Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 210.78

-4.8%

Dec 12 9:30 AM EST

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To: David Pletcher who wrote (133699)	9/24/2004 2:43:58 PM
From: Petz	Read Replies (1) of 275872

re:<production cost on 130nm vs. 90nm> OPPORTUNITY COST is just as important. Even if 130nm is "cheaper" production-wise, because of depriated equipment, etc, you only have a limited production capacity. You don't want to use 50% of your fab to produce your budget chips, you'd be better off using just 30% of your fab, even if it costs 10% more to make them that way! Because, now you can make 40% more high-end chips! So the extra profit you forgo by using 130nm is what I refer to as OPPORTUNITY COST. PS - sorry if this seems redundant, I still have 70 posts to catch up. Petz

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