How can a small(ish) company like Parallax design and produce their own MCU?

I know this is pretty off topic, but the question has been lingering in the back of my mind, and it has not gone away...

I always thought that it cost millions of dollars to produce a chip. Maybe I am thinking of the Pentium (whatever they are called now) super complex CPU's. Anyone have any idea how much it cost Parallax to develop and (I am sure have another company design and build) their Propeller? Anyone know what company makes it for them? I searched the internet a little bit, but can't seem to get anywhere.

I read somewhere that Parallax's gross profit was about 1 million a year, and Sparkfun's was about 10 million. And now I am really off topic.

Hi,
I have NO idea how much it costs or how much Parallax makes or turns over per year. I have read a coule of intersting articles about the Propeller though, like Why the Propeller works by Chip Gracey him self (Parallax president and designer of the Propeller and the original BasicStamp) where he gives a bit of background and covers a couple of details. If you browse the forum at Parallax there are quite a few posts from Chip and his brother Ken regarding the design.

(My entrypoint into the "embedded world" was on the BS1 >15 years ago.)

/Henrik.