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

To: Elmer who wrote (41059)	11/8/1998 8:02:00 PM
From: Maxwell	Read Replies (1) \| Respond to of 1573925

Elmer: << 70s, really? I'm shocked. I didn't realize it was that high... Let's assume you are correct. At $1800 a wafer that would give a die cost of about $25.75. Add about $10 for packaging and maybe $1 for testing and 90% final test yield, that would give a total cost of ~$41. With Celerons selling for > $100 Intel is making a great margin!!! I think your yield numbers must be too high Maxwell. Everyone is saying Intel's cost is $70-80. I think your friend is feeding you false info. At that rate Intel could really kick AMD's but on the lowend if they wanted to. Everyone knows the K6 is cheaper than the Celeron to produce so at < $41 AMD would be making serious money here, unless of course the K6 yield was quite a bit lower...... I don't remember seeing AMD post huge profits. Why would that be Maxwell????>> #1) 70s is only 50% yield. That number is well below the yield Intel achieved on the 0.25um Pentium and PentiumII. #2) Pricewatch lists CeleronA 333 for $121 and CeleronA 300 for $110. This is the price at retail. OEMs get deep discount which includes reimbursement for advertising Intel Inside, discount for point of sales, volume discount, and DELL's favoritism discount. If you take all these discounts into consideration the ASP for CeleronA is well below $100. Microprocessor Report estimates that the cost of CeleronA is $64, $70 for PII, and $45 for K6-2. Thus you are wrong. #3) I estimate ASP for CeleronA is $85 and K6-2 is $100 (look at last Q3 for ASP). Revenue thus CeleronA=$8575= $6375/wafer K6-2=$100200= $20,000/wafer #4) My friend's numbers are very precise. My friend also gave me Intel's process flow and all the critical parameters. I do not have to share with you since it doesn't do you any good. I even know that Yousef's knowledge of Intel process is way off mark. That is why I know he is not from Intel. He pretends to be. Are you ready for AMD's announcement next week? It is time for you to brainstorm more ideas to criticize AMD. Maxwell