Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 223.47

+1.1%

3:57 PM EST

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To: AK2004 who wrote (148637)	1/21/2005 12:17:43 PM
From: Joe NYC	Read Replies (1) of 275872

Albert, $50 seems like a good ballpark as far as manufacturing of a processor (including silicon processing, packaging and testing). Single core may be a little less, dual core (especially big Smithfiel) will be a little more. AMD survives by selling chips for $70 to $80, even makes profit. Above this price, everything is basically gravy. As far as what exactly the silicon is does not matter a great deal. Packaging costs stay pretty much the same, so only the fraction of the cost - silicon varies. So for Intel it doesn't really mater what the silicon is. Only thing that matters is to get just about all of the gravy (sell almost all processors >$100 price range), and give hard time to potential competitors with Celeron (with prices of < $100, and much lower profitability or loss). Joe

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