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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Dirac who wrote (34856)	7/19/1998 11:16:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1573249

Dirac - Re: "What percentage of Dresden fab costs is Germany sibsidizing? I have been told it is around 90% of the 2 billion dollar fab." AMD's 10K and 10Q filings list all the details - they get kind of involved so read them carefully. Note also that AMD is bound by certain covenants requiring AMD to fork over more financing if they (AMD) do not reach certain financial or operational milestones. Re: " What impact will this bill footing by Germany do to AMD's bottom line for earnings from FAB30?" If AMD had unlimited demand and a profitable product line, the additional capacity represented by Fab 30 would represent "cheap" or discounted capital resources. However, the additional capacity may be "unneeded" or, if the process does not yield properly - or the K7 does not function properly or sell well, the costs associated with Dresden will represent a financial albatross around AMD's shrinking neckline. Paul