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

To: Charles Gryba who wrote (71827)	2/17/2002 11:53:01 PM
From: hmaly	Read Replies (2) \| Respond to of 275872

Charles....Re..hmaly, I think intc will produce some huge chips ( # of transistors ) when they get to 0.09. At that time they may be plenty competitive with anything AMD has. <<<<<<<< Why?? Do you think AMD will still be at .18 um. I think we are talking about two different things. I am talking about doing more with less. In AMd's case, if AMD can build a better performing chip with 2/3 of the transistors that Intel has, AMD has an advantage. Why would you think that adding even more transistors will solve Intel's problem. The solution is to improve efficiency for the transistors you have, which will allow Intel to build a cheaper chip with = or better performance. For instance, the P4 reportedly has the transistors for the Jackson technology performance, but it is currently disabled. Which is fine, but that extra 10% of transistors are dead weight right now, keeping Intel from competing with AMD on a price/performance parameter. In a price war, you can't afford to give away 10%, and expect to win. That is where the big die theory hurts. In my example, Chev. outsells Porsch 10 to one. How will Intel outsell AMD 4-1,to the masses, with a high performance, and expensive chip designed for 5 to 10 % of the market. Chev. sells ten times as many cars, not because of better performance, but because their cars are cheaper, and aimed at the mass market. If we look at cheap chips like Celeron, and Durons, that market has grown from miniscule ten yrs ago, to half of the current market; and it would be even greater if both AMd and Intel hadn't dropped their prices on the high end. I agree that there will be a limited market for the big die chips. I don't agree that Intel will be able to keep current market share with them.