Why is AM2 so cheap?

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coldpower27

Golden Member
Jul 18, 2004
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Originally posted by: MDE
Originally posted by: coldpower27
Originally posted by: Markfw900
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be.

I just don't trust anything regarding the semiconductor industry unless it's back up by where the information is obtained and a link to. The "Trust me it's true" doesn't jive with me regardless of who it maybe and for me perosnally I do this with everyone. I won't give preferential tratement.

Bigger chip = more expensive. It's not a hard concept to grasp.

AM2's Orleans processor are actually bigger then Venices. As are the Windsor-512's bigger then Mancehsters.
 

coldpower27

Golden Member
Jul 18, 2004
1,676
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76
Originally posted by: Praxis1452
Originally posted by: coldpower27
Originally posted by: Markfw900
Originally posted by: Questar
1. In fact, I have a very good idea of the relative cost of chips...I'm sorry that you don't.

Funny, that would be one of the most closely held secrets of Intel. And you know the answer.

I call BS.

Viditor is one of the most knowlegdeable people here. And why would this be such a secret ?

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be.

I just don't trust anything regarding the semiconductor industry unless it's back up by where the information is obtained and a link to. The "Trust me it's true" doesn't jive with me regardless of who it maybe and for me perosnally I do this with everyone. I won't give preferential tratement.

It's a bigger die and therefore costs more the manufacture. Die space is very precious... Even intel's 6 fabs doesn't mean they can produce it for much less just that they can produce much more.

Conroe's die size is smaller then any Socket AM2 Dual Core out currently. That's argument is worthless.
 

Aluvus

Platinum Member
Apr 27, 2006
2,913
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Originally posted by: coldpower27
Conroe's die size is smaller then any Socket AM2 Dual Core out currently. That's argument is worthless.

Conroe is not yet on the market. The Intel product whose production cost was mentioned was the Pentium D 920.
 

coldpower27

Golden Member
Jul 18, 2004
1,676
0
76
Originally posted by: Aluvus
Originally posted by: coldpower27
Conroe's die size is smaller then any Socket AM2 Dual Core out currently. That's argument is worthless.

Conroe is not yet on the market. The Intel product whose production cost was mentioned was the Pentium D 920.

Still doesn't work, both Socket AM2 Dual Cores are still bigger then even Presler.
 

golem

Senior member
Oct 6, 2000
838
3
76
Die size is a determinant of the materials cost of the chip. It doens't take into account other direct cost associated with a chip or the the cost of overhead that is allocated into each chip. Without knowing the cost structure of Intel or AMD, you can't really say with certainty how much a chip cost AMD/Intel to make.
 

coldpower27

Golden Member
Jul 18, 2004
1,676
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76
Originally posted by: TheArabian
Ok well firstly i got 4 gigs of http://www.newegg.com/Product/Product.asp?Item=N82E16820144184 this ram for free, so that is why i'm definently changing over to AM2, but i want to know the best time to do it. Should i buy now? or do you all really think prices will drop that much?

Well you may want to look into selling those 4GB of ECC DDR2 and getting some regular DDR2.

If your going to DDR2 anyway you mgiht actually want to wait awhile and see what Conroe will bring.
 

coldpower27

Golden Member
Jul 18, 2004
1,676
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76
Originally posted by: golem
Die size is a determinant of the materials cost of the chip. It doens't take into account other direct cost associated with a chip or the the cost of overhead that is allocated into each chip. Without knowing the cost structure of Intel or AMD, you can't really say with certainty how much a chip cost AMD/Intel to make.

Of course we don't know all the costs of each of the Semiconductor companies that is why we are hear making estimates based on freely available information. We can't do anything about the information that we don't have access to. It is a given there is gonna be some margin of error.
 

TheArabian

Senior member
Nov 18, 2005
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Originally posted by: coldpower27
Originally posted by: TheArabian
Ok well firstly i got 4 gigs of http://www.newegg.com/Product/Product.asp?Item=N82E16820144184 this ram for free, so that is why i'm definently changing over to AM2, but i want to know the best time to do it. Should i buy now? or do you all really think prices will drop that much?

Well you may want to look into selling those 4GB of ECC DDR2 and getting some regular DDR2.

