Xbox, PlayStation 4 $332 Manufacturing Cost

TechInsights Teardown (see below) shows that both vendors used many similar parts to optimize their investment in the next generation of gaming consoles.

Based on iFixit tear down I believe that the tear down has a minor error that would add about $3 to Xbox cost of manufacturing due to the 8GB EMMC NAND flash being used instead of:  

"Xbox One also has 4GB eMMC NAND flash, making the non-volatile category US$3 higher for Xbox One"

Based on iFixit disassembles the Xbox One and finds NAND

"One interesting component is an 8GB chunk of eMMC NAND flash memory, the purpose of which Microsoft discussed last month with Eurogamer. In the words of Microsoft Technical Fellow Andrew Goossen:

We use it as a cache system-side to improve system response and again not disturb system performance on the titles running underneath. So what it does is that it makes our boot times faster when you're not coming out of the sleep mode—if you're doing the cold boot. It caches the operating system on there. It also caches system data on there while you're actually running the titles and when you have the snap applications running concurrently. It's so that we're not going and hitting the hard disk at the same time that the title is. All the game data is on the HDD. We wanted to be moving that head around and not worrying about the system coming in and monkeying with the head at an inopportune time.”

 Ron

Insightful, timely, and accurate semiconductor consulting.

Semiconductor information and news at - http://www.maltiel-consulting.com/

Teardown.com compares PlayStation 4 vs. Xbox One

25 November, 2013 TechInsights

 

TechInsights has performed a Quick Turn Teardown of the Sony PlayStation 4 and the Microsoft Xbox One.

TechInsights Teardown shows that both vendors used many similar parts to optimise their investment in the next generation of gaming consoles.

While AMD came out as a big winner in the APU (integrated CPU and GPU) there are choice design differences around the both the processor design and the use of memory in each device.

The TechInsights bill of materials (BOM) for the Microsoft Xbox One amounts to US$331.00. Based on this – and when the estimated costs for the peripherals are included – TechInsights believes Microsoft will have a gross profit of approximately US$100.00 per console sold. This is far better than the US$43.00 Sony will make per complete unit.

Says Al Cowsky, Costing Director, TechInsights: “At the console level, the Xbox One is US$10 less expensive than the PS4. This is primarily due to a US$23 memory premium on the PS4, but it is offset by an US$11 cost premium on the Xbox One processor.

"The Xbox One also has 4GB eMMC NAND flash, making the non-volatile category US$3 higher for Xbox One, while the housings/mechanicals of the Xbox One add another US$4 premium over the PS4.

"The Xbox One also comes with a Kinect vision system in-box with an estimated cost of US$39. This is more than made up for by the US$100 list price premium. Likewise, PS4 has an optional vision system accessory available for a list price of US$60 (unit not costed at this time)”

Hynix DRAM (Wuxi) Production

Hynix DRAM production was mentioned in an announcement of introduction of the 64Gb (gigabit) multi-level cell (MLC) NAND FLASH using the 16-nanometer micro fabrication process technology.
“The equipment, not directly damaged by the fire, requires a lot of work before it can be used again in the production line,” said an industry official. “It will not be as easy to normalize the Wuxi plant as originally thought.”

Fab equipment has to be meticulously cleaned before it can be put back in production. You have to make sure running the equipment would not produce particles. In addition every piece of equipment impacted by the fire need to be recalibrated.

Hynix also mentioned:

"SK Hynix raised the production capacity of the Icheon DRAM plant by 30% after the fire in the Wuxi plant in China. Early next year the company is considering making additional investments to extend the Icheon plant."

I am not clear how they can raise production 30% very quickly. They can shrink product masks set, improve production process, or buy new equipment. Each one will take several months to implement.

 

Ron

Insightful, timely, and accurate semiconductor consulting.

Semiconductor information and news at - http://www.maltiel-consulting.com/

SK Hynix concentrates investment in the microfabrication process…in a bid to chase ‘two hares’ at a time

2013/11/21 By Lee Hyeong-soo

SK Hynix (CEO Park Seong-wook) announced on November 20 that it began to produce the 64Gb (gigabit) multi-level cell (MLC) NAND FLASH using the 16-nanometer microfabrication process technology. 

It also completed the development of the 128Gb (16GB) package. It is the largest single 16-nanometer 64Gb MLC NAND FLASH chip. SK Hynix is planning to begin mass production of this product early next year. 
In general, as the microfabrication process intensifies, the interference between memory cells takes place. SK Hynix overcame the inter-cell interference during the 16-nanometer microfabrication process by applying the air gap technology, which fills the space between circuits with air, not an insulating material. 

SK Hynix is planning to convert the DRAM microfabrication process from upper 20-nanometer to lower 20-nanometer. Its strategy is to increase the global market share while raising the DRAM production capacity at the same time through the microfabrication process conversion. It is also reinforcing its product portfolio by concentrating on development of the triple-level cell (TLC) and 3D NAND FLASH. 

“We became the first in the world to commercialize the 16-nanometer microfabrication process technology, and completed the development of the 128Gb MLC product,” said Kim Jin-woong, head of the SK Hynix Flash Tech Innovation Division. “We can secure powerful competiveness in the NAND FLASH market.” 

SK Hynix seems to be concentrating on microfabrication process conversion because it intends to keep growing stably rather than impractical technology conversion. The top management, including CEO Park Seong-wook, is confident that it will not be behind Samsung Electronics as far as the microfabrication process technology is concerned. 

The recent fire in the Wuxi plant in China greatly influenced next year’s business strategy. SK Hynix believes that it is unreasonable to seek rapid changes, such as production of 3D semiconductors, when one of its global production bases, i.e. the Wuxi plant, is unstable. 

SK Hynix raised the production capacity of the Icheon DRAM plant by 30% after the fire in the Wuxi plant in China. Early next year the company is considering making additional investments to extend the Icheon plant. The Wuxi plant was expected to be normalized sometime this month, but there is a possibility of delay. 

SK Hynix is focused on recovering the production capacity while concentrating on investing in the Icheon DRAM line for the time being. If the microfabrication process conversion is successful, it will be able to achieve 7~8%ish growth next year without any additional investment in equipment. As the DRAM price skyrocketed, the fire of the Wuxi plant did not cause much financial damage, but if it does not defend the market share to a certain extent, it may boomerang in the future. DRAM also looks attractive in terms of profits. As the short supply continues, the DRAM price is continuously rising. 

“The equipment, not directly damaged by the fire, requires a lot of work before it can be used again in the production line,” said an industry official. “It will not be as easy to normalize the Wuxi plant as originally thought.” 

Lee Hyeong-soo | goldlion2@etnews.com