School of Microelectronic Engineering

1. Present and Future Prospects of Semiconductor Industry In Malaysia By Ramzan Mat Ayub Timbalan Dekan, Unit R&D, UniMAP Azlan Zakaria Head of MEMS and CMOS Group Mimos Berhad School of Microelectronic Engineering

2. Presentation Outline • The Evolution of Semiconductor Technology • Industry Structure • Technology Challenges & Trends • Semiconductor Industry in Malaysia School of Microelectronic Engineering

3. The Evolution of Semiconductor Technology School of Microelectronic Engineering

4. 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. School of Microelectronic Engineering

5. The Evolution of Transistor / IC Transistor is the basic building block of ICs. School of Microelectronic Engineering

6. First Transistor, Bell Lab 1947 John Bardeen and Walter Brattain, demonstrated a solid state device made from germanium. They observed that when electrical signals were applied to contacts on germanium, the output power was larger than the input. These results were published In 1948. William Shockley, found out how the bipolar transistor functioned and published the theory in 1949. Three of them shared the Nobel Prize in physics in 1956, School of Microelectronic Engineering School of Microelectronic Engineering

7. First Transistor and Its Inventors ` School of Microelectronic Engineering

8. 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). School of Microelectronic Engineering

9. 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. School of Microelectronic Engineering

10. 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 ` School of Microelectronic Engineering School of Microelectronic Engineering

11. First Silicon IC Chip by Robert Noyce, Fairchild Camera, 1961 Fairchild Semiconductor produced the 1st commercial ICs 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. with Andrew Groove and Gordon Moore. School of Microelectronic Engineering

12. IC Design: 1st IC ` 1st IC design by hand (Jack Kilby) Currently, hundreds of designers work on single product to design, validate and lay outed will take several months to complete with the help of CAD tools. Main considerations; • performance • die size • design time and cost • testability

13. IC Design: State of The Art IC CMOS Inverter - basic building block of digital MOS design Layout Cross section

14. 1980’s Technology … Wafer Cross section

15. 1990’s Technology … Wafer Cross section

16. 2000’s Technology … Wafer Cross section

17. Wafer Fabrication: From Design to Wafer ` School of Microelectronic Engineering School of Microelectronic Engineering

18. Typical Design Flow HDL Coding Testbench Development & RTL Simulation FPGA Prototyping Synthesis & Optimization • The Design Tools: • Software • Front End – Synopsys • Back End – Monterey/Cadence • Mask Artwork – Cadence • Hardware • SUN Workstation 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 School of Microelectronic Engineering

19. Typical Fabrication Flow • Main Process Modules (CMOS 1P2M 3.3V) • Wells Formation • Active Area Definition • Device Isolation (LOCOS) • Vt Adjust • Polygate Definition • Source & Drain Formation • Pre Metal Dielectrics Deposition (PMD) • Contact Definition • Metal-1 Deposition & Patterning • Inter-Metal Dielectrics Deposition (IMD) • Via Definition • Metal-2 Deposition & Patterning • Passivation • Pad Definition FRONT END PROCESS (creating an electrically isolated devices) BACK END PROCESS (connecting the devices to form the desired circuit function.) Full integration may require 300-500 process steps (4 – 6 weeks to be completed) School of Microelectronic Engineering

20. IC Product Category ` CMOS Based- Technology School of Microelectronic Engineering

21. Industry Structure School of Microelectronic Engineering

22. 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 School of Microelectronic Engineering

23. 5 Major Industry Components Design Services Mask Making Wafer Manufacturing Wafer Test Assembly & Final Test QFP SDIP SSOP BGA School of Microelectronic Engineering

24. Semiconductor Industry Structure School of Microelectronic Engineering

25. Full support chain of semiconductor companies School of Microelectronic Engineering

26. IDM Model Fabless Model Fablite Model Marketing/ Sales (B2C) Marketing/ Sales (B2B) Marketing/ Sales (B2B) Foundry partners Design/IP Systems Design/IP Systems Design/IP Systems Foundry partners Manufacturing Manufacturing Manufacturing • 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. • Companies: Motorola, Infineon, ADI • Pros: Have some control over process • technology, yet chance to have access to • leading edge technology. • Cons: Once decision is made to reduce or • Stop investment, ability to reverse is difficult. • 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 Semiconductor Manufacturing Business Models School of Microelectronic Engineering

27. 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 School of Microelectronic Engineering

28. Fabless Facts – Revenue Growth The fabless sector has continuously achieved faster growth than the overall industry. Semi Industry (in millions) Fabless (In millions) Source - FSA School of Microelectronic Engineering

29. Technology Trends & Challenges School of Microelectronic Engineering

30. Moore’s Law ` School of Microelectronic Engineering

31. Moore’s Law, Intel Product ` School of Microelectronic Engineering

32. IC Integration Scale ` School of Microelectronic Engineering

33. Feature Size and Wafer Size ` School of Microelectronic Engineering

34. Road Map Semiconductor Industry ` School of Microelectronic Engineering

35. Technology Improvement Trends School of Microelectronic Engineering

36. 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 School of Microelectronic Engineering

37. Technology Challenges (Opportunities) School of Microelectronic Engineering

38. Technology Challenges (Opportunities) School of Microelectronic Engineering

39. Technology Challenges (Opportunities) School of Microelectronic Engineering

40. 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 School of Microelectronic Engineering

41. ITRS 2006 Update Executive SummarySystem DriversDesignTest & 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 School of Microelectronic Engineering

42. New ICT Era : Nanocomputing School of Microelectronic Engineering

43. Semiconductor Industry- Past Trends Year over Year Semiconductor Industry Growth Rates • 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 Source: World Semiconductor Trade Statistics School of Microelectronic Engineering

44. Semiconductor Industry- Manufacturing Trends 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 Source: World Semiconductor Trade Statistics (WSTS) School of Microelectronic Engineering

45. Semiconductor Industry Forecasts Revenues in $ Billion Growth Rate • 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 Source: Frost and Sullivan School of Microelectronic Engineering

46. Semiconductor CAPEX Spending All Revenue Figures are in $Millions Source: WSTS & SIA School of Microelectronic Engineering

47. Semiconductor Industry in Malaysia School of Microelectronic Engineering

48. Electronic Industry Structure • 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. School of Microelectronic Engineering

49. Semiconductor Production Output • 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. School of Microelectronic Engineering

50. Semiconductor Production Output School of Microelectronic Engineering