Foundry (Semiconductor Industry)

Definition: A semiconductor foundry, often simply called a foundry, is a specialized factory that manufactures integrated circuits (ICs) designed by other companies. These companies are known as “fabless” semiconductor companies because they focus on design without owning fabrication facilities.

Key Concepts:

  1. Business Model:
    • Contract manufacturing of ICs
    • Enables fabless companies to compete without massive capital investment
  2. Services Offered:
    • Wafer fabrication
    • Process technology development
    • Design support and IP libraries
    • Packaging and testing (in some cases)
  3. Process Nodes:
    • Ranging from mature nodes (e.g., 180nm, 90nm)
    • To leading-edge nodes (e.g., 5nm, 3nm, and beyond)
  4. Capacity:
    • Measured in wafer starts per month (WSPM)
    • Varies by process node and foundry size
  5. Key Players:
    • TSMC (Taiwan Semiconductor Manufacturing Company)
    • Samsung Foundry
    • GlobalFoundries
    • UMC (United Microelectronics Corporation)
    • SMIC (Semiconductor Manufacturing International Corporation)

Purpose:

  • Enable fabless business model in semiconductor industry
  • Provide access to advanced process technologies
  • Achieve economies of scale in semiconductor manufacturing

Foundry vs IDM Model:

Foundry Model:
Design Company --> Foundry --> Packaging & Testing --> Final Product

IDM (Integrated Device Manufacturer) Model:
      +--------------------------------------+
      |               IDM                    |
      | (Design, Fabrication, Packaging, Testing) |
      +--------------------------------------+
                      |
                      v
               Final Product

Typical Foundry Process Flow:

1. Customer Design
        |
        v
2. Mask Making
        |
        v
3. Wafer Fabrication
        |
        v
4. Wafer Probing
        |
        v
5. Packaging (optional)
        |
        v
6. Final Testing (optional)
        |
        v
7. Delivery to Customer

Advanced Concepts:

  1. Multi-Project Wafer (MPW):
    • Sharing a single wafer among multiple customers to reduce costs for prototyping
  2. Design for Manufacturability (DFM):
    • Guidelines and tools provided by foundries to improve yield and performance
  3. Process Design Kits (PDKs):
    • Software packages provided by foundries to support IC design for their processes
  4. IP Ecosystem:
    • Libraries of pre-designed and pre-verified circuit blocks (IP cores) offered by foundries or third parties

Key Considerations for Choosing a Foundry:

  1. Process Technology:
    • Available nodes and their maturity
    • Specialty processes (e.g., RF, high voltage)
  2. Capacity and Lead Time:
    • Ability to meet production volume requirements
    • Time from order to delivery
  3. Cost:
    • Wafer cost, Non-Recurring Engineering (NRE) charges
    • Minimum order quantities
  4. Design Support:
    • Quality of PDKs and technical support
    • Availability of IP libraries
  5. Geographic Location:
    • Geopolitical considerations
    • Logistics and supply chain factors

Challenges in the Foundry Industry:

  • Keeping up with Moore’s Law
  • Managing huge capital investments for new fabs
  • Balancing capacity with market demand
  • Navigating geopolitical tensions and trade restrictions
  • Addressing environmental and sustainability concerns

Impact on Semiconductor Ecosystem:

  • Enables innovation by lowering barriers to entry for chip design
  • Drives standardization in manufacturing processes
  • Influences the direction of semiconductor technology development
  • Shapes global supply chains and trade relationships

Understanding the role of foundries is crucial for anyone involved in the semiconductor industry, from chip designers and product managers to investors and policymakers. The foundry model has reshaped the industry landscape and continues to be a key driver of innovation in electronics.