The only place to assemble electronics on a large scale and make a profit is China. The fact that BFL is trying to do it in the US is a major alarm bell. There is absolutely no way they will have the capability to meet their current orders. The cost is far too great. They will have to hire facilities and people in China to get the work done. That will take several months to organize.
Not really true. Even the big names like Intel and AMD are manufacturing in countries like Germany. They sold their chip factory in Dresden and it is named Global Foundries by now.
If I had the money, I had probably asked Global Foundries to design my ASIC Chips. They'd get it done in under a month, roll it out with ease and at the same time do not even do anything above 110nm anymore. They just go crush it with up 14nm. 28nm designing and manufacturing is their little pet right now and in due time, they will allow 14nm right here in Europe.
nd i worked in one and knew another within 50km from my place in middle europe. Where everything is much more expensive than in most parts of the US.
Its simple: high tech with small work force..
Probably GF?
(Don't answer that. Internet and so on.)
As for BFL: I am flabbergasted at their performance. The problem with Bitcoin Mining is this: It would be way more profitable to NOT con people.
I have talked with some people about setting up an ASICs company and funding it. We then realized that we can only make money if we use at least 65nm or 40nm wafers in the process, or, at best, buy existing chips from a manufacturer at a higher price.
I have talked to some developing companies who then quoted some estimations between 1-2 million and 5.5 million initial investment cost. Here is the kicker: Almost every company said "We can get the design and initial chips done within a month or so, then after testing, we will be able to manufacture within 10 weeks."
So, where does stuff go wrong? Good question, but the main problem is designing cases and designs before prototyping. There can be significant fluctuation between specs. As someone told me, the main issue in chip design for high end chips is basically getting power consumption down while cranking as much power on the chip (How many cores or gates at what frequency).
The cost of a P&P machine for the chips on the PCB? Is not even that big either. The reason big companies manufacture in China is also the size of their operation. Think about it: Let us say you are a company and produce 10000 chips for 10$ per piece. Now think about a company that produces 1.000.000 for 9.20. It wouldnt mean shit for my first assembly, somewhere around 8000$. If I sell that thing for 40$ anyway, who gives a shit about the 0.80 if you are faster. But if we are talking one million chips and your shareholders asking for their money back, hooyah, you are in China in no time, getting your 800.000 Dollar difference.
First, you need to get the boards/finished products out the door...
I don't really get where the problem is. With the money they have, they should just get it done and already be working on the product REPLACING the one getting out of the door now. That should be simple, actually. Best would be announcing the Gen 2 the day they ship Gen 1.