To: pgerassi who wrote (133798 ) 5/1/2001 3:08:03 AM From: semiconeng Read Replies (1) | Respond to of 186894 When does Intel begin depreciation of a FAB. I understand that AMD does it upon production start. If the same policy is done at Intel, then the last plant put into service at Intel due to the "Copy Exact" policy, means that the equipment may be obsolete well before the allotted time. Thus the last 0.18u plant is not going to be as valued as the first plant both at the time of intro and will be obsolescent much sooner far shorter than the 2-4 year timeline given by the government. Since each AMD plant is different, the latter plants are more likely to hold value as their equipment is more current than the old ones. This is probably the hidden downside of the copy exact philosophy. Pete Rediculous. Your assumption that semiconductor Manufacturing equipment becomes "obsolete" in 2-4 years shows that you have no idea whatsoever concerning the usable lifetime of semiconductor manufacturing equipment. It may interest you to know that semiconductor manufacturing equipment that was originally designed for use in 0.35u Process is still in use today. Not every layer in the manufacturing process requires "state of the art" equipment, and when a Fab is converted over to a new process, typically >70% of the equipment from the previous process can be reused. I might also point out that intels Copy EXACTLY (at least try and get the name right), also allows "cross site processing" between Fabs. If some particular problem arises in a specific "copy exactly" Fab, the partially processed wafers can be shipped to any other Copy Exactly Fab, and the wafers can continue manufacturing in that other fab on the EXACT same equipment, while the problem in the first Fab is resolved. If AMD has a problem in either of their Fabs, Production is negatively impacted until the problem can be resolved. Semi