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

To: kash johal who wrote (45473)	1/11/1999 2:53:00 PM
From: Petz	Read Replies (1) \| Respond to of 1572301

Kash, good sleuthing explaining Intel's artificially low costs. Thanks. BTW, anyone remember how much IBM was going to charge AMD for finished 8" wafers? Petz

To: kash johal who wrote (45473)	1/11/1999 4:15:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1572301

Re: "INTELS DIRTY LITTLE SECRET: They are still DEPRECIATING their old FABS/EQUIPMENT that ARE NOT PRODUCING any more. This is a major problem because the old 0.5 and 0.35 micron Fabs still have 5 years to go to be fully depreciated. Their current market value is negligible. If these were valued at FMV Intel would be showing much lower profits." Not true Kash. Intel makes Chipsets, SRAMS, controllers, communication and networking products on both 0.6u & 0.35u. In fact they still make millions of chips on those processes. "Intel's dirty little secret" is nothing more than your imagination. Try and get it straight will ya? EP

To: kash johal who wrote (45473)	1/11/1999 8:08:00 PM
From: Saturn V	Read Replies (3) \| Respond to of 1572301

Ref: Depreciation Kash, you and John are making crude assumptions and arriving at wild conclusions. You guys made a wild guess that Intel entire depreciation expense is for Wafer Fab equipment alone, as if there no other equipment to be depreciated. What about chip assembly plants and cartridge assembly plants and test plants ? Remember that a microprocessor tester costs almost two million dollars, has a useful life of a few years. Thus it costs $10+ to test a part ,and most of it is all depreciation expense. Given Intel's economy of scale, I wont be surprised if Intel's wafer cost is significantly below $2000 even after depreciation.