Entirely outsourcing the manufacturing of Barcelona chips??? That doesn't bode well that they have to outsource the manufacturing of their soon-to-be flagship chip. And the fabs at Dresden are supposed to be more state-of-the-art than most other fabs in the world..... huh....
INTEL SHARES rose sharply after analysts at Goldman Sachs voted it a buy but contrasted it with AMD.
At close of play yesterday, INTC stood at $24 up from yesterday's opening of $23.23 while AMD stood at $13.63, down from its opening figure of $13.85.
Goldmine reckons that AMD stands to suffer because it will have to outsource its production while Intel doesn't need to take that route.
What Goldmine means by this is not entirely clear - AMD has officially denied that it will have to use IBM to fab out its Barcelona chips. It has a relationship with Chartered but that deal seems to be ticking over rather than showing much signs of accelerating.
The possibility of AMD entirely outsourcing its manufacturing has been floated. But AMD has a very high skilled set of engineers and designers in Dresden. Who could fab the X86 designs for them? IBM? Intel? Âµ