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Yields are tied to price of the products thus it can affect the price. The cost is higher when yields are lower in some extent. Is that so hard to understand? Chiplets are easier to and cheaper to manufacture due to the fact they are smaller (less defective) and yields are higher (despite the node) comparing to monolithic. It is way more difficult to make a gigantic monolithic die than same one with chiplets.Nope.
Prices are driven by supply and demand. That's it. This is not finance and not logistics. It's pure math applied to how people use their resources (which we started to call "economy" few centuries ago).
This is based on just 4 assumptions:
- there's a distribution of how much money buyers can spend,
- there's a limited amount of goods,
- each buyer wants to buy for as little as possible,
- each seller wants to sell for as much as possible.
As you can see, there are no costs in this theorem.
Costs can be seen as a sensible lower limit, but they don't impact the price. They only impact profitability. Because a company can (and often does) sell under costs. And it is allowed to do so. But if it does this too often, it's not profitable and collapses.
A company always sells for as much as it can. It will not voluntarily sacrifice earnings.
If you don't disagree with this then please look at the prices of Intel and AMD now because in your point of view one of the companies is losing money. I bet, just like in other posts, you will say AMD is losing money with Ryzen because price for the product is lower than Intel's is and AMD's CPUs are made of chiplets. Why would AMD do chiplet design since it is so expensive and it is not worth it?
Now look what happened with the market these days after AMD released chiplets and Ryzen. AMD is killing Intel with prices and please don't say AMD Is losing money because it is ridiculous.
