Replies to post #2103 on Intel Corp (INTC)

[Windsock]

The wafer cost does include depreciation for plant and equipment and is a large component of the ~$2500 for a 300mm wafer. The raw materials and labor that go into wafer cost is a small share of the total.

R&D is taken as an expense when it occurs. The Banias R&D for the most part is taken before the processor goes into production although some fine tuning of the processor will be ongoing.