Gartner Research

Leverage a Semiconductor Chip Manufacturing Cost Model to Negotiate Chip Prices

Published: 28 August 2018

ID: G00370182

Analyst(s): Gaurav Gupta


Choosing the right semiconductor strategy is critical to electronic product success. Technology general managers at chip design companies and at OEMs that design chips must utilize a chip manufacturing cost model to develop strategic relations with chip manufacturers and negotiate chip prices.

Table Of Contents


  • Gain a Comprehensive Understanding of Fabs’ Cost Categories to Develop Long-Term Strategic Partnerships With Chip Manufacturers
  • Procure Chips Based on Mature Technology From Fabs With Highly Depreciated Fabs and Equipment
  • Use Factors That Influence the Operational Cost of a Fab as a Guide for Chip Vendor Selection and Price Negotiations
  • Leverage Cost Reduction Techniques Across Operational Cost Categories to Ensure Costs Are Consistently Driven Down

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