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

To: combjelly who wrote (201803)	6/12/2006 11:42:45 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 275872

>> If owning a fab is cheaper than fabbing out, why doesn't VIA, ATI and nVidia own their own fabs? Their volume is high enough, as is they cash flow. << They either don't want to use that business model, or they don't have $2B, and are not sure of their demand to sell the story to underwriters and bond buyers, or they don't have the technical expertise, or they don't have the time to spend 2 years building a fab, etc.... Renting a fab is like renting a car, or renting an apartment, or renting a tool. If you have a car parked in your driveway, it seldom makes sense to rent one from Avis, except if it has a feature that your own car does not. But what can that be in the case of fab 7 ? Just a focus on good yield ? AMD has no problems with yield.