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

To: kash johal who wrote (33599)	6/28/1998 11:22:00 PM
From: Jim McMannis	Respond to of 1583412

Kash, I understand what you are saying, thanks. Based on the information at hand. AMD is getting costs way down. Their yields could be better though. Jim

To: kash johal who wrote (33599)	6/29/1998 3:20:00 PM
From: Petz	Read Replies (3) \| Respond to of 1583412

Kash johal, your post below reveals your total ignorance: Assuming the fab is operating well, then wafer cost should be in the $1500 range. Unfortunatly most of fab costs are fixed, so a fab running at 50% capacity can give you a $3,000 wafer cost or even more depending upon how it's being depreciated. Couple that with poor yield in Q2/Q3 - lets say 50% of ideal then you may have an effective wafer cost of $4000-6000. Yield doesn't affect cost per wafer, it simply takes more wafers to produce the same number of CPU's if yield is low. Your ignorance is showing. poor yield in Q2/Q3... You know the yield in Q3? Thats great since it hasn't even started yet! Depreciation of fab is NOT considered part of "wafer cost" by a financial analyst. Depreciation is a cost but it is not part of COST OF GOODS SOLD in the financial statements. Wafer cost is part of COST OF GOODS SOLD since it varies with the quantity of the product produced and sold. Petz