The truth that we’re in iffy financial instances and demand for all method of capitalist consumables is down is just not information. However the particular truth of decrease silicon wafer costs of late is novel. And it instantly has us hoping for cheaper precise chips.
The information comes from Taiwanese media outlet UDN (opens in new tab) (by way of HardwareLUXX (opens in new tab)) and relates particularly to the clean or uncooked silicon wafers from which chips are etched utilizing superior lithography processes.
Reportedly, costs of six and eight-inch wafers are down for the primary time in three years, whereas 12-wafers are holding regular however anticipated additionally to fall shortly. It is the bigger 12-inch wafers which might be used for probably the most superior processes at an important foundry of all, TSMC, and likewise by Intel.
Greater wafer costs have been half or the explanation why chip costs have gone up so dramatically in the previous couple of years. Based on business observers, TSMC’s costs for a completed wafer totally etched with chips has elevated from $10,000 per wafer in 2018 for a 7nm wafer to $20,000 per wafer for its newest 3nm tech. In 2016, a 10nm TSMC wafer would have price you simply $6,000.
After all, clean wafer costs are removed from the one issue figuring out closing chip costs. The newest multi-layer manufacturing nodes are way more advanced and time consuming to course of than earlier nodes. And yields are all the time completely important in dictating particular person part costs.
So, regardless of a lot decrease demand pushed by every thing from the broader financial downturn, increased rates of interest, inflation, the demise of cryptocurrency mining and a raft of additional elements, cheaper clean wafers aren’t going to right away translate into cheaper precise chips.
Furthermore, it could possibly’t merely be assumed that the likes of TSMC will go on decrease clean wafer prices to prospects like AMD and Nvidia. Through which case, there can be no financial savings for these corporations to go on to lengthy struggling avid gamers, even when they need to. And it is extremely questionable that they do.
Certainly, as we just lately reported (opens in new tab), AMD and different chip producers usually modify their chip output to forestall a glut of product and the decrease costs that might ensue. The identical applies to silicon wafers with UDN reporting that many chip foundries are having their wafer deliveries delayed and decreasing their manufacturing volumes.
Within the very future, sustained decrease demand will drag costs down. And GPU pricing has come off from its wildest pandemic and crypto-fuelled peak. However the mechanics of wafer pricing are simply one other perception into why chip costs and due to this fact the price of issues like graphics playing cards is prone to fall gently slightly than out of the blue nosedive.
We’re simply going to need to be affected person.
