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: Gordon Hodgson who wrote (172010)	11/25/2002 7:43:47 PM
From: TimF	Read Replies (1) \| Respond to of 186894

I mean how long can a company go on thinking they can lose money on every chip they make and still stay in business. Losing money on every chip they make implies that they sell the chips for less the the variable cost per chip. This is not true. The more chips they can sell at current prices the less money they lose. If they increased sales a lot even without an increase in prices then AMD would make a profit. Tim

To: Gordon Hodgson who wrote (172010)	11/25/2002 8:30:58 PM
From: tcmay	Read Replies (1) \| Respond to of 186894

"I won't be surprised if in 2 or 3 years AMD has a new name like NEC or Fujutsu, or maybe something Chinese. I mean how long can a company go on thinking they can lose money on every chip they make and still stay in business. " Remember, a company buying AMD would not acquire AMD's negotiated-then-courtroom-fought license to manufacture x86 chips. Companies like IBM and Fujitsu have had to negotiate separate arrangments, ones which never rose to the status of full second source agreements. The nontransferrability of licensing agreements, generally, is one of the reasons AMD has not been snapped up by IBM or Sun or NEC when its market value fell below $2B. (I expect lawyers carefully scrutinized the terms of the Intel-AMD license, and then the decisions in the court case years later, for any indication that a company could be a fully-legal licensee merely by acquiring AMD.) Without processors, AMD is just a debt-ridden maker of flash and SRAM and a handful of other chips. --Tim May