Looks like AMD has taken out a very large loan for Fab36. From the looks of it, i would guess they ran out of greenbacks and now have to borrow to keep its 65nm technology ramp alive. I don't think this is good news since we just started off the new year and already AMD is stuggling.
You are exaggerating a bit mate, even Intel borrows money for Fab building. For example in 2005 Intel had 2.1 billion debt.
AMD just bought ATI, and Fab costs a lot too, but both investments will bring back more money in the long term, so I dont see any problem with loans. AFAIK AMD is in the best financial situation in years, sales are going very strong.
Looks like AMD has taken out a very large loan for Fab36. From the looks of it, i would guess they ran out of greenbacks and now have to borrow to keep its 65nm technology ramp alive. I don't think this is good news since we just started off the new year and already AMD is stuggling.
You are exaggerating a bit mate, even Intel borrows money for Fab building. For example in 2005 Intel had 2.1 billion debt.
AMD just bought ATI, and Fab costs a lot too, but both investments will bring back more money in the long term, so I dont see any problem with loans. AFAIK AMD is in the best financial situation in years, sales are going very strong.
I'm not a financial wiz or anything but I would think that if AMD was really that well off they would not have to borrow. You say intel was 2.1 billion in debt in 2005, did they have enough $$ in the bank to cover that? If so, then would it be save to say that amd currently has more $$ in the bank to cover all there debt as well?
I'm not a financial wiz or anything but I would think that if AMD was really that well off they would not have to borrow. You say intel was 2.1 billion in debt in 2005, did they have enough $$ in the bank to cover that? If so, then would it be save to say that amd currently has more $$ in the bank to cover all there debt as well?
Its not how it works. Even if company (AMD, Intel, etc) have money in bank, its good to get additional loans with low interest rates to cover long term investments. For example, countries or even cities where Fab is build, are offering to cover part of Fab cost, lends loads of money with low interest, etc. Why they do that? Because Fab means thousands of work places for local people, millions payed in taxes, etc. It works well for both sides.
I'm not a financial wiz or anything but I would think that if AMD was really that well off they would not have to borrow. You say intel was 2.1 billion in debt in 2005, did they have enough $$ in the bank to cover that? If so, then would it be save to say that amd currently has more $$ in the bank to cover all there debt as well?
Its not how it works. Even if company (AMD, Intel, etc) have money in bank, its good to get additional loans with low interest rates to cover long term investments. For example, countries or even cities where Fab is build, are offering to cover part of Fab cost, lends loads of money with low interest, etc. Why they do that? Because Fab means thousands of work places for local people, millions payed in taxes, etc. It works well for both sides.
Well regardless of painting a nice picture for AMD, IMO Analysts still seem to be concerned over AMD current financial situation of high spending. I think it becomes more of a concern when your high spending funds are coming by way of loans. But then again this is just spectulation from a non financial wiz :?
"Analysts at Goldman cut AMD over concerns about higher spending, a weak price environment for PC chips, and increased competition from its larger rival Intel Corp.
AMD is plowing more money into its factories and absorbing the costs of its $5.4 billion purchase of ATI Technologies Inc. completed last October. "
Thats all right, AMD is undergoing tougher period but I'm not worrying about it much, since all of investments should bring more money later. I was worrying about AMD pre-Opteron times, when it was losing money almost every quarter, right now AMD is growing very fast, sales are strong, profit is nice, what else to want?
You are exaggerating a bit mate, even Intel borrows money for Fab building. For example in 2005 Intel had 2.1 billion debt.
AMD just bought ATI, and Fab costs a lot too, but both investments will bring back more money in the long term, so I dont see any problem with loans. AFAIK AMD is in the best financial situation in years, sales are going very strong.
I'm not a financial wiz or anything but I would think that if AMD was really that well off they would not have to borrow. You say intel was 2.1 billion in debt in 2005, did they have enough $$ in the bank to cover that? If so, then would it be save to say that amd currently has more $$ in the bank to cover all there debt as well?
Stupid people like yourself should not post when a topic that you clearly have no idea what you are talking about.
1. Banks do not loan companies or individuals who can not afford the repayment of the loan, Banks evaluate your assets, and current balance then decide whether to put the loan throgh or not, clearly, in this case, AMD is financially strong to be approved.
If yourself walking into a bank and ask the manager to borrow $2.1bn you will be the biggest laughing stoke in 2007 (which you and the author of this topic already are)
2. Taking a loan does not indicate that a company is financially creppled, it is called an INVESTMENT, it is the only wise and smart move.
Explained in Detail: AMD borrows money from the Bank, the Bank got the money from their customers, charging AMD at an interest rate. Therefore, AMD is using some1 else's money to build their Fab rather than their own in Addition with the interest rate, In the end, AMD gets its Fab 36 build, their bank account balance is un-touched, and they start the re-payment to the bank once the Fab 36 start making money. After a few years, when the loan re-payment is finished, the Fab 36 belongs to AMD, their Asset value increase by $2.1bn. with that their share value will also increase 8)
Same as Intel or companies that expending and developing.
