Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a fab produces 20,000 wafers per month a total (fi

A fab produces 20,000 wafers per month a total (fixed plus variable) monthly manufacturing cost...

80.2K

Verified Solution

Question

Accounting

A fab produces 20,000 wafers per month a total (fixed plus variable) monthly manufacturing cost of $24,000,000. Each wafer has 600 viable integrated circuits with a die area of 1 cm2. The market price of each die is $5. The company currently runs an ISO Class 5 cleanroom which leads to an average die yield of 80.6% but is considering a move to an ISO Class 4 facility. If the total (fixed plus variable manufacturing cost for 20,000 wafer will increase to $36,000,000/month, will the increased yield and associated profit in the Class 4 facility justify this move? Use the Posson yield model and follow the sequence of calculations below.

1. Number of sellable (working) die/mo. from Class 5 fab =

2. Monthly revenue from die sales for Class 5 fab = $

3. Monthly profit for Class 5 fab = $

4. Effective defect density at 80.6% yield in Class 5 fab = cm-2

5. Effective defect density for Class 4 fab =

6. Predictred yield in Class 4 fab = %

7. Number of sellable (working) die/mo. from Class 4 fab =

8. Monthly revenue from die sales for Class 4 fab = $

9. Monthly profit for Class 4 fab = $

10. Should the company make a move? (Yes/No)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students