AMD Announcing Fab Spin-Off Tomorrow

[BulldogPO]

One offtopic question:
How long it takes to make CPU from silicon waffer?

[Shintai]

One offtopic question:
How long it takes to make CPU from silicon waffer?

3 months give or take.

[cryomonkey]

One offtopic question:
How long it takes to make CPU from silicon waffer?

About 30 to 60 days depending on how mature the process is.

[Periander6]

The details of this move are very good for AMD. It is a big help to shoring up it's balance sheet, and now they have stupid investors spending all the money AMD did not have to upgrade their fabs.

[twilyth]

I bought 1000 shares of their stock at $4.15 yesterday. God I'm good.

Yes you are.

[ColonelCain]

What I want to know, is this: Will AMD still have the relations with the new company, like they did prior? Basically, will AMD still have the perks of owning their own fabs?

[Macadamia]

What I want to know, is this: Will AMD still have the relations with the new company, like they did prior? Basically, will AMD still have the perks of owning their own fabs?

Quite. They have 44.4% in The Foundry Corp, so they are still the top dog customer there.

But notice usage of the word "customer". The way finances are handled did have quite a change.

[informal]

What I want to know, is this: Will AMD still have the relations with the new company, like they did prior? Basically, will AMD still have the perks of owning their own fabs?

AMD will still own a big chunk of the "new" company(44%) while maintaining equal vote right .So it's a win-win.They have no need to directly invest money in process node development as this will be a duty of a new company(Arab part particularly),while they will maintain close relationship with the co-foundry by having one new board member at AMD's board.They will do all things they have done in the past(testing designs,close relationship with guys at the fabs) without the burden of huge debt and need to invest a lot of $ in process development.Fusion and later Bulldozer will be sort of a test-chips for how well the new foundry will function.

[BrowncoatGR]

Quite. They have 44.4% in The Foundry Corp, so they are still the top dog customer there.

But notice usage of the word "customer". The way finances are handled did have quite a change.

They are not simply a customer but also co-owner of the company

[T_Flight]

I bought 1000 shares of their stock at $4.15 yesterday. God I'm good.

Now you need to sopread word of this to hype up the price! Congrats!

[savantu]

They are not simply a customer but also co-owner of the company

That will last until investments are made in the new entity.AMD cannot afford the $ billions needed ; their share will go down significantly.In fact , I believe that's what they want to happen.

Be owned 44.4 percent by AMD and 55.6 percent by ATIC on a fully converted to common basis. ATIC's economic ownership will increase over time based on the differences in securities held by AMD and ATIC, and depending on whether AMD elects to invest proportionately with ATIC in future capital infusions to support The Foundry Company's growth.

http://news.cnet.com/8301-1001_3-100...=2547-1_3-0-20

44% of $4-6Billion is not pocket change.

[twilyth]

Wow, I wonder if my being an AMD fanboy has any deeper meaning. With SF gone, I guess we'll never know. But then I own more Intel chips so I guess I have a split personality.

[eric66]

I can't wait for their stock to reach $0.01

bad news for you

http://finance.google.com/finance?q=NYSE:AMD

[informal]

I think AMD dug out itself nicely from the black hole considering the economic crisis looming over US economy(euroland is not far neither in that respect,some banks seem to be in deep trouble)

[metro.cl]

Crazy Arabs i really don't see how they can make some $$$ (asuming they wont rip-off AMD) basically they have no other customer and they will "fight" TSMC and UMC for customers.

Also the NY fab will be bulk so maybe no more SOI for AMD?

[@@@@]

Just some added info
Fab spin-off saves AMD and Hector Ruiz
http://www.tgdaily.com/html_tmp/cont...39627-118.html

and I am just gonna post this I know a lot of you don't want to read from this site so I'll just post it here

its from Fudzilla

AMD shares soar following spin-off news
Up 18.7 percent

the other is
The Abu Dhabi government is Investing $8.4 billion
the name of the new company is Foundry Co. and it will be run by AMD exec Doug Grose. Hector Ruiz will step down as director and head the Foundry Co. board.
They are gonna take control of the
two fabs in Germany and a new fab in New York
so far not a bad trade off

[twilyth]

Meyers (capt dirk) and Grose were interviewed on CNBC this morning and said that the facility in NY will be the most advanced in the world. Not sure what the means, but it sounds good.

