Intel Corp (INTC)

[Elmer Phud]

Windsock:

The wafer cost does include depreciation and is a large component of the ~$2500 for a 300mm wafer.

Then where am I going wrong here? If we assume that a fab is depreciated over 3 years, and assume 7500 wafer starts per week, that comes out to over $1700 per wafer for depreciation alone. So $800 covers the cost of the raw wafer and labor as well? Is 3 years too short a time for depreciation?

EP