Intel Corp (INTC)

[Unkwn]

Net margin is a measure of how much lower Intel's "profits relative to costs" is, than TSMC's. It does not "cause" the ratio to be lower, and I'm not particularly focused on "fixed" costs, vs. costs (expenses) in general if that's your angle.

Um, certainly not, that was your sentence:

I talk about net margin because gross margin is an unrepresentative metric for a "high fixed costs" business (because it ignores the "high fixed costs.")

You may be relentless, but that doesn't make you right ...

Remember, this whole thread has been one big response to your original BS statement:

TSMC is under the highest financial pressure, since they don't earn as much as Intel and Samsung, but have to spend as much.

TSMC absolutely doesn't "have to spend as much", and earns more (profit) relative to spending (i.e. net margin) than Intel does. Your "financial pressure" thesis is garbaged right within it's own statement.

Beyond that, the fact remains that Intel is loosing cash and cutting capex, while TSMC is growing cash and increasing capex. How can Intel fans simply pooh pooh the fact that TSMC alone is spending $2.5B more than Intel on capex (CAPEX!!!) in 2015?

Now you're trying to bullshit me it seems. CAPEX isn't paid by a higher net margin (i.e. percentage) but by operating cash flow. Neither net profit matters for this and definitely not in relation to revenue. What matters is operating cash flow, and when posting on an investor board, you should know that.

You could name any small cap with a higher net margin and tell us that they are in a better financial position to keep up with Intel in semiconductor CAPEX going further. That is bullshit!