Originally posted by: jagec
Originally posted by: Soviet
Only the xeons? They have the worlds highest selling processor the P4 trailed by the celeron as the worlds 2nd, they must make a large profit from that as with most things it costs pittence to produce them. Where did you see these intel profit figures?
it costs a "pittance" to produce them? Umm...how about no. It's truly a miracle that chips are as cheap as they are, since it costs so much to make them. You start out with a fab costing in the billions of dollars since you have to jam-pack it with clean rooms and some of the most modern (read: expensive) equipment in the world, hire very highly trained (read: very highly paid) technicians to run it, and even after you have designed the chip and gotten the masks made (once again employing the services of very highly paid people and very expensive equipment), 99.9999.....% pure silicon isn't quite as cheap as, say, sand.
Now, due to the nature of the process, you have to throw out a surprising number of chips. Think about it. The fact that companies bother to "rescue" chips by downclocking them/disabling some cache and selling them as Celerons should tell you they're seeking to save money wherever they can. In most industrial processes, unless you're making really large-scale stuff or it's a really easy fix, you just throw out the defects.[/quote]
Ok but the fabs, equiptment and clean rooms are all a one off payment. Its not as if they need to keep building new ones every time they need to make a new processor. As for the technicians and highly skilled people, there isnt a huge workforce of like 10000 of these guys in each factory, if anyones got the highest amount of automation in their production line then it would be intel. They only employ 78000 people and have 294 facilities now thats 265.3 people in each facilitiy, now of course it isnt spread as evenly as this but it gives a good idea of the amount of people they actually employ and have to pay wages for. These include cleaners, tea people, etc etc theyre not all technicians. As for the silicon well yea of course its gonna cost, but it isnt a lot to intel.
Its just wasteful to not save the chips, its not that they need to or anything its just a total waste of chips that could otherwise be sold. Also no other "industrial process" takes so many steps and refinements to make an end product. It takes somthing like 250 steps to produce a processor and that means theres the heck of a lot of places things can go wrong. This isnt cost cutting or saving money its *making* money. They will never throw out the defects no matter how much money they actually make/lose because its just daft to throw out so much.
Anyways they dont have astronomical costs in production, they have costs but they are affordable. Most of their money goes into R&D.