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Re: wbmw post# 2735

Saturday, 10/26/2002 5:26:11 PM

Saturday, October 26, 2002 5:26:11 PM

Post# of 5827
>> Whatever happened to the Banias manufacturing cost question? <<

wbmw: I addressed Banias’ costs from the financial angle in #2089 on the INTC MB. Further, as I posted in #2094, “manufacturing” cost includes a heck of a lot of things other than the wafer, which is why the true gross margins for chips made by INTC or anyone else are far more modest than the numbers you have suggested.

If you properly account for all of the relevant expenses, I believe that your “bottom up” approach to estimating costs would produce numbers that are not far off from the ones I get via a “top down” approach. Regards, Dew




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