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

To: Jim McMannis who wrote (28386)	2/8/1998 2:32:00 PM
From: Paul Engel	Respond to of 1571898

Jim - Re: "What's a mature fab supposed to yield 70-90%???" A good fab - mature or not - generally has yields in that range. For DRAM and SRAM manufacturers, with low ASPs (average Selling Price), this level of yield is critical. For CPUs, the ASP's are quite abit higher. Consider this - at 45% yield and 118 TOTAL (my number - considered very low by many critics) K6 die per wafer for the 0.35 micron process, AMD would get 53 good die/wafer. At 4000 wafers per week - well below their rated capacity, AMD would generate 212,400 K6 die/week o2 2.8 MILLION per quarter (13 weeks). AMD reported K6 shipments of 1.5 Million K6's last quarter. Therefore, even using my low estimates of die/wafer and wafers/week, AMD must be yielding at (1.5/2.76)*.45 = 25%. At an estimated $2100/wafer (my estimate), that puts their silicon cost at $71/K6 die. Add another $10 for packaging and $5 for C4 bumping and $5 for test and they might have $91 wrapped up in every K6 at 0.35 microns. Add in shipping, sales and marketing expenses and that cost goes even higher. Paul