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

To: AK2004 who wrote (200823)	6/7/2006 9:56:18 AM
From: Sarmad Y. Hermiz	Read Replies (4) \| Respond to of 275872

AK, regarding price drops. There was an Intel paper a year or two ago comparing production cost in 200mm fabs and 300 mm fabs. It claimed that when a product was moved from a 90nm process in a 200mm fab to 65 nm process in a 300mm fab, the expected cost savings would be 40%. I think that is the exact amount of the price reduction that Intel made in April. So if before the price cut P4's (in their hey day -- y05 q4!) were getting 60% gross margin, then woody and siblings will also fetch 60% once the fabs are at full util. Sarmad