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

To: Elmer Phud who wrote (138183)	10/29/2004 8:28:17 PM
From: Dan3	Respond to of 275872

Re: Dothan is 84mm2 Kerf means that it takes up about 100mm2 of wafer space. But here are the real shockers - FABs aren't free and designs cost money too. Intel spends about $4 Billion on FABs that are necessary only for leading edge CPUs (otherwise they'd just buy their processed wafers from UMC). That adds $22 to the cost of each chip. These things have to be designed, too. That adds another $10 or so. Intel's big worry right now is that when buyers spend $200 on a chip, they're often willing to spend another $120 on an Intel branded motherboard (that Intel buys from a manufacturer in Taiwan for $30, after taking into account that $40 of the board costs is the Intel chipset). When buyers get down to the $90 CPU range, they're only willing to spend $80 on the motherboard - which means a VIA chipset and another $60 of Intel profit lost.