Taiwan Cuts Chip Production prices by 10 to 15 Percent
Wafer manufacturing in Taiwan is getting substantially cheaper this year.
Digitimes reports that prices for wafers built on mature node processes have been dropped by 10 to 15 percent because of declining production costs. Of course, it is not just a selfless move; the intention is to convince customers to order more chip and build up inventory.
That, however, may not be such an easy argument, given the general uncertain business outlook and macroeconomic challenges. While the publication said that chip inventories are at "safe levels", it is unlikely that chip customers will be rushing into premature orders if they don’t know how the market will develop in the new year.
Digitimes noted that chip inventories were at "excessive levels between the end of the second quarter and the beginning of the third quarter," which was causedby a "combination of negative macroeconomic factors such as weak consumer confidence in the U.S. and the European crisis."
- Business,
- wafer ,
- semiconductor ,
- chip ,
- taiwan ,
- manufacturing
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So what does that mean for us?
BUY MOAR CHIPS NAO
Just part of a normal production cycle.
If only Intel could reduce prices by 10%. That would be win win for customers.
It would kill the processor business of AMD.
It would kill the processor business of AMD.
Sometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.
Please let this mean that 8GB chips will drop
That would be awesome!
I am inclined to agree with freggo. It's just a typical production cycle. Over the years we've seen it happen many times with quite a few products.
cheaper ram, gfx cards and ssd? i can only hope....
Not to nit pick but cheaper ram? Have you seen ram prices iv gotten good 1600 speed name brand 8GB sets for
I keep face palming my self every time I remember on how much I spent on memory on my 486.
Sometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.
It also reduces the price for AMD as well... HURP DURP.
Whoops, my comment was pointed at "Digiex". Sorry, amuffin. =]
Even if they drop prices it will not make it's way to consumers, look at how much american's pay in corn subsidies and the price of doritos has not fallen.
Sometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.
so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industry
but i think now the 7970 should have less price and maybe some future AMD CPUs
so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industrybut i think now the 7970 should have less price and maybe some future AMD CPUs
i mean't didn't do that "out of the kindness of the web"
you understand
mechanical harddrive vendors, take note of this...
so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industry
but i think now the 7970 should have less price and maybe some future AMD CPUs
i'll throw some random words around...
antitrust. unfair business practice. monopoly. government.
I doubt if the 10 to 15 percent cut will ever go down to the consumer.
i'll throw some random words around...antitrust. unfair business practice. monopoly. government.
He said intel CAN do it if they wanted (he didn't say laws stopped them)
i'm saying why
the laws you mentioned apply when there are more than one company in the market, if intel gets rid of AMD the laws will be useless against them
"prices for wafers built on mature node processes "
Nobody wants that garbage.
"prices for wafers built on mature node processes "Nobody wants that garbage.
i'm not sure but i think 28nm is mature
Intel has it's own chip production facilities, and AMD uses Global Fab for it's CPUs, neither are located in Taiwan, so neither would be affected by this at all. This will affect FABs based in Taiwan, not globally.
Nvidia & ATI/AMD however, use TSMC for their chip production. It might lower the prices for them, but the trickle down to the consumer would be negligible because as consumers we don't buy their chips directly. Any discounts will be absorbed by the supply chain, not passed onto us.
Probably only a win for investors IMO.
I think Taiwan has a lot to benefit from taking advantage of the flooding in Thailand to promote itself as an alternative location for hard drive & SSD manufacturer.
Taiwan is the home of major brand, Asus, Gigabyte, Delta Electronics, Biostar and many more compines of computer hardware.
I love how they always blame the economy and consumer confidence as the main reason for slow computer sales or electronics in general.
I think the bigger factor is that the vast majority people don't care about having the latest and greatest computer. For 90+% of people a 3Ghz Pentium IV with 1GB RAM and Windows XP is more than enough computer horsepower to fill there computing needs. Heck if they have someone clean it out once a year most of those peoples needs can be fulfilled with 512MB RAM.
Then an even larger percentage can be fulfilled with any Core 2 or Athlon 64 X2 with 2GB RAM running Windows XP or higher or Mac OS X. As that will handle most multitasking, online HD video and any Flash content.
Because of smart phones and tablets online content is not getting much more complex either as they have a long way to go before their hardware meets PC performance. Even when they do start approaching PC performance. It'll take even longer for content providers to catch up as they will want to support the older tablets and smartphones until most people have ditched them for newer models.
So people just are not buying because they don't need to.