Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Manufacturing/Packaging

Grose: Cost challenge hinders IC innovation

Posted: 06 Oct 2009     Print Version  Bookmark and Share

Keywords:cost semiconductor  R&D  foundry 

What's the biggest challenge for the semiconductor industry? Is it getting through the current IC downturn? Or perhaps it's managing the complex supply-chain. Or searching for "killer applications?"

Wrong! "Despite the technical challenges, the biggest hurdle to continued innovation (in the semiconductor industry) is economics," warned GlobalFoundries CEO Doug Grose.

IC design, fab and R&D costs are all soaring out of control. Only a handful of providers can afford the costs and keep up with Moore's Law, Grose said during a presentation at the GSA Expo.

Over the years, the IDMs have struggled to keep up with those costs, prompting many of them to take the fab-lite or fabless route. Those IDMs include LSI, Infineon, Sony, Freescale, NXP, STMicroelectronics, Texas Instruments and Fujitsu, among others.

"The IDM model is on a slow, dying path," Grose said. Intel, Samsung, TSMC, and, to a lesser degree, Toshiba, can keep up. Besides TSMC, GlobalFoundries and UMC want to be contenders in the high stakes leading-edge foundry game.

The stakes are indeed huge. The R&D costs for process technology are expected to climb from Rs.1,507.05 crore to Rs.1,944.58 crore ($310 to $400 million) for the 90- to 65nm nodes, to Rs.2,916.88 crore to Rs.4,375.31 crore ($600 to $900 million) for the 45- to 32nm nodes, to Rs.6,319.90 crore ($1.3 billion) for the 22- to 12nm nodes, he said.

A fab is expected to run from Rs.12,153.65 crore to Rs.17,015.11 crore ($2.5 to $3.5 billion) for the 90- to 65nm nodes, to $3.50 billion to Rs.19,445.84 crore ($3.5 to $4 billion) for the 45- to 32nm nodes, to Rs.21,876.57 crore to Rs.29,168.77 crore ($4.5 to $6 billion) for the 22- to 12nm nodes.

As a result of the soaring costs, Grose urged chipmakers to collaborate. GlobalFoundries itself is part of IBM's "fab club." Abu Dhabi's Advanced Technology Investment Co. recently said it has agreed to acquire Singapore-based Chartered Semiconductor Manufacturing Co. Ltd, for a total of Rs.18,959.70 crore ($3.9 billion), continuing its expansion into the contract wafer production business.

Chartered will be folded into GlobalFoundries, the former manufacturing division of Advanced Micro Devices Inc. floated as a separate entity earlier this year by ATIC, which injected funds into the company under a joint venture deal with the microprocessor and graphics IC vendor. Pooling resources from Chartered and GlobalFoundries will enable the new company to better compete in the tough wafer supply industry with market leader TSMC.

- Mark LaPedus
EE Times

Comment on "Grose: Cost challenge hinders IC inn..."
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top