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How to Build a $20 Billion Semiconductor Fab

Daniel Nenni

Admin
Staff member

Intel fab under construction in Ireland, via Intel Ireland

For the last several decades, one avenue of technological progress has towered over nearly everything else: semiconductors. Semiconductors are materials that can have their conductivity varied by many orders of magnitude, which makes it possible to selectively block and allow the flow of electrons. This property makes it possible to manufacture all sorts of electronic devices, not least of which is the digital computer.

As semiconductor technology has advanced over the past several decades, the cost and size of electronic computation has steadily fallen, making the PC, the internet, and mobile phones all possible. Today, semiconductors in the form of powerful GPUs that can perform enormous numbers of matrix multiplications are the keystone for advancing AI technology. Increasingly available computation to do enormous amounts of search and learning drives progress in things like game-playing AI, computer vision, and large language models (LLMs).

As Moore’s Law has marched forward, transistors (an electronic switch which is the fundamental building block of integrated circuits) have gotten smaller and cheaper. In 1954, the first transistor radio, the TR-1 had 4 transistors which cost $2.50 apiece ($29.03 in 2024 dollars). Today, an AMD Ryzen processor with 9.9 billion transistors is on sale for $650, or about $0.000000066 per transistor; in other words, since the 1950s the cost of a transistor has fallen by about a factor of 300 million.

The same shrinking and cheapening has happened for every semiconductor component. But at the same time, the facilities to manufacture them have become increasingly expensive. In the late 60s and early 70s, a semiconductor fabrication facility (or ‘fab’) cost on the order of $4 million (~$31 million in 2024 dollars). Today, a modern fab can cost $10-$20 billion or more. Intel is building a pair of fabs in Arizona which are projected to cost $15 billion apiece, and Samsung’s fab in Taylor, Texas is projected to cost $25 billion.


These enormous costs are ultimately due to the same factor that has steadily driven down the cost of semiconductors: Moore’s Law, the observation that the number of components on an integrated circuit tends to double every two years. (There is a Moore’s Second Law, also known as Rock’s Law, which posits that the cost of a semiconductor fab doubles every four years.) The smaller semiconductor components get, the more difficult it is to create the conditions to manufacture them.

A modern microchip has features on the order of 50 nanometers in width, or around 1/2000th the width of a human hair.1 Materials are placed in layers a few atoms thin. Creating objects this small requires ultra-precise manufacturing equipment, and a production environment that can screen out as many sources of interference as possible; every rogue speck of dust or tiny fluctuation in electrical voltage. And these conditions must be maintained not in the rarefied conditions of an experimental lab, but in a mass production facility that is producing hundreds of millions of microchips every year. The combination of ultra-precision and high-volume production results in some of the most complex, expensive factories in the world.

The semiconductor fabrication process​

To understand why a modern fab is so expensive, we first need to understand the process for manufacturing semiconductors.

If we sliced a computer chip down the middle, and looked very, very closely, we would see that it is composed of a series of layers. Here is a cross section of a chip made with Intel’s current manufacturing process:



And here’s an illustrated cross section of a generic integrated circuit, showing the different layers:


Via Wikipedia.
At the bottom of the chip, the area marked FEOL (front end of line) on the graphic above are the semiconductor components themselves: transistors, capacitors, resistors, diodes, and all the other parts created out of silicon to make a microchip.2 These individual components will be connected together using microscopic metal wires, the layers in the area marked BEOL (back end of line). Because of the enormous number of components in a modern electronic chip, this wiring must be routed on separate layers, which are separated by electrical insulators known as dielectrics. Intel’s current process, for instance, consists of 15 layers of metal wiring. This wiring gets connected together and to the semiconductor components through holes in the layers known as ‘vias.’

Chips are made by building up this complex structure one layer at a time. Starting with a wafer of extremely pure silicon, layers of material are added, portions of the layer are removed, more material is added (or existing material is modified), and so on, until the entire structure is complete. This fabrication method is known as the planar process, and it was invented at Fairchild Semiconductor in 1959 by Jean Hoerni. It’s what makes integrated circuits, and modern computer technology, possible.


