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To: Elmer Phud who wrote (148709)	1/22/2005 1:31:57 AM
From: Petz	Read Replies (1) \| Respond to of 275872

duplicate

To: Elmer Phud who wrote (148709)	1/22/2005 1:34:05 AM
From: Petz	Respond to of 275872

Elmer, I only assigned 70% of depreciation to CPUs. As you know, chipsets are mostly made in fully deprecitated fabs, and everything other than ICG is less than 20% of Intel, so I think that's a fair number. I'd accept 70% as a fair number for AMD also, despite the fact that Flash is a much bigger proportion of income than "everything except CPUs" is at Intel. I get $29 per average CPU at AMD using a conservative estimate of 8M CPUs and their $329Mx70% depreciation in Q4 2004. That compares with $19/average CPU at Intel and $52 for the dual core Smithfields. So fab depreciation is by far a more important cost than direct costs of $2,500 per wafer that you used. Petz