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

To: Saturn V who wrote (45496)	1/11/1999 8:26:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1572086

Saturn, >Re: 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. FYI, the testers probably cost much more than $2M - more in $5M range due to high pin counts. As you correctly point out these are useful for only a FEW years. They are depreciated over 10-15 years. The test costs on the CPU's however are in the $1-2 range NOT $10. Jeez, talk about somebody making WILD Guesstimates. The BOTTOM LINE is that there is a hidden depreciation that Petz was not figuring on. THIS IS NOT ONLY INTELS PROBLEM. This is a problem for ALL the semi guys to varying extents. It's just exagerrated for Intel due to the fact that has to use leading edge equipment to stay ahead. Regards, Kash

To: Saturn V who wrote (45496)	1/11/1999 8:37:00 PM
From: Petz	Read Replies (1) \| Respond to of 1572086

PROVE IT -- $780M depreciation per quarter, you tell me how many wafers.