Why is the cost of ASIC development >1M?? - page 2.

pizza

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Activity: 112

Merit: 10

Quote from: Viceroy on April 19, 2013, 11:46:06 PM

it costs 200-400k to add to a structured ASIC.

it costs 2-3 million to create a typical ASIC

it costs 30 million to more than a billion to devope a state of the art ASIC.

these are well accepted numbers from various manufacturers.

https://bitcointalksearch.org/topic/designing-the-next-generation-fast-crypto-currency-mining-machine-179033

200-400K is reasonable I doubt Avalon had 3-4Million for development. Or he could have just developed it himself and spend much less money.

Signus

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Quote from: pizza on April 19, 2013, 11:38:11 PM

Quote from: Signus on April 19, 2013, 11:35:45 PM

Well he probably had an initial design in place, developed a platform to verify his idea, and then took the idea to somebody with money. Who wouldn't throw a few million at an Asian guy with a genius idea? Wink

But the cost goes to the manufacturing of the chips themselves, because they have to be designed and manufactured. If you think getting millions of chips fabricated from silicon die is a cheap process, you are sorely mistaken.

Why do you think Engineers make good money? An initial design is the most expensive, and then you alter it 2 or three times until you have a product you can sell, and then you mass-produce it, and sell it for a pretty penny a few hundred thousand to million times.

IC fabrication is a HUGE market, you make them millions at a time.

Even if he raised money I'm sure it wasn't anywhere 1M or the ridiculous sums of money you hear, because if that was true then they would have no need for pre orders, and they would just sell already made units.

I'm not saying he had all of that money. He probably got enough to get started up and produce the first rig, the 'concept' and then started taking pre-orders to further fund the process. However, the fabrication process on its own probably was running very high in costs once he started building all of those rigs, requiring more chips.

Viceroy

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Activity: 924

Merit: 501

it costs 200-400k to add to a structured ASIC.

it costs 2-3 million to create a typical ASIC

it costs 30 million to more than a billion to devope a state of the art ASIC.

these are well accepted numbers from various manufacturers.

https://bitcointalksearch.org/topic/designing-the-next-generation-fast-crypto-currency-mining-machine-179033

pizza

member

Activity: 112

Merit: 10

Quote from: Signus on April 19, 2013, 11:35:45 PM

Well he probably had an initial design in place, developed a platform to verify his idea, and then took the idea to somebody with money. Who wouldn't throw a few million at an Asian guy with a genius idea? Wink

But the cost goes to the manufacturing of the chips themselves, because they have to be designed and manufactured. If you think getting millions of chips fabricated from silicon die is a cheap process, you are sorely mistaken.

Why do you think Engineers make good money? An initial design is the most expensive, and then you alter it 2 or three times until you have a product you can sell, and then you mass-produce it, and sell it for a pretty penny a few hundred thousand to million times.

IC fabrication is a HUGE market, you make them millions at a time.

Even if he raised money I'm sure it wasn't anywhere 1M or the ridiculous sums of money you hear, because if that was true then they would have no need for pre orders, and they would just sell already made units.

Signus

newbie

Activity: 28

Merit: 0

Well he probably had an initial design in place, developed a platform to verify his idea, and then took the idea to somebody with money. Who wouldn't throw a few million at an Asian guy with a genius idea? Wink

But the cost goes to the manufacturing of the chips themselves, because they have to be designed and manufactured. If you think getting millions of chips fabricated from silicon die is a cheap process, you are sorely mistaken.

Why do you think Engineers make good money? An initial design is the most expensive, and then you alter it 2 or three times until you have a product you can sell, and then you mass-produce it, and sell it for a pretty penny a few hundred thousand to million times.

IC fabrication is a HUGE market, you make them millions at a time.

pizza

member

Activity: 112

Merit: 10

Love reading all the threads of ASIC development costing over a million billion gazillion dollars. I'm sure Avalon with Asian guy in his basement or slash closet invested 1M dollars before he started batch #1, and he only had 1 million dollars for development only, he didn't have a few hundred thousands left over to actually build units and not take pre orders.

Can anyone say where these numbers are being thrown out randomly from?

Topic: Why is the cost of ASIC development >1M?? - page 2. (Read 3396 times)