Question 2 It costs $1 billion to build a new fabrication facility. You willbe s

Question

Question 2
It costs $1 billion to build a new fabrication facility. You willbe selling a range of chips from that
factory, and you need to decide how much capacity to dedicate toeach chip. Your Woods chip will be
150 mm2 and will make a profit of $20 per defect-free chip. YourMarkon chip will be 250 mm2 and
will make a profit of $25 per defect-free chip. Your fabricationfacility will be identical to that for the
Power5. Each wafer has a 300 mm diameter.
a) How much profit do you make on each wafer of Woods chip?
b) How much profit do you make on each wafer of Markon chip?
c) Which chip should you produce in this facility?
d) If your demand is 50,000 Woods chips per month and 25,000 Markonchips per month, and
your facility can fabricate 150 wafers a month, how many wafersshould you make of each
chip?

Explanation / Answer

area of each wafer= pie*(150)^2=70714.3 mm^2

a)

no. of woods chip=70714.3/150=471.4~471

profit=471*20=9420$

b) no. of markon chip=70714.3/250=282.8~283

profit=283*25=7075$

c) wood chip as high profit

d) no. of wood wafers required for 50000 wood chips=50000/471=106.15~106

no. of markonwafers required for 25000 markonchips=25000/283=88.3~88

but only 150 can be made in total so 106 will be of wood as high profit and rest 44 of markon

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