with production setup costs minimal in china a $17 per gh/s rate is possible and real. Only $17 for 1 GH/S.
KNC is $17.50
I would rather support them instead. China is trying to dominate. Every dollar given to China for btc hardware lets them reinvest in themselves many times. KNC & BFL are only using testnet. China isn't. Which screws you in the end.
but we need cheap cheap hardware to mine where to get them?
You get them by supporting competent companies that have direct ties without middlemen. KNC's direct ties to ORSoC is a perfect example of this.
Obviously they haven't launched yet so I can't say they are 100% trustworthy. But I do know you can't trust the Chinese. I could point to way too many examples.
ASIC is a big game changer so people need to think this through very carefully on who they support. Do not support anyone who mines with what they make. Otherwise you will screw yourself.