Silicon AnalyticaGlossary · Manufacturing
What is yield?
Yield is the share of chips on a wafer that work as intended after manufacturing. Higher yields mean more sellable chips from the same wafer and a lower cost per chip.
Why it matters for investors
Yields are usually lowest when a new process starts production and improve as the manufacturer learns. How quickly they improve affects whether a new node can be produced profitably.
Companies rarely publish exact yield figures, so investors look at indirect signals such as gross margin trends, product launch timing and comments on earnings calls. Inspection and metrology toolmakers sell equipment designed to find the defects that reduce yield.
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General educational explanation. Information only, not investment advice.