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Processors Pricing: A Satisfying Explanation

Have you ever wondered that despite having the same manufacturing process why do processors in general have such price differences between one another.


For example the processors Ryzen 5 3600x and Ryzen 9 3900x have a substantial price difference between them, is it only because the Ryzen 9 3900x is much better performance than the Ryzen 5 3600x, or is it that the 3900x genuinely

costs more to make despite having the same architecture. Let us see what are the reasons in this blog.



This however doesn't apply to only x86 based processors but also applies to ARM based processors used in mobile phones, IoT development Boards.


There needs to be a rudimentary understanding of how processors are manufactured in order to understand the pricing. So I suggest people who are reading this blog to familiarize themselves with the manufacturing process of a CPU. Suggested Video.


The difference in pricing comes down to a main factor, 'the transistor count' of the chip.

This transistor count is 9800 million for the processor Ryzen 9 3900x and 3800 million for the processor Ryzen 3600x.This uses the 7nm manufacturing process.


The first stage of designing a processor involves developing a transistor circuit. This circuit is then etched on to a silicon wafer millions of times to form the transistors and connected with copper wires(microscopic) by means of etching. The way we connect this is called the microprocessor architecture. Millions of dollars are poured into designing, fabricating and testing of these circuits. These designs are then patented as intellectual property and priced accordingly.



Purity:

Lets take two CPU's namely the Ryzen 5 3600x and Ryzen 9 3900x during the dyeing process both are manufactured the same way but since the Ryzen 9 3900x has more transistors it has chances of creating more imperfections than the Ryzen 5 3600x therefore if a portion of the chip(3900x) is not functioning in the desired clock rate for example it has to perform at 5GHz but doesn't go more than 2Ghz in that particular part. The particular part is deactivated and the 3900x is sold as 3600x to minimize wastage in the manufacturing process. The less dense(transistor) the easier to control.


When it comes down to the reasons it's not one but many:

  1. Higher end CPU's have a very High Transistor count and density, so they are harder to manufacture. The High end processors use silicon wafers.

  2. The product that had been priced lower as it had failed some tests and has had selective areas of it de-activated, either through laser/ ion bean etching, or high current fuse destruction.

  3. A higher end chip will have tinier circuits, more layers, and maybe some different doping chemistries. Well, making a tinier circuit means that the machines that make them have to be higher end too! The opposite is true for circuits that are smaller.

  4. High end processors require massive amounts of R&D by a lot of very well paid engineers, and the operation of some very expensive foundries and fab facilities. There's also a high rate of failure once final production begins.

  5. So making a high-end chip means that you have to invest in high-end tools, and that cost is passed to the customer

  6. Therefore processors are priced based on specs like, clock speed and different cahe sizes.

  7. Simply the higher end chips are better picked chips and essentially CPU's are sold by value not cost.

Hope reading this blog helped you understand the price difference between processors.

And to know more about CPU manufacturing watch this video.

Please feel free to comment on this blog.


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