I'm not sure that it is well understood that all the conversation about 28nm involves TSMC. All application processor suppliers talking 28nm do their fab at TSMC.
From the below comments from a recent TSMC conference call, 28nm is 1% of TSMC's output in dollars. TSMC's average selling price for a 12" wafer is about $2600 Less for 130nm, about that for 90nm, more for 65nm and 40nm. 28nm, since it is used on many designs at very low volume at this point, is much, much higher price. Perhaps as high as 25,000 per wafer. That would make the the 28nm wafer starts at TSMC about 350 wafer per month. That isn't even a drop in the bucket relative to what is needed. All this conversation about 28nm and the non-Intel worldwide capacity is 350 wafers!! No wonder RIM can't get squat until late in 2012.
From Morris Chang
Now, I’d like to report on our technology progress specifically first on 28-nanometer. We reported earlier that we had tape outs for 89 individual products and the tape out of each of those is on schedule. The first silicon of every tape out was fully functional would consistently satisfactory. In fact density reduction is on plan. The ramp of 28-nanometer however is taking longer than expected due to the softening economy and the demand outlook of 2011.
Second item that I want to report on is that our close co-orporation ARM CPU core is allowing us to optimize our technology of ARM design. Recently in 28HP, which stands for 28 high-performance, we have delivered first industry silicon with higher speeds than any other computer using on. And in 28 HPM which tends to our 28 nanometer high-performance mobile we have enabled first tape out of even better performance.
89 Tapeouts. Optimizing process for higher speeds...that will probably make for a power hit.
Edwin Mok – Needham & Company
I see and then my fourth quarter is regarding 28-nanometer, you mentioned that 28-nanometer is taking a bit longer. Can you kind of describe if that is relate to just maturity of the process? Was it related to just customer not ramping the design that they have and you were previously, maybe previously expect them to ramp. And finally, how much of yourself do you expect to come with 28-nanometer for the second half or for the fourth quarter of this year?
Lora, you want to answer that?
Okay. The delay of 28-nanometer is not due to their quality issue, actually we have regular tape out and it is unplanned. The July ramping is mainly because of softening economy for our customers, so customers delayed a tape out to us. So therefore, the 28-nanometer revenue contribution by the end of fourth quarter this year will be roughly above 1% of our total wafer revenue.
28 nm is 1% of revenue...much smaller percentage of wafers. Slower ramping?? With Intek breathing down your neck?? Smells like a yield issue to me.