not sure if you have seen this (probably) - costs intel $40 to make a cpu Die

Furen

Golden Member
Oct 21, 2004
1,567
0
0
Is that the bill of materials or does it include R&D, transportation, losses due to yeilds, etc. R&D is a huge cash-sinkhole so that $40 production tag may be understating the real cost by a big margin.
 

BigCoolJesus

Banned
Jun 22, 2005
1,687
0
0
Originally posted by: Furen
Is that the bill of materials or does it include R&D, transportation, losses due to yeilds, etc. R&D is a huge cash-sinkhole so that $40 production tag may be understating the real cost by a big margin.

yea, it takes sh!tloads to actually come up with the perfect design, and even then during production, batches of CPU's have to be thrown out due to minor die flaws......

trust me, there are just as bad of things out there (like it only costs Pepsi 10 cents to make the pop and put it in a can)
 

Sentential

Senior member
Feb 28, 2005
677
0
0
It would be nice if they would lower the price of their chips to reflect costs. Hoewver I think this article is somwhat deceptive as it does not list RND costs for fabrication.
 

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
Originally posted by: BigCoolJesus
Originally posted by: Furen
How about oil... It only takes like 2 dollars to mine a barrel.

yea, thats f*cking bullsh!t
Actually, he's correct for at least some barrels of oil. It's about $2 for the Saudis. In the old world, Saudis would use oil that welled up on the surface of the ground for lamp oil. That's how easy it is to get oil in SA. However, for other locations the cost is significantly higher. In Russia it's about $10. For second tier resources like Alberta's tar sands, it's ~$14 altough that may have dropped by now and will drop more in the future with the application of some clever tricks.
 

DarkKnight69

Golden Member
Jun 15, 2005
1,688
0
76
I live in alberta, It is about 10 bucks per barrel to mine, but it is the second largest oil deposit in the world and may end up lasting MUCH longer than saudi oil. The about of oil we have even puts to sham Iraq!
 

ElTorrente

Banned
Aug 16, 2005
483
0
0
Originally posted by: DarkKnight69
I live in alberta, It is about 10 bucks per barrel to mine, but it is the second largest oil deposit in the world and may end up lasting MUCH longer than saudi oil. The about of oil we have even puts to sham Iraq!

It's a good policy to use up the oil in the middle east first, then our region will have control of supply in the future- Alaska is untapped but has huge amounts. Wow- this is pretty OT.