Intel, Samsung, TSMC want 450-mm wafer pilot line in 2012

The companies intend to target 2012 as the start for a 450-mm pilot line, not to begin high-volume production. A pilot line is a complete set of production-spec tools capable of producing pre-product launch chips.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 5/5/2008

In a push for the 450-mm semiconductor wafer size, which some in the semiconductor industry still don’t believe will ever come to fruition, three industry goliaths – microprocessor giant Intel Corp [INTC], memory leader Samsung Electronics and leading semiconductor foundry Taiwan Semiconductor Manufacturing Co [TSM] – announced that they have “reached agreement” that the industry needs to start working together to transition to the 450-mm wafer size.

According to an Intel spokesperson, the intention is to target 2012 to start a 450-mm pilot line, not to begin high-volume production, who also reminded that a pilot line is a complete set of “production-spec” tools capable of producing “pre-product launch” chips.

The promise of moving to larger wafers is that it will allow continued growth of the semiconductor industry and helps maintain a reasonable cost structure for future integrated circuit manufacturing and applications, however, the leading companies that make semiconductor manufacturing equipment, namely Applied Materials [AMAT], ASML Holding [ASML], KLA-Tencor [KLAC], Lam Research [LCRX], Novellus Systems [NVLS] among many others, have said time and time again that investments in 300-mm manufacturing equipment have not been recouped yet.

In today’s announcement, the companies said they will cooperate with the semiconductor industry to help make sure that all of the required components, infrastructure and capability are developed and tested for a pilot line by 2012.

The 450-mm wafer size is attractive to chipmakers since the total silicon surface area and the number of printed die is more than double that of a 300-mm wafer, who argue that the bigger wafers help lower the production cost per chip, but the cost to develop the equipment to handle the 450-mm wafers could run as high as $100 billion. 

Also, Intel, Samsung and TSMC noted that bigger wafer can help lower overall use of resources per chip through more efficient use of energy, water and other resources.

“There is a long history of innovation and problem solving in our industry that has delivered wafer transitions resulting in lower costs per area of silicon processed and overall industry growth. We, along with Samsung and TSMC, agree that the transition to 450-mm wafers will follow the same pattern of delivering increased value to our customers,” said Bob Bruck, VP and general manager of technology manufacturing engineering in Intel’s technology and manufacturing group, in a statement.

Fruther, Intel, Samsung and TSMC said that the semiconductor industry can improve its return on investment and substantially reduce 450-mm R&D costs by applying aligned standards, rationalizing changes from 300-mm infrastructure and automation, working toward a common timeline, and that a cooperative approach will help minimize risk and transition costs.

Given that in the past, migration to the next larger wafer size traditionally began every 10 years after the last transition, to keep in line with the historical pace of growth, the companies agree that 2012 is an appropriate target to begin the 450-mm transition given the complexity of integrating all of the components for a transition of this size, and that consistent evaluation of the target timeline will be critical to ensure industry-wide readiness.

The three companies added that they will continue to work with International Sematech (ISMI) in its role in coordinating industry efforts on 450-mm wafer supply, standards setting and developing equipment test bed capabilities.

What is missing from today’s announcement is any statement by a manufacturing equipment maker, leaving the question unanswered as to which company will build the equipment.

In July 2006, Mike Splinter, president and CEO of Applied Materials said, “Eventually, at the right time, there will be enough impetus for 450-mm but volumes have to grow significantly for there to be enough motivation. We’re nowhere near reaching the potential of 300-mm.”

Then, in August 2006, Rick Hill, chairman and CEO at Novellus said 450-mm wafers would not become a reality while he was still working. Why? First, because, the industry can’t afford it, he said. “If you look at 300-mm, it’s been so productive for the semiconductor industry and it’s been anathema for the equipment business. It shrinks our volume, and yet our R&D costs are going up. And the competitive nature of it has gone up such that the margins have shrunk. Going to 450 would be the same thing. Unless it’s funded by the semiconductor industry, it won’t happen."