Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 249.66

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To: dougSF30 who wrote (237752)	7/31/2007 1:38:42 AM
From: Petz	Read Replies (3) of 275872

re: More fantastical assertions! Can you establish any of them? I said, A wafer out with 200 good CPU's doesn't result in a sale of 200 CPU's until 8 weeks later. It has to be packaged, tested, and then sits in inventory for awhile. Try looking at the ratio of finished goods inventory to Cost of Sales. For Intel we have Finished Goods Inventory at end of Q2: 1481 Cost of Sales for Q2: 4605 Inventory is FIFO -- AMD or Intel will obviously sell the oldest parts before the newest parts, so 13 x 1481/4605 is the average number of weeks a freshly minted CPU sits in inventory. A little over 4 weeks. For AMD at the end of Q1 the finished goods inventory was 5.6 weeks deep; the Q2 numbers are not available yet. But before that you need 2 weeks minimum for cutting into dice, packaging and testing. So a total lag time of 6 to 8 weeks is indicated. Obviously an average. Parts in light/heavy demand relative to production will sit in inventory more or less time. PS - still awaiting your estimate of Intel yields based on a comparison of fab clean space square footage. Feel free to add the average chipset die size to the average CPU die size. Petz

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