Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.76

-1.1%

Nov 21 9:30 AM EST

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To: Road Walker who wrote (36117)	4/17/2001 6:38:34 PM
From: Joe NYC	Read Replies (3) of 275872

John, Suppose Intel has capacity to build 150M processors. Now they will invest in .13u, lower the unit manufacturing costs by 1/3 and double capacity to 300M processors. So now Intel has capacity to build 300M processors, and costs like the old costs to build 200M processors. But suppose they only sell 150M processors. The costs will actually go up by 1/3, not down. Doesn't it seem to you that this is happening? Joe

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