Bank are not fools, they do NOT loan out money to a Limited or Corporate Company that is protected by law after bank ruppcy and can not afford or assets not beyond the loan Value. !!!!!!!!!!!!!
Looking at your knownlege, nevermind $2.1bn in a few years, you hardly manage $21000 in a few years.
Dear Lord... i saw this and just had to register here because of how daft this topic is... the money isnt to keep "AMD Afloat" its for the financing of the new future technologies lab that opened on December 22nd.
as for the amount they borrowed... its peanuts. AMD turnover matches that loan amount every 6 months and as the loan is long term and AMD`s market share in the business sector is growing hugely despite Core2 this loan amount is small frys compared to the overall picture which you will find here:
the key to it all is in the paragraphs entitled Look ahead, should explain a few things for some of you. for the rest of us we knew it already
the basic principle is AMD needed to set up new labs to ensure it could supply its new market to the likes of dell after Intel got caught manipulating the CPU sector by making suppliers like dell and HP sign exclusivety deals to only ship Intel products and in return gave them massive discounts on intel CPU`s
well, no more. AMD may not be the fastest CPU in town any longer but they are the cheapest and thats why they are making such good progress in the business world which is worth far more money than the performance sector. but as youl see, K8L will pretty much level the playing field.
And as for the inquirer, you should ALL know by now, that site is nothing short of a trashy generic broadsheet, sensationalises most things. in future when your reading something by them, have a large bucket of salt to hand as i promise you youl always need it.
Looks like AMD has taken out a very large loan for Fab36. From the looks of it, i would guess they ran out of greenbacks and now have to borrow to keep its 65nm technology ramp alive. I don't think this is good news since we just started off the new year and already AMD is stuggling.
Looks like AMD has taken out a very large loan for Fab36. From the looks of it, i would guess they ran out of greenbacks and now have to borrow to keep its 65nm technology ramp alive. I don't think this is good news since we just started off the new year and already AMD is stuggling.
Good grief, apparently you have absolutely no idea of how big business works. This is a positive sign, for the AMD camp, not a problem.A positive sign that the loan was awarded to them.
I see it as a positive thing if AMD keeps making money. Investing in your business is one of the best things a business can do if they can afford the cost of said investment.
So, as long as AMD can afford to pay the loan, then it is a good thing. The only way the loan would be bad, is if the default on the loan. Even if companies can afford to buy most things outright, they, in most cases, spend other peoples money, and keep capital in the bank for situations when it is needed.
But, simply trying to say that AMD is in trouble because they took out a loan is, well, uninformed. I won't blame it on the OP, but the Inquirer is a trash site.
Looks like AMD has taken out a very large loan for Fab36. From the looks of it, i would guess they ran out of greenbacks and now have to borrow to keep its 65nm technology ramp alive. I don't think this is good news since we just started off the new year and already AMD is stuggling.
The Inquirer is a Pro-AMD site the specialized in publishing SPECULATION about the PC market. Don't take it for much more than that. Let's just say that the Inquirer knows just as much about the stock market, loans, depreciation, etc... as Shakira does (not the singer, the FUDer).
If you really want to know if they're in trouble look at their stock price. The stock price is set by a market informed by people who consult many experts in many different areas.
I thought AMD's biggest problem is that they cannot make enough chips. I believe securing orders from the likes of Dell made it a smart move to borrow money to pay for a new factory sooner than waiting till they had the cash later.
You are exaggerating a bit mate, even Intel borrows money for Fab building. For example in 2005 Intel had 2.1 billion debt.
AMD just bought ATI, and Fab costs a lot too, but both investments will bring back more money in the long term, so I dont see any problem with loans. AFAIK AMD is in the best financial situation in years, sales are going very strong.
I'm not a financial wiz or anything but I would think that if AMD was really that well off they would not have to borrow. You say intel was 2.1 billion in debt in 2005, did they have enough $$ in the bank to cover that? If so, then would it be save to say that amd currently has more $$ in the bank to cover all there debt as well?
Stupid people like yourself should not post when a topic that you clearly have no idea what you are talking about.
1. Banks do not loan companies or individuals who can not afford the repayment of the loan, Banks evaluate your assets, and current balance then decide whether to put the loan throgh or not, clearly, in this case, AMD is financially strong to be approved.
If yourself walking into a bank and ask the manager to borrow $2.1bn you will be the biggest laughing stoke in 2007 (which you and the author of this topic already are)
2. Taking a loan does not indicate that a company is financially creppled, it is called an INVESTMENT, it is the only wise and smart move.
Explained in Detail: AMD borrows money from the Bank, the Bank got the money from their customers, charging AMD at an interest rate. Therefore, AMD is using some1 else's money to build their Fab rather than their own in Addition with the interest rate, In the end, AMD g
i saw this and just had to register here because of how daft this topic is... the money isnt to keep "AMD Afloat" its for the financing of the new future technologies lab that opened on December 22nd.
