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It’s crazy how expensive chips are.
The upfront investment required for a custom chip program is immense. Non-Recurring Engineering (NRE) costs for designing a chip on an advanced 3nm process node are formidable, with the mask set alone costing between $30 million and $50 million.
Furthermore, The total design cost for a leading-edge 2nm chip can approach $725 million.
When factoring in the multi-year costs of a large engineering team, a hyperscaler’s total investment in a new chip generation can easily fall in the $500 million to $1 billion range.
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May 21
at
7:52 PM