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Comment by reliabilityguy | Hacker News Reader

The question is: what’s AMDs margin? 20% manufacturing cost maybe well below 1% of the total development cost. So, not a deal breaker at all.

It seems to me that long term having fabs in the IS is net positive for the economy: more jobs, more localized supply chains, more local expertise, etc etc

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The manufacturing cost is emphatically not only 1% of the total development cost. Particularly for GPUs, the high bandwidth memory and manufacturing costs are a significant portion of the product price.

> The manufacturing cost is emphatically not only 1% of the total development cost.

I have no idea what is the manufacturing cost of a 800 mm^2 die is, but I am sure it is lower than the development cost.

> Particularly for GPUs, the high bandwidth memory and manufacturing costs are a significant portion of the product price.

HBM is not manufactured by the GPU vendor, it is an off-the-shelf component that AMD buys like any other company can. Thus, the cost of HBM is tallied in the BOM and integration costs (interposer, packaging, etc).

800mm^2 die would roughly cost 300-350 usd axcoeding to [1]. That's the Taiwan price and dor N4. This doesn't include the memory or the package. The silicon cost for N3 is close to 2x.

[1] https://www.tomshardware.com/pc-components/gpus/spitballing-...

Well, seems that increase of 20% for US-based manufacturing on a base cost of $350 is $70. MSRP of 5090 is $1,999. So, on shoring will result in 3.5% increase in MSRP, which is nothing.

That's for Nvidia GPUs. Margins are much smaller for AMD CPUs.

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