AMD/ATI game rigs > Intel/Nvidia rigs any day.

So, way to go AMD, I think it's the right move.

While I believe AMD going fabless is probably the wise thing to do since they do not have an Intel-like war chest full of cash, they will be trading one problem in for a potentially bigger problem with respect to meeting customer demand during the part of the chip business cycle where demand is highest.

Foundries can feel the supply pinch even worse than captive fabs in extreme boom periods. If you consider that foundries have obligations to make many different kinds of chips (for many different customers) and that many of these different chips are also needed to make PCs/laptops, then you can imagine the self-limiting capacity constraint that comes with industry boom times. It doesn’t make sense to make CPUs if there are no chipsets or memory to go with them in the PC for example.

So while AMD will find relief cash-flow-wise, they are giving away some amount of control of their own destiny in managing to the boom in the business cycle. Foundries will not build huge amounts of additional capacity in the hopes that AMD will utilize it unless AMD provides guarantees (a.k.a. "cash"). Going fabless virtually guarantees a limit on AMD’s ability to grow and capture additional market share during the business booms.

Looks like more and more they lost the game…

Get with it and check out the @#$%^kickin' GRAPHICS in the new AMD Turion X2 Ultra lappies. Lotsa CPU juice, mooey Grafitas, wot's not to luv?

I think Asset Smart or Lite is a good idea. I have worked with foundries and having ASICs manufactured and there is great economies of scale by having another company produce the chips. And they don't need someone to just buy their foundries and upgrade them, they just need to sell them or the equipment in them and move production to a different foundry.

Most likely look for AMD to capitalize on their good relationship with IBM, and their compatable foundries. IBM can keep AMD on the bleeding edge, as it is good business for both companies, since cpus are the highest demand for smaller feature sizes. IBM can see a quicker return on investment.

ATI is also back on top of value and will be payin for itself, as well as make AMD look more attractive, with their excellent chipsets, IGPs, and then the value of the Fusion cpu next year.

Apples sells computers, AMD sells chips – this comparison is apples to oranges (pun intended). Unless AMD starts making computers, the ASP of the product they sell is FAR different from Apple. I agree AMD could grow in the CPU market, but not by the way or with the leverage as Apple.

To put it in perspective with ~1-1.4Bil in quarterly sales and ~20% market share, AMD would need to DOUBLE market share to add 1Bil/qtr…. please elaborate on how a few % points could equate to BILLIONS in sales? A few points would be ~100-200Mil/qtr and would take YEARS to get billions in additional sales.

Also Meyer is in denial if he thinks the move to Dell and shortage of chips to the channel is the reason for lost market share – it may have contributed to things short term; but that is not the reason AMD is currently suffering losses.

Nice article. If you'll excuse me, I've got to go down to the McDonalds, meet my friend the Bob, and then go sightseeing in the Oregon. Wish me the luck!

From Jon Fortt: Thanks for the noticing.

"IF" AMD indeed is cosidering the "spin-off" of its fabs, we can all say good bye to them because they won't have a chance against intel. As an example to this, we can all look at Nvidias chip problems sake of not having their own manufacturing assets. If AMD is going to outsource their manufacturing to TSMC, UMC, Chartered (or whoever), let's prepare our selves for delayed, low performing and high power consuming processors. I believe the only one who'll benefit of this whole mess is Intel (and I'll bet anything you want that they are rooting for this to happen).

After Intel, AMD's fabs are the best around the world in manufacturing and process wise.

Yeah – that's right !

My boy Dirk gonna find us some dumb sucker of a company that will buy our albatross fabs from us for billions of dollars, spend BILLIONS of DOLLARS MORE on these fabs to upgrade them – out of the kindness of their dumb hearts – just so we at AMD can continue our Jihad against Intel.

Gotta go – I see the suckers are already lining up at Dirk's door.

Suing and Puking-From-My-Gut, Intel Screwed Me Up ! -Bowing Down To Mecca – And Gestapo Raids At Dawn, Hector