Intel...... Oh Intel........... 22 replies

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Agentlaidlaw

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21st February 2005

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#1 15 years ago

Intel's manufacturing cost: $40 per chip

Published: September 13, 2005, 11:18 AM PDT By [email="michael.kanellos@cnet.com?subject=FEEDBACK:Intel%27s%20manufacturing%20cost:%20$40%20per%20chip"]Michael Kanellos[/email] Staff Writer, CNET News.com Though Pentium 4s can sell for up to $637, Intel's average cost for making a chip comes to $40, according to a report from analysts In-Stat.

The report doesn't consider expenses related to design or marketing, or the fact that high-end chips can sell for more because fewer off the production line can actually run at top speed, but it does shed light on how Intel has managed to maintain healthy margins in an era of price declines. The cost has been steady at about $40 since 2003, according to In-Stat.

initCarousel(); Shrinking chip sizes a la Moore's Law plays a big part. Reducing the size of the chips means more processors can be popped out of a single wafer, thereby increasing the potential revenue without incurring massive additional costs. Intel has also continued to build new factories at a rapid pace, In-Stat noted. The chipmaker has three 90-nanometer fabrication facilities and will have four 65-nanometer facilities by the end of 2006. (The nanometer figures refer to the average feature size on the chips; a nanometer is a billionth of a meter.)

"Intel is one of the few vendors that can continue to push ahead alone and uses its technology and capacity as a competitive strength," Jim McGregor, In-Stat analyst, said in a statement.

Still, major technical challenges loom for everyone in shrinking chips from here on out. Though 65-nanometer chips are slated to come out later this year, companies will have to adopt a number of new technologies, such as metal transistor gates, in the 45-nanometer generation of chips, due out in 2007.

http://news.com.com/Intels+manufacturing+cost+40+per+chip/2100-1006_3-5862922.html

Only cost Intel $40 to make a 3.4GHZ P4.... Then they go and charge us $400 for it..... How nice....




yuiop

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22nd May 2003

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#2 15 years ago

But it says the report doesn't take into account design or marketing costs. It probably costs quite a bit to develop the chips on paper before they start actual manufacturing.




RadioactiveLobster Site Administrator

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#3 15 years ago

thats why you get a job at an intel plant, and just steal a bunch of them :D same goes for AMD....their $1000 chips cost about $50 to make


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Agentlaidlaw

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#4 15 years ago
S.T.A.L.K.E.R.thats why you get a job at an intel plant, and just steal a bunch of them :D same goes for AMD....their $1000 chips cost about $50 to make

If only if it was that easy to work at a Intel plant lol or AMD plant lol.. God if I was able to I would have a crap load FX57's and 4800+'s lol.




C38368

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#5 15 years ago
The report doesn't consider expenses related to design or marketing, or the fact that high-end chips can sell for more because fewer off the production line can actually run at top speed

Then what good is it? They've got to recover those costs somewhere, and it ain't coming out of some secret vault.

but it does shed light on how Intel has managed to maintain healthy margins in an era of price declines

No, it doesn't even do that. A nice--but flawed--attempt at propaganda.




amoreelitesoldier

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#6 15 years ago

Let me ask you this; what technology company doesn't make incredible profits from their state-of-the-art product? :uhm:




Spartan Advanced Member

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#7 15 years ago

Has anyone heard of R&D?

How about the billions of dollars that go into constructing a chip fab?




Mastin

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#8 15 years ago

thast alot but still u paying good money with an intel u no it works not like amd, i wouldt trust them, lts say u buy a 2gig prosser well if it amd it proply be sumin like 1.8 gig prosser cause they always like slighty under what they say they are.




Agentlaidlaw

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#9 15 years ago
Mastinthast alot but still u paying good money with an intel u no it works not like amd, i wouldt trust them, lts say u buy a 2gig prosser well if it amd it proply be sumin like 1.8 gig prosser cause they always like slighty under what they say they are.

AMD clock their processors slower than Intels, yes thats true. But when AMD says 3500+ that means it runs faster than a Intel at 3.5GHZ and the AMD is only at 2.2GHZ. Thats sad that a AMD 2.2GHZ can out beat a Intel at 3.5GHZ.




Spartan Advanced Member

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#10 15 years ago
AgentlaidlawThats sad that a AMD 2.2GHZ can out beat a Intel at 3.5GHZ.

That's just because of different designs to the chip, although the P4 is an inefficient monster.