Chinese semiconductor industry

Vichysoy said:

Hi ansy ! Do you have any information about this ? Pls , thanks !!

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@Vichysoy Not a tech expert but using the previous post of our esteem member as a guide, here are my findings.

this happen in 1999

ASML Joins EUV-LLC Team​

Lithographic stepper manufacturer ASM Lithography (ASML; Veldhoven, The Netherlands) has signed a contract with the Extreme Ultraviolet Limited Liability Co. (EUV-LLC) to participate in the EUV-LLC program. The EUV-LLC is a consortium to develop EUV wafer-fabrication technology. Members include the major US semiconductor companies Intel (Santa Clara, CA), Motorola (Schaumburg, IL), and Advanced Micro Devices (AMD; Sunnyvale, CA), and the Department of Energy's (DOE's) Lawrence Livermore, Sandia, and Berkeley National Laboratories.
As part of the program, ASML will work with the EUV-LLC to develop EUV lithography. The company is also researching the electron-beam technology known as SCALPEL in a separate cooperative effort with Applied Materials (Santa Clara, CA) and Lucent Technologies (Murray Hill, NJ). ASML is also working in the European program IPL with, amongst others, Infineon (Santa Clara, CA), IMS, and Leica (Deerfield, IL) on the development of ion-beam lithography.

and DARPA is a participant

SEMATECH was conceived in 1986, formed in 1987, and began operating in , in 1988 as a partnership between the United States government and 14 U.S.-based semiconductor manufacturers to solve common manufacturing problems and regain competitiveness for the U.S. that had been surpassed by Japanese industry in the mid-1980s. SEMATECH was funded over five years by public subsidies coming from the via the (DARPA) for a total of $500 million.

At that time Japan is a major player in DUVL and hold a monopoly with NIKON , CANON and Toshiba. with ASML they had diminished that lead and with EUVL monopolized it. Forcing Japan to do the same in 2011 with mixed result.

LONDON – A Japanese joint venture formed to hasten the adoption of Extreme Ultra Violet (EUV) lithography has begun collaborating with foreign chip companies including Intel, Samsung, Hynix and Taiwan Semiconductor Manufacturing Co. Ltd.

The EUVL Infrastructure Development Center Inc. (EIDEC) was formed in January 2011 as joint venture between chipmakers Renesas and Toshiba and equipment and Japanese materials suppliers: Asahi Glass Co. Ltd., Dai Nippon Printing Co., Ltd., Fujifilm Corp., Hoya Corp., JSR Corp., Nissan Chemical Industries Ltd., Shin-Etsu Chemical Co. Ltd., Tokyo Ohka Kogyo Co. Ltd. and Toppan Printing Co. Ltd.

The group now has external collaboration with chipmakers: Hynix, Intel, Samsung and TSMC, according to its website. It is also working with Osaka and Hyogo universities and Ebara Corp., Lasertec Corp. and Japan's National Institute of Advanced Industrial Science and Technology.

The joint venture, a follow on from the MIRAI and Selete consortia, is aiming to remove some of the barriers to the use of EUV lithography on 16-nm and 11-nm high performance processes and to promote the introduction of EUV lithography by 2015. It has a working base at clean room in the National Institute of Advanced Industrial Science and Technology.

The four main work items: blank EUV mask inspection, patterned EUV mask inspection, EUV resist outgassing control, and EUV resist material research.

Oldschool said:

US is talking with Japan, Korea, and Taiwan to form the semiconductor alliance. The objective is keep China from getting the advance stuffs for its semiconductor development.

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I doubt any of this will happen.

If China catches up to the cutting edge in 5 years, then those Chinese IC products would be in direct competition with that alliance products in China, Europe, and ASEAN, three very large markets, and the Chinese goal would be to obliterate those competitors.

If they decide to continue with the win-win solution with China, they Japan and Korea can continue to receive benefits from trading.

If they decide on an alliance, where eventually winner takes all, then that would be a lose-win proposition, where potentially Japan and Korea could do most of the losing.

Another fact here, IMHO is that America suggesting this (who else would have this idea) clearly indicates that America is not as strong as it thinks of itself, and China has a real big say (even though it does not have to say anything). The long term economic conditions and outcomes will be decisive, and completely overshadow any political solution to the marketplace.

That is so typical of the Americans, as they volunteer the Japanese and Koreans to go confront the Chinese over IC. Japan and Korea, sit down and shut up, because this is what you are going to do! That is Uncle Sam talking.

I do not believe that any of this will happen.

horse said:

I doubt any of this will happen.

If China catches up to the cutting edge in 5 years, then those Chinese IC products would be in direct competition with that alliance products in China, Europe, and ASEAN, three very large markets, and the Chinese goal would be to obliterate those competitors.

If they decide to continue with the win-win solution with China, they Japan and Korea can continue to receive benefits from trading.

