Monday, May 29, 2006

AMD to expand to 45000 wspm

AMD announced plans to refit FAB30 with 300mm equipement, and expand total 300mm production to 45000wspm. This is capacity for producing 75 million dual core dies per quarter. By converting FAB30 instead of building a new one, AMD saves about 18 months of time.

AMD generated 566 million cash from operations in 1Q06. It should have no problem funding the conversion. (Bulldozer)

4 Comments:

Anonymous Anonymous said...

So, how much of the cpu market could AMD supply with this?

Also, isn't AMD planning to build another fab?

4:07 PM, May 29, 2006  
Anonymous Anonymous said...

So, how much of the cpu market could AMD supply with this?

Hard to say, but at a guess I'd say 50-60%. Maybe 70% if they get really good yields, but it'll probably be a year or two before that can happen.

Of course, this doesn't mean that AMD will suddenly jump to a 50/50 split market with Intel when the upgrades take place. The demand for AMD processors is good, but if it were that good it'd be near damn impossible to get your hands on the ones currently on sale. Unless Conroe turns out to be a flop of unimaginable proportions - and not just Prescott or even Itanium, we're talking and iAPX432 type flop here - I can't see AMD being able to take more than about 30% of the market for the next few years at least.

8:13 AM, May 30, 2006  
Anonymous Anonymous said...

That would be interesting. Having such manufacturing capacity, the supply (the sum of Intel and AMD) will definitely more than the demand.

Result, one of them(or both) will be in big trouble. The time will tell in a couple of years' time.

5:37 PM, May 30, 2006  
Anonymous Anonymous said...

"By converting FAB30 instead of building a new one, AMD saves about 18 months of time."

This is true however by converting Fab 30, they lose the existing Fab30 capacity while they are doing this.

Also folks seem to be missing the time scale for fully ramping to 45000 WSPM - you won't see this actual capacity until at least 2009-2010 timeframe

4:28 PM, June 02, 2006  

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