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Georg Kelm, Technologies for Components and Subsystems, DG III-F3.
Presented at Productronica, November 1995
Still six years ago there was a great concern about a significant technological gap in microelectronics. The delay with which sub-micron silicon technology was introduced into production by European semiconductor companies compared to their Japanese and American counterparts was measured in years. Today, after heavy investment in R&D, engineering and production facilities, the gap does not exist any longer or in those few cases where a gap still exists it can be measured in months rather than in years. Those seven European semiconductor companies who participated to the European Commission's ESPRIT and to national programmes under the JESSI umbrella, are at par in terms of technology capability with their competitors from other parts of the world. And to add to the success story: the European IC companies are profitable.
Nobody would have dared to predict such a development only a few years ago! Now people say, Europe has a second chance in microelectronics - after having left unexploited the first one in the '80s.
But, of course, the show goes on: the technology race continues and we are heading for 0.25 and 0.18 microns now. The maximum number of metallization layers for logic applications is at a level of five today, the number of pins is reaching 1000 for advanced applications, having a major influence on the packaging technology, power supply voltage is decreasing, etc., etc.
The National Technology Roadmap for Semiconductors set up by the Semiconductor Industry Association (SIA) in the US is the reference nowadays when next problems to be overcome and timing are discussed.
Based on the inputs of the three main European semiconductor producers a European roadmap was established in the context of a major ESPRIT project. This roadmap does not show a major difference to the SIA map except for some details in performance parameters which are due to a focus on complex logic technology and components rather than on memories. There is also a slight difference in timing of introduction of a logic oriented technology compared to a memory oriented one. And the European roadmap is taking into account that European companies have a leading position, e.g. in high speed silicon technologies, BiCMOS technology, low power logic, high speed logic and high voltage technologies.
But let us have a look at the use of semiconductor technologies. What matters for European economy and consequently for employment and welfare is the value added by semiconductor components to systems and the competitive edge they provide, e.g., for communication systems, cars and other transport systems, consumer products, industrial automation, measurement and control systems or, of course, for computers.
Europe has 25% of the electronic systems market and only 18% of the semiconductor consumption. This can partially be explained by the weak position in computer production but also by the lower level of semiconductor content of the systems produced.
In 1994 the world-wide semiconductor consumption was more than 100 B$ for an electronic system value of 670 B$ which represent 15%. In Europe the semiconductor consumption was 18,3 B$ for a system market of 167 B$ which represent only 11%!
These figures suggest that priority should be given to activities which are directed at improvement of this important interface in the microelectronics food chain. This means to support the creation of more effective links between providers of semiconductor components and technologies like interconnects, packaging, microsystems and displays on the one hand and systems houses on the other hand.
Easy access to and joint optimisation of these technologies and components to provide a competitive product in the market will be the key to future success of the European system companies.
Another important interface in the microelectronics food chain is the one between semiconductor companies and semiconductor manufacturing equipment and materials suppliers. To maintain their competitive position IC manufacturers must build one megafab every 15 to 18 months, with the fab costs reaching the amount of 1B$ and equipment costs having passed 50% of the overall fab facility costs already ten years ago. Meanwhile the latter amount to about 70% of the cost of outfitting a new leading edge fab.
This is the price to be paid for progress, i.e. for smaller geometries, increasingly complex processes, more process steps and, last but not least, bigger wafers. But to draw the complete picture one must not forget that these higher costs result in higher productivity of equipment and lower utility costs , i.e. the costs per millions-of-instructions-per-second (MIPS) and the costs per bit, which contribute significantly to a semiconductor manufacturer's overall profitability.
To give a figure also here: the price per bit memory has fallen to about 1/25 of what it was 10 years ago.
Only these figures and considerations are sufficient to demonstrate the crucial role of a functioning and close relationship between suppliers and users of semiconductor manufacturing equipment for the profitability of the IC manufacturer.
Although the equipment and materials industry is booming world-wide, including the European equipment suppliers, we have to confess that the European equipment industry is still playing a modest role in the equipment market, which nowadays is a global market. Interesting enough, but after all not surprising, some of the successful European companies are doing better outside Europe than in what one would have believed was their home market.
A few points shall be listed to describe and explain this situation:
The home market for European equipment companies is smaller than in, e.g., US, Japan or less dynamic than in, say, Republic of Korea;
They have a small installed base due to several factors; among them, e.g., the following ones:
- European IC manufacturers do of course not " buy European" just for Europe's sake. They select equipment which has demonstrated reliability and productivity in a number of wafer lines of their competitors, i.e. which has a high installed base,
- Most European based Non-European IC manufacturers follow the procurement policy of their 'mother fabs' which "buy American" or "buy Japanese" whenever possible and dependent on their home base.
