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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (169757)	8/22/2002 11:57:07 AM
From: Charles Gryba	Read Replies (1) \| Respond to of 186894

JOhn, the AMD rep said it added an extra day to the production of a TBred. If we only knew how many total days it takes to produce one! C

To: Road Walker who wrote (169757)	8/22/2002 12:17:37 PM
From: Joe NYC	Respond to of 186894

John, Can you quantify "noise" in dollar terms? In a demand limited situation (oversupply), my guess is around $1M, if anything, which is nothing compared to what a more desirable chip can do in terms of additional units and ASPs. Those are the only things (hither units, higher ASPs) that can turn around the huge losses, extra $1M is nothing to 100s of millions of current losses. But you are discounting a future recovery in AMD's profits, when COGS would have a significant impact. The costs are limited to labor (which can either work more or play frisbee with blank wafers in the fab - remember, AMD has been demand limited, and you probably can't lay off the fab employees in Germany, when things slow down), cost of blank wafers, processing materials, which are low single $ digits per CPU, potentially lower yield means nothing if you are up to your ears in CPU die. All the equipment in the fab and the building itself are fixed cost. Joe