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A die is a small block of semiconducting material on which a given functional integrated circuit is fabricated. Typically, integrated circuits are produced in large batches on a single wafer of electronic-grade silicon (EGS) or other semiconductor (such as GaAs) through processes such as photolithography. The wafer is cut (“diced”) into many pieces, each containing one copy of the circuit. Each of these pieces is called a die.

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How is wafer dicing economical (for small ICs)?

This won't be an issue for big dies as the percentual drop in yield would be far less, but how did the industry got arround this problem for small die ICs? …
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