Jump to content
Sign in to follow this  
Swimmer

Intel chip costs.. $40?

Recommended Posts

I guess it only costs Intel $40 in raw materials to make the $600 chips that you and I buy retail..

  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.

Read More

Share this post


Link to post
Share on other sites

it does not reflect costs of design and marketing. doh! design is the most expensive part of the process. materials are nada. some silicates, a smidge of precious metals. the 40 bucks sounds a bit too low for the elaborate fab processes needed though. wonder what other costs were left out. power? staff? the factory itself?

Share this post


Link to post
Share on other sites

The first chip that is made always cost more, like around 4-5 million $$$$ so they have to charge alot so they can make there money back + pay there employees + make a profit. AMD does the same thing the reason there chips don't cost as much is because they, cost about 1/2 of what a Pentium 4 costs to make 1 chip. The main reason is amd uses alot of aluminum in their products Ware as Intel uses more expensive copper, and AMD uses copper wires Ware as Intel uses gold wire.

Share this post


Link to post
Share on other sites

it does not reflect costs of design and marketing. doh! design is the most expensive part of the process. materials are nada. some silicates, a smidge of precious metals. the 40 bucks sounds a bit too low for the elaborate fab processes needed though. wonder what other costs were left out. power? staff? the factory itself?

I agree. What exactly did they leave out?  I'd love to be able to build my own computer with a $40 CPU.

Share this post


Link to post
Share on other sites

Here's another article based on the in-stat report: http://www.computerworld.com/hardwaretopics/hardware/story/0,10801,104605,00.html

Went to instats site.  I'm not going to pay $2995 for the full report....... Talk about profit  :whaa:

Excerpted from:  http://www.in-stat.com/catalog/Scatalogue.asp?id=86#IN0501748IN

********************************************

Intel Manufacturing Capacity and Die Cost

Report Information

Report Number: IN0501748IN

Publication Date: August 2005

Number of Pages: 44

Report Price: $2,995 U.S. Dollars

Table of Contents/Tables/Figures

Read Press Release

Member Access

Full-text HTML

Full-text PDF

Data File Spreadsheets*

Summary

In semiconductor manufacturing, interest in Intel

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...