NHE2483 Digital Systems Integration

SAIL Quiz format

• For all SAIL quizzes (1-5)
• 5 Questions – each question;
• Can vary in level of difficulty,
• Each worth 2 marks,
• Total marks available for SAIL quiz is 10.
• Questions are typically Multiple choice,
• Typically 4 choices available – you are expected to choose
a single answer.
• A few questions ask you need to select ALL the correct
answers to get the 2 marks available.
• SAIL 1
• 1- 4 – single answer required
• 5 – multiple correct answers required. 1
Dr. P.J. Mather
NHE2483 Digital Systems Integration

SAIL
• NOTE
• You are expected to complete all assessments by yourself
and NOT confer with anybody else.

• Although for each question 1-5 will cover the same topic for all
students, they will not necessarily have the same values
(library of questions used) and if the questions are the same
for each individual in a SAIL quiz the answers are randomised.

• The responses and further explanation will be discussed, if

required, in the following weeks Synchronous session.

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NHE2483 Digital Systems Integration

Time to Market
Typical Sales
S = peak sales/month S Profile
T = Time months

Total Sales (NT) = S*3T = 3ST

2 2
0 T 3T

NRE – Non recoverable expenditure – Cost associated with the

design and manufacture equipment of the devices (Software, staff
costs, infrastructure (building rent etc)).
NRE – full-custom NREFC
semi-custom NRESC
FPGA NREFPGA
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NHE2483 Digital Systems Integration

Time to Market (missing the boat)

S = peak sales/month
Total Sales (NT) = S*3T = 3TS
T = Time months 2 2
S
dT = months late to market

Sales growth at same

rate

0 T 3T
dt 2dt
Sale time period reduced by dt at the start and 2 dt at the end of the
sales period, therefore sales period is 3(T-dt)
Peak sales = S(T-dt)/T
Projected Sales (Ndt), if the product is late to market by dt, are
= (3(T-dt) * S(T-dt)/T)/2 = 3S(T-dt)2
Dr. P.J. Mather
2T 4
NHE2483 Digital Systems Integration

Profit/Loss = Income - Expenditure

Expenditure = NRE + cost/IC*N
Income = N*selling price
NT = total sales,
cost = manufacturing costs.

Step 1: Draw the typical sales profile and determine all the relevant
parameter values: S,T, NRE, selling price and
cost.
Step 2: Calculate the total sales- when a full sales profile (NT) is
achieved if the device gets to the market on time.
Step 3: Calculate Profit/loss for NT.
Profit/loss = Income – expenditure
= (Selling price*NT) – (NRE + cost/IC*NT)
Step 4: Calculate the projected sales, when the device is late to
the market (NdT).
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NHE2483 Digital Systems Integration

Step 5: Calculate Profit/loss (income, expenditure etc) for NdT.

Step 6: Compare the profit and loss values for the different devices
specified to determine which will potentially be the most
profitable.
Notes: Sometimes, if a project is potentially going to be late to
market for the Semi-custom approach, but the forecast sales are
very high, a company may decide to implement a design onto an
FPGA device as well as onto a semi-custom. This means that a
company can get a device to the market ‘on time’ using the FPGA
and replace with semi-custom devices, when available, enabling a
full projected sales profile to be achieved.
Typical Sales Profile
S
FPGA devices
Semi-custom devices

Dr. P.J. Mather

0 dt T 3T 6
NHE2483 Digital Systems Integration

Example: This example is based on a previous Exam question

(typical expected duration – 40 mins)
A company is to develop a new digital ASIC using a semi-custom
design process. Market research has shown that if the company
starts the design process immediately it should be able to get the
ASIC to the market 2 months after the start of the expected market
window. The product will have a typical sales profile and a projected
life-span of 18 months. The Non-Recoverable Expenditure (NRE)
for the project will be £595 k, the material cost to produce the ASIC
will be £2.60 and the selling price will be £7.50. Alternatively, if the
device was implemented onto a FPGA, it would enable the company
to get a device to the market on time and thus achieve the expected
peak sales of 30 k units/month. The FPGA would have an NRE of
£65 k and a cost of £6.90/device.
Assuming the device will have a typical sales profile determine
whether it would be more economical to develop the semi-custom
ASIC or to develop the FPGA. 7
Dr. P.J. Mather
NHE2483 Digital Systems Integration

Step 1: List the known parameter values.

