Quote from: JohnyBigs on August 18, 2013, 03:57:52 AM

Ok I'm not going to argue anymore final point which has been made over and over again. Avalon Batch #1 $1200 say 96 chips that means $12.5 per chip. Say the cost is much more since it's 28nm lets triple the cost, $37.5 per 28nm chip add all the other costs say $200 a chip. 1 of their chips is 500gh/sec 2 chips to make 1TH equals $400 dollars costs, so they can def. sell for $1000 per GH.

You can't just compare Avalon's selling price and then triple that and pretend that somehow means anything.

Avalon's chips are only 275MH/s and 15mm @ 110nm. Moving to 28nm (110/28)^2 would make the same Avalon chip 1/15th the size (or about 1mm2). Of course nobody makes chips that small but Avalon could make the chip 15x larger and thus have 15x the hashing power for the same SIZE so something on the order of 4 GH/s (15 x 0.275 GH/s) and 15mm @ 28nm. Still 4 GH/s isn't 500 GH/s. With Avalon design you would either need to make the chip much bigger (and thus the cost per chip rises but the cost is per mm2) or use multiple chips to get a 500 GH/s miner. You can't simply say oh Avalon chips are cheap (<$13) so lets triple that cost ($39) and pretend shrinking it to 28nm makes it a 500 GH/s chip and that makes it ($39/500) $0.19 per GH/s.

You pay per wafer, the wafer is a certain size, the size of your chip determines how many chips per wafer. Wafer cost / number of chips per wafer = chip cost. Bigger chip = bigger % of the wafer = higher cost per chip. The cost per GH/s depends only on wafer cost AND GH/mm2.

Your math was just utter nonsense. It is like saying a day is 24 hours and a gallon has 4 quarts so the cost of a beer is 4/24 = $0.16, any beer (regardless of if it is a small glass or giant flagon) can't possibly cost more than $0.16.