If they decide on an alliance, where eventually winner takes all, then that would be a lose-win proposition, where potentially Japan and Korea could do most of the losing.

Another fact here, IMHO is that America suggesting this (who else would have this idea) clearly indicates that America is not as strong as it thinks of itself, and China has a real big say (even though it does not have to say anything). The long term economic conditions and outcomes will be decisive, and completely overshadow any political solution to the marketplace.

That is so typical of the Americans, as they volunteer the Japanese and Koreans to go confront the Chinese over IC. Japan and Korea, sit down and shut up, because this is what you are going to do! That is Uncle Sam talking.

I do not believe that any of this will happen.

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@horse bro after seeing what China did to Australia, the message had been sent, after all Trump greatest disappointment is that he never expected the Chinese to fight back...LOL

ansy1968 said:

@Vichysoy Not a tech expert but using the previous post of our esteem member as a guide, here are my findings.

this happen in 1999

ASML Joins EUV-LLC Team​

Lithographic stepper manufacturer ASM Lithography (ASML; Veldhoven, The Netherlands) has signed a contract with the Extreme Ultraviolet Limited Liability Co. (EUV-LLC) to participate in the EUV-LLC program. The EUV-LLC is a consortium to develop EUV wafer-fabrication technology. Members include the major US semiconductor companies Intel (Santa Clara, CA), Motorola (Schaumburg, IL), and Advanced Micro Devices (AMD; Sunnyvale, CA), and the Department of Energy's (DOE's) Lawrence Livermore, Sandia, and Berkeley National Laboratories.
As part of the program, ASML will work with the EUV-LLC to develop EUV lithography. The company is also researching the electron-beam technology known as SCALPEL in a separate cooperative effort with Applied Materials (Santa Clara, CA) and Lucent Technologies (Murray Hill, NJ). ASML is also working in the European program IPL with, amongst others, Infineon (Santa Clara, CA), IMS, and Leica (Deerfield, IL) on the development of ion-beam lithography.

and DARPA is a participant

SEMATECH was conceived in 1986, formed in 1987, and began operating in

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,

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in 1988

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as a partnership between the United States government and 14 U.S.-based semiconductor manufacturers to solve common manufacturing problems and regain competitiveness for the U.S.

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that had been surpassed by Japanese industry in the mid-1980s.

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SEMATECH was funded over five years by public subsidies coming from the

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via the

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(DARPA) for a total of $500 million.

At that time Japan is a major player in DUVL and hold a monopoly with NIKON , CANON and Toshiba. with ASML they had diminished that lead and with EUVL monopolized it. Forcing Japan to do the same in 2011 with mixed result.

LONDON – A Japanese joint venture formed to hasten the adoption of Extreme Ultra Violet (EUV) lithography has begun collaborating with foreign chip companies including Intel, Samsung, Hynix and Taiwan Semiconductor Manufacturing Co. Ltd.

The EUVL Infrastructure Development Center Inc. (EIDEC) was formed in January 2011 as joint venture between chipmakers Renesas and Toshiba and equipment and Japanese materials suppliers: Asahi Glass Co. Ltd., Dai Nippon Printing Co., Ltd., Fujifilm Corp., Hoya Corp., JSR Corp., Nissan Chemical Industries Ltd., Shin-Etsu Chemical Co. Ltd., Tokyo Ohka Kogyo Co. Ltd. and Toppan Printing Co. Ltd.

The group now has external collaboration with chipmakers: Hynix, Intel, Samsung and TSMC, according to its website. It is also working with Osaka and Hyogo universities and Ebara Corp., Lasertec Corp. and Japan's National Institute of Advanced Industrial Science and Technology.

The joint venture, a follow on from the MIRAI and Selete consortia, is aiming to remove some of the barriers to the use of EUV lithography on 16-nm and 11-nm high performance processes and to promote the introduction of EUV lithography by 2015. It has a working base at clean room in the National Institute of Advanced Industrial Science and Technology.

The four main work items: blank EUV mask inspection, patterned EUV mask inspection, EUV resist outgassing control, and EUV resist material research.

Click to expand...

Thanks ! But why japan don't success with EUVL ? They have a group in this article !

Vichysoy said:

Thanks ! But why japan don't success with EUVL ? They have a group in this article !

Click to expand...

The US is the one who allows one to climb the value added ladder, cool you can create EUV but if there are no users/buyers it pretty much stops there.

SHUNSUKE TABETA, Nikkei staff writer

March 13, 2021 06:02 JST

BEIJING -- China will limit tax breaks and other state support for semiconductor companies to only those that show an ability to produce the home-grown breakthroughs that Beijing seeks, government plans show.

The semiconductor industry is a national economic security priority in China's latest five-year plan, approved at the National People's Congress session that closed Thursday.

