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

To: dougSF30 who wrote (235609)	7/3/2007 5:11:14 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 275872

re SOITec lowered wafer estimates. I think the early (larger) wafer usage estimate assumed fab 30 would actually be converted to 65 nm in June of '07, and start contributing strongly to AMD's 30+% of world-wide demand, and building up towards market dominance at 50% and higher. Then reality arrived. AMD did not commence conversion of fab 30 to 65 nm. And now it looks like they have given up on the idea. Then AMD issued their asset-lite talk, with an explanation of selling 90nm equip, and not replacing it with anything. That is the "we found a painless way to save $500m" happy talk. The only reasonable conclusion is AMD will gradually idle parts of fab 30, and simply leaving them idle for a while. Until they get a partner for converting fab 30 to 45 nm. SOITec is now acknowledging it will take a while to find that white horse.