Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 223.54

-2.9%

3:59 PM EST

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To: kash johal who wrote (37782)	4/30/2001 1:17:57 AM
From: Petz	Read Replies (1) of 275872

kash, you oversimplified the financials in saying P4 makes more profit than P3. When making P4's, Intel's depreciation and MG&A expense have to be spread across far fewer chips than would be possible with the P3. Just considering raw materials and direct labor to make the P4 vs. the P3, you are right about the cost. And there is no way a 1.3 and 1.4 GHz P4 will have an ASP higher than $160. I read someplace that the Rambus rebates are NOT ending until Q3. Finally, there is another factor in that the P4 has more layers and requires more processing steps. Therefore, a fab that can normally process 5,000 wafers per week on the P3 process may not be able to process 5,000 wafers per week when making P4's, just because the "assembly line" for the P4 is longer and all the equipment for 5,000 WPW of processing steps might not fit in the fab. Petz

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