It costs $1 billion to build a new fabrication facility. You willbe selling a range of chips from that factory, and you need to decide how much capacity to dedicate toeach chip. Your Woods chip will be 150 mm2 and will make a profit of $20 per defect-free chip. Your Mark on chip will be 250 mm2 and will make a profit of $25 per defect-free chip. Your fabrication facility will be identical to that for the Power5. Each wafer has a 300 mm diameter.
a) How much profit do you make on each wafer of Woods chip?
b) How much profit do you make on each wafer of Markon chip?
c) Which chip should you produce in this facility?
d) If your demand is 50,000 Woods chips per month and 25,000 Markonchips per month, and your facility can fabricate 150 wafers a month, how many wafersshould you make of each chip?