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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 252.25+0.9%Nov 28 9:30 AM EST

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To: Jeffry K. Smith who wrote (24610)10/13/2010 12:03:58 AM
From: etchmeister   of 25522
 
Sandy bridge combines CPU and GPU into one chip:
Uche Orji – UBS

Great. Just one more follow-up, when I think about Sandy Bridge, one of the things happen when you introduce a product like this is the die area [ph] tends to increase and so contemplated COGS would go up. So, in addition to 22 nanometers of cost, should we expect a big step-up in costs regarding Sandy Bridge, and consequently do you think that a feature you are adding is going to give enough ASP boost, so that the margins are at least neutral in that space? And also you talked about fast ramp, when should we – when we think this should be more than 50% of your output?

Stacy Smith

No, I don’t think we have said that, and I would say yes, but to your die size question, I will just refer you back to the investor meeting. I actually showed some die size projections out in time, and what you see is that as we move the graphic transistors to the CPU, we reduce the chipset die size, we increase the CPU die size, but we get a much bigger performance boost as a result of that. So, I think we can keep our costs nice and under control with Sandy Bridge and the performance boost will keep that to be a very positive margin product for us. So, I don’t expect Sandy Bridge to be margin challenged in any way.
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