A simple electronic voltage divider and the fabrication steps to produce it. Via Fabrication Engineering at the Micro- and Nanoscale
The process for building up the structure of a microchip can be broken down into four basic operations, repeatedly applied: layering, patterning, doping, and heat-treating.

Layering​

Layering is used to add an extremely thin layer of material — as little as a nanometer or less, 1/100,000th the thickness of a human hair — to the surface of the wafer. These layers might be insulators (such as layers of silicon dioxide used to separate components), conductors (such as layers of copper wiring used to connect components) or semiconductors (such as epitaxial thin films of silicon which form part of the semiconductor components). Depending on the step in the process and the material being used, different layering techniques might be applied.

Deposition methods have also evolved over time as features have shrunk. Current common layering methods include thermal oxidation (exposing wafers to oxygen in a furnace, which creates a thin layer of silicon dioxide on the wafer surface), chemical vapor deposition (CVD) (where gaseous chemicals are brought together, depositing their reactants on the surface of the wafer) and sputtering (where a solid material is bombarded with plasma ions, causing atoms to break free and be deposited on the wafer’s surface). The small size of modern semiconductor components demands that these layering methods are capable of extreme precision; modern atomic layer deposition methods, for instance, are capable of creating a single layer of atoms at a time.

Patterning​

Patterning is the process of inscribing specific patterns on the wafer, selectively removing material as needed to create electronic components. On modern semiconductors this is done using photolithography. A wafer is first coated with a thin layer of light-sensitive material called photoresist. Bright light of a specific wavelength is shone through a glass or quartz plate called a mask that has the pattern to be created on the wafer inscribed on it. A mask contains the patterns necessary for a single chip, but a wafer will contain hundreds of individual chips. To expose each one, the mask is moved back and forth over the surface of the wafer using a stepper or scanner. The light that isn’t blocked by the mask passes through and induces a chemical reaction in the photoresist; with positive photoresist, the area exposed to light weakens and becomes soluble; with negative photoresist, the exposed area hardens while the rest of the photoresist remains soluble. In either case, the wafer will be washed after it’s exposed to light, leaving behind a hardened layer of photoresist in the pattern that needs to be applied.

From here, the wafer will be etched: a corrosive chemical will be applied to the wafer, eating away the material exposed by the removed photoresist and inscribing the pattern onto the wafer itself. Etching can be “wet” (by exposing the wafer to liquid chemicals such as hydrofluoric acid) or “dry” (by exposing the wafer to gasses like fluorine which have been energized into a plasma). After etching, the remaining photoresist is removed.

Doping​

Doping is the process of introducing very small amounts of impurities into a semiconductor material to change its electrical conductivity. By doping silicon with a small amount of a group V element, such as phosphorus or arsenic, an n-type semiconductor with an excess of free electrons is created. By doping it with a small amount of a group III element, such as boron, a p-type semiconductor with an excess of electron holes is created. With the proper arrangement of p-type and n-type silicon, components such as transistors can be created.


p and n-type semiconductors in a MOSFET, via MKS.
Early on, the primary method of introducing impurities in semiconductor manufacturing was diffusion: by heating the wafer up in the presence of a gas, atoms of the gas would diffuse into the wafer surface. But today doping is primarily done via ion implantation: a beam of ions (atoms with an excess or deficit of electrons, giving them an electrical charge) is fired at the wafer, depositing the atoms below the surface.


Ion implantation device, via Xiao 2012.

Heating​

The last primary operation in semiconductor manufacturing is heating. There are many steps in the process where the wafer is heated or cooled to obtain a specific result. Ion implantation, for instance, results in a damaged silicon crystal structure. This damage is repaired with rapid thermal annealing; thermal lamps heat the wafer to over 1,000 degrees in a matter of seconds, and then the wafer is slowly cooled, repairing the crystal structure. Heating is also used during the lithography process to “bake” and harden the liquid photoresist.


Via Xiao 2012.
In addition to these four basic processes, semiconductor manufacturing involves many other supporting processes. One key supporting process is polishing: because a microchip is built up from dozens of individual layers, variations in layer thickness will propagate over time as more layers are added, causing problems if left unaddressed. To combat this, wafers are frequently polished during the fabrication process using chemical mechanical polishing (CMP) to smooth out the wafer surface. CMP is also used to fill holes created by etching, by applying a layer of material to the entire wafer and then polishing away the material above the hole.


