Originally Posted by Licht
Look at the materials, other then maybe coper and aluminum (cooling) they are all cheap (silicon for example is basically sand.) This chip itself costs almost nothing to produce but companies spend so much money designing the chip they have to fork the price way up there.
On a different note since this is a 3800 i bet i could CrossfireX it with my 3870, cheap boosts are always fun.
Yes and no. While silicon is basically sand, the wafers that the silicon makes has to be made very almost 0% impurities. The process of drawing the silicon ingots is very complex and a lot of factors have to be precisely controllied (ie. temperature, humidity, etc). That process itself is costly. Then the price of the resources required to do the actual manufacturing factors in as well (ie. electricity, man power, wearing of tools, testing). So while the raw materials probably doesn't sum up to a large percentage of the cost of the manufacturing, there are also other hidden costs as well. However, with that said, the segments that probably has the highest percentages is probably still R&D and profits.