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.

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

To: Dan3 who wrote (66245)	12/25/2001 3:08:32 PM
From: reynoso	Read Replies (1) \| Respond to of 275872

Dan 3 - <<<With 10 times AMD's capex and 5 times the FAB space, Intel is able to produce 2 to 3 times as many parts.>>> Doesn't Intel produce 4x the CPUs as AMD - which is inline with the 78 - 80% market share (4 to 1) that Intel has? Reynoso

To: Dan3 who wrote (66245)	12/25/2001 3:33:15 PM
From: tcmay	Respond to of 275872

Dan3 is AMD's most important fabrication facility "With 10 times AMD's capex and 5 times the FAB space, Intel is able to produce 2 to 3 times as many parts. However bad AMD's yields may or may not be, Intel's are 1/2 to 1/3 as good. When supplies became tight this fall, it was AMD that had available capacity ready that let them pick up market share this quarter (at least, those are the reports we see from Taiwan and Europe)." Considering that Intel's revenue (mostly from chips, of course) was around $20 B for the first 3 quarters, compared to around $3 B for AMD during those same 3 quarters, also mostly from chips, this suggests that IF YOUR NUMBERS ARE RIGHT that Intel is averaging 2-3 times the ASP of AMD. Making only 2-3 times as many parts but having revenues 6 times greater leaves no other conclusion. However, your numbers are most definitely not right. Intel's 80% market share of the PC CPU market, plus other markets AMD is not even a player in, make your "2 to 3 times as many parts" figure nonsensical. This pattern of yours, of simply fabricating things, is probably AMD's most important asset. You are AMD's most important fabrication facility. --Tim May