FACTORIES Depreciation rate: 25 year straight line depreciation BUILDING ($ PER Production Year 1985 1990 2000 2020 SQUARE Foot) $ 4,000 $4,750 $ 5,500 $6,250 Depreciation rate: 5 year straight line depreciation Wafer Size Diameter (mm) 150 200 300 450 Clean Room Square Footage 50,000 57,500 65,000 72,500 Administrative Wafer starts per month 10,000 30,000 40,000 25,000 Edge Exclusion (mm) 2 2 3 Wafer yield (%) 0.94 0.95 0.98 4 0.98 Square Footage Cost per square foot of Admin $ 75000 75000 75000 75000 350 350 350 350 Cost for (raw material) wafer$ 250 550 1100 1800 1985 1990 2000 2020 Personnel count 1985 1990 2000 2020 Monthly Wages / Salary Operators 150 125 100 75 $ 300,000 Technicians 75 65 55 45 $ 250000.00 200000.00 225,000 195000.00 165000.00 $150,000.00 $135,000.00 Engineers (EE, IE) 24 22 20 18 $ 288,000 264000.00 240000.00 $216,000.00 HR 5 5 5 5 $ 12,000 $12,000 $12,000 $ 12,000 Psychologist 1 1 1 1 $ 10,000 $10,000 $10,000 $ 10,000 Communications 2 2 2 2 $ 4,800 $4,800 $ 4,800 $ 4,800 Politics 1 1 1 1 $ 2,400 $2,400 $2,400 $ 2,400 Interpreter 1 1 1 1 $ 3,000 $ 3,000 $3,000 $ 3,000 Assume One year of production for each of the 4 factories Math / Analytics 3 3 3 3 $ 11,000 $ 11,000 $ 11,000 $ 11,000 Accounting 5 5 5 5 $ 6,000 $6,000 $6,000 $ 6,000 Finance 5 5 5 5 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Public Relations 1 1 1 1 $ 2,400 $2,400 $ 2,400 $ 2,400 1985 1990 2000 2020 1985 1990 2000 2020 EQUIPMENT COUNT Cost per Tool (Capitol) ($M) Deposition 15 19 22 15 5 6 6 7 Diffusion 25 29 32 25 5 6 6. 7 Etch 20 24 27 20 5 6 6 7 Furnaces 12 16 19 12 5 6 6 7 Inspection Micro 25 29 32 25 2 2 3 4 Inspection Visual 20 24 27 20 1 1 1 1 Metrology 30 34 37 30 4 4 5 6 Wet Clean 15 19 22 22 6 6 7 9 Litho I Line 6 10 13 6 12 12 13 14 Litho 248 5 9 12 5 24 24 28 32 Litho 193 3 6 3 65 75 95 Litho 157 3 3 120 145 Calculate the cost per square centimeter of a processed wafer for each factory Calculate the cost per square inch of a processed wafer for each factory What is the cost to produce one wafer for each factory? What can be said about economies of scale?