January 19th, 2009

Money

Is this the end for AMD?

Chipmaker AMD to Cut 1,100 Jobs, Reduce Salaries (Digital Media Wire)
Following up on its personnel cuts in December, AMD is laying off more people and reducing the pay of those left. Even the bosses, which pretty much screams "emergency!!!11"

On the heels of this, I get the news that Intel cuts prices on some chips up to 48 percent (CNET News). That's pretty much kicking the fallen AMD in the head with an iron boot. While the price cuts can be explained by the market slowdown, the fact remains that Intel has huge cash reserves that AMD does not have. This is the chance of the century to kill off the irritating little competitor and finally get the monopoly that has been hanging just out of reach for so long.

And we know what monopolies do to prices and progress, right?

Of course, governments will interfere to make sure AMD's intellectual property does not fall to Intel, but actually rescuing it will probably not happen. (People are starting to get leery of everything being bailed out with tax money.) So we will have to wait for a new consortium to put the patents to use, which could take some time. Until after the recession, most likely. The question is, is this recession one that ends, or simply a return to reality from a frenzy of imaginary wealth? In the latter case, it could take a long, long time to raise money to compete against Intel. Modern processor production is extremely capital-intensive.
Osaka

I have concluded...

...that sex and high-speed internet access are actually very similar:
Those who can't have them, bemoan their fate and feel mistreated by providence and humans alike.
Those who have unlimited access, use it perhaps half an hour a week.