[Shintai]

I would look much on the (now 11.3%) AMD rise. Specially in these rollercoaster times. Plys AMD stock is still under 5$.

However in short, AMD lost control over the fabs and the direction the development and product focus goes. So in my view, AMD found a way to survieve (Very good). However, it will never be the same AMD again. The CPU division will be the huge loser. And the foundry part the big winner. Nomatter how people wish to spin it. AMD will be a customer and could just aswell use TSMC for CPUs.

Bye bye highend. Welcome permant value and mainstream.

Also germany is the big winner since equiment for the empty FAB38 can now be bought.

Meyers (capt dirk) and Grose were interviewed on CNBC this morning and said that the facility in NY will be the most advanced in the world. Not sure what the means, but it sounds good.

Thats pretty much the usual BS. They dont know where their competitors are. So saying something 3-4 years down the road will be the most advanced is arrogant.

They might refer to other foundries in China/Taiwan. But a leader in manufactoring technology they are not.

[JohnJohn]

Bye bye highend. Welcome permant value and mainstream.

BTW, how long has it been this way????? I think things can only get better

[nn_step]

I can't wait for their stock to reach $0.01

I know that their stocks will not go that low, but rather they should be a rather acceptable long term investment
and Ironically a better year long investment than Intel http://finance.google.com/finance?ch...YSE:AMD&ntsp=0

[v_rr]

AMD will be a customer and could just aswell use TSMC for CPUs.

A costumer with 44% share and equal rights on the board.
Also ATIC need AMD, otherwise ATIC fails to, so in the end that´s not so simple.

[eric66]

I would look much on the (now 11.3%) AMD rise. Specially in these rollercoaster times. Plys AMD stock is still under 5$.

However in short, AMD lost control over the fabs and the direction the development and product focus goes. So in my view, AMD found a way to survieve (Very good). However, it will never be the same AMD again. The CPU division will be the huge loser. And the foundry part the big winner. Nomatter how people wish to spin it. AMD will be a customer and could just aswell use TSMC for CPUs.

Bye bye highend. Welcome permant value and mainstream.

Also germany is the big winner since equiment for the empty FAB38 can now be bought.



Thats pretty much the usual BS. They dont know where their competitors are. So saying something 3-4 years down the road will be the most advanced is arrogant.

They might refer to other foundries in China/Taiwan. But a leader in manufactoring technology they are not.

which will make you happy i think

[Jacky]

which will make you happy i think

It's sad that people cannot accept other opinions.
Way to go with the permanent ridiculing and ad hominem attacks...

Actually he is entitled to a fair share of skepticism, anyone else wants to speculate on that topic or provide some facts (i.e. not insults)? What will this do for AMD in the long term? It seems they may lose the ability to fine tune the process if their share in the fab goes down and the Arabs try to serve other customers, no?
On the other hand maybe the fabs will transition faster and more smoothly to new process' because of the cash infusion?
Will they switch to a kind of bulk process to serve other customers?

[twilyth]

It's sad that people cannot accept other opinions.
Way to go with the permanent ridiculing and ad hominem attacks...

Actually he is entitled to a fair share of skepticism, anyone else wants to speculate on that topic or provide some facts (i.e. not insults)? What will this do for AMD in the long term? It seems they may lose the ability to fine tune the process if their share in the fab goes down and the Arabs try to serve other customers, no?
On the other hand maybe the fabs will transition faster and more smoothly to new process' because of the cash infusion?
Will they switch to a kind of bulk process to serve other customers?

If you have the financial wherewithal, fixed costs (= fabs) is better because your marginal cost goes down with each unit you produce. If you don't, variable costs (= subcontracting) is the way to go because you only pay for what you use.

The new foundry company will be able to offer AMD's process tech to other companies. As long as ATIC's process tech is equal to or better than its competitors (TSMC). The Intel fanboys will discount this saying 'what process tech', but let's not forget that AMD made a native quad core with IMC at 65nm.

[MrMojoZ]

It's sad that people cannot accept other opinions.
Way to go with the permanent ridiculing and ad hominem attacks...

Sorry, but he has earned it. A normal person posting an opinion is fine, everyone should have this basic right. But constantly attacking one brand everyday goes a little bit beyond "normal person" doesn't it?