4
Fab Eras
6
Scenarios
7.1%
Yield Loss (Unstable)
1987–Now
Era Coverage

The Central Argument

Simple yield models collapse a month of production into one number: the average defect density D₀. That is fast to compute and easy to report — but it hides the most dangerous reality in manufacturing.

A fab that averages D₀ = 0.12 by spending half the month at 0.06 and half at 0.18 is not the same as one that holds steady at 0.12. The path matters. Excursions cluster. Bad states persist. Yield is destroyed during the spikes and never fully recovered in the calm.

The Rough Volatility Hypothesis (RVH) borrows from financial modeling of rough stochastic processes to give defectivity a memory, a roughness parameter, and a realistic excursion structure. The result: a simulation that separates three distinct realities a static model cannot distinguish.

Y = ( 1 + D₀ · A / α ) −α

Murphy–Poisson yield equation. D₀ = defect density (defects/cm²), A = die area (cm²), α = clustering. RVH makes D₀ a dynamic rough path rather than a constant.

−7.1%
Shippable output loss — stable fab to unstable fab
Moving from a stable low-volatility process to an excursion-prone unstable one costs 7.1% of total shippable dies across all customers. This is the central quantitative result of the RVH simulation. It is not a modeled average — it emerges from the path.

Three Things RVH Separates That Static Models Cannot

Ideal vs. Stable

A perfectly flat defect path and a low-volatility real fab produce nearly identical output. Normal process variation is not the economic threat.

Product vs. Process

Die area drives yield independently of fab stability. A large chip in a perfect fab still yields poorly — product complexity and process instability are separable causes.

Noise vs. Excursion

Random daily fluctuations are tolerable. Persistent bad states with long memory — rough volatility — are not. The Hurst exponent captures which regime you are in.

RVH Parameters

Parameter Symbol Effect Stable Fab Unstable Fab
Hurst Exponent H Memory & roughness of D₀ path. Lower = rougher. 0.45 0.10
Process Volatility ν Magnitude of day-to-day swings in D₀. 0.05 1.00
Excursion Probability pexc Daily probability of a major tool failure or process shock. 0.0 0.30
Excursion Impact kexc Multiplier applied to D₀ during an excursion event. 1.0× 10.0×
Defect Clustering α Spatial clustering of defects. Lower = more spread (worse yield). 2.5 (baseline)

The Rain Analogy

Your chips are buckets. Die Area (A) = the opening of each bucket. Defect Density (D₀) = how hard it is raining. Clustering (α) = whether rain falls as an even drizzle (bad) or in localized downpours (better for overall yield). Yield = percentage of buckets that stay perfectly dry. RVH = the storm does not rain at a constant rate. It has memory, roughness, and sudden excursion spikes. Buckets near the excursion get destroyed. Others survive. A static model cannot see this — it only sees the average rainfall.