NVIDIA detailed some troubling trends where the costs for ASIC development are growing to over $ 46 million with test costs about $ 2 million of the total. The cost of testers continues to increase as device complexity and test complexity rise, and the speed and functionality of the chips requires larger and faster testers with deeper test memories to handle the full range of test requirements. Overall, test represents about 8 percent of the cost of a final product. The key to better company performance is to apply more knowledge and experience to the manufacturing functions. Containing test costs takes investment, but better tests result in higher yields, faster ramp to volume, and better margins on the products. Reducing the total costs for a product requires investment in test, as no other change in the design and manufacturing flow has as large an impact on costs.

NVIDIA detailed some troubling trends  where the costs for ASIC
development are growing to over $ 46 million with test costs about $ 2 million of
the total. As a component of total manufacturing cost, test accounts for about
4-5 percent of the cost. In addition, yield costs, which include the costs for
final testing and packaging add an additional 5.5 percent to the total cost.
Most of these failures are parts which should have been caught earlier in the
production cycle. If the test misses are eliminated, the overall cost reduction
would be about 8-10 percent of the current costs.

The challenge is to increase test quality. The cost of testers continues to
increase as device complexity and test complexity rise, and the speed and
functionality of the chips requires larger and faster testers with deeper test
memories to handle the full range of test requirements. Overall, test represents
about 8 percent of the cost of a final product. The key to better company
performance is to apply more knowledge and experience to the manufacturing
functions. Containing test costs takes investment, but better tests result in
higher yields, faster ramp to volume, and better margins on the products.
Reducing the total costs for a product requires investment in test, as no other
change in the design and manufacturing flow has as large an impact on costs.