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

To: Petz who wrote (45503)	1/12/1999 1:34:00 AM
From: Saturn V	Read Replies (1) \| Respond to of 1572094

You still don't get the point. $780 million covers depreciation of much more than Wafer manufacturing equipment. It covers depreciation of Assembly Plants, Test Plants, System Manufacturing Sites,and Lots of other R & D equipment and Buildings and other assets of Intel. I am not an Intel employee. I do not know how much of the depreciation is assigned to Wafer manufacturing, and nor do you. I do not know the number of wafers Intel makes, and nor do you. Given our extremely limited knowledge we are not in a position to estimate depreciation costs of one specific process at Intel. But it is obvious that your estimates are 'wild estimates'. I can see that Intel is depreciating its assets using conservative accounting practices. [ A $750 million depreciation charge on $11 billion assets implies a 5-year depreciation.] Despite conservative accounting and heavy depreciation, Intel's profit will be in the range of $1.6-2.0 billion. I see no "dumping".