Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: THE WATSONYOUTH who wrote (40503)	5/18/2001 9:21:09 PM
From: Jim McMannis	Respond to of 275872

RE:"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" Thank you Watson...that's about what I figured... $20-30 depending on what you add in. Yields are bound to be pretty good at 733 Mhz aren't they? DO you think the XBOX cpu is a special die? Different pin out so they wouldn't go in an ordinary mobo? Intel wouldn't want those to make it out on the grey market like Cyrix had IBM do would they? lol. Jim

To: THE WATSONYOUTH who wrote (40503)	5/19/2001 3:58:41 AM
From: Petz	Respond to of 275872

TWY, that $10 cost is only for the silicon die. Testing and packaging probably add $15 minimum. But the $30 was only a wild guess. If it's $40 they are certainly capable of making a profit on them, although the opportunity cost of using Fab space to make such low-margin items probably means that Intel would be better off without XBox. The only saving grace would be that gameware companies will be optimizing for SSE, but even that is now a non-issue. Petz