'Round The Circuit

Trio teams on 90-nm work

Three major microchip manufacturers are collaborating on research to give device designers early access to advanced 90-nm process technology. Royal Philips Electronics, STMicroelectronics, and TSMC, the world's leading foundry, have signed an agreement to jointly develop the technology by tapping each partner's internal R&D programs. Advanced labs affiliated with each company will take part in the research, which could enable production of system-on-chip devices. Among the participants are Philips Research, IMEC, CEA/LETI, and France Telecom R&D.

The three chipmakers had been working together before joining forces for this project. In the fourth quarter of last year the partners demonstrated fully functioning test chips at the ST/Philips pilot line in Crolles, France, and at TSMC's Fab 3 R&D facilities. The test chips included 1- and 4-Mb embedded SRAMs. The partners note the 90-nm process offers better speed, power reduction, integration, and density than 130-nm technology. Manufacturers of products such as mobile multimedia devices and digital consumer items such as DVDs and set-top boxes should benefit from the joint research, the companies point out. The agreement includes the development of CMOS processes at 65-nm and beyond.

TSMC reportedly will begin volume production using the 90-nm process on 300-mm wafers after it starts pilot production by the fourth quarter of 2002.

Report sees '02 tool growth

An increase in technology-based investment by chipmakers will spark a mild recovery in the chip equipment market this year, predicts a market research firm in a new report. The Information Network in New Tripoli, PA, says the market for process gear will grow 8.1% in 2002 as technology advancements cause chipmakers to open their pocketbooks. The prediction appears in the report, The Global Market for Equipment and Materials for IC Manufacturing.

Foreseeing a year of playing "catch-up," the research firm forecasts a return to normal levels of investment in the first half of 2002 after a strong drop in 2001. Orders for equipment hit bottom in December of last year. "Modest" improvements in sales by March 2002 will be followed by "a more aggressive ramp" in the second half of 2002. Driving the growth are trends noted in the International Technology Roadmap for Semiconductors, including smaller geometries, new materials, and the shift to 300-mm wafers. Driving the increase in orders are demand for equipment upgrades by "top-tier" device manufacturers and foundries to accommodate 130-nm technology, further copper integration, and growth in the Chinese market. The firm says it is tracking upgrades at 25 200-mm fabs.

Further positive signs include stronger DRAM prices, lower IC inventories, growing rates of capacity utilization at foundries, and a bottoming out of semiconductor industry revenues in September 2001. Capacity utilization rates for manufacturing of chips with linewidths at 200 nm and lower were in the 80–90% range in 2001. The report reasons that technology purchases will be made in this area, as utilization rates will grow rapidly to greater than 90% by mid-2002.

SMIC claims first in China

The Semiconductor Manufacturing International Corp. (SMIC) claims it has produced China's first engineering samples of processed wafers with 180-nm chips. The foundry reports it may begin full production of the 180-nm semiconductors by the end of 2002. SMIC's fab opened in January, and SMIC says it can make its own phase-shift masks on-site. Processing 5000 wafers per month, the facility will produce up to 30,000 processed wafers monthly by the end of the year. A second fab is scheduled to begin tool installation. SMIC says when both fabs are operating fully the foundry will process 45,000 wafers per month.

Drought imperils Taiwan fabs

The Taiwanese government has called on the country's air force in the desperate hope that a cloud-seeding effort will bring some relief from a prolonged drought. The lack of water has hurt Taiwanese foundries such as UMC and TSMC. News reports say rainfall in the region of Hsinchu Science–based Industrial Park has been one-third of the usual level since November 2001. One analyst predicts dire consequences for Silicon Valley– based designers if the foundries that produce their chip designs have to either shut down or curtail production. A local newspaper reports that UMC has had to bring in 18,000 gal, or 600 truckloads, of water per day. The report notes that if no relief arrives from the skies by April 10, UMC's managers will start rationing water until the monsoon season arrives in late April or early May.