Uncovering hidden chip costs
Rob Hilkes, EE Times
(10/22/2007 9:00 AM EDT)
The proportion of semiconductor content is increasing in almost everything we own. For some large manufacturers of consumer electronics, semiconductors are the single largest contributor to finished-goods costs. A clear understanding of the chip supplier's cost structures can bolster the OEM's negotiating position.
All chips are not created equal, and even devices that look markedly similar can have dramatically different pricing. This statement is perhaps obvious, but the realities of chip pricing are often overlooked during price negotiations.
For example, the device shown in the accompanying images may look like a simple 16-lead SOIC and would therefore intuitively be priced at perhaps a few dimes in high volumes. In reality, it incorporates a rather complex BiCMOS die with a second MEMS accelerometer device and is priced at more than three times that amount. None of this is obvious until a qualified analyst starts to take a good, close look under the hood.
There are several fundamental rules that must be considered when determining the cost of an integrated circuit.
(10/22/2007 9:00 AM EDT)
The proportion of semiconductor content is increasing in almost everything we own. For some large manufacturers of consumer electronics, semiconductors are the single largest contributor to finished-goods costs. A clear understanding of the chip supplier's cost structures can bolster the OEM's negotiating position.
All chips are not created equal, and even devices that look markedly similar can have dramatically different pricing. This statement is perhaps obvious, but the realities of chip pricing are often overlooked during price negotiations.
For example, the device shown in the accompanying images may look like a simple 16-lead SOIC and would therefore intuitively be priced at perhaps a few dimes in high volumes. In reality, it incorporates a rather complex BiCMOS die with a second MEMS accelerometer device and is priced at more than three times that amount. None of this is obvious until a qualified analyst starts to take a good, close look under the hood.
There are several fundamental rules that must be considered when determining the cost of an integrated circuit.
To read the full article, click here
Related Semiconductor IP
- Verification IP for C-PHY
- Band-Gap Voltage Reference with dual 2µA Current Source - X-FAB XT018
- 250nA-88μA Current Reference - X-FAB XT018-0.18μm BCD-on-SOI CMOS
- UCIe D2D Adapter & PHY Integrated IP
- Low Dropout (LDO) Regulator
Related News
- Bolt Graphics Completes Tape-Out of Test Chip for Its High-Performance Zeus GPU, A Major Milestone in Reducing Computing Costs By 17x
- SynTest rolls out design-for-test software to reduce chip-testing costs
- DFT software tackles test costs <!-- verification -->
- Adaptive Silicon Inc. (ASi) rolling out programmable core that reduces SoC costs
Latest News
- JEDEC Advances DDR5 MRDIMM Ecosystem with New Memory Interface Logic and Expanded MRDIMM Roadmap
- Altera Brings Determinism to Physical AI Systems with Latest Release of FPGA AI Suite
- Mosaic SoC raises $3.8M to bring real-time spatial intelligence to every consumer device
- UMC Reports First Quarter 2026 Results
- Rambus Appoints Sumeet Gagneja as Chief Financial Officer