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

To: kash johal who wrote (40707)	11/3/1998 9:31:00 AM
From: Yousef	Respond to of 1574052

Kash, Re: "AMD seems to have been investing heavily in Fab 30. Looks like first silicon is due to be run this quarter in Dresden." Kash, You do remember AMD's "ramp up" of both their .35um and .25um processes in MegaFlop 25 (tm PREngel). The cost of silicon, depreciation expenses, and poor yield resulted in losses for about 2 quarters after the start of each ramp. It could be that AMD will see considerable expenses from Fab 30 in Q1 and Q2 '99. These might be enough to send AMD back into the "red". What do you think ?? Make It So, Yousef

To: kash johal who wrote (40707)	11/26/1998 1:05:00 PM
From: Yousef	Read Replies (2) \| Respond to of 1574052

Kash, Re: "FAB 30 FACTS ... Approximately 875,000 square feet-total project, Manufacturing "clean-room" - 90,000 square feet ... Total Cost: $1.9 Billion" Typical equipment costs of this facility would be about $1.0B of the total $1.9B. Thus based on a 5 year depreciation schedule, AMD will be expensing about $200M/year ... or ... $50M/quarter. This will be a "big anchor" on AMD in '99. This doesn't include any of the silicon to ramp up the facility. Happy Thanksgiving Everyone. Make It So, Yousef