Summary for Turnkey Gate Array (prices include NRE)
Atari would be responsible for supplying the 
schematic and the Test Vectors.


		1K	   2.5K	       5K
		---	   ----	      ----
Oops Board	$13.	   $13.	      $13.	

Fujitsu		$24.43     $12.71      $8.50

AMI		  not quoted	       $6.16


If we only sell 1,000 we don't need anybody's Gate Array.

If we sell 2,500 it is a toss-up.

If we sell 5,000, AMI's Gate Array is the most cost effective.
(Assuming they can actually deliver it.)



5/12/86	  Offer from Norcomp for Fujitsu gate array.


	A. Initiation of Program		$10,000.

	B. Schematic Conversion			included

	C. Simulation/Layout/Validation		$4,080.

	D. Prototypes and final approval	$5,450.


	E. Additional samples (max 650 pcs)	$46.

	F. Qualification samples (max 250 pcs)	$120.



	Production:	 1K	 5K
			----	-----
	    	       $4.90	$4.60

			
Contract says that the buyer is responsible for the test vectors.



Therefore: 1K = 19,530 NRE + 4,900 = 24,430 which is $24.43 each.

	   5K = 19,530 NRE + 23,000 = 42,530 which is $8.50 each.



For oops board = $13 (approximately)

Breakeven Point:

	n * 13 = 19,530 + (n * 4.90)

	(n * 13) - (n * 4.90) = 19,530

	n * 8.10 = 19,530

	n = 2,411 pcs



Even if the oops board costs $18

Breakeven Point:

	n * 18 = 19,530 + (n * 4.90)

	(n * 18) - (n * 4.90) = 19,530

	n * 13.10 = 19,530

	n = 1,490 pcs


The AMI quote was:

	Design complete circuit from scratch in 3 micron or 2 micron
double metal gate array. We supply schematic and test vectors.
(Unfortunately they did not give a price for 1K quantity)

	Lead time: 10 weeks
	      NRE: $13.5K
       Unit Price: $3.46 (5K)

The breakeven point for a $13 oops board is

	n * 13 = 13,500 + (n * 3.46)

	(n * 13) - (n * 3.46) = 13,500

	n * 9.54 = 13,500

	n = 1415 pcs


Summary for Turnkey Gate Array (prices include NRE)
Atari would be responsible for supplying the 
schematic and the Test Vectors.

		1K	2.5K	 5K
		---	----	----
Oops Board	$13.	$13.	$13.	

Fujitsu		$24.43  $12.71	$8.50

AMI		  not quoted	 $6.16


If we only sell 1,000 we don't need anybody's Gate Array.

If we sell 2,500 it is a toss-up.

If we sell 5,000, AMI's Gate Array is the most cost effective.
(Assuming they can actually deliver it.)


	Jed