Telecom, chips and data centers
Yield (manufacturing)
The share of units made that come out good enough to sell.
Last reviewedWhat does Yield (manufacturing) mean?
In manufacturing, yield is the number of good units divided by the total number started. In chipmaking it usually means the share of chips (dies) on a silicon wafer that work. Example: a wafer holds 600 dies and 480 pass testing, so the yield is 80 percent. A wafer costs the same to process whatever the yield, so the cost of each good chip is the wafer cost divided by good dies: a 12,000 wafer gives a cost of 25 per good die at 80 percent yield, but 40 at 50 percent. New processes start with low yields that improve with experience. In airlines, yield means something else: see airline yield.
Where does it come up in case interview prep?
- How the chip, electronics, and data center value chain worksLesson in Semiconductors, electronics, and data centers
- Chip and data center economics: utilization, yield, and powerLesson in Semiconductors, electronics, and data centers
- Semiconductors and data centers: players, trends, regulation, and how to crack the casesLesson in Semiconductors, electronics, and data centers
Related terms
- FoundryA company that manufactures chips designed by other firms.
- Unit economicsThe revenue and cost of one unit: one product, order or customer.
- Yield (airlines)Passenger revenue per revenue passenger kilometre: the average fare per kilometre.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- SpectrumThe radio frequencies mobile operators license from governments to carry signals.
- Capex intensityCapital spending as a share of revenue.
- Take-up rateThe share of homes or customers who could buy a service that actually do.
- FablessA chip company that designs chips but has them made by someone else.