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Politics : Formerly About Advanced Micro Devices
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To: kash johal who wrote (45473)1/11/1999 8:08:00 PM
From: Saturn V  Read Replies (3) of 1572056
 
Ref: Depreciation
Kash, you and John are making crude assumptions and arriving at wild conclusions. You guys made a wild guess that Intel entire depreciation expense is for Wafer Fab equipment alone, as if there no other equipment to be depreciated. What about chip assembly plants and cartridge assembly plants and test plants ? Remember that a microprocessor tester costs almost two million dollars, has a useful life of a few years. Thus it costs $10+ to test a part ,and most of it is all depreciation expense.

Given Intel's economy of scale, I wont be surprised if Intel's wafer cost is significantly below $2000 even after depreciation.
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