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Let’s Build a Chip – With Math We have been writing a lot lately about Internet companies building their own home-grown semiconductors (more hereand hereand here). And we have been getting a lot of questions about how much it costs to do this. So in this post – math! Semiconductor costs are an exercise in applied geometry. The foundries which manufacture the chips charge by the wafer. These are large (300mm diameter) discs of the purest silicon. Companies design chips to have certain functions, then lay those out in the form of circuits. The foundry then etches those circuits onto the wafer as many times as they fit. Design a big chip, and you do not get many chips per wafer. Design a small chip… you get the idea. There are a few other factors at play, but they are mostly functions of this basic math. As a side note, this is the source of the economic power of Moore’s Law. Every advance in manufacturing (process node) shrinks the size of those circuits which means you can

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