Replies to post #2116 on Intel Corp (INTC)

[Elmer Phud]

wbmw -

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.

I'll guess $0.50 for test and a buck or two for the package. Anyway $5 would still leave you enough change for a big mac.

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.

Backend isn't anywhere's near the expense of silicon. If it costs $500Million to develop a processor and Intel sells 100 million of them then it's $5 per processor.

EP