Most equipment companies are SMEs with a 1994 turnover of less than 25M$ which does not allow to reach the critical mass necessary for a given product area to establish and support a world-wide market position and the related services;
Contrary to their American counterparts they have a high degree of internal manufacturing which does not allow to minimise staffing levels;
So, European equipment is in a difficult position even if it provides advanced technical solutions and performance. Only a sufficient number of pieces of equipment installed in leading edge wafer lines leads to sufficient interaction between suppliers and users of equipment, which in turn allows to improve reliability, productivity and cost of ownership of the equipment and as a consequence, the installed base.
We are confronted with a sort of vicious circle which has to be broken so that this part of the food chain can play its important role in Europe.
I am convinced that in the long run there cannot be a viable semiconductor industry in any region of the world, including Europe, without at least a critical mass of technological expertise able to create a high-tech network in the given region itself. The equipment and materials suppliers are an important node in this network.
And to add to this complicated situation the microelectronics community in its obviously never-ending race towards smaller dimensions, bigger and faster chips and more integrated functions is preparing now for the emerging 300mm and at the same time for the 0.25 and 0.18µm technology generations.
As already mentioned we are facing an unprecedented increase in fab investments, including further rising equipment development cost and consequently equipment prices. And we are confronted with an also unprecedented leap in wafer diameter of 4" at a time.
In this situation it is felt world-wide that co-operation in R&D and in the area of standardisation is mandatory to master the challenges related to the introduction of the 300mm technology into production. Semiconductor manufacturers and their equipment and materials suppliers should emphasise close co-operation aimed at improved process stability and tool reliability lowering the costs of the ultimate utility they provide to end costumers.
The European Commission is recognising the crucial role played by the manufacturers of equipment and materials used in the production of semiconductors. We are ready to contribute to the improvement of equipment and materials performance, to contribute to the suppliers endeavours to meet the manufacturing requirements of their users world-wide and to build up closer and more effective user-supplier links.
Under the ESPRIT programme we have launched a user-driven Semiconductor Equipment Assessment (SEA) Initiative in which we focus on optimisation and assessment of European-sourced prototype and first batch manufacturing equipment and materials. A conditio sine qua non is the active involvement of IC manufacturers who will set the specifications, propose necessary optimisation and carry out the assessment of the equipment.
This major initiative is open for equipment users world-wide. There are, indeed, already participants from both South East Asia and North America.
Clearly, we are also recognising the need of intensive R&D work which is laying the foundation for equipment which meets the requirements of advanced processes, of productivity, reliability, automation, fab integration and environmental protection.
The European E&M industry has a market share of only 8-12% in a worldwide market of about 55B$.
In spite of all difficulties the E&M industry is facing, Europe with its more than 200 E&M suppliers for the semiconductor and flat panel display industry has a lot of competencies in a number of areas as, e.g., equipment for
Optical lithography,
Rapid Thermal Processing,
PVD, etching and CVD, including epitaxy,
Wet processing,
Metrology and analytical tools,
Assembly and packaging and
Clean room automation and facilities.
And Europe is also strong in some materials, notably in silicon wafers.
This list is not at all exhaustive!
It is obvious that the E&M area as a whole needs more effective collaboration and large investments. Closer links between users and suppliers will help to build confidence and could help to share the risk involved in equipment and semiconductor manufacturing. Public funding can play a catalytic role here but can, of course, not replace the entrepreneurial approach.
European governments spend about 50-60 MECU in 1995 to support R&D in the area of equipment and materials.
The European Commission intends to concentrate its support for the equipment and materials area via the SEA initiative on the optimisation and assessment of prototype manufacturing equipment for the semiconductor industry, which includes:
Front-end equipment,
Selected back-end equipment,
Selected equipment for flat panel display and microsystems production,
Analytical and measurement equipment necessary to support front-end
and back-end semiconductor manufacturing processes and
Materials.
In the R&D part for E&M of our Specific Programme ESPRIT will focus efforts on the exploration of the limits of optical lithography and the related enabling tools.
It goes without saying that in those equipment and materials areas the Commission intends to concentrate on, account will be taken of the steadily increasing role of the 300mm wafer generation.
Clearly , the national programmes should continue to invest in equipment and materials at least at the 1995 level also in the coming years. This will be a decisive period for the aggregation of a critical mass of European competence.
If all players are ready to take it further, I am sure there is a good chance to succeed. It needs all players, though, not just ESPRIT.
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It was last updated on 25 October 1996, and is maintained by John Magan - john.magan@dg3.cec.be