AMD ramped up Fab 36 too slowly?
An analyst quoted by EE
Times is claiming that AMD ramped its new Fab 36 slower than
previously anticipated. The analyst points to AMD's depreciation
guidance, which is projected to be $38.5 million higher in the middle of
the year than what the company claimed.
"We believe that this means AMD ramped Fab 36 slower than expected and
that this will be viewed in one of two ways. Either the ramp has gone
slowly as a result of poor execution ... or management was being
conservative in previous guidance by giving a large depreciation number,
and after the fab began producing mature yields at a quick pace, demand
did not warrant further equipment start-up until later in the year," he
"The later seems more plausible as the full-year depreciation guidance
remained unchanged, and further equipment purchases will be made in the
back half of the year," he added.
Yesterday, AMD reported great first quarter
, but said second quarter sales would be "flat to slightly
down" from the start of the year. The company did make a big announcement
about its first revenue
shipments from Fab 36, though, saying it had ramped volume production at
Fab 36 "in record time, hitting every major milestone on schedule and
beginning production at mature yields."