school of microelectronic engineering

School of Microelectronic Engineering

Present and Future Prospects of Semiconductor Industry In Malaysia

ByRamzan Mat AyubTimbalan Dekan, Unit R&D, UniMAP

Azlan ZakariaHead of MEMS and CMOS GroupMimos Berhad


Presentation Outline

The Evolution of Semiconductor Technology

Industry Structure

Technology Challenges & Trends

Semiconductor Industry in Malaysia


The Evolution of Semiconductor Technology


What is Semiconductor Technology?

The technology to produce IC microchips

IC chips are the backbone of the computer industry and have spurred related technologies such as software and internet

Every product of the information age is an offspring of IC technology

IC chips increasingly control functions in cars, TVs, VCRs, cameras, mobile phones, toys, etc.


The Evolution of Transistor / IC

Transistor is the basic building block of ICs.

School of Microelectronic EngineeringSchool of Microelectronic Engineering

First Transistor, Bell Lab 1947

John Bardeen and Walter Brattain, demonstrateda solid state device made from germanium. Theyobserved that when electrical signals were appliedto contacts on germanium, the output power waslarger than the input. These results were publishedIn 1948.

William Shockley, found out how the bipolar transistorfunctioned and published the theory in 1949.

Three of them shared the Nobel Prize in physics in1956,


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First Transistor and Its Inventors


Semiconductor industry developed rapidly and germanium based transistor quickly replaced vacuum tubes in electronics equipment due to:

smaller size lower power consumption (enable portable applications) lower operating temperature quicker response time

Single crystal silicon and germanium based devices introduced in 1950 and 1952 respectively (better defect control, hence higher yield).


Shockley left Bell Labs in 1956, to start his own lab in San Francisco Bay, California. Nowadays known as Silicon Valley. His lab has attracted talented scientist such as Robert Noyce and Gordon Moore.

Gordon Moore and Robert Noyce left Shockley in 1957 to start Fairchild Semiconductor.


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First IC Device by Jack Kilby, Texas Instruments 1958

1st fabricated by Bell Labs in 1958. Jack Kilby demonstrated functional IC, fabricated on germanium strip consists of;

one transistor one capacitor 3 resistors


First Silicon IC Chip by Robert Noyce, Fairchild Camera, 1961

Fairchild Semiconductor produced the 1st commercialICs in 1961. This IC consists of only 4 transistors sold for USD 150 a piece.

NASA was the main customer.

In 1968, Robert Noyce cofounded Intel Corp. withAndrew Groove and Gordon Moore.

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IC Design: 1st IC

1st IC design by hand (Jack Kilby)

Currently, hundreds of designers workon single product to design, validateand lay outed will take several monthsto complete with the help of CADtools.

Main considerations; performance die size design time and cost testability

IC Design: State of The Art ICCMOS Inverter - basic building block of digital MOS design

Layout

Cross section

1980’s Technology … Wafer Cross section


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Wafer Fabrication: From Design to Wafer


HDL Coding

FPGA Prototyping

Testbench Development & RTL Simulation

Synthesis & Optimization

Gatelevel Simulation

Static Timing Analysis

Design For Testability Implementation

Floorplanning & Place Route

Physical Verification

Post Layout Simulation

Mask Design

Fabrication & Wafer Probing

Packaging, Assembly & Test

Typical Design Flow

The Design Tools:

Software

• Front End – Synopsys• Back End – Monterey/Cadence• Mask Artwork – Cadence

Hardware

• SUN Workstation


Typical Fabrication Flow

Main Process Modules (CMOS 1P2M 3.3V)1. Wells Formation2. Active Area Definition 3. Device Isolation (LOCOS)4. Vt Adjust5. Polygate Definition6. Source & Drain Formation7. Pre Metal Dielectrics Deposition (PMD)8. Contact Definition9. Metal-1 Deposition & Patterning10. Inter-Metal Dielectrics Deposition (IMD)11. Via Definition12. Metal-2 Deposition & Patterning13. Passivation14. Pad Definition

Full integration may require 300-500 process steps (4 – 6 weeks to be completed)

FRONT END PROCESS(creating an electrically isolated devices)

BACK END PROCESS(connecting the devices to form the desiredcircuit function.)