Wafer surface with and without CMP, via Chris Mack.

CMP used in the process of filling a trench with silicon dioxide, via Wikipedia.
Another key supporting process is cleaning. Because the tiniest stray particle can cause a microchip to malfunction, wafers must be constantly cleaned with solvents and extremely pure water. In a modern fab, a wafer might get cleaned 200 times or more during the production process. And to ensure that processes are working correctly, fabs make extensive use of metrology — measuring the wafer at various points in the process to determine if there have been any manufacturing mistakes or defects.


Process flow diagram of a semiconductor fab, via Xiao 2012.

By applying these four basic processes over and over again, along with the various support processes, the structure of a microchip is slowly built up. And as more transistors have been crammed onto an integrated circuit, this structure (and the process for creating it) has become increasingly complex. Early integrated circuits could be made with just five to ten different masks and dozens of process steps, but a modern leading-edge microchip might require 80 or more masks and thousands of separate process steps.


Process flow for a simple nine mask CMOS chip circa the 1980s, via Embedded Related. Today, leading-edge chips require 80 or so masks, and have much more complex process flows.

Once the wafer has gone through all these steps and the structure of the circuit is complete, it proceeds to assembly and packaging. This is where the wafers are cut apart into individual chips, each chip is connected to wires (and to any other chips, as with advanced packaging) and is encased in a protective coating. Packaging might be done at the semiconductor fab, or at another facility entirely.

Continued......

 
Wow. Lovely post. Huge amounts of information. The thing that irks me is that as long as the fab costs keep going up, the more the wafer costs are going to go up, the more the consumer costs are going to go up.

If only we had gone to 450mm wafers...
 
Wow. Lovely post. Huge amounts of information. The thing that irks me is that as long as the fab costs keep going up, the more the wafer costs are going to go up, the more the consumer costs are going to go up.

If only we had gone to 450mm wafers...
How does the cost of cutting edge Fab actually go down?

Which part of the process is the one who takes the hit?
 
Wow. Lovely post. Huge amounts of information. The thing that irks me is that as long as the fab costs keep going up, the more the wafer costs are going to go up, the more the consumer costs are going to go up.

If only we had gone to 450mm wafers...
double the yield is nice; first development costs would probably be more then double the prior gen. Usually you have to have a "breakthrough" to get to the next major manufacturing movement.
450 mm wafer give 2x die -- challenge is to find enough designs that can sell 10 lots a week . . 1-10M finished goods per week . . Yes you can multi pattern wafers, but still some one manages the mix . .
Sweet spot is 300 mm then reuse equipment til next major industry wall.
Usually a new material or new process .. to keep the cost/power side of moore's law alive and kicking. 3D packaging helping performance and power as well as end product density.
 
challenge is to find enough designs that can sell 10 lots a week

With stepper throughput on the latest node still being the biggest bottleneck, you will still just need more steppers to fill the line which to utilise higher deposition/etch/backend throughput.
 
How does the cost of cutting edge Fab actually go down?

Which part of the process is the one who takes the hit?
I think my answer is yield rate. The smaller the node, the harder it is to improve. Stochastic defects are the most annoying. Can you imagine an R&D conversation saying that a 40% yield is already impressively high?
 
I think my answer is yield rate. The smaller the node, the harder it is to improve. Stochastic defects are the most annoying. Can you imagine an R&D conversation saying that a 40% yield is already impressively high?

This is the initial production cost of manufacture.

Not the operational costs.
 
Amazing article.

One thing I am still trying to understand is how fabs balance their production schedule. Let's say you have two chips, one from Apple one from AMD, both using the 3nm process line, but with important design differences.

How long can it take the fab to change from one design to another? Do all machines need to be recalibrated/adjusted? I imagine the fab will manufacture big batches of each chip to do the least changes, maybe manufacturing Apple for a few days in a row, and only then changing to AMD.
 
Amazing article.

One thing I am still trying to understand is how fabs balance their production schedule. Let's say you have two chips, one from Apple one from AMD, both using the 3nm process line, but with important design differences.

