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Politics : Formerly About Advanced Micro Devices
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To: Yousef who wrote (45411)1/11/1999 3:07:00 AM
From: Craig Freeman  Read Replies (1) of 1583396
 
Yousef, re:. "Depreciation for Land&Building" Land is not a depreciable asset unless you expect it to be covered by water in the near future or otherwise "consumed". But Fab "buildings" suspended on springs and such are VERY expensive. Depreciation would significantly increase your cost per wafer computations.

For example, AMD's Fab25 cost $1.5B to build and maxes out at 250,000 wafers per year. That adds $600 per wafer at 100% utilization over 10 years (an extremely optimistic scenario ... even for Intel).

Craig
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