The Official March 2010 NPD Thread (Data for 5 weeks ending Apr 3 2010)

[Squilliam]

drkohler said:

Squilliam said:

Its simple really. Just because the chips were ordered doesn't mean they were delivered. It happens all the time in the semi-conductor business, theres nothing surprising about it.

Oh boy, you can't be more wrong than that. Believe me, there are contracts between manufacturers and OEMs that detail down to the last screw what is to be delivered at which time, at which quality, to where. These are thick books, not single page order forms (I have seen one of those books, wasn't allowed to read it though..). The contracts also tell you the penalty you pay if you don't deliver and the penalty for not paying the penalty (there has to be a reason for all those lawyers running around..). If your foundry doesn't deliver in time, you will soon be looking for a new job.

I can't be more wrong? LOL!

Ok by numbers.

1. They can slap the fab with a massive fine. Then they can wait for about 6 months without consoles to sell whilst they desperately try to port their chip over to a new process. Thats the risk they take by having a single supplier. If its not profitable for the fab they'll get dropped as a customer and its as simple as that.

2. Yields are what they are. When moving to a new process theres always a risk that the wafers coming off the production line don't yield the desired number of chips. This relates back to number 1. If they reduced the number of wafers ordered on the 65nm process then if they are unable to ramp up the 45nm RSX wafer production like expected there would be shortages.