全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全全� At the 2022 TSMC Technology Forum, TSMC elaborated on the view that advanced processes and mature processes are equally important, and special processes (TSMC calls special processes) are an important tool for its development of mature processes. Four years ago, revenue accounted for 45% of mature processes, and last year it jumped to 60%. This year, this number is expected to continue to increase.
In fact, the development of characteristic processes has been reached by the industry. When the content of semiconductor in electronic products continues to increase, the characteristic processes that can achieve differentiation with technological diversity are more popular. Because it can improve performance without relying entirely on the reduction of process size, it has low capital intensity and long product cycles, which has always been the focus of development of many wafer foundries.
However, as leading wafer foundries such as TSMC begin to realize the importance of special processes and increase investment, the competitive pressure in this field will also increase suddenly.
players have participated in the three types of
featured technology and have no unified definition. They usually refer to various processes including eNVM, BiCMOS, RFCMOS, BCD, MEMS, and even SOI. They are widely used in RF, MCU, CIS, power management chip and displays.
originates from mature processes, has relatively little R&D investment, and is closely related to application scenarios. The product types of special processes are complex, and the coexistence of multiple process platforms can better reflect the differentiated advantages of wafer foundry and IDM.
There are many players engaged in special processes around the world, and they can be roughly divided into three categories: one is IDM engaged in simulation, MCU, and power semiconductors, the second is foundry factory mainly based on special processes, and the third is foundry factory focusing on advanced processes and taking into account special processes.
analog chips, power devices and special processes are the closest combination. International IDM manufacturers such as TI, ADI, ST, Infineon have a deep accumulation in BiCMOS, RFCMOS, and BCD processes because they have a very complete process platform, so they firmly occupy the high-end market.
In the wafer foundry that focuses on special processes, UMC is the most typical example. Since the announcement in 2018 that it will not follow up on advanced technologies, UMC has begun to deepen its cultivation of characteristic technologies. With the blessing of industry development dividends, its performance has been rising. As of the first quarter of this year, products with special technology have contributed more than half of UMC's revenue.
and UID also have the same path as GPU. After giving up the 7nm project, GF also invested R&D resources on special process platforms such as SOI, FDX, SiGe, SiPh (silicon photonics), and gradually laid the foundation.
Huahong Semiconductor, the second-ranked wafer foundry in mainland China, also specializes in special processes. It has five foundry platforms: power discrete devices, embedded non-volatile memory, simulation and power management, logic and radio frequency, and independent non-volatile memory. In 2018, it built the world's first 12-inch power device foundry production line.
Tower Semiconductor from Israeli is also a powerful player in the field of special foundry. He is good at simulation and RF chip foundry. The world's major RF manufacturers such as Skyworks, Qorvo, Broadcom, etc. are all investing in them. However, in order to expand the OEM business territory, Intel has taken it under its control for US$5.4 billion.
In addition, according to the latest global wafer foundry companies TOP10 list released by TrendForce, the list of Liji Electric, World Advanced and Jinghe Integration are also mainly based on special technology foundry.
is the wafer foundry that focuses on advanced processes, including TSMC, Samsung and SMIC , and they are also involved in the foundry business of special processes.
is the king of the wafer foundry industry. TSMC is also doing well in the field of special processes because it often introduces advanced process development experience into special processes. For example, in 2018, TSMC used 28nm RF (28HPC+ RF) technology to deliver the industry's first RF process design kit (PDK). In 2019, TSMC developed the 28nm embedded technology for automotive electronics MCUs.In PMIC production, TSMC is also the first to use 12-inch wafers in the BCD process.
In response to the increase in market demand, TSMC is still continuing to invest in special processes, with an annual compound growth rate of investment amounts from 2016 to 2021 exceeding 40%.
Samsung has achieved good results in CIS and OLED/LED driver IC foundry. It also disclosed in its 2021 annual report that it will expand the layout of mature process wafer foundry, mainly to increase the special process production capacity required by CIS.
SMIC is also constantly strengthening its characteristic process level. According to its 2021 annual report, the 55nm BCD platform enters product import, the 55 and 40nm high-voltage display driver platform enters risk mass production, and the 0.15μm high-voltage display driver enters mass production. The research and development of various characteristic process platforms is also in progress and will be delivered in succession according to the established R&D pace.
Due to the large number of special craftsmen, it gives people the feeling of a low threshold, but Isaiah's research believes that it cannot be generalized.
"The specialty process is widely used, because the specifications of the product will have different high and low thresholds. For MCUs, product specifications can be divided into 32-bit and 8-bit. The former has more complex computing capabilities and has a high technical threshold, so it is mostly left in IDM design and manufacturing; while 8-bit MCUs with low technical thresholds may be outsourced to wafer factories, because the technical threshold requirements are low, and the competition will usually be relatively fierce." Isaiah's research told Jiwei.com.
does not have absolute technical route standards, which does not mean that the technical level is not high. Instead, it requires manufacturers to have deeper accumulation, which is also the reason why industry leaders are difficult to surpass.
Two hidden competition lines
featured processes are also the battlefield where IDM and wafer foundry are the most fierce competition, because simulation and power device manufacturers can maintain the strong competitiveness of high-end products through their own accumulation.
According to the characteristics of IDM itself, its advantage is that it can be optimized in coordinated manner in design, manufacturing and other links, and has the conditions to be the first to experiment and implement new technologies, which is very suitable for simulation, power devices and other products that require repeated calibration. This is also one of the reasons why the analog chip giants have been very stable for many years.
However, this does not mean that the gap between the two is eternal. Taking the mainstream BCD process for manufacturing PMICs as an example, this process was first created by ST Company. Now its mass production process level is 90nm, and the main wafer foundry has basically reached this level.
