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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (157503)	2/1/2002 12:35:12 AM
From: Windsock	Respond to of 186894

AMD did a Joint Venture with Fujitsu on flash. AMD put up the design and Fujitsu built the fab with their $$. AMD provided a flash design. Public documents report that Fujitsu has a controlling interest in the fab. The JV builds and sells part of the output to AMD at a profit, the other part to Fujitsu. Read the AMD press release and you will find no indication that AMD will provide money to fund the JV. Instead, you find that AMD and UMC will "work together" on process development and that the fab will build product and AMD. Based on this press release, you know that AMD will help UMC with process technology and it will receive at least some part of the fab capacity. You can also assume that the JV will obtain a profit on the wafers processed for AMD. Another fact, a 300mm fab will require at least $2 billion to construct and fully outfit with equipment. UMC has that kind of money, AMD has very little. Or they would build their own fab. This deal is likely no more than a glorified foundry deal with the window dressing of a Joint Venture.