Quote Originally Posted by savantu View Post
I'm amazed how some folks here fail to realize how impossible is for AMD to get a good deal on their FABs :

1.AMD has $4.9B in debt
2.The Dresden complex isn't worth more than $2-2.5B. ( assuming someone is foolish enough to buy a FAB in need of upgrades and an empty shell in Germany , the most labour expensive country in Europe )

As a result ,assuming someone pays $1.5-2B for the FABs , AMD is still stuck with close to $3B in debt ( nobody is stupid to buy their debt , you can bet on this ) since they're forced to pay the credit before anything else.

End result : a FABless AMD with $3B in debt.
Positives : no investment in FABs ; better debt schedule
Negative : costs per unit will rise ; less tunning.
I hate it when people talk out of their ass, acting as if they know it all.
Germany is not labour expensive, you do not know if there will be less tuning options for AMD, you do not know if costs will rise, you do not know what investors are willing to give for different fabs.

You just do not know...
All we know is that AMD is going to try to lower their dept by using a strategy not one company has used before.