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A semiconductor manufacturing company's factory typically achieves a defect density of 0.5 defects/cm. The company manufactures many products in this factory. Consider two products,

A semiconductor manufacturing company's factory typically achieves a defect density of 0.5 defects/cm. The  

A semiconductor manufacturing company's factory typically achieves a defect density of 0.5 defects/cm. The company manufactures many products in this factory. Consider two products, one a 1 cm chip that the company can sell for $50 per chip and a second product which is 0.1 cm which the company can sell for $1 per chip. In both cases, these products are manufactured on 300 mm (diameter) wafers and the wafer manufacturing costs are $2000 per wafer. Which chip should the company manufacture if it wants to maximize overall profits? is either product profitable for the company? Assume the Seeds model applies in both cases.

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