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AMD To Spin Off Fabrication From Design Work
I.M.O.G. was one of many readers to write with the news that "Advanced Micro Devices plans to announce Tuesday that it will split into two companies — one focused on designing microprocessors and the other on the costly business of manufacturing them — in a drastic effort to maintain its position as the only real rival to Intel. 'This is the biggest announcement in our history,' said AMD's chief executive, Dirk Meyer. 'This will make us a financially stronger company, both in the near term and in the long term, as a result of being out from the capital expense burden we have had to bear.'"
So AMD frees its production facilities to accept contracts from other fabless companies. Meanwhile, they can focus on designing and selling chips and chipsets for motherboards and graphics cards.
I think this will turn out well for AMD, if they can maintain a good relationship with their foundry spin off and if the foundry spin off can keep up with the competition in terms of quality and technology. Although, I guess this would also free AMD to find other partners if they need to either expand production or find better production facilities in the future without neglecting parts of their own business.
Stick a fork in AMD, they're done.
A design firm plus a foundry does not equal an integrated semiconductor powerhouse.
Who is left to compete with Intel now? At least we will have Nehalem. Get used to Nehalem, embrace it, love it. Because it's going to be around for a long, long time. At least we have the x86-64 ISA, on-board memory controller, and point-to-point processor communications as an AMD legacy. And thank $DEITY that AMD was able to put a stake through the heart of Itanium.
There won't be much future innovation from Intel without the spur of aggressive competition from AMD.
Cheers!
"The only good windmill is a tilted windmill."
So the bottom line is that the Abu Dhabi Government is buying AMD?
"The ferrets, they're every where I tell you!"
A hot fab is useless unless you can get product to market, and sell into the markets you need to achieve sales goals. AMD hasn't done this.
While they have very good engineers, they're weak in so many places. An infusion of foreign capital makes no sense if you can't get the basics right.
Yes, Intel, IMHO, used illegal tactics to kill AMD at many turns. AMD needs to recruit the best and brightest and get a regime change in motion to diffuse their preyed-upon attitude. They could lead again, but not with the current regime.
Chopping the company into bits will be a distraction, not a savior.
---- Teach Peace. It's Cheaper Than War.