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

To: TGPTNDR who wrote (195212)	4/27/2006 7:46:41 AM
From: Rink	Read Replies (1) \| Respond to of 275872

TGP, it is my understanding that depreciation starts the moment volume production starts (not when output starts shipping for revenue). Fab 36 has been in volume production most of Q1 in order to have shipments end of march like has been made public. Hence depreciation of the building should be in the earnings statement for about all of the quarter, and the used equipment for the part of the quarter since it started being used for volume production. This is in line with the quote from Rivet that Petz posted. Depreciation of fab 36 will rise with more equipment being put into production. I don't know about the details either, just think I got the above correctly. Regards, Rink