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To: Elmer who wrote (147360)11/11/2001 12:50:21 AM
From: Paul Engel  Read Replies (1) | Respond to of 186894
 
Elmer - Re: "AMD is announcing that UMC with their builtin profit margin is a lower cost producer than AMD itself."

That IS what AMD is saying.

My guess is AMD will try to get Fab 25 OFF THEIR BOOKS - by selling/giving it away to Fujitsu/FASL.

Looks like Fab 30 may be AMD's only capital assett - besides Jerry's Sahreholder-paid-for-chauffeur-driven-LIMOUSINE - in a very short time.

Real men have fabs - according to Jerry.

Maybe Jerry isn't so much of a man anymore !!

Paul



To: Elmer who wrote (147360)11/11/2001 3:25:08 AM
From: wanna_bmw  Respond to of 186894
 
Elmer, Re: "So why would it be cheaper to outsource Durons when Fab30 isn't yet at full capacity? AMD is announcing that UMC with their builtin profit margin is a lower cost producer than AMD itself."

AMD probably considers it a waste to fab Duron at Fab30. Just a little while ago, people were wondering if AMD would just discontinue their Duron series, and stick with the Athlon. That would make sense from a limited capacity perspective (not to waste fab space on low margin parts), but if AMD can drive volumes of Duron chips coming out of UMC, maybe they think this will count towards their market share goals (remember, market share means more than profits for AMD).

It's shrewd, though not necessarily an intelligent move. I am simply trying to understand what they think the benefits might be.

wanna_bmw



To: Elmer who wrote (147360)11/11/2001 12:59:52 PM
From: Dan3  Respond to of 186894
 
Re: why would it be cheaper to outsource Durons when Fab30 isn't yet at full capacity?

Dresden production has been 100% sold out since the day they started shipping from the FAB. It's been made clear that AMD is convinced that there won't be any change as Dresden ramps to full capacity.

They could certainly be wrong, but the recent news makes it clear that this is what they genuinely believe.


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