliers are servicing their good customers first (Intel).
5. Inability to obtain needed backend test assembly and/or burnin equipment, just like #4.
6. Lack of cash to buy needed equipment.
7. Constraint in package assembly parts supply.
8. Constraint in raw wafer supply (becoming a problem).
9. Lack of chipset/Motherboard support limits volume.
10. As Mani once suggested, AMD is with holding product from paying customers so they can build inventory <g>.

EP



To: Tony Viola who wrote (109170)9/1/2000 1:31:42 PM
From: Tenchusatsu  Read Replies (1) | Respond to of 186894
 
Tony, <I hear that, but AMD is making good profits still.>

When you consider that AMD didn't even have a P/E ratio for many quarters, any significant amount of profits will look good for AMD stock.

Tenchusatsu


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