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

To: Elmer Phud who wrote (148662)	1/21/2005 2:28:41 PM
From: AK2004	Read Replies (2) \| Respond to of 275872

Elmer re: but that's a whole other argument no it is not, if you think that fixed costs has no affect on your PM then you are mistaken.... re: I believe it does and some would disagree with you. If you are right about tripling the cost then dual core variable cost would be $45. And the fixed cost is not more than 1/3 of total cost "Well, if you look at the direct wafer cost, it's not a whole heck of a lot. Assuming you get a decent yield, on 200mm wafers, with a ~150mm square die like Northwood, on a .13micron process, enough business to keep the fab busy, it's about $25 in material and labour to make each Nortie. For Prescott, Intel has moved pretty much across the board to 300mm wafers, and of course 90nm technology. With Prescott also being smaller, at 110mm square, the costs are down to about 15 bucks more or less to make one CPU. But that's not counting R&D, or advertising, or the cost of making the fab in the first place (which is billions and billions)." forums.devhardware.com -AK