If your going to DDR2 anyway you mgiht actually want to wait awhile and see what Conroe will bring.



What is the difference between ECC and Regular exactly?
 

coldpower27

Golden Member
Jul 18, 2004
1,676
0
76
Originally posted by: TheArabian
Originally posted by: coldpower27
Originally posted by: TheArabian
Ok well firstly i got 4 gigs of http://www.newegg.com/Product/Product.asp?Item=N82E16820144184 this ram for free, so that is why i'm definently changing over to AM2, but i want to know the best time to do it. Should i buy now? or do you all really think prices will drop that much?

Well you may want to look into selling those 4GB of ECC DDR2 and getting some regular DDR2.

If your going to DDR2 anyway you mgiht actually want to wait awhile and see what Conroe will bring.



What is the difference between ECC and Regular exactly?

Well ECC is usually designed to be used with Servers and generally comes in lower speed grades compared to regualr DDR2. Hence DDR2-400 in this particular case, which is practically non-existant if your looking to buy regular DDR2 memory now.

Not to mention it's price 355US or whatever it is could get you 2GB or premium grade regular DDR2-800. It's not a wonder it's so epxensive Kingston Memory usually is very expensive compare to it's competition.
 

Lonyo

Lifer
Aug 10, 2002
21,938
6
81
Originally posted by: golem
Die size is a determinant of the materials cost of the chip. It doens't take into account other direct cost associated with a chip or the the cost of overhead that is allocated into each chip. Without knowing the cost structure of Intel or AMD, you can't really say with certainty how much a chip cost AMD/Intel to make.

Add in wafer size differences (have AMD switched to all 30mm or are they still doing some 20mm?) and the fact that (I think) Presler dies are seperate so if one core is dead it doesn't matter as much as if they were joined, and you have very different costs.
 

golem

Senior member
Oct 6, 2000
838
3
76
Originally posted by: coldpower27
Originally posted by: golem
Die size is a determinant of the materials cost of the chip. It doens't take into account other direct cost associated with a chip or the the cost of overhead that is allocated into each chip. Without knowing the cost structure of Intel or AMD, you can't really say with certainty how much a chip cost AMD/Intel to make.

Of course we don't know all the costs of each of the Semiconductor companies that is why we are hear making estimates based on freely available information. We can't do anything about the information that we don't have access to. It is a given there is gonna be some margin of error.

But I'm just say that given that we don't know the costs of Intel/AMD, saying something like bigger core = more expensive chip is incorrect when comparing chips from differenct companies and MIGHT be only correct when comparing chips from within the same company.
 

Aluvus

Platinum Member
Apr 27, 2006
2,913
1
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Originally posted by: Lonyo

Add in wafer size differences (have AMD switched to all 30mm or are they still doing some 20mm?)

My memory is that the newest facilities have switched over, but the older ones have not.

and the fact that (I think) Presler dies are seperate so if one core is dead it doesn't matter as much as if they were joined, and you have very different costs.

You are correct. Preslers are manufactured as two separate cores, then paired together. It dramatically cuts the number of duds. And therefore costs.
 

Viditor

Diamond Member
Oct 25, 1999
3,290
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0
Originally posted by: coldpower27

Conroe's die size is smaller then any Socket AM2 Dual Core out currently. That's argument is worthless.

1. That wasn't the whole point of the question. Questar quoted: "a company spokesperson said that AMD's pricing strategy "remains unchanged" and that it remains committed to pricing its prodcuts "according to the value they deliver." I pointed out that initially it was Intel that cut their 162 mm2 920 down to HALF the price of the X2 3800. Are you contending that the 920 costs half as much to make as the X2 3800????

2. Who said ANYTHING about Conroe?

Regardless of how knowledgeable you may think Viditor is, if he can't freely provide where he got the infromation from, and it's accessible to us all (no fees attached), and not just him alone, you can't blame people for being skeptical in the slightest regardless of how knowledgeable he may be
What information are you talking about?
 

Viditor

Diamond Member
Oct 25, 1999
3,290
0
0
Originally posted by: golem
Originally posted by: coldpower27
Originally posted by: golem
Die size is a determinant of the materials cost of the chip. It doens't take into account other direct cost associated with a chip or the the cost of overhead that is allocated into each chip. Without knowing the cost structure of Intel or AMD, you can't really say with certainty how much a chip cost AMD/Intel to make.

