Watch out Intel here comes AMDhabi!!!!

[JAYDEEJOHN]

http://www.theinquirer.net/gb/inquirer/news/2008/10/07/amd-foundry-spinoff-details Doubt the source. This isnt good for Intel. Whens the last time Intel did a 6 Billion dollar upgrade? This puts competition back in the cpu market

 

[Reynod]

I think it is correct - Charlie D knows AMD.

I am still waiting for my 30k AMD Graphics box tho.

Bunny suit Charlie if this is false ... Bunny suit and you will be shining shoes for a week.

 

[JAYDEEJOHN]

If its true, which is most likely, Intel is in for a fight . This changes everything

 

[Reynod]

http://www.nytimes.com/2008/10/07/technology/07chip.html?_r=2&ref=worldbusiness&oref=slogin&oref=slogin

http://www.digitimes.com/index.asp

 

[JAYDEEJOHN]

If we can keep this civil, Id like to hear peoples opinions as to if they think this will put AMD ontop, and if so, why. And if not why not? Basically, everything Ive heard is that Intel has resources and that AMD cant compete with Intel because of this. This may no longer be true or pertitent, as it looks as tho AMD has some serious backing now. All politics asside, is this going to hurt Intel? Is this going to lift AMD beyond Intel? or do you think its going to be business as usual?

 

[evongugg]

If AMD gets more budget money, they can spend more on researching the next processor. There are certainly some capable minds at AMD.

 

[turboflame]

Definitely good news for AMD.

Hard to say what impact this will have on Intel. Hopefully AMD can catch them off guard and pull out another K8.

 

[spaztic7]

I hope AMD does come back with a punch to knock Intel down. The issue I see is can AMD manage the money correctly?

 

[JAYDEEJOHN]

My take is, as Intel ran AMD into the ground, this is what they got for doing it, a stronger, much more capable AMD. This isnt a serves them right thing, but, if it was done differently, it may have benefitted Intel more, tho us consumers much less, and prices would be higher, so in the end, hopefully, this will still be good for us

 

[4745454b]

Intel has nothing to fear, at least from this. AMD has been talking about doing this for quite some time. The extra cash might help, but only in the short term. I was actually a bit alarmed at the statement that the new company would be looking for outside orders to fill. This could cause AMD issues if they are to busy making chips for someone else and orders for Opteron/Phenom's go unfilled. Remember the supply issues after dell started using AMD CPUs? If the plants are already near full capacity, I don't see how adding more orders is going to help.

 

[chunkymonster]

Wow! I don't know how many other people made the connection between investment from Abu Dhabi and the new "Asset Lite" strategy, but this totally makes sense now. When I first heartd of AMD selling a stake to Abu Dhabi I thought it was strictly for an infusion of cash considering their debt and quarterly losses. I understood the concept behind Asset Lite, but I have to give AMD props for pulling this together. I bet is was DIrk Meyer who came up with the idea and not Hector, that's why Hector is out and Dirk is now the CEO.

It's become obvious that AMD has greatly benefitted from their partnership with TSMC as eveidenced by the ATI48xxx series GPU's. And the success with TSMC and the 48xx's is with a just a working partnership. Now, with the new Foundry Company, which AMD will obviously have priority with, it just may be what the Green Team needs to get beck into the processor game hardcore.

While it will be couple years, I eagerly await what AMD and Foundry Company will produce. And, if this partnership works out, Intel will have some serious competition again.

Time will tell...

 

[JAYDEEJOHN]

I posted in another thread if Intel could realistically do battle against a whole country. Well, here you have it. One must remember, that only 2 fabs were going at the time of Dell and thats not even close to their production capabilites now, as theyll add 50% more fabs, and their production will be at 45nm not 90 nm, so the yields will be much higher

 

[Craxbax]

Well, I would like to see some real competition for Intel but the other side to this is that you can throw money at a problem and it doesn't solve it! My personal experience with Abu Dhabi run companies was a lot of ineficiency that was papered over with money. Quality control was out the window. Besides Hector is still involved with this.

 

[exit2dos]

Hector Ruiz will resign as chairman of AMD to become chairman of the chip business.

I find this rather disturbing.
http://www.computerworld.com/action...xonomyId=12&articleId=9116438&intsrc=hm_topic


I do wonder, since AMD doesn't have controlling interest in this new company - how will this affect their x86 license?

 

[JDocs]

Well great. This settles a limited amount of AMD's debt gets their partner company's production up. Partner company... 2 groups now trying to make a profit off the same amount of chip sales. Sure AMD gets some back, post tax but still 2 groups.

This in all likelyhood will possibly push AMD's prices up or at bear minimum make it more difficult to bring them down. Issues Intel doesn't have.

 

[Shadow703793]

lol. It's from the Inquirer take it with a grain of salt.

 

[BadTrip]

it is also posted on Bloomberg. I dont see this as a threat to Intel, Just a lifeline for AMD

 

[JAYDEEJOHN]

Read ALL the links. Its going to happen bar governments, shareholders etc. From the way I understand it, the think tank side will hold the license, as the fabs really only produce the chips, and the thinking side has majority. Tho, all in all, as a whole, itll supposedly be 50% for decisions made.
AUE may not make great business ventures as you may have experience with it or not, but having more money than sense is still going to help AMD. I guess now we will see just how much better Intel really is, as now AMD can buy its way to the best people, the best processes and all the people behind K8 etc arent to be written off as well. This does make a huge difference, and anyone not taking it seriously, especially Intel, may find things changing

 

[Amiga500]

2 groups now trying to make a profit off the same amount of chip sales.

Err, not quite.


The foundry side will do chips for 3rd parties, like TSMC.

 

[zenmaster]

it is also posted on Bloomberg. I dont see this as a threat to Intel, Just a lifeline for AMD

A Lifeline is all that it is at this point.
AMD does not need capacity, they need improved products.
If capacity was an issue, their prices would be higher. (Simple Supply/Demand Curve)

Perhaps the new quads will help.
We will just need to wait and see.

And $6Billion is not that much money to Intel if you keep things in perspective.
Last Quarter their profits were 1.6 Billion which comes to about $6.4Billion a year.

Now, I'm glad to see that AMD will likely stay afloat longer.
But what I really want to see is AMD competitive again to keep prices down.

 

[JAYDEEJOHN]

The potential yields are over twice what AMDs ever had. Theyll be able to do this

 

[Hellboy]

But why oh why oh why is Hector Ruiz still involved..


That bloke just needs slapping with a wet salmon... then a tuna, then a gold fish......

Hes now in the fab business

 

[JAYDEEJOHN]

He needs a fish Indian style heheh

 

[Hellboy]

He needs a fish Indian style heheh

Indian style ?

 

[BadTrip]

A Lifeline is all that it is at this point.
AMD does not need capacity, they need improved products.
If capacity was an issue, their prices would be higher. (Simple Supply/Demand Curve)

Perhaps the new quads will help.
We will just need to wait and see.

And $6Billion is not that much money to Intel if you keep things in perspective.
Last Quarter their profits were 1.6 Billion which comes to about $6.4Billion a year.

Now, I'm glad to see that AMD will likely stay afloat longer.
But what I really want to see is AMD competitive again to keep prices down.

I agree, according to Bloomberg, the total investment is $8.4 billion, and Intel's r&d budget for this year is $11.2 billion. While this is very good news for AMD, I just dont see how it is serious threat.