If you are a regular searcher for exotic parts among the virtual pages of semiconductor supplies catalogs, you will have probably noticed that for a given function it is most often the part bearing the Analog Devices logo that is the most interesting. It may have more functionality, perhaps it will be of a higher specification, and it will certainly have a much higher price. [Zeptobars] has decapped and analyzed an AD chip that holds all three of those honors, the AD9361 SDR transceiver.
It’s placed under a slightly inflammatory title, “when microchips are more profitable than drugs“, but does make a good job of answering why a semiconductor device at the very cutting edge of what is possible at the time of release can be so expensive. The AD9361 is an all-in-one SDR transceiver with an astonishing bandwidth, and as such was a particularly special device when it reached the market in 2013. We see some particularly fine examples of on-chip inductors and PLL circuitry that must have consumed a significant design effort to preserve both bandwidth and noise characteristics. This is an item of physical beauty at a microscopic scale as well as one of technical achievement.
The financial analysis puts Analog Devices’s gross profit at about $103 of the $275 retail purchase price of an AD9361. The biggest slice at $105 goes to the distributor, and surprisingly the R&D and manufacturing costs are not as large as you might expect. How accurate these figures are is anybody’s guess, but they are derived from an R&D figure in the published financial report, so there is some credence to be given to them.