Recently, I watched a video from China titled “How NVIDIA’s Graphics Cards Are Manufactured,” and I learned about the cost and gross margin of the H100 GPU, which is shockingly over 90%. The cost components mainly include wafer materials, HBM memory, TSMC’s foundry, etc. The domestic market price for the SXM H100 is 250,000 RMB per card. How is this calculated? Let’s briefly discuss!
1. The Steps and Costs of Manufacturing the H100 from Wafer to Finished Product
As we all know, NVIDIA’s GPU chip foundry is TSMC. The area of a single H100 GPU core logic chip is 814mm². A 12-inch wafer can be sliced into 86 chips, but due to an 80% yield rate and losses, 65 functional logic chips can be produced. NVIDIA quotes a price of $13,400 per wafer, so the cost of a single H100 logic chip is about $200.
Each H100 also requires 6 HBM memory chips, made by South Korea’s SK Hynix, with each chip being 16GB and costing around $15 per GB. The total cost for the 80GB of memory in the H100 is about $1,500. Of course, there are also derivative chips like the H100 NVL, which consists of 2 H100s, with each H100 featuring 96GB of memory (using the full memory capacity). The memory chips are connected to the GPU chip using TSMC’s CoWoS technology.
CoWoS foundry costs are extremely high, much higher than manufacturing a core logic chip, and it’s a secret weapon for increasing memory bandwidth (the shortage of H100s for a while was due to capacity limitations in this process).
Once the HBM memory is packaged, TSMC’s job is done, and the next step is for Foxconn to assemble the external circuitry and package the chips, which is the final product we see on the market. A single H100 chip, weighing as much as gold, is then born.
Summary of H100 Material Costs:
- Core Logic Chip: $200
- HBM Memory Chips: $1,500
- CoWoS Packaging: $723
- The total of these three items is approximately $2,500. Adding material costs brings the total to about $3,000, which, with the current exchange rate of 7.33, is about 22,000 RMB.
2. Gross Margin Analysis for a Single SXM H100 Card
Currently, an HGX H100 module is priced at around 2 million RMB. Each SXM H100 is priced at 2 million RMB divided by 8, which is about 250,000 RMB per card.
The gross margin is calculated as:
(250,000 – 22,000) ÷ 250,000 × 100% = 91.2%
Note: The above content is from the internet and may differ from the actual numbers. Corrections are welcome!
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