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

To: Petz who wrote (45416)	1/11/1999 1:34:00 AM
From: Yousef	Read Replies (1) \| Respond to of 1582406

John, Re: "Depreciation is NOT included in wafer cost because depreciation does not go up or down depending on how many wafers a fab is processing." I'm sorry John, but you are showing your "ignorance" ... Equipment depreciation IS part of wafer cost AND wafer cost does go "up and down" as a function of how many wafers are being run in the Fab. This occurs because the depreciation is a fixed cost that is amortized over the wafers being processed. This is very standard knowledge in IC Fabs. In fact, this is why many people focus on equipment/capacity utilization to understand the "health" of an IC company. Make It So, Yousef