Advanced Micro Devices Inc (AMD)

[chipguy]

chipguy, why do you think A64 is more expensive to make than Barton? The amount of good dices per
vafer will be comparable, packaging comparable. Ok, let it be even 20% more expensive (I think it won't
be) - so what? Even 10% of sales increase will compensate 20% of cost rise.

Consider a 256 KB A64. It will be slightly larger in die size, it will have a smaller fraction of
die area protected by repairable redundant structures. And it uses SOI processing. The
package it goes into has more than 50% higher pin count. The high speed HT links will
increase testing costs. Finally, A64 is at the top of the learning curve while Barton is at
the bottom. I wouldn't be surprised if a 256 KB A64 cost as much as 50% more to make
than Barton in the first few quarters of full scale production. I doubt it would ever drop
below a 30% premium.

I really think AMD has painted themselves into a corner with A64 and SOI. For their sake I
hope they can pull A64 clock rates above 2.2 GHz with good yield or they are going to be
in a world of poop in the desktop market.