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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (26936)	12/19/1997 1:19:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1573555

Paul wafer cost is an elastic issue as one needs to take depreciation and utilization into account. The wafer cost from Taiwan (including their profit margins) for 0.25 micron 5LM does not exceed $2500 in any reasonable wafer volumes. And people like TSMC are making big bucks selling wafers at $1500 range for 0.35 micron .... see TSMC's most recent quarterly profits. If the fab is being depreciated quickly and underutilized as in say 20% capacity the wafer cost could approach $4000 per wafer. Best regards, Kash.