How long can it take the fab to change from one design to another? Do all machines need to be recalibrated/adjusted? I imagine the fab will manufacture big batches of each chip to do the least changes, maybe manufacturing Apple for a few days in a row, and only then changing to AMD.

The process is the process and the design from whatever company should be to the requirements of the FAB in question.

If it isnt thats kind of crazy.
 
Amazing article.

One thing I am still trying to understand is how fabs balance their production schedule. Let's say you have two chips, one from Apple one from AMD, both using the 3nm process line, but with important design differences.

How long can it take the fab to change from one design to another? Do all machines need to be recalibrated/adjusted? I imagine the fab will manufacture big batches of each chip to do the least changes, maybe manufacturing Apple for a few days in a row, and only then changing to AMD.
From what I understand, this stuff is an entire niche industry in and of itself with doctorate theses written about it. Manufacturing logistics is wild, and semiconductor fabs are the pinnacle.

 
Amazing article.

One thing I am still trying to understand is how fabs balance their production schedule. Let's say you have two chips, one from Apple one from AMD, both using the 3nm process line, but with important design differences.

How long can it take the fab to change from one design to another? Do all machines need to be recalibrated/adjusted? I imagine the fab will manufacture big batches of each chip to do the least changes, maybe manufacturing Apple for a few days in a row, and only then changing to AMD.
No, it is far more simple than you expect. There is very little major differences between any two products with the same process node from a manufacturing perspective. Each batch of wafers has an identifier for which chip it is. That identifier allows the automated material handling system to know where a lot needs to go next to progress the chip making process. This information also tells the tools which process recipe to use. For lithography tools they just load the mask for a given layer of that Apple chip and once an AMD chip needs to run the Apple photomask gets kicked off the litho tool and the mask with the AMD design loads so AMD's design can be printed to AMD's wafers. For the non litho tools there will be a separate recipe for that AMD chip that is stored on the tool. The recipe will tell the tool the exact process times, chemical dispersion rates, temperature, etc. The Apple recipe and AMD recipe will be very similar but a couple of things different here or there so that the chips yield better or perform better.
 
Excellent! Thanks.

It seems that economics and physics have combined to bring an end to Moore's law.

As it becomes more and more expensive to move to new process nodes, it is simultaneously giving less and less transistor density improvements ..... and creating more and more process complexities (generally resulting in lower and lower yields).

Because of the cost inflation of new fab techniques, we are seeing the beginnings of a global consolidation of Fabs. A larger single fab having more customers than each smaller fab is able to amortize its fab investments over a greater number of wafers.

On the flip side, design shops like AMD, Intel, ARM, etc, become less willing to go through the expense of a new design cycle when only getting a small increase in transistor budget and power for their efforts.

IMO, this is the root of the disappointment with the new Arrow Lake and Zen 5 releases.

My belief that even for next gen DC processors, the biggest improvements will not come from better individual cores with higher IPC, but rather the large socket power that is being planned for the next generation allowing many more of "about the same" cores to be integrated on a single package/socket.
 
@Daniel Nenni
I know it is late but I need to get this comment in:

"How to Build a $20 Billion Semiconductor Fab????" FIRST ... get $20B :ROFLMAO::LOL:.

Joking aside.... This is a huge challenge. I just saw that GF spend way less than $1B in capex TOTAL in 2024? They do not have ability to spend cash even if they have great plans and technologies. I have seen Fabs spend 1B just on small capacity upgrades on an existing node.
 
@Daniel Nenni
I know it is late but I need to get this comment in:

"How to Build a $20 Billion Semiconductor Fab????" FIRST ... get $20B :ROFLMAO::LOL:.

Joking aside.... This is a huge challenge. I just saw that GF spend way less than $1B in capex TOTAL in 2024? They do not have ability to spend cash even if they have great plans and technologies. I have seen Fabs spend 1B just on small capacity upgrades on an existing node.

In the case of TSMC Phoenix fab project, TSMC spent $35 million to hire consultants who help City of Phoenix to establish 18,000 rules so City of Phoenix can review TSMC's construction designs.

I don't know if there is a better way to handle it. But $35 million and the time needed to establish the rules are costly.
 
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