Key to China’s growth is early adoption of next-gen technologies
03/01/2007
Market projections by industry analysts indicate that China is on a steady growth path, reinforcing its stake as a viable, competitive player in the global IC manufacturing arena. Chinese chipmakers are making solid investments in the construction of new wafer fabrication lines, including 300mm fabs, as well as early adoption of advanced processes and technologies to stay ahead of the curve and market.
The China Semiconductor Industry Association (CSIA) reports that there were 47 wafer fabrication lines in China at the end of 2006, an increase from 40 in the previous year. These are not solely owned by Chinese companies, since foreign companies continue to partner in joint ventures that increase the manufacturing capability of the region. The Chinese government is supporting such endeavors by offering incentives to foster and promote advanced technology.
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By keeping pace with other key players like Japan and the US, China can profit from the estimated $283 billion global IC market, as forecasted by Gartner Dataquest for 2007. Since 2000, China has been able to maintain a greater than 30% CAGR in IC consumption, according to SEMICO Research Corp. (compared to 4% globally), proof positive that it has emerged as an important market for semiconductor equipment (see table). The early adoption of new technologies can only continue to fuel such growth.
The digital era driving growth
In the case of China, consumer demand for every form of digital electronics is the driving force behind the requirement of next-generation devices with multifunctional and converging capabilities. For example, cell phones and other handheld devices allow individuals to “multifunction” in today’s digital world.
To satisfy consumer appetites for new and unique electronic gadgets (Fig. 1), these devices need to have smaller form factors and reduced power consumption. To support consumer gadgets, IC manufacturers must produce ever smaller, faster, cheaper, and more functional ICs.
China needs to focus on which technologies are critical in order to have the ability to achieve the required device scaling and embedded functionality demanded in today’s marketplace. Key to this success is the ability to adopt such technologies early in the game, initially for R&D and ultimately for production-scale manufacturing.
Next-generation fab technologies
One next-generation technology that Chinese foundries have started to implement is ALD, dubbed the next critical technology by many industry observers. ALD involves the deposition of films one atomic layer at a time, resulting in precision technology on an atomic scale.
By using ALD instead of traditional deposition technologies, fabs can achieve near 100% uniformity and conformality at 90nm and below geometries, which are used in today’s advanced consumer devices. Certain foundries have been more aggressive than others in implementing advanced technologies in their production lines. ALD is being used in production at a leading Chinese foundry and is believed to be in use in R&D at other IC facilities in the region.
Another technology gaining increased attention is WLP, which enables smaller form factor packages with improved power efficiencies. New packaging schemes are essential for meeting the evolving simultaneous specifications of speed, density, functionality, and thermal performance of advanced ICs for an array of applications. As a result, according to Gartner Dataquest, manufacturing value has been shifting from silicon to the package over the past five years (Fig. 2).
There is no doubt that China has the ability to support advanced technology development and production. The country has the elements for great success: incentives from the government, investments from foreign and domestic companies, focus on early adoption of critical advanced technologies, and a highly skilled workforce and a continuous pool of talented engineers to support these endeavors.
With an increasing share of the overall global IC market, China has much to gain by adopting technologies that allow them to produce ICs that are in the highest demand today and in the near future.
Jerry Cutini is a 25-year veteran of the semiconductor equipment industry with experience in multiple areas of management and expertise in mergers and acquisitions, public offerings, and capital financing. He is the co-founder of Aviza Technology and has been its president, CEO, and director since the company’s inception in 2003. Aviza Technology Inc., 440 Kings Village Road, Scotts Valley, CA 95066; ph 831/438-2100.