Intel Corp (INTC)

[herb will]

"Is there a comparable statement about what portion of depreciation Intel applies to gross margin ?"
As far as I know Intel has not said what it is.But again the question was whether Intel gross margins reflected fab and equipment cost not what the portion of Intel depreciation charges were made to Cost of Sales.
Last quarter Intel depreciation charges were $1.729. Where in the Intel's P&L do you think they were reflected? I would consider it to be a major portion. At the end of 2012 Machinery and Equipment alone was 59% of Property, Plant and Equipment. On Intel's P&L statement last quarter Marketing general and administration expenses were $1.970 billion , R&D $2.742 billion and Cost of Sales were $5.069 billion.
TSM's P&L last quarter, depreciation and amortization was a considerable 44% of Cost of Sales. http://www.tsmc.com/uploadfile/ir/quarterly/2013/3dgdC/E/FS.pdf

I think it is important for an investor to understand that as Intel moves to 14 nm, 10nm and 450 nm wafers that the Profit and Loss Statement has reflected that Intel margins historically have consistently been 60% plus. Of course it remains to be seen if that continues in the future.

While I may not agree to his conclusion:
“What we see is that the significant depreciation-driven gross margin risks discussed above will likely weigh on shares as gross margins decline. Indeed, falling gross margins are a risk to INTC bulls' investment thesis.
http://seekingalpha.com/article/1913041-a-huge-gross-margin-impact-that-everyone-is-missing