AMD’s Plans For The Future

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BetaNews has posted the highlights from AMD’s conference call yesterday that outlined the company’s plans to restructure as it moves forward. Very interesting stuff.

Exploring the possibility of adopting an "asset-light" business model, AMD may go so far as to license manufacturing rights for its microprocessor designs to long-time partners IBM and Chartered Semiconductor, as well as expand its licensing relationship -- one many didn't know AMD actually had -- with Intel.
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Comments
 
Uh Oh, that's not good. Our company is still undergoing that, not a fun experience :(



Here is my opinionated suggestion: AMD should release processors for Enthusiasts, not dell or OEM, they should focus on what the processor can output, not what the media relations group and market us.

Then, AMD should release a 775 socket processor. Why? You might think it's stupid, but if you can have someone dump an Intel platform easier, it would be an incredibly smart move. Most people don't want to go back as they are worried of investing a lot of money for something that might fail... however, if it's only the processor, then it's much better.

AMD needs to refocus on their roots and what got them to power, they need to stop thinking of their business model and start thinking of what boosted them.

I think the only downsizing and restructuring that needs to be done is the executives as they are the ones calling the shots with little to no knowledge of the actual threat.
 
I think AMD and VIA signed a contract with Intel to not create any pin compatible processors...in return, they gained some right to the x86 architecture. I don't know the full detail though.

A fabless business model is very profitable for a lot companies: Qualcomm, Broadcom, Marvell, Nvidia, ATi... But I don't know if it will work will for AMD since they are competing with Intel and not other fabless design houses.

Process technology plays a very crucial role in chip design. So while they can lower the bottomline (capital investment) in the short term, they will lose out in core competitiveness in the long run; especially with Intel.

Slashing R&D is not a new idea but it is usually a bad idea...
 
Ockie said:
Uh Oh, that's not good. Our company is still undergoing that, not a fun experience :(



Here is my opinionated suggestion: AMD should release processors for Enthusiasts, not dell or OEM, they should focus on what the processor can output, not what the media relations group and market us.

Then, AMD should release a 775 socket processor. Why? You might think it's stupid, but if you can have someone dump an Intel platform easier, it would be an incredibly smart move. Most people don't want to go back as they are worried of investing a lot of money for something that might fail... however, if it's only the processor, then it's much better.

AMD needs to refocus on their roots and what got them to power, they need to stop thinking of their business model and start thinking of what boosted them.

I think the only downsizing and restructuring that needs to be done is the executives as they are the ones calling the shots with little to no knowledge of the actual threat.
Click to expand...


enthusiast processors do NOT make money. large oem and business sales DO.
 
Having the CPU corporations buy for their servers is the most profitable. A high end Opteron costs little more than an X2 3600 to make but sells for five times more. That's all cash in the bank.

And their timing for blowing their wad on ATI was very poor.
 
ATI is helping to keep AMD alive. It is bringing in money to AMD. I think it was a good buy. They would be absolutely dead without ATI.
 
Actually,

The "ATI" portion of AMD also posted a net loss for the quarter in question.

Unfortunately we don't have a breakdown of the profit margins between CPU and GPU.

The fact that AMD had to tangle with Intel and compete on price hurt them severely.

You can see it with Intel/Nvidia also their profit margins shrunk also.

They need to complete their transition to .65 so they can get a bit of their margins back.

Sadly, AMD lacks the capital to expand their infrastructure. That is the problem with Intel they build/upgrade FABS like a crackhead hitting the pipe.
 
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