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IC Product Category

CMOSBased-Technology


Industry Structure


Semiconductor Manufacturing

A multi-dicipline processes, involved;

Circuit design Manufacturing material Clean room technology, processing, equipment Wafer processing technology Die testing Chip packaging and final test


Design Services

Mask MakingWafer

ManufacturingWaferTest

Assembly & Final Test

SDIP SSOP QFP BGA

5 Major Industry Components


Semiconductor Industry Structure


IC Design Centers/ EDA

Providers

IC Manufacturers

Mask Shops

Packaging & Testing

Companies

Supporting Companies

MySem, MyMS, Intel, Altera,Cadence, Synopsis

MySem, Silterra, 1st Silicon, Infineon

TMC Taiwan, Dupont Singapore, Photronic Singapore

Unisem, Carsem, Malaysian Pacific Industries, ASE, National Semiconductor, Freescale, AIC etc.

Applied Materials, ASM, Varian, Verteq, Tel, Hitachi Kokosai, SEH etc

IC Design Centers/ EDA Providers

IC Manufacturers

Mask Shops

Packaging & Testing Companies

Supporting Companies

Full support chain of semiconductor companies


Semiconductor Manufacturing Business Models

Design/IPSystems

IDM Model

Marketing/Sales(B2C)

•Companies: IBM, Intel, Texas Instruments

•Pros: Control over their own roadmap

•Cons: Cost, risk, swings in utilization

•Prerequisite: Must be a $7B+ to support

Aggressive manufacturing.

Manufacturing

Fablite Model

Design/IPSystems

Marketing/Sales(B2B)

Manufacturing

Foundry partners

Manufacturing

•Companies: Motorola, Infineon, ADI•Pros: Have some control over process technology, yet chance to have access toleading edge technology.•Cons: Once decision is made to reduce orStop investment, ability to reverse is difficult.

Fabless Model

Design/IPSystems

Marketing/Sales(B2B)

Foundry partners

•In 1990 only 7 fabless companies existed ; Today more than 100 fabless companies exist worldwide

•Many companies such as Motorola, TI, Tosibha, LSI Logic plan to outsource > 50% of its production

•Second & third tier IDM’s would be forced to adopt a pure fabless model or fablite strategy to remain viable

•Organic fabless growth — fabless growth consistently outpaces overall industry


Why Fabless?

•Model allows necessary focus on system/design level for success•Manage the risk related to the high cost of building and maintaining a fab•Economies of scale/efficiency•Fabless companies are expected to account for more than 60% of the total semiconductor revenues by 2010•Fabless company funding sequentially increased 62 percent year-over-year in 2004


Fabless Facts – Revenue Growth

$0

$50,000

$100,000

$150,000

$200,000

$250,000

87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Semi Industry Fabless Industry

The fabless sector has continuously achieved faster growth than the overall industry.

Semi Industry (in millions)

Fabless (In

millions)

Source - FSA


Technology Trends & Challenges


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Moore’s Law


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Moore’s Law, Intel Product


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IC Integration Scale


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Feature Size and Wafer Size


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Road Map Semiconductor Industry


Technology Improvement Trends

TREND EXAMPLE

Integration Level

Number of Components/ Chip

Cost Cost per function/ Increased functionality at incremental cost

Speed Microprocessor Clock rate

Power Increased battery life through design of low power IC’s in Mobile devices

Compactness

Introduction of concepts like System On Chip to reduce size and weight of the product with increased functionalities

Functionality Nonvolatile Memory


Technology Parameters 1975

1997 2003

Chip Complexity (Index to 1)

1 10 100

Feature Size Reduction (micrometer)

2 0.25 0.08

Chip Size Increase (mm2) 30 150 600

Wafer Diameter (mm) 50 200 300

Facility Automation (%) 5 60 80

Die Yield (% good) 40 85 95

Line Yield (% good) 40 85 95

Assembly/ Test Yield (%) 90 99 99

Technology Advancements Comparison

Key Inferences•Continuously increasing density of transistors on single chip

•More functionality on a single chip

•More yield at lower costs

•Reduction of costs through facility automation

•Increase in the number of chips per wafer


Technology Challenges (Opportunities)Key Challenges

Description

Design

•Challenges in design with increased density (reduced line width)

