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Politics : Formerly About Advanced Micro Devices

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To: Maxwell who wrote (41057)	11/8/1998 11:56:00 AM
From: Elmer	Read Replies (1) of 1573927

Re: "Is this because of the yield crash at gate oxide due to Engel's buddy screwed up? Supply of CeleronA is short these days. I called up my Intel's friend and he said Celeron yield is in the low 70s." 70s, really? I'm shocked. I didn't realize it was that high... Let's assume you are correct. At $1800 a wafer that would give a die cost of about $25.75. Add about $10 for packaging and maybe $1 for testing and 90% final test yield, that would give a total cost of ~$41. With Celerons selling for > $100 Intel is making a great margin!!! I think your yield numbers must be too high Maxwell. Everyone is saying Intel's cost is $70-80. I think your friend is feeding you false info. At that rate Intel could really kick AMD's but on the lowend if they wanted to. Everyone knows the K6 is cheaper than the Celeron to produce so at < $41 AMD would be making serious money here, unless of course the K6 yield was quite a bit lower...... I don't remember seeing AMD post huge profits. Why would that be Maxwell???? EP

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