Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 217.54

+1.5%

Nov 28 12:59 PM EST

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To: wanna_bmw who wrote (76140)	4/2/2002 12:44:59 AM
From: Bill Jackson	Read Replies (1) of 275872

wbmw, Sounds like you need an economics professor. Businesses want the fastest possible depreciation.100% first year is best, 120% even better(it happens as an incentive) In the semi business we are constantly faced with a need to depreciate the fab in real terms. 5 year old fabs have little resale value, except for the structure and some of the infrastructure. The computer business is just as bad. 5 year old desktops are scrap. They cost $5000 new and now are woth $100 after 3 years, yet only 60% depreciated. So they get scrapped and written off all at once, no big deal. True there is some value in old 100Mm fabs for some companies, but not for Intel/AMD. Bill

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