Intel Corp (INTC)

[Elmer Phud]

Windsock -

I've done some research and confirmed your statement that depreciation is included in wafer cost.

This site shows a breakdown of wafer cost which includes depreciation and all sustaining costs. It puts a 300mm wafer cost at $3367.25, close enough to the numbers we've been using and it includes all expenses except R&D.

http://www.icknowledge.com/economics/300mm_costs.html

This link put's Intel's defect densities at between .2 and .3.

http://www.icknowledge.com/economics/yields.html

"The resulting defect densities for a large die (Pentium 4 size of 146mm2 is assumed) are approximately 0.2 to 0.3 for the IDMs and 1 to 2 for the foundries."

Taking the 2 extremes shows that the yield for a die the size of NorthWood could vary by a factor of ~6 between a top running fab and a foundry. AMD is counting on a foundry for their future products.

EP