SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Yousef who wrote (45411)1/11/1999 1:27:00 AM
From: Petz  Read Replies (1) of 1581912
 
Yousef, re:<Depreciation for Land&Building (typically on longer depreciation schedules ... 10 yrs) are not included.>

Depreciation of land and buildings doesn't amount to diddly-squat because the schedule (actually 10-30 yrs) is so long. The vast majority of depreciation in any semi company's P&L statement is related to semiconductor processing equipment. The $2,000/wafer cost is referred to as "wafer cost" for a reason -- it ONLY includes the direct cost of producing finished wafers. Depreciation is NOT included in wafer cost because depreciation does not go up or down depending on how many wafers a fab is processing. LABOR costs are directly proportional to the number of wafers processed. COST OF MATERIALS is directly proportional to the number of wafers processed. (My $500 number is probably obsolete from the Japanese fire/wafer shortage era.)

BTW, I use $2,500/wafer to estimate the direct costs for AMD, since there are more processing steps in AMD's process, requiring more labor cost.

Petz
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News