As the technology advances, the cost to process a wafer increases.

Intel fabs are reported to be working at .13 micron line widths, hence the
need for huge class 1 cleanrooms.  It costs a lot to make those wafers, and
since the chips are big there aren't that many on a wafer and the yield is
lower.  That's why an Intel processor costs hundreds of dollars.

Classic 7400-series chips were something on the order of 3 microns.  That
means those lines could get away with something like class 5 clean.  Much
cheaper rooms, simpler bunny suits, and all that.  Today you make such chips
with old, used (read cheap) machines and in an old fab that was paid for
back when the chips were more expensive, so there's still some room for
margins in the low, low pricing.

Microchip is now working at something like .3 micron.  Their bunny suits are
simpler than those at Intel, and the cleanrooms are a little easier to
maintain for that level.  That's all part of the Mchip strategy.  They make
chips that don't need the very highest, latest density, thus they can save
some money on the fabs.  Sometimes they can even pick up some of those high$
machines used when the Intels and their cohorts move on to higher density.

> -----Original Message-----
> From: Kathy Quinlan [mailto:katinka@MAGESTOWER.COM]
> Sent: Thursday, December 13, 2001 8:24 AM
> To: PICLIST@MITVMA.MIT.EDU
> Subject: Re: [EE]: How ICs are made
>
>
> > >
> > >I will never complain (to loudly) about the cost of a CPU
> again lol ;o)
> > >
> > Forget about CPUs, what amazes me is that they can make a
> profit selling
> > 74HC00's at $.20 each.  My company couldn't make a profit
> selling small
> > rocks at $.20 each!
> >
> > Sherpa Doug
>
>
> Lol, I guess volume plays a part, and with all the
> precautions they take, I
> guess the yield is high (around 500 IIRC per wafer for
> standard 74 serries
> gates). but still that is only us$100 (retail) per wafer, and
> I would have
> assumed it would cost more than that </me shrugs>
>
> Regards,
>
> Kat.
>
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