The True Cost of Processor Manufacturing: TSMC 7nm
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Channel: TechTechPotato
Views: 218,707
Rating: 4.8915639 out of 5
Keywords: tsmc 7nm, amd 7nm, tsmc wafer, amd wafer, tsmc cost, 7nm cost, tsmc wafer cost, amd wafer cost, tsmc yield, tsmc n7, tsmc n5, chip, chip cost, processor cost, wafer cost, wafer 7nm, semiconductor cost, semiconductor shortage, semiconductor 7nm, samsung 7nm, intel 7nm, globalfoundries 7nm, intel wafer cost, samsung wafer cost, qualcomm chip cost, cost of silicon, silicon ingot, techtechpotato, ian, cutress, sophie wilson, sophie wilson arm, packaging, chip shortage
Id: tvVobTtgss0
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Length: 18min 51sec (1131 seconds)
Published: Sat May 01 2021
Please note that this website is currently a work in progress! Lots of interesting data and statistics to come.
Profit margins on big Navi must be abysmal per die compared to something like a 5950x. 2x 80mm2 (7nm) + 125mm2 (12nm) IO die. It's far far easier to make and yield than a single 520mm2 6900XT die. I'm sure they are still making bank, but they could sell three $800 CPUs instead of a GPU if they moved all the effort away from GPUs. And I'd guess AIBs are paying only $500 for the actual 6900XT die itself.
Is the Wafer Cost metric what it would cost currently? Or what it would cost at the time of release of the process? Would a 28nm order cost $2361 today per wafer, or in 2011?
Given the dark silicon issue, how much can chip redundancy against defects offset this? Since additional redundant circuits/cores/etc wouldn't be used unless needed, wouldn't that mitigate some of the dark silicon requirements for a time? If true, that would seem to indicate there's extra financial incentive to build some amount of additional redundancy into the chips rather than simply leave the dark silicon "empty".
"true cost"? don't think so.
The numbers shown in the video are identical to IBS outdated wafer pricing estimate from a few years ago. Even the cost per 100M gates and the other columns are identical. It's unfortunate Sophie Wilson didn't cite her source but that's where it came from. IBS updated their 7nm pricing to over 2x their earlier prediction. I can't share the actual report but google images has some more recent stuff:
https://www.google.com/search?q=IBS+wafer+cost&tbm=isch&source=hp
https://sst.semiconductor-digest.com/2016/09/moores-law-did-indeed-stop-at-28nm/
i have tried posting this but it was removed, is it recommend by anandtech in the video above
https://www.youtube.com/watch?v=R2SdSLCMKEA
Dr Sophie Wilson, an alumna of the department. She co-designed, with her colleague Steve Furber, the BBC Microcomputer, BBC BASIC and the Acorn Assembler
The 50 percent gross margin he mentions for intel is kind of meaningless.
Gross margin means nothing as it's a number you get after the revenue passes through creative bookkeeping and countless shell company 'contractors', and what's left after that is mostly reinvested into more assets and investments (through yet more shell companies) in order to avoid paying taxes.
Only then do you end up with that gross margin number
The whole process from concept on a post it note to final product on the shelf can cost a tenth of the final retail price, yet there will NEVER be a 90 percent gross margin in the books.
There isn't a shadow of a doubt that amd and intel make enormous profits on their hardware
For AMD, Intel, Nvidia design production cost : price / margin see my Seeking Alpha comment and blog spot. Currently TSMC 7nm design production for consumer size chips that are not XCC Xeon = 10 cents per mm^2 + mark up to the customer. Intel 12 nm RL = 10.5 cents per mm^2 + variable cost of production. Samsung Ampere = 12 cents per mm^2 + mark up to the customer. My early Intel 10 nm Xeon assessment vis-a-vis fully depreciated process Cascade Lake r suggests Ice lake Xeon is double cost of CLr. I have not calculated Tiger Lake yet.
All ball park bottom up cost : price assessment from cost per mm^2 can be calculated at marginal cost = marginal revenue = price to the foundry customer. Same for design producer to OEM and same for OEM to distribution sales. This is not set in stone but offers an easy bottom up tool. Otherwise cost can be broken out of price on total revenue total cost analysis knowing change in component production volume and change in average weighed price through time on grade SKU split. mb
maybe amd should just make bigger apus(4c4t, 4c8t), instead of making low margin entry level gpus