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Suppose I have a digital design that I am creating. I am deciding whether to use an FPGA or an ASIC to design my hardware.
Suppose I have a digital design that I am creating. I am deciding whether to use an FPGA or an ASIC to design my hardware. The design will have a sales volume of 1E7 units per year. If I use an FPGA based design, I will need to employ a design team of 15 employees, over a period of 6 months. Each employee needs to be paid $100k/year on average. If I use an ASIC based design, I will need to employ a design team of 200 employees, over a period of 24 months. Each employee needs to be paid $100k/year on average. The cost of the ASIC hardware is $1 per system. The cost of the FPGA hardware is $40 per system, since I buy the FPGAs from an FPGA vendor. In each case, I would like to financially break even after 1 year of sales. A) What is the sales price I should charge my customers, assuming I used an FPGA to design my hardware? B) What is the sales price I should charge my customers, assuming I used an ASIC to design my hardware? C) What is my profit in the second year of sales, assuming
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