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Intel vs. AMD: Who's got cheaper chips?
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Posted by: Tweaker
Both Advanced Micro Devices and Intel proudly claim they can make chips cheaper than the other guy, but after doing the math and examining the two companies' divergent strategies, analysts conclude it's a dead heat.
It probably costs Intel $21 or less to pop out the silicon inside a Pentium 4 on its most advanced manufacturing lines, while AMD shells out $22 or less on its best Athlon chip, according to analysts' estimates. Eventually, after several more manufacturing steps, these turn into processors that sell for between $130 and $637.
Intel and AMD, however, tell a different story. For the past year, AMD has said the smaller size of its Athlon and of its upcoming Hammer chips give the company a physically intractable advantage. A cost advantage would be a crucial weapon for either company. Astronomical fixed costs are a brutal fact of life in the semiconductor market. Manufacturers have to spend billions on factories, equipment and employees before the first chips even come out.
Those proponents of AMD chips always forget to mention the fact that the cost of ownership for any system includes more than the cost of the chip itself. These other costs are
1. Heatsink and fan or watercooling
2. Motherboard
3. Electricity cost overtime
4. Hunting for BIOS/other updates for flaky drivers
5. Comfort (Noise/Heat from system)
If you do the math the two systems are at best comparable, with choice influenced by some other factors.
Source: CNET News
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