A new generation product will be decided in a video processor company. There are two production options,

The differences of these options are shown in the table below. Marketing department of this product

predicts a sale between 100,000 - 500,000 units. Which option is appropriate in terms of costs? Show all your calculations and justification clearly.

Process Cost of Mask Set Die Size Wafer Diameter Yield Cost of Wafer Test Cost Packaging Cost Final Test Yield 65 nm CMOS $3,000,000 1.5 cm 12" 78% $2,000 90 nm CMOS $800,000 2 cm2 8'' 85% $1,200 $0.68/die $0.40/chip 95% Process Cost of Mask Set Die Size Wafer Diameter Yield Cost of Wafer Test Cost Packaging Cost Final Test Yield 65 nm CMOS $3,000,000 1.5 cm 12" 78% $2,000 90 nm CMOS $800,000 2 cm2 8'' 85% $1,200 $0.68/die $0.40/chip 95%