S = 30 k units/month (maximum sales)

T = 6 (Full project lifespan = 3T = 18, therefore T = 6)
dT = 2 months (late to market)
Selling price £7.50
= /device

Semi-custom
NRESC = £ 595 k
CostSC = £ 2.60 /device

FPGA
NREFPGA = £ 65 k,
CostFPGA = £ 6.90 /device

Dr. P.J. Mather

NHE2483 Digital Systems Integration

Step 2:
Getting to the Market on time:
Total Sales = S*3T = 3ST
2 2
= 3*30k*6
2
= 270 k devices

Step 3: Profit/loss for NT – Potentially only achievable for FPGA

Profit/loss = Income – expenditure

Income = Selling price * NT

Expenditure = NREFPGA + (cost/IC) * NT

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NHE2483 Digital Systems Integration

Step 3 cont:

Profit/loss = Income – expenditure

Income =£7.50 * 270k = £2.025 M
Expenditure = £65k + (£6.90 * 270k) = £1.928 M

 Profit/loss = 2.025M – 1.928 M = £97 k

Developing using FPGA only

potentially would yield a Profit of £97 k

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NHE2483 Digital Systems Integration

Step 4: Calculate the projected sales, when the device is late to

the market (NdT).

Sales (Late to market : NdT ) = 3S(T-dt)2

2T
3*30k(6-2)2 = 120 k units
=
2*6

Step 5: Profit/loss = Income – expenditure

Income = Selling price*NdT = £7.50 *120 k

= £595k +
Expenditure = NRESC + (cost/IC)*N dT
£2.60*120k

Profit/loss = 0.9M – 0.907M = £ 7 k loss

FPGA is potentially the most profitable option with forecast
of Step
£97 k6:profit. 11
Dr. P.J. Mather
NHE2483 Digital Systems Integration

If both FPGA and Semi-Custom approaches were used.

Get to the market on time with FPGA (Achieve maximum peak
sales) and then move to Semi-Custom when available.
Step 1: NOTE – This
S
Typical Sales Profile example, as
Semi-custom
FPGA devices discussed in the
devices
session 18/1/21 uses
dt = 3. A correct
version for dt = 2 is
0 dt T 3T given later (slide 15)
Step 2:
Getting to the Market on time: Total Sales = 3ST = 270 k devices
2
Time period now dt, max sales S*(dt/T)
FPGA Sales = dT*S(dt/T) = 3 * 30k*(3/6) = 22.5 k devices
2 2 12

Dr. P.J. Mather

NHE2483 Digital Systems Integration
S
FPGA devices
270k
If Total Sales = 22.5k
Semi-custom devices
FPGA portion =
0 dt T 3T
270 k – 22.5k = 247.5 k devices.
Semi-custom sales =
Profit/Loss = Income - Expenditure
Income = £2.025 M
Expenditure = NRE + NRE
SC FPGA

+ (cost/IC)SC*NSC +(cost/IC)fpga*NFPGA
= £595 k + £65 k + (£2.60*247.5k) + (£6.90*22.5k)
= £660 k + £643.5 + £155.25 = £1.459 M
Profit/Loss = £2.025 M - £1.459 M = £566 k Profit
Dr. P.J. Mather
NHE2483 Digital Systems Integration

Economic Breakeven Point.

Total cost Semi-Custom = Total cost FPGA

NRESC + (cost/IC)SC * NEBP = NREFPGA + (cost/IC)FPGA * NEBP

£595 k + £2.60* NEBP = £65 k + £6.90 * NEBP

£595 k + £65 k = £6.90 * NEBP - £2.60* NEBP

£530 k = £4.30 * NEBP

NEBP = 123.2 k devices

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NHE2483 Digital Systems Integration

NOTE – This example, uses the correct value of dt = 2 (correction

of example given in slide 12 and 13)

FPGA devices
If both FPGA and Semi-Custom
approaches were used.
Typical Sales Profile
Get to the market on time with S
FPGA (Achieve maximum peak Semi-custom
sales) and then move to Semi- devices
Custom when available.

0 dt T 3T
Step 2:
Getting to the Market on time: Total Sales = 3ST = 270 k devices
2
Time period now dt, max sales S*(dt/T)
FPGA Sales = dT*S(dt/T) = 2 * 30k*(2/6) = 10 k devices
2 2 15

Dr. P.J. Mather

NHE2483 Digital Systems Integration
S
FPGA devices
270k
If Total Sales = 10k
Semi-custom devices
FPGA portion =
0 dt T 3T
270 k – 10 k = 260 k devices.
Semi-custom sales =
Profit/Loss = Income - Expenditure
Income = £2.025 M
Expenditure = NRE + NRE
SC FPGA

+ (cost/IC)SC*NSC +(cost/IC)fpga*NFPGA
= £595 k + £65 k + (£2.60*260k) + (£6.90*10k)
= £660 k + £676 k + £69 k = £1.405 M
Profit/Loss = £2.025 M - £1.405 M = £620 k Profit
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Dr. P.J. Mather