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To: d[-_-]b who wrote (83485)6/15/1999 11:31:00 AM
From: Burt Masnick  Read Replies (1) | Respond to of 186894
 
Re:"The smaller process (0.18) produces more dice per wafer, thus lowering Intels cost, thus raising ASP's."

I am quite sure that producing more dice per wafer reduces cost per die. I am confused about how that raises ASP's. I suspect you meant to say that it increases profit per die produced due to the lower cost at the same price or allows you to sell more by lowering price due to lowered cost.

Regards,
Burt



To: d[-_-]b who wrote (83485)6/15/1999 12:25:00 PM
From: nihil  Read Replies (1) | Respond to of 186894
 
Lower costs will initially leave ASP's unaffected. By permitting lower prices, lower costs eventually enable reduced ASP's without necessarily reducing gross margin rates or dollars.


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