AMD is in real cash crisis probably the
worst one in the history of the company. It is not the acquisition of ATI that
caused it, it is because its Barcelona is heavily delayed and that the average
selling price of CPUs really went to toilet and Intel has clearly better
product on market for almost a year now.
AMD even consider selling its Dresden FAB,
at least part of it if not both of them to TSMC and the Taiwanese chip
semiconductor manufacturer was interested but the investors said the big no to
such a deal.
If AMD would sell Dresden than it would not
have any property that could be sold in case that company goes down and AMD is
already billions in debts as we speak. So no assets means that company value is
really questionable and Morgan Stanley and some other financial houses who
helped AMD to find the money to buy ATI in the first place vetoed such a deal.
So Dresden stays in AMD's hands but we will
listen carefully what ATI has to say about its Q2 profits later today as we already
stated here that AMD is about to lose a lot of money.
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