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

To: Richard Tuck who wrote (31452)	4/8/1998 1:52:00 PM
From: Petz	Read Replies (2) \| Respond to of 1571843

Richard, re:<but it [Celeron] will be priced low enough to keep AMD in the red for a while longer> Celeron 266 will be 25% slower than K6-266 and Sanders said that K6-266 will sell for about the same price. AMD's 4/15 price for K6-266 is $156. $1000 K6-266 systems will outperform Celeron 266 systems immensely and sell for the same price. The hot system for Christmas will be a K6-3D+ 350 MHz with DVD, TV and lots of 3D games for $900 - $1000. Celery will be eaten alive by Chompers. Petz

To: Richard Tuck who wrote (31452)	4/8/1998 2:01:00 PM
From: Katherine Derbyshire	Read Replies (1) \| Respond to of 1571843

>>In the case of AMD and Intel, AMD has to go to 0.25um in order to survive. As someone pointed out, the Fab 25 building should be as depreciated as any of Intel's 0.35um plants, so the steppers, etchers, and other equipment are the main extra depreciation cost. Until AMD ramps the 0.25um process up fully, this depreciation will be a considerable per piece cost (thus the $700 million break-even figure). Once AMD ramps up 0.25um later this year, this will be less of a factor.<< The cost of steppers, etc, is hardly trivial, though. In a new fab, more than half of the total cost is equipment. AMD is probably looking at $500-700 million (cash expenditure, not depreciation) in equipment alone. Katherine