Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Higgs Boson who wrote (33605)	6/28/1998 1:28:00 PM
From: kash johal	Read Replies (1) of 1583406

The current market price for 0.25 micron 5LM from TSMC is in the $2000-$2500 range. Their actual costs are in the range of $1000-$1200. FYI 0.35 Micron wafers are going for $1100-1200 per wafer (market price). Intel runs more expensive equipment, however their volumes are much higher and their process development costs are spread over much higher volume of devices. The bottom line is that the silicon is almost for free. Compared to other costs such as PKG/TEST, R&D etc. It would be inconcievable to me that INTC's wafer cost would be higher than $2500 even with very high depreciation. Regards, Kash

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