I agree, assembly, test and packaging are the largest ticket items although silicon die cost probably 5cents or so, the die can't be that small. So if the total cost is less than 25 cents and silicon is 5 cents that leaves 20 cents for assembly, test and package. I am still amazed that you can do that, I am used to numbers that are 10-100x that (on smaller volumes)...Kris
I realize that you can make up things in volume @drFPGA...but million pieces at 50 cents is hardly a big win (just $500k in revenue)...what interests me is cost of making that FPGA...assuming 50% gross profit margin it should not be higher than 25 cents...how do you do that? how large is silicon die? what process is used to make it? Kris
Yep, the only way to stay in the game vs. the two big guys is to carve out your own (small) space. The trick is to be small enought to avoid the big guys going in but big enough to be profitable. A tough trinck, but Lattice and Microsemi both seem to be doing it correctly.
If they can just find a way to multiply the number of bets they can make- the market is getting wider, with lots of new applications possibilities. The more bets they can make the better chance they have. Maybe they can even find a way to do it more efficiently than the big guys. They might be able to get big themselves...