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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: DiViT who wrote (18703)7/17/1997 7:15:00 PM
From: BillyG   of 50808
 
Thanks Dave and Winston.................

Regarding semi production costs, there is a roughly fixed cost to produce a wafer, no matter how many chips are on the wafer. If you reduce the size of a chip, either through re-designed circuitry/smaller software ROM, or through smaller feature sizes, such as .35 micron, then you get a double benefit from the smaller chips.

First, you get the lower cost/chip, because you have more chips on the wafer at a fixed cost/wafer.

Second, you get a higher yield -- a higher percentage of chips which actually work. This is because defective chips are usually due to dust or other process defects which occur at a fixed number per wafer. For example, if you average a fixed number of defects per wafer, and you pack twice as many chips on a wafer, the yield roughly doubles.
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