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Technology Stocks : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: TEColeman who wrote (2768)	2/11/1998 2:23:00 PM
From: GuinnessGuy	Respond to of 3736

TEC, I called their main switchboard at (408)732-2400 and asked for IR. She also stated that the cost of the facility would be $2.2 billion and estimated that 75% or so more would be equipment related(as opposed to bricks and mortar). At $2.8 million a pop for Auriga-C's that would be an expense of ~$200 million, which would, in turn, comprise 12% of the total cost of equipment(given that 75% of the $2.2 billion are for equipment). Does this sound unreasonable to anyone? As to your other question, you can check out the latest AMD 10-K, where it states that: "AMD Saxony Manufacturing GmbH (AMD Saxony), a German subsidiary wholly owned by the Company through a German holding company, is building a 900,000 square foot submicron integrated circuit manufacturing and design facility in Dresden, in the State of Saxony, Germany (Dresden Fab 30) over the next five years at a presently estimated cost of approximately $1.9 billion. " sec.gov Now, as to why it states that this is a five year buildout whereas I was told that it would be completed in 2 years, I don't know. It is possible that she was talking about the part of the fab that would be devoted to the K-7(that's what AMD really has their hopes pinned on - is it not?). Can anyone in the know calculate a reasonable yearly output of K-7 die from a 0.18 micron process with 70 Auriga-C's employed in a 5 layered chip, neglecting yield considerations? Perhaps this would tell us if 70 machines is way too much. TIA. OK, I just got off of the phone with AMD IR again and she stated that the 2 years completion is for the microprocessor part(K-7's). The other part of the project is for logic chips. I think that we can safely assume that some of the 70 CMP machines will be used for latter. I was also told that at least 5 metallized layers would be employed for the K-7 and was also told that output would be in line with Austin's Fab 25's 30,000,000 units per year. Given this clarification and assuming that SFAM has indeed been given the orders then I'd have to estimate there will be delivered to AMD(worldwide), over two years, approximately 48 machines(or $134 million) and not 70 machines. Sorry about that initial overestimate:-( Still, not bad business from just one customer. Craig