AMD offers 4Q guidance, stakes 300mm territory

November 17, 2003 – At its annual analyst meeting, AMD, Sunnyvale, CA, said it expects to report higher 4Q sales for both chips and flash memory, thanks to increased consumer and corporate spending.

CEO Hector Ruiz said the fourth fiscal quarter is typically strong, but this year’s 4Q sales should be higher both sequentially and year-on-year, according to Reuters. Ruiz also hinted that capacity, under pressure from renewed corporate IT investments, may soon be pushed to the limit. “There is a potential in the next couple of quarters that we could see a mini-boom because of pent-up demand,” he said.

Also at the analyst meeting, CFO Bob Rivet revealed that AMD has delayed its transition from 130nm to 90nm process production from 1H02 to 2H02, according to CBS Marketwatch. AMD has said it expects to utilize 300mm wafers with 65nm-and-below process technologies by 2005 or 2006. In addition, Bill Siegle, senior VP of technology, revealed that AMD has selected an undisclosed site for its future 300mm plant, with an estimated price tag between $2-$3 billion. AMD is expected to announce details later this quarter.

And in a filing with the SEC, AMD revealed financial details of its 60% ownership stake in FASL LLC, a JV with Fujitsu to make memory chips. The investment cost $264 million, mostly in noncash assets including a fabrication plant, as well as a $120 million loan, according to Reuters.


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