•Chips with increasing heterogeneity (integration)

•Complexity in interaction between design levels

•Difficulties of convergence and predictability of the design process

•Challenges in designing mixed signal designs and RF design due to convergence products

Material

•Challenges of low power and current requirements (proper doping to reduce the current leakage)

•Material with High K dielectric constant to increase device performance

•There is need for a new, large-area substrate for wafers with more than 300 mm diameter

•New materials for gates and dielectrics make gate etching process more difficult.


Technology Challenges (Opportunities)

Key Challenges

Description

Fabrication

•Concurrent development of circuits and processes using test element groups (TEG’s) & simulation

•Robust circuit and processes factoring manufacturing fluctuations

•Defective product analysis and counter measure prototyping by means of quick turnaround time(QTAT)

•Declining number of masks leading to increase in number of chips per wafer:

–Reducing chip size–Expanding the area from which chips can be obtained–Manufacturing of increased wafer diameter of 300 mm

Assembly and Packaging

•Lower cost materials and processes to meet new requirements •Reliability under thermal cycling (stress and moisture)•Compatibility with harsh environments (automotive)•Increasing reliability for soldering process•New materials for Opto packaging


Technology Challenges (Opportunities)Key Challenges Description

Defect Reduction

•Need for new failure analysis as the traditional failure analysis is likely to be inadequate due to:

–Classification speed of defects

–The number of defects that can be handled

•Speed of chemical element analysis

•UV defect inspection equipment for wafers failing at 130 nm node

Testing

•Achieving low test costs and high test reliability

•New test requirements for technology >100nm

•Ability to test for cross talk induced failures caused by high-density interconnect

•Testing embedded mixed analog/ digital circuits

•Use of design for test (DFT) for testing high-speed devices

•Need for higher order DFT for SoC testing


The International Technology Roadmap for Semiconductors, known throughout the world as the ITRS, is the fifteen-year assessment of the semiconductor industry’s future technology requirements. These future needs drive present-day strategies for world-wide research and development among manufacturers’ research facilities, universities, and national labs.

www.itrs.net


ITRS 2006 Update

Executive Summary System Drivers DesignTest & Test EquipmentProcess Integration, Devices & StructuresRF & A/MS Technologies for Wireless CommunicationEmerging Research Devices was not updated for 2006, refer to 2005 Chapter Front End ProcessesLithographyInterconnectFactory IntegrationAssembly & PackagingEnvironment, Safety & HealthYield EnhancementMetrologyModeling & Simulation

http://www.itrs.net/Links/2006Update/FinalToPost/00_ExecSum2006Update.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/01_SysDrivers_2006UPDATE.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/02_Design_2006Update.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/03_Test2006Update.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/04_PIDS2006Update.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/05_Wireless2006Update.pdf

http://www.itrs.net/Links/2005ITRS/ERD2005.pdf

http://www.itrs.net/Links/2006Update/FinalToPost/07_FEP2006Update.pdf


New ICT Era : Nanocomputing


Semiconductor Industry- Past Trends

Year over Year Semiconductor Industry Growth Rates

Source: World Semiconductor Trade Statistics

•10 year CAGR between 10% & 20%

•Worst ever Semiconductor industry downturn witnessed in 2001-02

•Industry witnessed a –ve growth rate of around 30% during the downturn

•Revival of semiconductor industry in 2004


Semiconductor Industry- Manufacturing Trends

Source: World Semiconductor Trade Statistics (WSTS)

Outsourcing of Semiconductor Manufacturing showing strong trends •Major indicators of

Semiconductor industry like Foundry Revenues, CAPEX spending witnessing downward trend in 2001& 2002

•Foundry Revenues, CAPEX spending & Semiconductor Revenues graph in consonant with each other

•EDA revenues increasing consistently (except during downturn) as continuous advancing technology forcing industry to upgrade EDA tools


