AMD Announces Restructure Plans Due To Q1 2008 Loss
Advanced Micro Devices, Inc. (AMD), is a major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. I was surprised to read the news that AMD have been facing financial trouble considering that it’s one of the giants in the microprocessor industry next to arch rival Intel Corporation.
It would be noted that the total market for microprocessors racked up $225 billion in sales for last year 2007. The stakes are high for both Intel and AMD which are both vying to get the a strong hold of the market. AMD have a long standing difficulty in expanding into market due to alleged unfair business practice of excluding its main rival from the market through illegally paying big manufacturing companies. Thus, Intel currently owns about 80 – 90 percent of the microprocessor market.
AMD have posted a $358 Million loss for the first quarter of 2008 and with this kind of loss many people are leaving. Debt Consolidation Loan could be an option in the restructuring plan which will start a recovery process. The recent developments with the U.S. Federal Trade Commission (FTC) investigating Intel for violation of antitrust law is a positive note to the dying AMD. This is the only hope that AMD could have to stop the decline through a court victory over Intel which could take years.
Posted on
Saturday, June 28th, 2008 at 12:48 pm under 