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

To: Sarmad Y. Hermiz who wrote (201804)	6/12/2006 11:37:18 PM
From: combjelly	Read Replies (1) \| Respond to of 275872

"I don't see any value there, unless and until fab 30 is idled for conversion to 45 nm or some other use." The value is to produce low cost, modest clocked processors for a more speculative market. The logical market is the commercial market where AMD has had a minimal presence for years. I am sure they have been working with HP on this. HP certainly has the resources to place orders months in advance and build, or more accurately contract to build, the appropriate hardware. AMD risks the costs of developing the needed processors. HP risks the costs of developing a new line or lines and the training to sell the systems. The payoff for AMD is an entry into a new market that doesn't depend on lowest possible costs and has a longer design cycle, and the payoff to HP is a lower system cost and greater control over their destiny, along with higher margins.