[Cialug] AMD's Spin Off

[Dave J. Hala Jr.]

I wonder if they needed to make some major changes to the management of
the fab operations and couldn't do it in the existing structure.
Spinning it out may give the "new" organization the ability to
"re-organize" any way they see fit.


On Thu, 2008-10-09 at 09:55 -0500, Matthew Nuzum wrote:
> On Thu, Oct 9, 2008 at 8:45 AM, Daniel A. Ramaley
> <daniel.ramaley at drake.edu> wrote:
> > Does
> > anyone think AMD is eventually just going to outsource production to
> > the lowest bidder? I mean, once production is a separate company, there
> > is no reason to continue doing business with them exclusively or even
> > at all.
> 
> Yes, but...
> 
> Microprocessor manufacture tends to be on the cutting edge of chip
> development. So more likely it will allow the creation of a business
> who focuses on a major vendor (AMD) but is also agile enough to start
> offering services to other organizations.
> 
> There's an old saying that we do in house what we're specialists at
> and we outsource that which we're not. So AMD may not have had the
> ability to get maximum value/revenue from their fab facilities so
> they're spinning it off into an organization that can specialize on
> creating a profitable business.
> 
> I'm hoping at least. I love the competition and shakeup we got when
> AMD beat Intel to 1Ghz and then subsequently brought 64b to general
> computers. I'd hate to see them become less competitive now.
> 
-- 
___
Dave J. Hala Jr.
President OSIS, Inc.
www.osis.us