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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.56+0.2%3:59 PM EST
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To: Tony Viola who wrote (75352)3/22/2002 3:50:11 PM
From: AK2004Read Replies (2) of 275872
 
Toni
not at all. The bottom line is what you spend to make one chip that you can sell. The mechanics of the cost is irrelevant and you are talking about the mechanics.
Make sense, no?

illustration:
market buys 100M/year
your current capacity is 150M/year
you decide to invest 7.5B to increase capacity (better yields, more fabs) to 450M/year
now you can make 350M key-chains with intel inside
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