Rising chip sales narrow AMD loss

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What they need to do...

Sell their production capacity then bring on board UMC and TSMC to manufacturer their products. This will reduce their overhead costs putting them in a much better position if there is a down turn in the future meaning that they won't end up with excess capacity sitting idle and consuming money.

These days, it is very hard for one to justify having their own capacity. Just look at recent and succcessful examples. The video card producers now simply push their designs to chip fabs and let them produce it. IBM performs R&D and makes money off technologies that spawn off their IP.

The days of being the chip designer and producer are long gone.

SUN is another company who doesn't get it. Why on gods green earth do they produce their hardware when they should be outsourcing production to a country with cheaper labour. Get UMC and TSMC to produce SPARC processors and assemble the system in China for export to anywhere around the world.

At the end of the day, the only thing that should be done at SUN's "shop" is chip design, chip design and software production. That is it.

Posted by: CooCooCaChoo   Posted on: 10/17/03 You are currently: a Guest | Members login | Terms of Use

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