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

To: Elmer Phud who wrote (207509)	8/3/2006 7:37:53 PM
From: AK2004	Respond to of 275872

you should read few recent comments about that comment about inventory size

To: Elmer Phud who wrote (207509)	8/3/2006 8:57:39 PM
From: Petz	Read Replies (2) \| Respond to of 275872

$200M is the COST of the Conroe chips Intel expects to sell in Q3. Most of these chips are in wafer form partway through the production process. If Conroe had not "qualified" before the end of Q2, Intel would have had to value the half-done wafers at LESS than cost, because the chips would have to be (mostly) thrown away. Inventory is always valued at cost, so I think this implies that the cost per Conroe is about $150. I'm assuming a million chips per 9 weeks. This is not so outrageous when you realize that yields start out low. Petz