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

To: dougSF30 who wrote (136063)	10/13/2004 6:03:33 AM
From: Rink	Respond to of 275872

Intel had rather good reason to sell flash for a net loss in order to fill their highly underutilized older generation fabs. In fact there's no reason not to do this. This situation might well continue at till q2 next year because that's how long they said underutilization might stretch assuming normal demand next year. AMD had less good reason to sell at net loss as their Spansion fabs were pretty much fully utilized in Q2, and for them a net loss in flash has a much higher impact on overall profitability. For AMD not having to expand flash production capacity though in terms of wafer starts from q2 maximum probably means lower costs for some time going forward when compared to q2. I think that during the time Intel's fabs are underutilized AMD will try like heck to mimimize their flash costs. Kind regards, Rink