Larry - Re: " While AMD's variable cost per die (as opposed to cost per good die) is lower than Intel's (because their die are smaller due to the 5 metal layer process).."
Unfortunately for AMD, this isn't quite so.
True, the K6 at 168 sq. mm is smaller than a Pentium II at 203 sq. mm (both at 0.35 microns), but AMD's K6 competes with Intel's Pentium MMX in performance and, by necesssity, price.
Intel's Pentium MMX is 128 sq. mm. and has a HUGE cost advantage over AMD because the 0.35 micron process used by Intel has been in production for nearly 2 1/2 years.
That results in a TRIPLE WHAMMY for AMD: Larger Die Size, POORER yields, and 25% less ASP.
Hence, Intel earned $1,570,000,000 this quarter.
AMD lost $67,000,000 (Before a tax credit).
Paul |
