Steve:
I think you realize that there are several factors will have impacts on AMD's die cost:
1) the yield.
2) The equipment depreciation
3) the technology (die size)
Let say based on a 75% wafer sort yield, INTC's cost per die is $65 for PII 233 Mhz die
, let assume AMD and INTC are exactly the same as far as factor 1) 2) 3) are concerned,
so if INTC set the PII 233 Mhrz price to be $100, then AMD can only sell for $75 for
similar chip, Since AMD's die cost is $65 (assume the same as INTC, but in reality it is
not), if we add up $25 per chip for package and testing, then AMD's cost per chip is
$90, so each Chip AMD sold, AMD will lose $15, that is why I said, based on AMD and INTC's current strategy, the MORE AMD sold , the more it will lose. That is another
weason I said before AMD may file bankruptcy in 1998 or 1999. I do not think any company
can lose like this for long, especially for company like AMD which need to invest a lot in FABs and R & D to compete but with a shallow pocket !!!!!! I think AMD 's yield
probably is much worse han 75%, maybe 30% to 50% !!!!!!!!!!!! |
