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

To: Sarmad Y. Hermiz who wrote (219959)	12/11/2006 2:48:39 AM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Dear Saramd: Intel did not get a 40% reduction going from P4 to CMW on the same process. Both are made on the same 65nm on 300mm wafers. What got reduced was the ASP of the P4 wrt what it was before. CMW's ASP was set by Intel and not by AMD. Its revenue per wafer comes from its good die per wafer times the ASP for a good die set by Intel. So far that revenue number must not match what it gets for a P4 times the good P4 die it gets per wafer. If CMW got so much more revenue per wafer than P4 or CD, Intel would be shutting down P4 and CD production lines and adding equipment to make them match CMW production lines much quicker than it appears to. Of course it could just be that a 65nm/300mm CMW production line is quite different than either a 65nm/300mm P4 or CD production line. And it takes a long time to qualify the different equipment needed to change them into a CMW production line. That would point to a significant deficiency of the copy exact philosophy in a highly competitive CPU market. Copy exact may be ok when you have a monopoly in the market and can take your time switching over. It evidently hurts a lot when quick changes are needed. And given AMD's higher market share and fast change times, the hurting will become larger and more frequent until Intel does away with copy exact and goes to something equivalent to APM. Pete