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Thursday, November 29, 2007
AMD Sees Chip Market Pricing Remaining Competitive

AMD sees pricing in the chip market remaining competitive, and aims to return to profitability soon, Chief Executive Hector Ruiz said on Thursday.

AMD, the No. 2 maker of computer processors, controls about a fifth of the market for the CPUs.

It has been locked in a price war with market leader Intel and has reported four straight quarters of net losses.

"The good news is that for consumers, prices keep going down," Ruiz told reporters after inaugurating a research and development facility in Bangalore, India's technology hub.

"The bad news is, we always have to figure out how to still do that and hopefully make money. It's a very competitive industry and I don't see pricing being anything but competitive in any segment in this industry," he said.

Last month, AMD posted a smaller-than-expected quarterly loss of $396 million on higher sales of microprocessors for notebook computers and signaled the brutal price war with larger rival Intel had abated.

Ruiz said AMD aimed to return to profitability soon.

AMD is a technical partner in Indian semiconductor consortium SemIndia, which plans to set up a chip-making facility with an investment of $3 billion over the next five years. Intel had initially shown interest in making chips in India, but pulled out due to delays in India releasing its guidelines.

Engineering staffs in Bangalore's engineering dacility are playing the lead role on "Shanghai," AMD?s first 45nm quad-core microprocessor, and are currently involved in design testing and optimization of the new chip. Prior to their efforts on "Shanghai," teams were responsible for delivering key intellectual property (IP) for the first Quad-Core AMD Opteron microprocessor, previously codenamed "Barcelona."

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