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Shrinking Always Increases Costs

Posted February 27, 2010 8:02 AM

One of this month's articles describes the explosion of computational requirements for achieving 22 nm geometries. By some industry estimates, fabs to produce tomorrow's parts will cost $12-15 billion (with a "b") dollars instead of the "mere" $3 billion of today's version. Considering that customers still expect prices to fall with each design cycle, how will you maintain your profitability? Will you outsource manufacturing and go fabless? If you do, how will the manufacturing company keep its costs down? The ultimate question, of course, is will Moore's Law finally fall because of cost considerations rather than the laws of physics?

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Join Date: Jan 2007
Location: Houston,Texas
Posts: 378
Good Answers: 24
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Re: Shrinking Always Increases Costs

02/27/2010 10:38 PM

The harsh realities of economics will constrain deployment of these mega-costly 'Fabs.' Unless the industry can generate free cash flow to fund those very high risks, they simply will not happen. Just because it CAN be done does not mean it is feasible to do.

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