AMD Foundry spinoff details start to emerge

This broadcast was sponsored by Foundry Company and Canned Drink.

>> Meyer fails to say that the foundry will want to probably be profitable (?) and thus will be charging AMD more than the cost of the chips. 

true, but then again maybe AMD is thinking about using other foundries in the future such as IBM or TMSC... that would probably keep the margins low for all the foundry companies.. more competition...



The old way, they had 2 deeply-complex demands on their Direction.

Ever tried fighting your way through a problem that was actually 2 of 'em?

It sabotages progress.

This way, each company has exactly 1 focus, and can pour ALL their mental energy to solving that 1 kind of potential.

Unorthodox, but quite effective.

Read "Focus" by Al Ries,
and see it backed by other examples 
( Coca-Cola vs Pepsico - profitability drastically in the single-focus Coca-Cola, etc )

Paying attention to the world since reading that book, it IS obvious, ...once thoroughly pointed out.

nosetail : 
"So now instead of cost + AMD margin, you have cost+foundry margin +AMD margin. There's only 2 ways the price remains flat - the foundry magically reduces the cost to produce a part now that it has changed its name, or AMD cuts its margins to make up for the foundry margin."

you forgot option 3.
best case :foundry company finds more parters and customers for its production capacity, and thus can spread the costs of research and development of new manufacturing processes over multiple company's reducing the margin's it has to ask its customers.

worst case :, in the good time time for AMD, AMD will make a little less profit then they could potentialy now, but in the bad times like now they wont make tens of hunders of millions in losses. and neither will foundry company because they can produces chips for other company's

Is this a smart way for AMD to get around Intel's Licencing regulations for x86 cpus? I think under the agreement, AMD themselves weren't allow to make much more than just x86 cpus in their Fabs, I THINK only allowing 15% of production for non-x86 products... so in theoy it should help ATI a lot....

Why are you worried that Iran will get access on how to make processors? They can already do this if they want to.

The Middle East already controls suppy of oil to the USA, something which would affect the USA much more than if Iran is able to make a processor. If the ME cut oil to USA then within 1-2 weeks the USA would have ground to a halt. It would be like a hurricane had swept your entire country clean. Gas prices would rocket, most of you wouldn't be allowed to drive etc.

The supply of energy is far more critical than who makes the processors.

China is the new superpower, not Iran. China is the new kid in town. China is who USA banks and the Fed are approaching for a financial bailout.

Your bankers and lazy greedy politicians have done way more harm to your country than any terrorist ever could.

Well, at least the silicon raw materials will never run out now.

;-)





'AMD CEO Dirk Meyer explained that the company's fab spinoff means AMD will be able to develop new products without having to invest billions in new chip-making technology and plant capacity. "It will make AMD financially strong and more tightly focused," Meyer said.'

Meyer fails to say that the foundry will want to probably be profitable (?) and thus will be charging AMD more than the cost of the chips. So while you avoid spending large sums of capital if you are AMD, the foundry still has to spend large sums for capital and then gets passed on to AMD Design.

So you have just added a middleman (foundry) to the equation who's going to want his slice of the pie. So now instead of cost + AMD margin, you have cost+foundry margin +AMD margin. There's only 2 ways the price remains flat - the foundry magically reduces the cost to produce a part now that it has changed its name, or AMD cuts its margins to make up for the foundry margin.

So expect AMD prices to decrease much less rapidly in the future. All this is smoke and mirrors - AMD has shifted their net losses to the foundry net losses (which they own 44% of). In the end it's still all about the margin on chips paying for development, sales and logistics; now it also pays for the foundry margin as well.

"So, some of our most advanced semiconductor technology is going to be bought by a Middle Eastern country? How will the US government approve this? "

The world doesn't revolve around terrorism so why make it so? 

Abu Dhabi can buy 19% stake in AMD and 56% in The Foundry Company because we gave them the money to do so! If you want to stop enriching middle eastern countries stop consuming their petroleum products. They are obviously friendly to the west if they want to purchase majority holding in a U.S. based company, and will continue plans to build a fab in new york. Pull your head out of your arse and don't me such an islamaphobe.

This Fab spin off injects working capitol into AMD and the renewed focus on Design and development can only benefit the consumer more than before. look for dramatic improvements in design and performance in the future!!! NV should be shaking in it's boots.

Arab Micro Devices

At Least AMD Knew 2 Ghz/s is Maximum for Trannie to Reliably operate, Since 2003 We All have Waited for Intels 20 Ghz/s Core, Haha.

With NO Design Compitition, will Intel State:"Todays Product May Be Flawed, Yet Soon Post Petraflop Hz Core will Save Day".

Haha. Intels Quality is NO Greater than Your TV Remote.
drashek

So, some of our most advanced semiconductor technology is going to be bought by a Middle Eastern country? How will the US government approve this? If it does happen then Iran is going to get all the high tech they need. Even if there are assurances from the company that this will not happen, you can bet there will be under the table dealing to give Iran everything they want.

While Eating Shrimp Cocktail & Turning oil Heat Up, Will Foundry Do IBM? Will Anal Expressive Like Ultee' Suddenly Be Head Engineer, With NO Stake In Company?

Bets: Foundry Arabs Sudenly Start Acting Polite!!! AMDATI Designers Goe to Better Dealing with Ownership of Ones Own Work. Fabs Stop Being Local Extortionist Dream.

Remember in theINQ, when complete k7 last run was displayed, bunch of small boxes about 6' x6' x6'. Then thats it. Not that much actual Production. IBM is already planning 28 Nm, Contray to Mine Mind, sizes just don't go much smaller. AMD has Explored territory & selling Out for Cash? Public Has figured Out Computers Suck?

After Start of 1,000,000:1 Displays This Month, Next are Displays with Computer In Them, Maybe NOT in AMD Time & Charges Venue.

Sell Rust Buckets of Past & Simply Move Out, Processor Takes Too Long to Develope, ATI may be Sniffing RCA Dogs Bung.Seeing Those Spots as True Nipples.
drashek