Expanded aid for chipmakers helped fuel a nearly fivefold growth in investment in the sector last year, but industry watchers see signs of an ill-conceived sprawl led by local governments eager to show their achievements.

Beijing now looks to set tougher standards for state aid in a sector that is key to China's effort to build U.S. sanctiosn-proof, self-reliant supply chains.

The Ministry of Industry and Information Technology has unveiled a draft of stricter criteria for tax benefits.
Under the draft, chip design companies will be required to use electronic design automation software, an essential tool for designing the most advanced processors, memory chips, sensors and other semiconductor devices. At least half of employees must have university degrees, and research and development staff must account for at least 50% of the workforce.

Proposed requirements also include spending the equivalent of at least 6% of sales on R&D, generating at least half of sales from proprietary designs and holding eight or more patents or other intellectual property rights.

At suppliers of chipmaking equipment, university graduates must account for at least 40% of employees, with R&D staff making up 20% or more. Similar conditions will be imposed on companies involved in semiconductor materials, packaging and testing.
An official notice is expected to be issued this year.

China's government unveiled a beefed-up package of support in 2020 for companies across the semiconductor industry, offering expanded tax breaks for manufacturing. Tax waiver periods were extended to up to 10 years depending on technology levels. Incentives were also provided for R&D, financing and equipment imports.

These measures led to a spike in investment.
According to a research company in China, investment in the chip industry reached 140 billion yuan ($21.5 billion) in 2020, nearly quintupling from 30 billion yuan the year before. Close to 70% of the new investment went to chip design, while materials and manufacturing devices received nearly 20% of the total.

According to the Ministry of Industry and Information Technology, sales in the chip industry rose 17% on the year to 884.8 billion yuan in 2020.

Robust domestic demand has helped big players grow. Top foundry Semiconductor Manufacturing International Co. earned a net profit of $716 million that year, roughly triple as much as the year before, as sales rose 25% to $3.9 billion.
SMIC is ramping up capacity with support of a government-affiliated fund and other investors. Leading chip equipment maker Advanced Micro-Fabrication Equipment reported a 17% jump in 2020 sales, with net profit seen more than doubling, buoyed by government incentives.

But not all of China's semiconductor projects have fared as well. In one notable case, Wuhan Hongxin Semiconductor Manufacturing Co. -- a foundry said to have received around 100 billion yuan in total investment, including from the Hubei Province government -- has been brought to virtual bankruptcy. A senior member of management is said to have had no experience in the semiconductor industry.
Huaian Imaging Device Manufacturer, which invested 12 billion yuan in a bid to make CMOS sensors for smartphone cameras, and Kuntech Semiconductor Technology, which spent 40 billion yuan on mass-producing display panel chips, are said to have essentially collapsed.

According to a research company in China, investment in the chip industry reached 140 billion yuan ($21.5 billion) in 2020, nearly quintupling from 30 billion yuan the year before. Close to 70% of the new investment went to chip design, while materials and manufacturing devices received nearly 20% of the total.

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For comparison, TSMC capital expenditure for FY2021 is around $25-28 billion. Intel alone spend $13.5 billion on R&D in 2020, the capital expenditure at $14.2 billion for 2020. Its revenue for Q42020 were $20 billion, for the whole 2020 Intel generated $77.8 billion in revenue.

It's clearly not enough.

Intel is lagging behind in process technology. They haven't bought that many EUV machines yet. They can still go by with just minor tweaks on their existing DUV production lines. TSMC is building a lot of new EUV factory capacity at 5 or 3nm and that is really expensive.
Plus you can't really compare Intel and TSMC R&D expenditures since Intel does R&D on sorts of things from chip design, to software development, and chip process development while TSMC basically does chip process development.

BlackWindMnt said:

The US is the one who allows one to climb the value added ladder, cool you can create EUV but if there are no users/buyers it pretty much stops there.

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But now , they can buy it for chinese customer !

Vichysoy said:

Thanks ! But why japan don't success with EUVL ? They have a group in this article !

Click to expand...

@Vichysoy hi bro as @BlackWindMnt mention the US can decide the winner since they owned the market. Now they want to do the same with China by creating a new consortium but the problem is China owned the market. Can you square their logic restricting your own customer...LOL. Like @WTAN had mentioned Japan only chance to have their owned operational and viable EUVL is to work with the Chinese, the Chinese had already produce the optics while Gigaphoton of Japan had produce a 250W LPP, its a perfect match made in heaven, A BIG IF they cooperate. If not 2 years from now that opportunity will close as the Chinese will able to produce an equivalent or a better light source. thus Shutting down Japan dream of having an EUVL industry.

@foofy @Oldschool

your opinion about this unknown company?

from JustAnotherPerson (Pakistan defense forum)

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Another Chinese company who sells maskless nano-patterning equipment.