Jim,
Tenchustsu, I'll call you Ten for short it that's OK.
Sure, it's OK with me, as long as I get to call you Jim. :-)
All right, I'll buy the argument that materials-wise, K6-2 will be $35, and Mendocino Celeron will be $51. But isn't the cost of making these chips much more than just the cost of materials? The whole picture can get very complicated. I just think your estimations grossly oversimplify the whole situation. Arguing that AMD will enjoy close to 80% profit margins because of die-size alone doesn't make any sense.
Come to think of it, AMD needs to have a smaller die-size, and not just because of the cost savings. AMD currently doesn't have the production capacity that Intel enjoys, so it has to utilize every square inch of silicon for what its worth. Thanks to economies of scale, Intel can afford to have a larger die size. That's why AMD chose a more difficult process to achieve a smaller die size. (Please correct me if I'm wrong. I feel like I could be way off-base with my argument here, and I don't want to be just another flamer, like some guy "who loves Cyrix innovations.")
By the way, I've got a friend who works for Wacker Siltronic. If you want, I can ask him the current market price for 8" wafers. |
