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Technology Stocks : Intel Corporation (INTC)

INTC 34.50

+2.6%

Nov 21 9:30 AM EST

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To: Diamond Jim who wrote (52432)	4/9/1998 12:53:00 AM
From: ed	Read Replies (3) of 186894

If the yield of AMD's .35 um process on k6 is 50%, then its cost of dies (not including employee salary and operation cost) will be close to $7 per die, and add on $25 for package and test, the cost of assembled unit will be $32 per CPU. Let's add up 30% per unit for employee salary and operation cost, and 30% per unit for fab depreciation cost, the total cost per unit will be around $50 per CPU. With selling price of $80, which is 60% of net profit margin, I did not see AMD anywhere from bankruptcy. AMD's CPU's business will make it tons of money, the problem is its business of other product lines.

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