In this regard, Isaiah survey believes that the competitive advantage of wafer foundries lies in the products of many chip design companies. A large number of orders can help promote process technology, and the yield can also be gradually increased through orders. IDM usually only produces its own products, so it is difficult for diversified products to accelerate process yield promotion.
PMIC is a popular product in the market. There are many chip design companies around the world doing research and development, which gives the foundry the opportunity to quickly iterate the process, so as to keep up with the pace of IDM.
Aiji Micro Consulting Senior Analyst Chen Xiang believes that the advantages and disadvantages of wafer foundry and IDM are common in different processes or processes. IDM has higher requirements for the company, and products need to be expanded from multiple aspects to deal with market fluctuations. The Foundry+Fabless model is suitable for design companies with relatively concentrated products.
In fact, contemporary IDM is no longer pure IDM as before. Some products such as TI and other simulation giants are outsourcing and can be considered as the Fablite model of light OEM. This model will cause process resources to flow continuously to the foundry, gradually narrowing the process gap between the two.
When the special technology also becomes a game for foundry, the pursuit of process line width will become the focus of competition.
For wafer foundry manufacturers, whether they can make components with the same performance at lower line width determines the manufacturer's process capabilities. Although the characteristic process does not pursue line width, the lower the line width, the more it can control the mass production cost. For example, TSMC's characteristic processes mainly come from the transformation of mature process capacity into mass production. If 3nm is successful in mass production, 7nm is expected to be gradually included in the mature process category, and the characteristic processes will follow the trend and move towards more advanced nodes.
Isaiah survey said that the application of specialized processes has been undergoing process iterations, such as BCD from 8 inches to 12 inches and 65~90nm, HV (High Voltage) from 55/65nm to 22/28nm, and CIS also transitions from 40/45nm and 55/65nm to 22/28nm, constantly responding to customer specification adjustments. With the future development of 5G, AI, Internet of Things, etc., the above processes will gradually move towards more advanced processes to enhance performance.
TrendForce survey also pointed out that the annual compound growth rate of global wafer foundry production capacity from 2021 to 2024 will reach 11%, of which the 28nm production capacity will reach 1.3 times that of 2022 in 2024. It is the most active process node for mature processes to expand production. It is expected that more special processes will be used to transfer to 28nm.
Take the HV process as an example, it is mainly used to produce display driver ICs. The mainstream includes large/small driver ICs with 8 inches 0.18~0.11um, 12 inches TDDI with 65/55nm, and 40/28nm smartphone AMOLED driver ICs. As mobile phones import AMOLED penetration rate continues to increase steadily, it is predicted that the growth momentum of AMOLED driver ICs in the medium and long term mobile phones will have growth momentum, and Samsung, TSMC, UMC and SMIC all have plans to develop 28nm HV.
order cuts cannot stop the expansion wave
Due to the serious shortage of production capacity of mature processes, major wafer fabs have started expansion plans. While everything was following the pace, the chip order cuts came unexpectedly.
Due to the superposition of various factors, the market demand for consumer electronics has been greatly reduced. According to a Gartner report, global smartphone sales are expected to fall by 7.1% in 2022, while global PC shipments are expected to fall by 9.5%. The sluggish market has forced chip companies that have been working at full capacity in the early stage to cut orders and protect themselves.
This wave of order-cutting started with the driver IC and gradually affected PMIC, CIS and some MCUs. 8-inch and 12-inch wafers are involved. The production capacity of the foundry factory has been loosened, and the process includes 0.1Xum, 90/55nm, 40/28nm, and even 7/6nm and other advanced processes are difficult to escape.
According to TrendForce TrendForce consulting research, the decline in capacity utilization will continue until the second half of the year. Although there is still support from demand from PMICs and power devices such as servers, automotive, industrial control, etc., it is still difficult to fully make up for the order cuts of driver ICs, consumer PMICs and CIS, resulting in the decline in capacity utilization of some 8-inch factories.
TrendForceTrendForce estimates that the overall capacity utilization rate of 8-inch factories in the second half of the year will roughly fall between 90 and 95%, and some wafer factories with high proportion of manufacturing consumer applications may face a 90% capacity defense battle.
Relatively speaking, the situation faced by the 12-inch mature process is better. 12-inch products are more diverse, and the production cycle generally requires at least one quarter. In addition, the trends such as upgrading of some product specifications and process transformation have not stopped due to short-term overall economic fluctuations. Therefore, overall capacity utilization can still maintain a high crop water level of around 95%.
Will the decline in capacity utilization affect the expansion plan of special processes? Chen Xiang does not think so, "Cutting orders is a move to deal with the market and destocking, and it has little impact on the development of a certain process."
Isaiya research also holds a similar view. "Overall, the short-term demand for wafer fab expansion will slow down due to the weak consumer electronics market, but medium- and long-term demand is still there, and the expansion plan will continue.
However, Isaiya research also pointed out that the current cost of wafer fab construction is twice that of last year, and the equipment cost is gradually increasing. Taking a second-tier wafer factory building a new factory with a capacity of about 35~40K/m of 22/28nm as an example, the construction cost is about 5-6 billion US dollars, and the construction cost is only one-on-one. The figures are affordable for most fabs, but whether the R&D costs and technical requirements can be met will be factors that each fab considers whether to continue to promote the process.
From the current situation, major fabs are still promoting the construction plans of new lines. Moreover, on August 26, SMIC issued an announcement stating that it plans to invest US$7.5 billion to build a 12-inch wafer foundry production line in Tianjin, with a planned construction capacity of 100,000 pieces per month, and can provide wafer foundry and technical services for different technical nodes from 28nm to 180nm.
While the advanced processes are getting higher and higher, special processes are becoming the new engine of the wafer foundry industry. (Proofreading/Li Ying)
