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Intel's manufacturing cost: $40 per chip!

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and R&D, warranty coverage, QC, packaging, HSF design, CHipset compatibility R&D, and work with the board manufacturers to assure all products meet Intel's specs for realible bug free operation.

It's actually quite amazing that the CPU's are as cheap as they are.

No matter what they cost, I know Intel is all I'll ever run for as long as they're around. They have the best CPU going for ther desktop, in the mobile arena, and now they have taken over the mac world as well.

These are grand times we are living in, and it's only going to get better and better. :burn:
 
3DFlyer said:
and R&D, warranty coverage, QC, packaging, HSF design, CHipset compatibility R&D, and work with the board manufacturers to assure all products meet Intel's specs for realible bug free operation.

It's actually quite amazing that the CPU's are as cheap as they are.

No matter what they cost, I know Intel is all I'll ever run for as long as they're around. They have the best CPU going for ther desktop, in the mobile arena, and now they have taken over the mac world as well.

These are grand times we are living in, and it's only going to get better and better. :burn:
Click to expand...

When a company sells millions of these chips it's not amazing at all.

I don't know about you, but don't think it's a good time for the chip making business, with prescott running so hot that Intel wasn't able to increase the clockspeed to where they wanted to, and AMD a64 even though doing better is also not reaching AMD's goal to reach 3.0ghz with the current crop, at least they are performing better and running cooler which might not be a big deal to us because it hasn't helped overclocking, but to the everyday consumer it is. In the end eventhough Intel is able to make the money they spend on R&D and everything they do to sell a chip I don't think they are getting there money worth in performance increase. I wonder what a core costs for AMD though, isnt' there core bigger since it isn't able ot compress the cache as much as Intel does?
 
Nasgul said:
$40, sounds about right. Remember guys, that Intel's fabs are in Malasya and Costa Rica, home of the sweat chops.........unlike AMD whose plant is in Germany and in a very high-cost area as well.

And you wonder why the ongoing lawsuit against Intel?. Fab cheap, sell cheap.

Can you imagine if WalMart had their clothing suppliers in Germany?

BTW, did you guys know that the mark-up in clothing is between 200%-500%. Sick, isnt' it?
Click to expand...

wrong, sweat shops, enough bs..intels biggest fab ops is in Oregon, im about 50 feet away from the Intels largest 300mm fab as we speak. costa rica and malay just do packaging. the mfg process and development is all in the states, and then it pretty much spider webs to the other fabs after the technology is perfected in oregon.

yonah, cedar mill, p4 are all bred here (fab20/d1c/d1d), and this year we are going to be the main HVM for the next roll out of intel products. then of we've had hundreds of techs/eng's from other fabs coming to train, and match our process to other 300mm fabs (12c/24) to have all fabs manufacturing on each process.

it takes nearly a month sometimes less/more, to even get a lot of wafers out of the fab. thats hundreds of techs working, tons of man hours. the amount that is actually spent, to create a chip $40?, maybe parts yes, but there is a lot more money than that involved in it (hours, labor, etc). you can't justify or critisize the markup, when you take in to account the millions spent on R&D, wages etc. when that is said in done, years of research, ramping etc...it's a fair price to me.

get your facts straight and do some research.
 
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Even though I agree that mark up is fine, I am sure intel is making a pretty penny on their chips. Believe me no one in upper management is going broke.
 
true, but you can say the same for any large corp. a business is a business, thats why there is tons of options available from cheap celerons, to extravagant EE's and Itaniums. its all about selection.

if intel wasn't as big as they are, prices would be a lot higher. having numerous HVM fabs available, is the reason why the dual cores are even affordable. look at amd's pricing...

...when their new fab is up, hopefully they can lower prices to raise the competition stakes. yet, still they will pale in comparison to intel's HVM capabilities. even though that is a different issue, it does affect market pricing for both companies.
 
From the article:
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,
Click to expand...

i.e., does not include the amortization of research & development and marketing. The last part is just a reader-friendly way of saying that it doesn't account for yields and binning, either. I'm guessing that it since it just uses the general term "design," it probably also doesn't include the cost of retooling the plant for process shrinks, etc. It's a nearly useless, and certainly deceiving headline.

Somewhere there's truth in there, but it takes some critical reading to find it. The slashdot discusion yesterday was pretty decent on this topic:

http://slashdot.org/article.pl?sid=05/09/15/0039236&tid=118&tid=99

-- Paul
 
macklin01 said:
From TFA:

i.e., does not include the amortization of research & development and marketing. The last part is just a reader-friendly way of saying that it doesn't account for yields and binning, either. I'm guessing that it since it just uses the general term "design," it probably also doesn't include the cost of retooling the plant for process shrinks, etc. It's a nearly useless, and certainly deceiving headline.

Somewhere there's truth in there, but it takes some critical reading to find it. The slashdot discusion yesterday was pretty decent on this topic:

http://slashdot.org/article.pl?sid=05/09/15/0039236&tid=118&tid=99

-- Paul
Click to expand...

good point, and i read that article again. i think most of the responses on the web, fail to read that portion :), and don't take into account the additional costs involved.
 
You have until 10:00pm U.S. Pacific time to tone down this inflamatory post. -- macklin01

OK, how's that? I'll also be toning down many of the other helpful posts posted here also. That works both ways! :rolleyes:

Update: as of 8:04pmEST the forum just lost another 25 answers. It's such a shame. The threads don't make much sense anymore without the answers there. Censorship sucks don't it? Unfortunately the forum paid the price. :eh?:
 
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3Dflyer has been banned for editing my edit. Just as a future note: changing a moderator's edit is a big no-no.

For the others here who have been enjoying a rational, intelligent conversation, thank you, and please keep it up. This is always interesting and fun. -- macklin01
 
{bunch of stuff in green}

Amazing! 'Nuff said.

Now, let's get back to the subject at hand;

PROFIT!!

In my opinion, Intel has a right to make money on their product. They owe the stockholders that. Personally, I like to do business with a company that is showing a profit. When I go back, they will be there.

As some of you know, I have another hobby, as a woodworker. I have a 60 year old Shopsmith. The company that made mine, has been replaced. Twice! The third company is currently on the rocks. Again!

Can I get Intel to make my Shopsmith stuff??

Again, 'nuff said.

steve
 
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A horrible loss this forum has suffered. Where oh where, will we be able to find a replacement for such an outstanding forum member. ::)

Thanks mods!
 
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