Linked by David Adams on Fri 12th Sep 2008 16:30 UTC, submitted by irbis
AMD AMD plans to spin off its chip manufacturing operations by year's end, probably by hawking them outright or by inking a partnership with a larger chipmaker -- a maneuver akin to selling a house and leasing it back. Meyer is vague on the exact timing of a deal, but he knows it's probably the best thing the company can do quickly to improve its financial position, and its reputation with investors. A successful transaction would see AMD pocket a good chunk of cash, while handing manufacturing to a company that can better keep pace with Intel's world-class operations.
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You know who has great fabs?
by qortra on Fri 12th Sep 2008 19:22 UTC
qortra
Member since:
2005-10-05

Intel. Plus, Intel has a great reason to make sure that AMD survives; they want to avoid antitrust legislation. Now that Apple switched to Intel from the G5, there are only two companies left in the desktop processor realm (discounting VIA's sliver of marketshare). Does anybody remember Microsoft's investment in Apple more than a decade ago? http://news.cnet.com/2100-1001-202143.html

I don't honestly think that would happen, but it does make sense in a twisted kind of way. There aren't that many companies in the world with the fabrication experience and capital necessary to handle server and desktop processors. Clearly, AMD's people are having a difficult time with it, so merely spinning the fabrication department off into a new company on it's own won't work.

Reply Score: 1

beosguy@gmail.com Member since:
2008-07-17

As I recall TI Cyrix and few others tried to compete with Intel during the 486 hey day.. not one except
AMD managed to hold on... NEC tried but unsucessful
in bringing their version to market.

AMD is already has moved and will continue to operations out of SV to better compete with Intel.
I think they will survive but need to zero in on their
market niche and share. Maybe focus on high end or laptops onlys. But not both... they dont have the
bandwith to compete with intel in all markets.
Too costly!

Reply Parent Score: 1

PunchCardGuy Member since:
2006-04-14

So who will churn out AMD's chips if they sell off their Fabs? CPU chip manufacturers push the technology envelope more than manufacturers of other chips. So who does that leave? Really, only INTEL and IBM. Third party Fabs like TMSC can't really play in this league. All in all, this move would really be a shame, not only because it might mean the immanent demise of AMD as a viable competitor to INTEL in the CPU space, but because AMD is part of the "old-guard" of chip manufacturers. They were making CPUs before INTEL was - any one remember the 2901 bit-slice CPUs they made that were the core of many minicomputers back in the day?

Reply Parent Score: 2