AMDs chiplet design allows them to reduce cost of the Ryzen 9 3950X by half

Much is said and spoken about the Chiplet design from AMD. It works out well for them, really well. But the main reason of using chiplets was dropping expensive monolithic processor die designs, in favor of more economical cores to fabricate. But nobody really knew how much of a benefit that was in terms of money.

AMD revealed that if a monolithic design was used (as Intel uses), a 16-core processor would cost more than double what it currently costs. We mentioned this many times, but if you fabricate big huge die's then chances that on a wafer the yields are bad, is bigger. If you design lots of smaller processors dies on a wafer, the risk of a damaged die is far smaller, and thus far more economical to fabricate as you end up with more working CPU dies (better yields). Of course chipset design have challenges of their own, but AMD isn't rather bothered by it by designing an ultra fast IO chip.

So for a 16-core model you only have to add an additional core die and IO, which is much smaller, cheaper to achieve and this economic. As the new slides indicate, it turns out that it has reduced cost by half. Thanks to this new design, you have the possibility of only marking the price at US $750 to get the Ryzen 9 3950X with 16 cores and 32 threads, while it would surely have cost more somewhere north of USD 1250 perhaps USD 1500, if a monolithic design had been used.