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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (59180)	10/18/2001 5:31:50 PM
From: chuckles58	Read Replies (1) \| Respond to of 275872

"And Intel, with 6 0.13 micron fabs, some with 300mm wafers, won't? (negatively affect AMD's margins)" Contact General Mills, maybe they can put a P4 in each box of Wheaties. CB

To: combjelly who wrote (59180)	10/18/2001 5:35:25 PM
From: wanna_bmw	Read Replies (2) \| Respond to of 275872

Combjelly, I think that with generally larger die sizes, more .13u fabs for Intel is almost a requirement. In the end, they will probably have more capacity than they have now, but not far more than the market would be willing to absorb. To be honest, I don't know how AMD is justifying so much more fab capacity. Obviously, if they were to make huge gains in market share, the fab capacity would be required. On the other hand, if Intel retains market share, and so far, they seem very successful in doing that, then AMD's volumes will become a liability. A more conservative approach is to balance your production ramps with market demand, but we all know by now that AMD is being anything but conservative. It seems they are betting it all, and if they win, it will likely be big. If they miss, the losses will continue to deepen. wanna_bmw