AMD Cancels Fab Upgrade

[HellasVagabond]

According to sources a while back AMD was planning to upgrade its Dresden fab 30 to 65nm and 300mm wafers thus becoming fab 38 in 2008. That was of course prior to losing more than $1 billion USD in two quarters thus pushing AMD to cancel its upgrade. However the plant has reached the 65nm stage but the wafers are still 200mm and will remain until 2009.

View at TechPowerUp Main Site

 

[Dark_Webster]

AMD guys are losing a lot of money since Intel released their Core 2 Duo. At least AMD is trying to catch up Intel. And in my opinion, Intel should wait a bit for AMD to catch up in terms of performance.

 

[Jess Stingray]

Intel are being sued anyway, so they'll have to.

 

[hat]

I don't see why people don't buy AMD. They are cheap and fast as lightning. I just don't see how they are losing money. Unless AMD dies off or thier prices somehow become higher than Intel's, I will always buy AMD.

 

[lemonadesoda]

It's good to hear there are loyal customers on both sides of the fence. But just as someone had a GOOD experience with one, or a BAD experience with another, you can't expect everyone to happily switch from one brand to another. Customer switching only happens when there is a SIGNIFICANT differential in price or performance. And this is what AMD achieved 2,3 and 4 years ago, but what Intel has managed to achieve today. Kudos to Intel IMO.

 

[RickyG512]

i really want amd to survive i really do, i like them more than Intel but im on my 3rd Core 2 Duo now

 

[tkpenalty]

Well AMD was STUPID not to pounce in the advertising sector at the time of the Prescotts..

 

[HellasVagabond]

It is sad but AMD is having a rough time. Lets hope they make it.

 

[jocksteeluk]

this all comes down to shareholders not wanting to give up their dividends for plant and process upgrades but just think both AMD and ATI would both be in profit had they stayed as separate companies.

 

[Dippyskoodlez]

this all comes down to shareholders not wanting to give up their dividends for plant and process upgrades but just think both AMD and ATI would both be in profit had they stayed as separate companies.

Working for a company that has recently integrated what was mostly a whole nother company into one, there is an expected dive when it comes to profitability and effeciency.

Once all of the integrations are complete, you should begin to see things picking back up at the normal pace.

Hopefully thats AMD's problem right now, rather.

 

[Polaris573]

Intel should wait a bit for AMD to catch up in terms of performance.

Wow that's a really bad idea, it would set a very dangerous precedent. Why should a superior competitor be shackled by an inferior one? If the economy of the world was run that way, with every company having to wait for their competitors to catch up, all advancement of products and ideas would be slowed to a crawl.

 

[Dippyskoodlez]

Wow that's a really bad idea, it would set a very dangerous precedent. Why should a superior competitor be shackled by an inferior one? If the economy of the world was run that way, with every company having to wait for their competitors to catch up, all advancement of products and ideas would be slowed to a crawl.

I do believe intel knows better.

Their banner is "leap ahead" afterall

 

[Beertintedgoggles]

Well AMD was STUPID not to pounce in the advertising sector at the time of the Prescotts..

My comments on here are usually few and far between, but I have to say I COMPLETELY agree with you here. Even now they still need to get their name out there more to the average Joe consumer. Most people just don't trust a company whose name isn't forced down their throat every time they turn on the TV. Look at what Apple's marketing department did for them with the IPODs. They weren't anything new or innovative. Hell, you even had to use their own proprietary software and AAC files but damn did they know how to sell them (if you ever pay attention to the commercials you'll notice they never show anyone running with them... those internal HD's just love having their heads skip across their platters). But back on topic, I hope AMD gets their shit together. I just don't really see any of their new lines of processors getting them back on top anytime soon and I don't ever see VIA becomming a viable contender for the #1 spot.

 

[Dippyskoodlez]

those internal HD's just love having their heads skip across their platters).

I ran for soccer with my ipod mini, and its harddrive is perfectly fine to this day (4-5 miles/day)

 

[WarEagleAU]

I agree with the advertising comment. Even now, Intel is still out their with their LEAP AHEAD campaign and we all know how apple is doing with the Iphone and Ipod (still). Alot of folks know AMD, but when one company is always shown on TV, we being consumers, tend to have a blind trust for that company. More advertising will help them and indeed, shareholders could let go of some money and let them upgrade their FABS. After all, that is what really will help them in the long run. You cant think shortsighted, if you do, you will never be profitable.


Also, AMDs problem of course, is the merger or acquisition of ATI. I presume that after this year, next years profits will start to go up. Its not all that bad....its just freaks everyone out.

