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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (76583)10/22/1999 9:34:00 PM
From: Craig Freeman  Read Replies (3) of 1585046
 
Paul, this article popped up at anandtech.com:

intel.com

According to the text, "Wacker Siltronic produces around 800 ingots, enough to create more than 500,000 wafers." If my math is right, that means that an ingot produces 625 wafers. The article goes on to price these ingots at a maximum value of $16,000. Which equals to $25.60 per wafer.

Finally, it states "An eight-inch wafer, seen here under inspection light, will host more than 200 Pentium II processor chips." Simple math therefore equates one PII chip with 13 CENTS worth of silicon.

I don't know if the author is right but if he is, then the cost of raw silicon for a CPU is less than the cost of a single cigarette. Even if you assume miserable yields, it should still be well under a buck per chip.

Paul ... in your opinion, is the author correct?

Craig

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