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Fab cost is the NRE because that's how a hardware developer is paying the fab costs. Most fabs' cost are spread across its many customers and products. They bui
by nickpsecurity 8y ago
Fab cost is the NRE because that's how a hardware developer is paying the fab costs. Most fabs' cost are spread across its many customers and products. They build it into whatever they charge for the runs. If AD owns the fab, then it's likely a separate organization in the company doing something similar. So, for purposes of AD9361 designers, the NRE includes the fab costs since they probably didn't build a fab as part of AD9361 project. Just paid one the NRE.
- dgacmu 8y agoNot when you're estimating the cost to develop a specific chip. I can avoid the per-project NRE by simply not doing the project. And, again, if a project produces more chips, then more of the fab production costs will be amortized across that project. The definition of Non-Recurring Engineering costs are that they are fixed and don't increase as the unit volume goes up: https://en.m.wikipedia.org/wiki/Non-recurring_engineering https://en.m.wikipedia.org/wiki/Non-recurring_engineering The way the fab could be considered NRE is if the fab were built only for this chip. (Or if a fixed percent of it was). In advance.