Originally posted by: Just learning
Maybe it would be better if AMD got to 32nm dual cores quicker (ie, smaller dies on the new process like they are doing with the graphics cards).
Too bad intel e6xxx is 82mm2 die to Athlon II X2 117mm2 die.....both at 45nm.
At that die-size, the sub-120mm^2 but larger than 75mm^2, the difference in functional yield impact is quite a minimal cost adder to the larger die.
If GlobalFoundries were operate near capacity and was wafer-starts limited then the larger die would have an bigger cost-footprint as it would drive capex costs, but with the ongoing recession GF's is no where near 100% utilization on their 45nm line.
So, yes the die-size delta does result in a slightly higher cost structure for the Athlon II X2's versus the Intel E6xxx's but I'd be surprised if the net cost delta resulted in more than a 10-15% hit to gross margins per chip (not great but not problematic either).
Some back of the envelope calcs...first lets estimate die per wafer (
DPW) using this
simplistic equation for DPW estimation. (if you happen to know the LxW specifics of the respective chips then we can use
Hackerott's Java calculator to get an even better estimate of DPW)
DPW = d*p*(d/(4S)-1/v(2S)) where d is wafer size in mm and S is diesize in mm². (note we use 294mm for the effective wafer diameter to accommodate a 3mm wafer edge exclusion (WEE))
For
Athlon II X2 I get an estimate of
519 DPW, and for
E6xxx I get
755 DPW (using your diesize numbers, which I am assuming are correct, have not verified).
Now we need to make some assumption regarding production costs per wafer (
CPW) and yields. From production cost standpoint we have Intel's double-pattern (higher CT, higher cost, lower yield) HKMG (higher cost) 45nm process technology which has been in production roughly 12 months longer than GF's (expect lower D0 from better process maturity), versus GF's immersion-litho (lower CT, higher cost, lower yield) SOI (higher cost) 45nm process technology which has been in production roughly 12 months less than Intel's (thus we'd expect slightly higher D0
a priori).
So I'd propose from a cost per wafer standpoint we just call it a wash, they both probably cost pretty close to the same amount for very different reasons. A leading edge 4X nm wafer at a foundry costs around $6k-$7k (that includes the foundries markup, which GF is going to charge AMD but Intel doesn't charge itself of course in a way that carries thru to EPS) so the net wafer cost to
Intel is probably closer to $3k-$4k versus AMD's net cost per wafer is going to likely be some 30-50% higher ($4k-$6k).
(BTW my basis for this cost estimation comes from the real-life experience with the cost/pricing difference between TI's internal process tech versus buying wafers on the same process node at leading edge foundries, I'm doing my best to keep these estimates "real world'ish" just in case anyone is wondering what basis I am using for estimating AMD's cost structure versus Intel's)
Now that we got our DPW estimates and our CPW estimates we just need to make a reasonable stab at yield estimates. There are two kinds of yield, functional and parametric. Functional we can estimate, parametric we basically have to just guess. (and when we have to basically just guess, the safest thing to do is slap an
a priori clause on our guess and say "we expect them to be essentially equivalent for the purposes of this exercise)
We know that both
die-size and fab defectivity levels (
D0) contribute to estimating functional yields,
this resource discusses a bevy of yield-estimation equations however I personally like to
use this equation as discussed in the experimental section of
this paper since it enables us to account for the clustering nature of killer defect sources which are a little more realistic than random distribution models.
Alpha is the defect clustering factor, from a classical negative binomial distribution used to calculate yields, it's what distinguishes yield estimations based on areal properties from those created by the assumption of an entirely random Poisson distribution of killer defects (the simpler rule of thumb equation that you
see here in which the limit of alpha goes to infinity).
The relevance of this equation is that this is how we account for the process maturity difference between Intel and AMD given that there is about a one year gap between the production release of their respective 45nm process technologies. A reasonable D0 value for a mature process technology is a D0 of 0.10 defect/cm². To see how D0 impacts functional yield levels for the same IC I prepared this
reference graph. Risk production for a chip typically occurs when the D0 is anywhere below 1 defect/cm² and entitlement D0 is anywhere below 0.2 defect/cm².
It only seems fair to assume GF's 45nm D0 is slightly higher than Intel's 45nm D0 given that Intel has had an additional year in production to improve the process maturity. Based on experience it usually takes about one year to reduce one's D0 by 50% once a node is in production (sub-0.5 defects/cm²), so GF's D0 can be reasonably expected to be around 2x that of Intel's D0, but let's assume GF has used their APC (advanced process control) to get their D0 lower at an even more aggressive pace (say 1.1x that of Intel, or 55% DD reduction per year) which would be the 12 month production gap really only incurs about a 36% penalty to D0 from reduced process maturity by my calcs.
So let's assume
Intel's 45nm is operating at
0.15 defects/cm² and
GF's 45nm is operating at
0.20 defects/cm². Then going by our graph above, the functional yield of
E6xxx is around 88% and the functional yield of
Athlon II X2 is around 80% (
see graph).
Now we don't know parametric yield, that's the part where you lose chips that simply require too much Vcc to operate at sellable clockspeeds or simply can't reach sellable clockspeeds regardless of the Vcc. But as mentioned above, for sake of argument lets assume both companies are operating at or nearly at the same parametric yield levels. (that is a big caveat, but we got nothing to justify a quantitative assumption of any other value)
Let's tally our costs (sans parametric yield losses)...we've got a net 668 sellable DPW for E6xxx and a net 413 DPW for Athlon II X2. We've got Intel's per wafer production costs sitting around $3k-$4k and AMD's per wafer net production costs sitting around $4k-$6k (includes GF's markup).
That's puts the estimated production cost for an E6xxx at $4.50-$6.00 and for an Athlon II X2 at $9.70-$14.50. (remember the ranges of the cost estimates are correlated, if you use Intel's upper range then you must use AMD's upper range, and vice versa for the lower range)
So we are looking at AMD's cost structure for the larger diesize
Athlon II X2 as incurring between $5-$8 more than its competition and the bulk of that cost differential is not the die-size delta but rather the markup costs that GF is going to be charging AMD for their foundry services.
cliffs: Despite being large in diesize, the Athlon II X2 is only costing AMD around $5-$8 more to produce and sell than Intel's smaller sized E6xxx chips.