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Politics : Formerly About Advanced Micro Devices

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To: Petz who wrote (32763)5/18/1998 3:40:00 PM
From: Paul Engel  Read Replies (1) of 1571805
 
Petz - Re: ". They have to amortize $2B fab cost for making the SRAM's as well as fab for making the P2 die."

You just have no understanding of the business!

Intel is using their 0.35 micron process lines to manufacture the 450 MHz SRAMS used for the Pentium Xeon.

These lines have been in production since mid 1995, and have been cranking out Pentium/Pentium MMX and Pentium II's.

Thus, they are 75% or more DEPRECIATED!

Using them to produce state-of-the-art SRAMs allows Intel to use plant and capacity that is already in place, fully functional, running EXCEPTIONALLY HIGH YIELDS!

Result - very cost effective SRAMs!

AMD, on the other hand, has to obsolete a lot of their 0.35 micron equipment since they have nothing else to run on it! They did the same thing with their original 0.5 micron process in Fab 25.

Paul
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