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How utilization drives a foundry's profit
The prompt
A foundry in Taiwan has capacity of 1 million wafers a year. Its fixed costs, mostly depreciation of equipment, are USD 3 billion a year. Each wafer sells for USD 6,000 and has variable costs of USD 1,500. What is the profit at 90 percent and at 70 percent utilization, and at what utilization does it break even? (Figures are illustrative.)
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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