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Intel Corporation Message Board

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  • amdroaddkill2010 amdroaddkill2010 Dec 26, 2012 10:55 AM Flag

    By the middle of 2013 Intel will have 2-3 empty 22/14nm fabs.

    Take the Apple A6 for example. The chip is 97 mm^2. With a new 32nm process at Samsung, still in a learning curve, the yield is probably 250 good parts per wafer. That wafer at Samsung has a cost of about $5000 including depreciation. That pretty close to a $20 part at cost. Samsung knows they have Apple by the soft parts, so they would have to be dumb as a box of rocks to sell that wafer for anything under $10,000...and probably $15,000. So the A6 part costs ~$20 and sells for $40-60. Don't believe the #$%$ from iSuppli about a $27 chip. They are very wrong.
    If intel made the same part with no changes on a fully depreciated, high yielding 32nm line, they would yield about 400 good parts on a wafer that cost $3000 (no depreciation). That's $7.50 cost. Intel selling the part for $25 would get 70% gross margins.
    Imagine for a minute that same part built on a 22nm line. We would be back to $5000 wafers (damn depreciation). The chip size would go to about 50mm^2 and the yield would be much higher just due to smaller die size. About 800 good parts per wafer would make the cost ~$6.25. Selling that part at the current Samsung cost of $20 would give Intel a 69% margin.
    This low margin mobile chip thing is just a crock.
    Even today a chip from TSMC with a $5 cost sells to the fabless guy for a 50% margin or $10. Maybe the fabless guy can get 40% margin or $16.66. The overall margin from TSMC to the end customer is 70%.

 
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