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10/27/02 12:07 AM

#2116 RE: Elmer Phud #2109

Elmer, this is the full quote.

It probably costs Intel $21 or less to pop out the silicon inside a Pentium 4 on its most advanced manufacturing lines, while AMD shells out $22 or less on its best Athlon chip, according to analysts' estimates. Eventually, after several more manufacturing steps, these turn into processors that sell for between $130 and $637.

It's interesting that the analysts acknowledge that Intel has the lower cost CPUs, even if just by a little. That's a bit of a slap in the face to Jerry Sanders, AMD's former CEO, who used to not just claim, but proclaim, that AMD has by far the lowest cost designs

As far as our previous discussion on die costs, our aim was to figure out the total cost of manufacturing for a processor, not just the silicon costs. These costs would include test and packaging, and any other relevant expenses.

Earlier, a few posts had argued that Intel's Banias, for example, would lose money if it were sold for less than $100. It would be nice to have better data to refute those claims than just silicon costs.

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