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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Windsock who wrote (100860)	3/29/2000 11:25:00 PM
From: ajbrenner	Read Replies (1) \| Respond to of 1573841

Re:The Dresden fab has a cost of $1.5 to $2 Billion and it will get depreciated over 3 years." OK, now deduct the the 287 million that the German government has given in direct grants. Recalculate the the depreciation based on 26 years for the building and 3-5 years for the equipment. I think that depreciation will be a lot less then 400 million per quarter. Just my guess. All information was taken from the annual report. ajb

To: Windsock who wrote (100860)	3/29/2000 11:55:00 PM
From: Dan3	Read Replies (2) \| Respond to of 1573841

Re: The Dresden fab has a cost of $1.5 to $2 Billion and it will get depreciated over 3 years.. Jeez, I hate to burst you're little bubble (or do I?) :-) AMD has approximately $800 million of its own money in the Dresden FAB and it's equipment. The rest is gratis the DDR. Depreciation is expected to be 20 to 25 million per year. POP! Dan

To: Windsock who wrote (100860)	3/30/2000 12:10:00 AM
From: hmaly	Respond to of 1573841

Windsock Re..< ....The Dresden fab has a cost of $1.5 to $2 Billion and it will get depreciated over 3 years. If you use $100 million per quarter (>0.60 per share, per Q) then you have $1.2 Billion in depreciation in 3 years. >>>>> Windsock, Bldgs. are depreciated over 30 yrs normally; not 3 yrs. Also, Dresden can produce over 25 million chips / yr. It would only take $15/chip to come up with 1.2 billion over 3 yrs. The copper Tbird should bring in $200/ chip. Whats the problem?

To: Windsock who wrote (100860)	3/30/2000 1:17:00 AM
From: tejek	Respond to of 1573841

The Dresden fab has a cost of $1.5 to $2 Billion and it will get depreciated over 3 years. If you use $100 million per quarter (>0.60 per share, per Q) then you have $1.2 Billion in depreciation in 3 years. Windsock, Before you continue to follow Engel's lead, think about what you are saying. Do you honestly think that the Saxony state government would structure a deal that may cause AMD to get into financial difficulty and fail. The Saxony gov't's intent is not to bring AMD down but to provide high tech employment for the many former DDR citizens out of work and to develop Dresden into a high tech center for all of Germany. Now do you think that the onerous dealpoints that you discuss above would be included in any such an arrangement with AMD? I think not. ted