Of course we don't know all the costs of each of the Semiconductor companies that is why we are hear making estimates based on freely available information. We can't do anything about the information that we don't have access to. It is a given there is gonna be some margin of error.

But I'm just say that given that we don't know the costs of Intel/AMD, saying something like bigger core = more expensive chip is incorrect when comparing chips from differenct companies and MIGHT be only correct when comparing chips from within the same company.

We do know a lot of those costs...they are available on the net if you want to take the time to calculate them.
For example, the first place to look is on EDGAR for the breakdown of expenses and income in the quarterly report. It helps if you have a spreadsheet with severl years of data that you can track. (you also need to look at the revised 8Ks as well...).

Next, there's quite a few bits of those expensive analysis papers available online. Search for news stories from them like this one.

The point is that while figuring out how much each chip costs exactly is not possible, getting it withing a few dollars is...we can also determine what the relative costs are going forward.
 

golem

Senior member
Oct 6, 2000
838
3
76
We do know a lot of those costs...they are available on the net if you want to take the time to calculate them.
For example, the first place to look is on EDGAR for the breakdown of expenses and income in the quarterly report. It helps if you have a spreadsheet with severl years of data that you can track. (you also need to look at the revised 8Ks as well...).

Next, there's quite a few bits of those expensive analysis papers available online. Search for news stories from them like this one.

The point is that while figuring out how much each chip costs exactly is not possible, getting it withing a few dollars is...we can also determine what the relative costs are going forward.

That may be true (or it may not, I really have no idea), but how many people on this board who are comparing the cost of AMD chips to Intel chips based on die size have done that?

Again, I really don't know who is spending less to make chips, I'm just that basing this on die size alone is not accurate at all.
 

Viditor

Diamond Member
Oct 25, 1999
3,290
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Originally posted by: golem

Again, I really don't know who is spending less to make chips, I'm just that basing this on die size alone is not accurate at all.

Not accurate, but close. The wafer is the most expensive non-fixed cost of the chip.
There certainly is a bit of leeway, but it's still a decent rule of thumb.
 

potato28

Diamond Member
Jun 27, 2005
8,964
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0
Originally posted by: Viditor

... out that initially it was Intel that cut their 162 mm2 920 down to HALF the price of the X2 3800. Are you contending that the 920 costs half as much to make as the X2 3800????

I think that Intel's trying to clear out all of their Netburst chips so that they can start making a huge supply of new chips.

And AM2 is so cheap because AMD is trying to start a price war.
 

coldpower27

Golden Member
Jul 18, 2004
1,676
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Originally posted by: Viditor
Originally posted by: coldpower27

Conroe's die size is smaller then any Socket AM2 Dual Core out currently. That's argument is worthless.

1. That wasn't the whole point of the question. Questar quoted: "a company spokesperson said that AMD's pricing strategy "remains unchanged" and that it remains committed to pricing its prodcuts "according to the value they deliver." I pointed out that initially it was Intel that cut their 162 mm2 920 down to HALF the price of the X2 3800. Are you contending that the 920 costs half as much to make as the X2 3800????

2. Who said ANYTHING about Conroe?

Nope that is not what I am claiming, you have to keep in mind that yielding 2x81mm2 is not the same as the 147mm2 and 183mm2 of the X2 3800+.

1/2 the price of 3800+? You are exagerating the price difference. They cut their Pentium D 920 down to about 2/3 of the price of the X2 3800+ not 1/2. It's only since Early June that Intel has reduce the pricing of it's Pentium D 920 and 930 to 3/5 of the X2 3800+.

It's hard to say how costly it is to make a Manchester vs a Presler due to the fact they utilize difference processes, AMD's process is 1 layer thicker as well as having SOI embedded. 1 is a Monolithic implementation and the other is Dual Die.

2/3 I would think certainly is doable adding in the additonal savings of 300mm wafer processing, double die implementation, lack of SOI, and a layer thinner.

http://www.anandtech.com/cpuchipsets/showdoc.aspx?i=2734

Conroe is dicussed because the topic is about AM2, and Conroe will be competing against AM2 Dual Cores.