Richard Cownie (tich.delete@this.pobox.com) on February 4, 2013 12:17 pm wrote:
> Doug S (foo.delete@this.bar.bar) on February 4, 2013 11:08 am wrote:
>
> > Your comparison seems to assume Intel switching from their current business to a foundry business.
>
> It's pointing out that the difference between TSMC's 47% gross margin, and Intel's
> 58% gross margin, is not a small difference, but a very big difference
> which explains almost all of Intel's profitability.
>

Another question, does Intel and TSMC (or GF for that matter) depreciate their foundry equipment at the same rate? If not, then even the 58 47 difference does not capture the real difference between their respective margins. TSMC maybe living with a much lower margin than Intel, leaving more on the table for the ARM camp.