The AMD Execution Thread [2007 - 2017]

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there was a purpose behind spinning off glofo was there not?

because it seems like ever since then, amd has ate all the losses anyway.

i suppose one way to look at it is that its saving amd 65 million, another would be that its paying 378% more per wafer. further it could be said that they agreed to pay 87% of the initial investment for 23% of the product. theres many ways to present the numbers and it seems profoundly stupid and short sighted, anyway you look at them.

like, hmm well lets just completely give up. give all our profits to glofo, and sell less product at what is probably going to be a loss.

does not compute
 
I don't really get it either. Surely it's in both their interests to find a better solution? Unless GF think they can get custom from elsewhere for all those unused wafers.
 
You want to split a company in 2: a high risk, low margin, capital intensive one and a low(er) risk one with much higher margins and very little capital investment.

Would you, shareholder of the first one, agree to hold the bag just like that and leave all the juicy bits to the other? Of course not: you want a number of iron clad guarantees for a couple of years to ensure an orderly transition from de facto single customer model to an open market player.

All that is happening here is paying fees to break up these guarantees. There's no free lunch.
 
Alexko said:
In this case they're reducing their contract with GloFo from $500 million to $115 million.
115 + 320 = 435, so they're actually saving 500-435 = $65 million.

But the fact that they're cutting their orders so drastically is pretty frightening.
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What everyone is not factoring in was that $500 million would have been due at the end of the 1st quarter, as opposed to the $115 million order while the $320 million penalty is payable over 4 quarters. So the first quarter's savings is (500 - (115 + 80)) = 305 million and not just $65 million.

It's about immediate cash flow relief, not long-term cash benefit.
 
BRiT said:
What everyone is not factoring in was that $500 million would have been due at the end of the 1st quarter, as opposed to the $115 million order while the $320 million penalty is payable over 4 quarters. So the first quarter's savings is (500 - (115 + 80)) = 305 million and not just $65 million.

It's about immediate cash flow relief, not long-term cash benefit.
Click to expand...

Indeed and $200 million of that would be payable at the end of next year so that's a savings of about $20 million in interest right there.
 
The article indicates the first payment will be $165 million, not $80 million. Effectively, I suppose they end up paying $280 million instead of $500 million, and something like $52 million for the next 3 quarters.

It is hard to believe they would miss by such a wide margin, or not just sell chips at cost or even a smaller loss. The only thing I can figure is they already have more inventory than they want and would rather not add to that total.
 
ninelven said:
The article indicates the first payment will be $165 million, not $80 million. Effectively, I suppose they end up paying $280 million instead of $500 million, and something like $52 million for the next 3 quarters.

It is hard to believe they would miss by such a wide margin, or not just sell chips at cost or even a smaller loss. The only thing I can figure is they already have more inventory than they want and would rather not add to that total.
Click to expand...

That $165 million is recorded as an expense i.e revenue - expense = profit. Another $110 million is added to inventory because inventory is recorded at the lesser of historical cost and market value, and I imagine the rest goes to inventory next quarter.
 
What do you guys think about the surface rumors. Apparently a larger 11.6 inch surface is coming down the pipe using tamesh.

Right now the surface is the best selling windows 8 device (out of all pcs , tablets , laptops running windows 8)

Could the surface + ps4 /xbox /wii u save AMD ?
 
Well I'd question how the disappointing sales of a tablet running Windows RT on an Nvidia chip have much bearing on a how a future AMD-powered netbook-tablet will do.
 
Going bleeding edge isn't always a win if you plan to compete on price. Does it matter how fast they transition to 20nm if they will still be behind Intel?
 
Honestly, I suspect if that happened both would die within five years in some fashion. Either AMD would be so radically changed it wouldn't be AMD anymore, or it'd just fail and the division would be shut down.

And while ATi is basically the profitable part of AMD for the most part, I don't think it's big enough anymore to sustain itself after going through the sale and whatnot.
 
I.S.T. said:
Fixed that for ya.
Click to expand...

Well, steel is sturdier, but its high mass could compromise the structure as a whole, so yeah, make that titanium.

Basically, I agree: AMD's CPU and GPU divisions are so mutually-dependent that one couldn't survive without the other at this point.
 
Probably the chance for AMD is here (actually, if you have a better thread for this, please excuse me)

The PC's past and Intel's future

The leading purveyor of PC chips doesn't really think a lot about the desktop anymore.

http://news.cnet.com/8301-1001_3-57559079-92/the-pcs-past-and-intels-future/

"With Broadwell there won't be a desktop update. Broadwell is focused on mobile," said a source whose company sells PCs in the U.S. and who gets briefed by Intel on future processor road maps.
That source calls Broadwell -- due in 2014 -- a "half tick," referring to Intel's Tick-Tock model for microarchitectural changes.
 
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