TG Daily: How long, do you think, will dual-processors be able to deliver enough performance to satisfy customers?
Allen: We target the introduction of multicore in the 2007 time frame. 2006 will be a year of significant transition from single-core to dual-core and we expect the majority of customers purchasing dual-core systems this year. In 2007, the transition to multi-core will begin.

TG Daily: How do you view AMD's progress in improving the power consumption of processors? Do you already offer a reasonable level or do you see power consumption decreasing over time?
Allen: We currently offer Opteron processors that at 68W, a 95W and 120W. This basically allows people to trade off performance versus power. The folks who don't have the power delivery and heat removal that is required for a 120W part can go with a 95W processor. Those guys who try to get very dense are going to choose the 68W chip over the 95W and 120W CPU every time. The question is not so much 'What is the right power point?' but rather that you should provide a broad product portfolio so that those individual users and OEM's can make those choices for the particular market segment they are targeting.

TG Daily: ... which means power consumption level will not decrease?
Allen: Our approach is to largely deliver ever increasing levels of performance within the same power budgets and thermal requirements. Of course we always listen to our customers, but in general we believe that we offer nice power points and we will continue to innovate in those.

TG Daily: What priority has your 65 nm transition at this time?
Allen: 65 nm is critical as we look into the long term. It's going to allow us to reduce cost for our products. But more importantly, from the view of the market share gains we are seeing, it allows us to increase the capacity in our fabs. Right now, our 65 nm program is on track. We will be delivering 65 nm production by the end of this year. Interestingly, customers do not care if their processors are 90 nm or 65 nm; they care about product features. That said, we are delighted about the progress we are seeing from our new Fab 36. It will start initial production this quarter and it will transition to 65 production by the end of the year.

TG Daily: Compared to Intel, AMD will be just about one year behind in the 65 nm space. What disadvantages does that imply for your company?
Allen: 65nm will deliver a cost advantage over time, when the technology matures. AMD has been very successful at being very aggressive in terms of our ramp from one technology to the other. The key point is not so much when you introduce the technology, but at what point you are hitting a crossover - when the majority of your production runs at new technology. What technology you are running is a clear secondary issue, relative to the product attributes.

TG Daily: What will be your most important challenge over the next 12 months?
Allen: This clearly will be to flawlessly execute the roadmap that we have shared with our partners. If we can just do what we said we are going to do, then OEMs are ready and rolling to increase their commitment to Opteron, Turion and Athlon 64. Execution means execution on our DDR2 transition across our product lines, it's about Fab 36 getting to the capacity we need, and it's about the transition from 90 to 65 nm. We have a great product family, a great processor. We just need to stay the course.