Semiconductor Industry Forecasts

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 2008

-5

0

5

10

15

20

25Revenues in $ Billion Growth Rate

Source: Frost and Sullivan

•World wide semiconductor revenue expected to rise to $199 billion from $166 billion in 2003

•Chip market is expected to decline by 2.3%in 2006 due to overcapacity

•New growth cycle expected to commence in 2007

•Revenues expected to reach $266 billion by 2008


Semiconductor CAPEX Spending

2003 2004 2005 2006 2007 2008

Semiconductor Capital Spending

29,661 44,763 50,767 43,058 35,693 39,872

Growth (%) 7.5 50.9 13.4 -15.2 -17.1 11.7

Capital Equipment 22,824 37,317 42,912 35,230 27,806 32,439

Growth (%) 10.3 63.5 15 -17.9 -21.1 16.7

Wafer Fab Equipment

16,742 27,364 31,144 25,848 20,598 23,176

Growth (%) 3.5 63.4 13.8 -17 -20.3 12.5

Packaging and Assembly Equipment

3,060 4,994 5,114 3,602 2,949 3,988

Growth (%) 30.5 63.2 2.4 -29.6 -18.1 35.2

Automated Test Equipment

3,021 4,960 6,655 5,780 4,260 5,275

Growth (%) 39.4 64.2 34.2 -13.1 -26.3 23.8Source: WSTS & SIAAll Revenue Figures are in $Millions


Semiconductor Industry in Malaysia


Can be classified into 3 sub-sectors (MIDA);

electronics components semiconductor device (35 -40% of total electronic exports) linear & digital ICs, memories, MCU, opto-e etc capacitors, relay, switches, transformers etc.

consumer electronics audio products, VCD players, phones

industrial electronics public phone exchanges, satellite receivers, transmission eq.

Electronic Industry Structure


Increased considerably from <3 billion units / annum in 1980 to 18 billion units / annum in 2004.

In 1990-2003 period, average increament per annum ~ 16.5%, much stronger growth in 2004 (28.2%)

Earning from exports, from RM35.5 billion in 1996 to RM89.3 billion in 2004.

Semiconductor Production Output


Semiconductor Production Output MALAYSIA: Production of Semiconductors (Million Units)

Year Output

1989 2,262

1990 2,565

1991 2,689

1992 3,121

1993 3,491

1994 3,410

1995 4,757

1996 5,237

1997 7,432

1998 8,951

1999 9,959

2000 16,373

2001 13,524

2002 15,036

2003 15,958

2004 18,228

Source : MIDA


Semiconductor Exports

MALAYSIA: Exports of Semiconductors

Year Exports (RM Million)

1996 35.5

1997 40.8

1998 54.4

1999 65.4

2000 71.1

2001 60.5

2002 72.9

2003 85.1

2004 89.2

Source : MIDA


THE SEMICONDUCTOR INDUSTRYIN MALAYSIA As at 2004

Number of Companies 40

MAJOR COMPANIES:

ASSEMBLY AND TESTINGIntel, AMD, Motorola, Agilent, Texas Instrument, National Semiconductor, Fairchild, Hitachi, NEC Toshiba, Fujitsu, Infineon Technologies, STMicroelectronics, ASE Electronics, MPI (Carsem), Unisem, Globetronics, AIC, ChipPac.

SILICON WAFER PROCESSINGMEMC Electronics Material, ShinEtsu, Wacker NSCE

WAFER FABRICATIONSCG Industries, MIMOS, Silterra, 1st Silicon, Infineon Technologies (New)

CHIP DESIGNAltera Corporation, MIMOS

MAJOR SUPPORTING INDUSTRIES:

LEADFRAMESMPI (Dynacraft), M-SMM Electronics, Shinko, Kyushu Matsushita Electric, Mitsui High-Tec, Possehl Besi Electronic, AKN Technology.