 

[Polaris573]

AMD has always put out quality products regardless of whether Intel's are faster. There is no reason people should fear them. The problem is not that people aren't buying their CPUs. A relatively small amount of people buy individual processors to build their own computers. The problem is companies aren't buying them. Almost all Dell, HP, and Acer computers sold to corporations come with Intel CPUs. The hospital I work for buys HP computers with Pentium Ds. An X2 4000+ is cheaper and faster. The question isn't what is AMD doing wrong, but why would HP buy an inferior processor for more money? It's not good capitalism.

 

[HellasVagabond]

Why would companies pay a bit less and get a CPU a lot slower ? Not a single AMD CPU can overtake the C2D series in both normal and OC speed. Im talking about now and not when phenom comes out but even then Intel has introduced 3 new types of CPUs and not just in the papers like AMD.

 

[Beertintedgoggles]

Why would companies pay a bit less and get a CPU a lot slower ?

The same reason why companies still bought P4 machines when the A64's were faster. Name brand recognition. It happens all the time in all markets. Better quality products and even better prices does not always mean more sales. The vast majority of people are sheep, they'll follow whatever they're told. This is especially true with people who buy pre-built systems who don't know any better and are afraid to choose a lesser known brand (AMD) over the Intel giant.

 

[HellasVagabond]

You took it the other way around buddy

Why would companies pay a bit less ( To get AMD ) and get a CPU a lot slower ( Than the Intel C2D ) ?

 

[Dippyskoodlez]

You took it the other way around buddy

Why would companies pay a bit less ( To get AMD ) and get a CPU a lot slower ( Than the Intel C2D ) ?

No, a lot of companys did in fact buy a boat ton of P4's.

Right before the core duo's came out.
When the A64 was king of the castle.

We've got 700 prescotts.

 

[Beertintedgoggles]

I was just using it as a past example when branding was more important to the masses when buying their PC's. I'd just like to start seeing some AMD commercials... in fact I don't think I've ever seen one. True, most people that frequent tech sights, read hardware reviews, and even those that just research a purchase should know the differences between what's being offered. The sad reality of things is that most people I know if they had to buy a system would automatically buy something with Intel's sticker on it simply because it's Intel. At this point in time that wouldn't necessarily be a bad thing for them either, but I still believe AMD should wake up and see the importance of advertising. Hot babes, loud music, and explosions will sell more shit than a hundred reviews to the uninformed consumer....

 

[HAL7000]

AMD or Intel; well I agree it is all about preference. I hope they both keep going forward for years to come. Having one company monopolize the market is bad for the end user. Remember when Intel’s/ AMD’s prices were outrageous; competition is good for all of us. We all benefit.
I look forward to AMD’s new chips and then Intels as they counter. The lawsuit against Intel should prove interesting as it did in the Japanese market.
Whoever thought that Intel would actually lower prices?

 

[kwchang007]

AMD or Intel; well I agree it is all about preference. I hope they both keep going forward for years to come. Having one company monopolize the market is bad for the end user. Remember when Intel’s/ AMD’s prices were outrageous; competition is good for all of us. We all benefit.
I look forward to AMD’s new chips and then Intels as they counter. The lawsuit against Intel should prove interesting as it did in the Japanese market.
Whoever thought that Intel would actually lower prices?

AMEN to the competition outlook

 

[Darkrealms]

Working for a company that has recently integrated what was mostly a whole nother company into one, there is an expected dive when it comes to profitability and effeciency.

Once all of the integrations are complete, you should begin to see things picking back up at the normal pace.

Hopefully thats AMD's problem right now, rather.

I agree on this note but I don't think this is all of it.

AMD has often catered more to the gamer crowd. For a long time AMD's were: faster, less expensive, hotter, more error prone, and less quality control. I think that has really hurt their industry sales. I know its not true anymore but people have a hard time letting go.
Right now AMD is lagging behind in performance to Intel and the merger has hurt production, short term innovation, equipment tooling, etc in both AMD and ATI.
As far as video cards go I've always like Nvidias drivers better than ATIs. I don't think that ATIs hardware is any worse per say but I think they've always been lacking in the driver department.

 

[Polaris573]

You took it the other way around buddy

Why would companies pay a bit less ( To get AMD ) and get a CPU a lot slower ( Than the Intel C2D ) ?

No you got it backwards. I didn't say anything about Core 2 Duos. I said Pentium Ds, there is a big difference between the two. As we speak the hospital I work for is ordering HP PCs with 3.0Ghz Pentium D processors. So, once again, why would they do that when an Athlon X2 is cheaper and as fast or faster?

Case in Point:

Pentium D

Athlon X2 4400+