Saturday, December 31st 2011

Taiwan Foundries Cut Prices

Taiwan foundries are going to be cutting prices by 10 to 15% for wafers built on mature node processes. Since these wafers have lower production costs the foundries are passing on the savings. This move is to boost consumer confidence in building their inventory after a year of shaky ground in the U.S. and European markets. This according to DigiTimes.

Also DigiTimes is reporting despite slow demand for mature process manufacturing, Taiwan Semiconductor Manufacturing Company (TSMC) continues to see orders heat up for advanced 28nm technology, according to sources at non Taiwan-based chip suppliers.

This news could mean that these same vendors that are getting a cut in overhead thanks to the foundries could pass on the savings to the end customer to boost revenue.

Source: DigiTimes
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16 Comments on Taiwan Foundries Cut Prices

#1
blanarahul
Does this mean we can have 500$ Radeon HD 7970s???
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#2
DanishDevil
I was just going to say that I hope this means a price drop for 6970's. If they released at $500, it would dominate the high-end segment until Kepler steps in (then who knows).
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#3
TheMailMan78
Big Member
by: blanarahul
Does this mean we can have 500$ Radeon HD 7970s???
No more like $530 7970's.
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#4
afw
Would be great if nVidia drops the price of 580 to ~$350 :) ( with this price cut and to counter 7970 sales )
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#5
FreedomEclipse
~Technological Technocrat~


I love it when wafers drop in price.
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#6
SteelSix
by: afw
Would be great if nVidia drops the price of 580 to ~$350 :) ( with this price cut and to counter 7970 sales )
I'd not be surprised if they do exactly that..
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#7
sirroman
by: blanarahul
Does this mean we can have 500$ Radeon HD 7970s???
No, 28nm isn't mature.
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#8
NdMk2o1o
by: FreedomEclipse
http://www.virginmedia.com/images/pink_wafer430x300.jpg

I love it when wafers drop in price.
:eek: using the same joke twice?? :shadedshu I expected better from you man!! :p

I am going to stick with my 570 until at least the 6**/7** series unless games become unplayable on it in the next year which ain't going to happen, when there is a big breakthrough in both games and GPU's that requires me to upgrade I will, fed up of spending £200 a year for incremental improvements, btw that's my choice so I am not saying I am being forced too though just am not going to do it anymore.
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#9
Legacy-ZA
I am afraid, I think the middle man will profit more from this than the end consumer. I'll "buy" it when I see low prices. :)
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#10
Relayer
This sounds like a good thing for nVidia if all they have are 40nm to compete with AMD @ 28nm.
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#11
digibucc
by: sirroman
No, 28nm isn't mature.
that's my thought too
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#12
General Lee
Mature nodes probably mean older than 40 nm, so no GPU price cuts because of this.
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#13
Delta6326
This will be for 6*** stuff. and older
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#14
beautyless
Just an idea.

Can they produce a Graphic chip using 1 wafer?
And how much money they can make from a wafer with 18 or 30 inches size?
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#15
Delta6326
by: beautyless
Just an idea.

Can they produce a Graphic chip using 1 wafer?
And how much money they can make from a wafer with 18 or 30 inches size?
You can make a lot from one wafer.

So I think it's like D=450 mm and say S=389 mm² For a AMD 6970

How to figure d=diameter and target IC size [S, mm2]
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#16
CoreDuo
All this seems like to me is a way for AMD and NVIDIA to continue selling at current price levels and pocket the savings to improve their respective bottom lines. They both could certainly use it.
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