The company I worked for was Conexant. Our sensors were pretty much used in phone cameras, and a few point and shoots, but the economics of sensors with respect to size are straightforward to understand. Full Frame is a special problem, because a full frame sensor can only be made using a die with a minimum 43 mm diagonal, which can't ever be reduced. That constrains it to very specialized photolithography which will become ever more of a niche over time. The way electronics are cost reduced is to downsize the die, and SLRs have fixed format sizes that can't get smaller over time. Very few other semiconductors, other than the most costly processors, require a die of around 43mm diagonal. In addition, the process to add microlenses to the finished die is specialized and extremely low volume as far as semiconductors are concerned. A big sensor is extremely difficult to cost reduce, and Moore's law doesn't apply to anything that can't be physically down-sized (unlike Camera-phone and point and shoot sensors, which are still getting smaller). The only real cost reductions that can be gained over time is to improve the process yields, and to improve the efficiency of adding the microlenses. But most of the cost is reflected in sheer silicon real estate, which can never be reduced in a sensor of fixed format size - in fact, that's going UP somewhat over time, although not as fast as yields and adding microlenses costs are going down.Originally Posted by Anbesol
The only GOOD news about this is that both APS and Full Frame sensors will keep getting BETTER over time, because they can't get smaller, each new process generation gives the designers more free real estate to make either more pixels, or more sensitive pixels and other support circuitry around the pixels.
Oh, and anyone who understands semiconductor process technology COULD predict that a given size memory device will continue to get cheaper forever - and that 4 GB of flash memory would soon cost under a dollar. And that Zip drives would NEVER displace solid state memory in the long term because of this. But the cost reduction mechanism which makes flash memory forever get cheaper is by downsizing the memory - that's the Moore's Law mechanism, and that mechanism doesn't apply to sensors that have to have a fixed physical size.
The bottom line is that a full frame sensor will NEVER cost under $200. Which means that a full frame camera body will NEVER cost under $1000 - and more likely, never cost under $1500 if it's made of metal with an optical pentaprism and a rugged shutter. And when they do cost $1500, otherwise similar APS bodies will cost $500 tops.



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