Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 207.67

+2.2%

Jan 12 3:59 PM EST

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To: dale_laroy who wrote (48736)	7/23/2001 2:24:13 PM
From: Paul Engel	Read Replies (2) of 275872

Re: "If a company like AMD depreciates their plant over 5 years, this may be accounting that reflects reality because AMD actually uses their plants for more than 5 years." HOG WASH !!! First, the bricks & mortar are depreciated at one rate - about 20 years - and the equipment at another rate - possibly as little as 5 years. Now - take AMD's fabs- Fab 25 was started out as a 0.5 micron fab in 1995 - and because of the K5 disaster, it had to be converted RAPIDLY to 0.35 processing. When the K6 arrived at 0.35 micron, it had a limited scalability and once again Fab 25 had to be UPGRADED to 0.25 micron in 1998 !! Then, after the AThWiper was introduced in 1999 at 0.25 micron, Fab 25 had to be UPGRADED once again to 0.18 micron. I'll let you fill in the blanks on FAB 30 and how it had to be upgraded from aluminum to copper before it even got off the ground ! FACT - AMD RUNS THROUGH PROCESS AND EQUIPMENT CHANGES FASTER THAN INTEL and incurs - on a per fab basis - FASTER DEPRECIATION than Intel

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