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Re: How nice would it be if Canon made a camera...
In reply to David Hull,
5 months ago
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David Hull wrote:
bobn2 wrote:
David Hull wrote:
I was really only commenting based on what I know about the semiconductor business, given that I have been in it for some 20 years. The Sony semiconductor business could be considered a pure play semi buiz, and as a consequence Sony needs to make some money on each chip they sell. If it costs both companies $100 to make a sensor, Canon pays $100 if they make it themselves and $150 if they buy it from Sony.
That's not really how the economics works. Someone has to make a profit from every sensor. Canon's sensor business has to contribute its share of profit in return for the capital investment and R&D costs. So, that cost has to be passed onto the customer. Canon cannot pretend that it never made the investment and they get the sensors for just the material and labour cost, so the question is not how much profit is made, but where it goes. In Nikon's case, they may not gain that part of the profit within their company, but then they didn't put up the capital investment or the R&D costs, so that is fine within their business model. In addition it is very likely that the actual unit costs on the Sony sensors is lower, possibly a lot lower then is Canon's. Sony has the advantage of volume, the ability to amortise the R&D costs (such as the development of the Exmor column ADC) over many more sensors and also the advantage of using 300mm wafers rather than 200mm ones.
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Bob
I agree, all the money needs to be accounted for somewhere but there must be some reason that Canon hasn't dumped the whole thing and gone fabless. There must be some economic reason for what they are doing, else why would they be doing it? I am guessing that their fab lines are paid for and all they have is the recurring cost.
I'm not sure about the new one, I would think it's costs are still on the books. According to Chipworks, Canon is a little fabless, they send their copper BEOL work to Fujitsu. Also, when they have put so much marketing weight behind running their own fab, it can be very hard to reverse out credibly. Companies are run by people, and people can find it very hard to admit that they were wrong.
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Bob
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