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

To: Yousef who wrote (42274)	11/28/1998 12:28:00 AM
From: High Desert	Read Replies (1) \| Respond to of 1574059

As usual, Yousef you have it wrong. Of course the fab is not on any five year depreciation schedule. Facility and facility equipment are on 20 year cycle and some fab equipment is on 3,5,7 year but in this case European accounting standards are in place which are totally different and not aggressive at all.

To: Yousef who wrote (42274)	11/30/1998 6:13:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1574059

Yousef, >Re: 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. I think your numbers are slightly skewed to say the least. I would only expect the facility to be 50% facilitated in 99 and balance in 2000. This translates to $25M/quarter by your numbers. If they sell 1M/qtr or 2M total in 99 with a $400-500 ASP this dwarfs the facility costs/amortization. And they could easily double the 2M number to 4M units in 99, but lets just look at the 2M unit number as that is what AMD has floated out there. You have been consistently wrong with AMD's capabilities to up the speed grades, consistently wrong about the volumes they would ship, consistently wrong about the increased profitability as they ramp volumes. Now you are wrong again with regards to fab 30. PS Hope you had a great thanksgiving. Regards, Kash