Wafer size refers to the diameter of the semiconductor wafers used in the fabrication of integrated circuits, which directly impacts the number of chips that can be produced from a single wafer, thereby affecting production efficiency and cost. Larger wafer sizes generally lead to reduced manufacturing costs per chip due to economies of scale, but they also require more advanced and expensive equipment.

Wafer Size

Wafer size

semiconductor wafers

fabrication of integrated circuits

number of chips

Production efficiency is the measure of how well a production process converts inputs into outputs, minimizing waste and maximizing output. It is crucial for reducing costs, improving profitability, and maintaining competitive advantage in the marketplace.

production efficiency

Production Cost

Larger wafer sizes

manufacturing costs per chip

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. This phenomenon allows larger companies to be more competitive by reducing per-unit costs, thus potentially increasing profitability and market share.

CUSTOMIZE YOUR LEARNING

CUSTOMIZE YOUR LEARNING