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

To: Tenchusatsu who wrote (181260)	5/19/2005 3:03:13 AM
From: Elmer Phud	Respond to of 186894

Ten Just out of curiosity I ran some numbers to try and determine the affect of Intel improving their yields from what is already "world class" by their own claim. "World Class" yields are typically considered to be .25 Defects per cm2. For the Dothan die that would yield almost 600 die per wafer out of about 737 possible candidates assuming Intel's claims are accurate. If we assume $1800 for a processed 300mm wafer the difference between where Intel's yields are today (based on their claim of "world class yields") and perfect yield (100%) would amount to only about $0.55 per die. The law of diminishing returns shows that it probably makes no sense to spend any more money to try to improve yields when only pennies are left to be had and ASPs are far more important in determining margins. In other words, Intel's yields are as good as it makes sense to get.