Thursday, February 28, 2008

India's Chip-fabbing Hopes Fade, But Reliance Could Buy AMD


India's prospects for chip manufacturing are fading.

Apparently, investing in chip fab plants is too expensive and risky in the Indian environment. However, the financially struggling AMD with its many chip plants in various other countries, may be a lucrative takeover target. From the article:

The $25-billion conglomerate Reliance or other deep- pocketed suitors may also be considering a buyout of ailing chip makers like AMD, say industry observers.


I'd say that even despite their current financial troubles, this is a stock worth buying into, because their stock price is quite low right now (down from $40 in 2005), and it's a ripe target for a foreign takeover. After that, with the right financing, it would have nowhere to go but up.

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