BONDING WIRESTanaka Electronics, Malaysian Electronics Materials

BURN IN AND TESTING SERVICESTS Matrix, KESM Industries, KESP

Source: MIDA


Developed rapidly to become one of the country’s major industries within the manufacturing sector since the establishment of the 1st

semiconductor plant in Penang (1972)

Played a major role towards country’s industrialization (30% of current manufacturing output and 25% of country’s manufactured exports).

Progressing from labor-intensive operations to state of the art robotic manufacturing that produce the latest product.

Nevertheless, manufacturing activities are still dominated by the the lower end assembly and test.


Malaysia – Presence in the Value Chain

Design & Developme

nt

Masking

R&D Packaging

Testing

Physical Design

Logical Design

Dicing

Substrate

FabricationEquipment

Photo-resists

Lead Frame

Test Equipment

Bonding

EDA Tools

Product Manufacturin

g

Components

Product Design

EMS

Plastic Molding

Precision Componen

ts

EndProduc

t

Optical

PC & Peripherals

Consumer Electronics

Industrial Electronics

Automotive

Others

Bio-medical

Wafer Processing

Chemical and Ultra pure gases

Strong Current CompetenceLimited Current Competence – Need to be strengthened

Competence to be developed End user presence

Fabrication


Embarking to move up further into the higher technology value chain chip making;

Wafer Fabrication (Foundry) MIMOS Fab – 1995 1st Silicon – Feb 2001, Owned by Sarawak Gov (RM 6.5B) Silterra Malaysia – Mac 2001, Owned by Khazanah (RM4.5B) Infineon Technologies – 2005, Siemen AG

Chip Design MIMOS (MyMS) Altera Corp Agilent Technologies Motorola (MSC) Intel Design Centre


Electronic Products

Semiconductor Assembly & Test

Wafer Fabrication

Silicon Wafer Manufacturing

Design

Industry Status

Industrial Electronics (MNCs, Local)

Consumer Electronics (MNCs, Local)

MNCs, Local (Major Share in Global Exports)

Silterra,1st Silicon, MIMOS

MIMOS/Universities

MNCs

Source: MIMOS Analysis based on IMP2 Report

Integrated Value Chain

Add Value, Focus


Increase Local Content

• Assumptions– Value of design: 10% of product value

– Profit margin: 25% of product value

1998 1999 2000 2001 2002Projected Malaysian Semiconductor Demand (RM million)

24,612.1 29,681.8 36,411.6 45,232.3 51,132.1

Targeted Indigenous Product Content (%)

0.5 0.7 5.0 10.0 25.0

Projected Total Indigenous value (RM million)

92.3 155.8 1,365.4 3,392.4 9,587.3

Projected Indigenous Design value (RM million)

12.3 20.8 182.1 452.3 1,278.3

Source: MIMOS Analysis


Industry

• Infrastructure

• New materials

• Methodology

• D & M process

• Expertise

• Products

• Technology

• Growth

R&D Centre

Universities

National Strategy


KSF’s & Challenges for MalaysiaSuccess Factors Challenges

R&D, Design & Development and Fabrication

•Absence of a highly evolved R&D/design environment

•Current factor conditions (Education system)

•High costs of setting up niche research institution (s)

•Close proximity of other technology centers like, Taiwan, South Korea, Japan, Singapore, Israel, India

Sustainable world class manufacturing facility with global process standards

•Low exposure to international clients; regionally focused with spare manufacturing capacity

•Capital intensive nature calling for regular investment for upgrading

Rapid & successful R&D and process innovation in semiconductor fab & packaging

•Competencies in fabrication and packaging NOT translated into creation of process innovations

•Need for Packaging and testing excellence center

Retain MNC companies currently engaged in packaging, assembly and testing

•MNCs looking for presence of “value add” activities in existing locations; Need strong RSI and factor conditions

•Strategies to remain in the country driven by HQ

Strong RSI Presence •Local companies and SMEs need to continuously upgrade to meet international quality standards and maintain competitiveness


Conclusion

Semiconductor technology is a strategic knowledge in the ICT era

Semiconductor industry is the key to the country’s competitiveness and growth.

Chip design and wafer fabrication are the KSF in securing the country as a major semiconductor based component / product producer.

school of microelectronic engineering

Documents

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