Yields are one of the more important variables in the life-cycle of any silicon product and on first glance it appears that AMD has run into quite a bit if good luck as far as they are concerned. According to a report from Bitsandchips.it, they are currently enjoying yields upwards of 80% which basically means that more than 80% of the Zen dies fabricated have all 8 cores fully functional. This is of course something that will have quite an impact on the financials of the company as they will be able to increase their profit margins.

Report: Ryzen die yields are over 80%, EPYC processors can be offered at lower ASP to corporate customers

While at first glance it appears that AMD is having unexpected high yields, this is actually not completely true. The yields are excellent, yes, but entirely expected. Firstly, the process they are using is the 14nm process which has had more than a year to completely mature and secondly, the die itself is quite small so yields will naturally be higher (conventional wisdom dictates that the smaller the die, the larger the yield). Since die size is one of the more significant factors in determining yield, I am sure that the company was well aware of this fact when it decided on the exact size. That said, however, the effect of these high yields can only have a positive effect for the company.

Since the yields are above 80%, this means that the company will be able to increase in profits in two ways: either by decreasing the ASP (Average Selling Price) of the derivative products and shipping more volume and therefore larger profit, or, by simply increasing its profit margin on the products and keeping price the same. Looking at AMD’s core philosophy however, we may expect the silicon giant to go with the former approach and drop ASP all round. This means that products such as Naples which employ more than 1 core will also see a proportional ASP drop.

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