Yep, smaller die generally means higher yield. So not only do you get more die on the wafer when the die are smaller, but you get even more of them off the wafer as being functional and sellable as well.
There are more details than you probably ever care to read about on the topic in my posts
here and here.
The simple rule-of-thumb equation for yields between two chips which are similar in design/complexity and produced in the same fab is:
Yield_Chip_A = Yield_Chip_B^(DieSize_Chip_A/DieSize_Chip_B)
Juniper's die size is
166mm^2. Cypress is
334mm^2.
So if Cypress' yields are say 50% then Juniper's yield entitlement would be:
Yield_Juniper = 0.5^(166/334) =
71%
A simplistic calculator for determining the number of dies per wafer (DPW) based on no more info than the die-size of the chips (S) and the diameter of the wafer (d):
Using d = 294 mm (3 mm wafer edge exclusion, aka WEE) and the S from above we arrive at an estimated 358 dies per wafer for Juniper and 167 dies per wafer for Cypress.
After factoring in the yields (remember we assumed Cypress yields, so this is all relative not absolute), that means we see for wafer of Juniper chips AMD nets 50%*167 =
84 Cypress chips and 71%*358 =
254 Juniper chips.
That ratio is 3:1. Now the ratio will change obviously as the background defect density drops and overall functional yields improve, and also the yields we are talking about here do not include losses from parametric yields (which are further biased against larger chips, so if anything the ratio of good Juniper chips per wafer to good Cypress chips per wafer is even larger than 3:1).
Remember the shortage of Cypress isn't about the ratio of demand for Juniper:Cypress not being 1:1...the actual demand for 57xx products could be 10x more than that for 58xx, but if AMD anticipated the ratio to be 11x and they started enough Juniper wafers to support that much 57xx demand then that means AMD has excess supply of Juniper (11x > 10x) and so they
could have done a better job of balancing the fixed 40nm wafer allocation by starting fewer Juniper wafers and more Cypress.
I've no doubt they did account for bigger demand of the cheaper products, it just appears the ratio they chose resulted in more 57xx supply than demand. Not a bad thing, just not optimal from a gross margins point-of-view.