Modeling Multi Tiered Yield Variances across Alternative Semiconductor Fabrication Facilities for Industrial Processors
Industrial processor margins depend on adjusting fab allocation for parametric bin shift rather than wafer cost alone.
Thermal Grading
Meaning
The classification of electronic components based on their certified operating temperature range determines the environments where they can be deployed safely. Through thermal grading, chips are sorted into consumer, industrial, or military categories. This ensures that the devices will not fail when exposed to extreme cold or heat.
Temperature Range
Components are tested in specialized chambers to verify they can operate from below freezing to over a hundred degrees. Those that pass the most extreme tests are certified for automotive or aerospace use. This testing adds to the cost.
Price Variation
Higher grades command much higher prices due to the lower yield of chips that can pass the extreme tests. A chip certified for industrial use can cost several times more than the same design sold for consumer use. This creates a highly segmented market.
Contractual Obligation
Distributors must verify that the thermal grading matches the specifications of the buyer’s application before shipping. If a consumer grade chip is accidentally used in an industrial control system, the supplier can face heavy liabilities for any subsequent failure. Contracts must clearly define the grading requirements for each order, and the supplier must provide certificate of compliance to prove the parts were tested to the proper limits.