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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (40489)	5/18/2001 9:02:47 PM
From: THE WATSONYOUTH	Read Replies (2) \| Respond to of 275872

Back in August 2000, MicroDesign Resources published a chart of workstation processors. In it, the PPGA Coppermine is listed as having a die size of 106 mm2 and an estimated manufacturing cost of $40. It's kind of hard to drive that cost down to a point where a price of $30 would lead to profits. I can assure you that they are off by a mile. It costs Intel (as it does nearly everyone else) less than $2000 (not including depreciation) to process a wafer thru their 6 level metal process. I think P3 is somewhat less than 100mm2 (97mm2) on its last process iteration. That probably means about 270 chips per wafer of which (with 70% yield) you would expect about 190 good die per wafer. Thus, their cost is under $10 per chip. Even if it costs $10 per chip for packaging, that only comes to $20 per chip. Of course, if you want to confirm that Intel's yield is only 35%, then a $30 cost would be possible. THE WATSONYOUTH