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Re:Doom Running on an IKEA Lamp [video] by BeeOnRope on Monday June 14, 2021 @10:27AM (#27502914)
It's not primarily about using defective chips (but that's a nice side effect). As a process becomes mature, yield rates become very high and there wouldn't be enough defective chips to meet demand for a lower tier, so good chips are binned into those tiers anyway.

The primary purpose is market segmentation: extracting value from customers who would pay more while not giving up sales to more price sensitive clients who nevertheless pay more than the marginal cost of production.

Re:Doom Running on an IKEA Lamp [video] by mekkkkkk on Monday June 14, 2021 @11:00AM (#27503383)
That makes sense, thanks. I wonder if it would be possible to de-bin one of the lower end ones, assuming it is a binned version of a fully functional higher tier chip. Or perhaps they completely destroy the offlined cores/features.