You are trying to figure out whether to construct a new fabrication facility for your IBM Power5 chips. It costs $1.5 billion to build a new fabrication facility. The benefit of the new fabrication is that you predict that you will be able to sell 3 times as many chips at 2 times the price of the old chips. The new chip will have an area of 186 mm2, with a defect rate of 7 defects per cm. Assume the wafer has a diameter of 300 mm. In both the old and new fabrications, it costs $1000 to fabricate a wafer, and the packaging and testing cost is $20 per chip (after final testing). You were selling the old chips for 40% more than their cost. Assume a=4, Wafer Yield = 1. The old fabrication process' parameters are shown in the following table. Chip Die size (mm) Estimated defect rate (per Manufacturing | Transistors feature size (millions) (nm) 276 cm) IBM Power5 389 0.30 130 Note: In this question, you will use equations based on empirical study and approximations. For simplicity, when you need to round to integer numbers, use the mathematical round function (e.g., round 3.24 to 3.2 or round 3.51 to 4) without considering whether the floor or ceiling function would be more appropriate. Remember not all calculation results need to be rounded to integer numbers. f) [2 marks] What is the cost of the new Power5 chip? Assume the final test yield is 100%. g) [2 marks] What was the selling price of each old Power5 chip? h) [2 marks] What is the selling price of each new Power5 chip? What is the difference between the selling price and the cost of the new chip? i) [3 marks] Suppose 50% of the difference between the selling price and the chip cost is your profit. If you sold 500,000 old Power5 chips per month, how long would it take for the accumulated profit to recoup the costs of the new fabrication facility? You are trying to figure out whether to construct a new fabrication facility for your IBM Power5 chips. It costs $1.5 billion to build a new fabrication facility. The benefit of the new fabrication is that you predict that you will be able to sell 3 times as many chips at 2 times the price of the old chips. The new chip will have an area of 186 mm2, with a defect rate of 7 defects per cm. Assume the wafer has a diameter of 300 mm. In both the old and new fabrications, it costs $1000 to fabricate a wafer, and the packaging and testing cost is $20 per chip (after final testing). You were selling the old chips for 40% more than their cost. Assume a=4, Wafer Yield = 1. The old fabrication process' parameters are shown in the following table. Chip Die size (mm) Estimated defect rate (per Manufacturing | Transistors feature size (millions) (nm) 276 cm) IBM Power5 389 0.30 130 Note: In this question, you will use equations based on empirical study and approximations. For simplicity, when you need to round to integer numbers, use the mathematical round function (e.g., round 3.24 to 3.2 or round 3.51 to 4) without considering whether the floor or ceiling function would be more appropriate. Remember not all calculation results need to be rounded to integer numbers. f) [2 marks] What is the cost of the new Power5 chip? Assume the final test yield is 100%. g) [2 marks] What was the selling price of each old Power5 chip? h) [2 marks] What is the selling price of each new Power5 chip? What is the difference between the selling price and the cost of the new chip? i) [3 marks] Suppose 50% of the difference between the selling price and the chip cost is your profit. If you sold 500,000 old Power5 chips per month, how long would it take for the accumulated profit to recoup the costs of the new fabrication facility
