IC foundries overview (2nd part)
A detailed overview on the IC foundry industry with the main players. In this part: SMIC, Intel Foundry Services (IFS) and Tower Semi.
SMIC (Semiconductor Manufacturing International Corporation)
SMIC is the first pure-play Chinese semiconductor foundries. Established in 2000 and headquartered in Shanghai, SMIC provides advanced semiconductor manufacturing services to several industries worldwide. The company offers a comprehensive range of services, including wafer fabrication, research and development and technology solutions tailored to meet the demands of various industries, such as: consumer electronics, telecommunications, automotive, and more.
SMIC process node portfolio
1. 28nm: SMIC's 28nm process node provided a balance between performance and cost efficiency. It offered improved power consumption and performance suitable for applications in consumer electronics, networking, and more.
2. 14nm: The 14nm FinFET process marked an advancement in power efficiency and performance, targeting several applications, such as: mobile devices, IoT, and higher computing power with reduced energy consumption.
3. 12nm: SMIC was developing the 12nm process node, aiming to improve performance and power efficiency compared to the 14nm technology.
4. Advanced node: The company was working on advancing its technology toward smaller nodes like 7nm and beyond, however the US sanctions are limiting the development targeting high-performance computing, AI, and other cutting-edge applications. These advanced nodes aimed for increased transistor density, higher performance, and improved power efficiency.
SMIC is operating up to DUV (deep ultraviolet) machinery that allows production of chips in the 28 nm to 12 nm range, however, DUV machinery can produce 7 nm chips using a technique called “multi-patterning”.
SMIC being unable to procure advanced EUV (Extreme ultraviolet) machinery from ASML due to the U.S. sanctions in place, thus, it might not be possible to move toward the 7nm node. ASML faces restrictions preventing the export of its crucial EUV lithography machines to China due to concerns over technology transfer. Canon's new technology boasting the ability to produce up to 2nm semiconductors may also encounter heightened scrutiny, potentially impacting chip manufacturing capabilities in China.
Around the new Kirin 9000s SoC produced for Hi-Silicon produce on 7nm N+2 there is still a lack of information, such as if SMIC is able to mass produce in large quantities, or this was related only to a small production (such as with ASICs MinerVa Bitcoin Miner SoC).
5. Other Mature Nodes: SMIC also provided mature process nodes like 90nm, 65nm, and 40nm, which were suitable for various applications across industries where established technology and cost-effectiveness were crucial factors.
SMIC fab list
1. Shanghai MegaFab: Located in Shanghai, China, this is one of SMIC's flagship facilities. The Shanghai MegaFab is a large-scale manufacturing site housing various production lines catering to different process nodes. It includes both 200mm and 300mm wafer fabrication lines. The facility is equipped to produce semiconductor chips using different technologies, ranging from mature nodes to advanced nodes like FinFET. Shanghai fab expansion plan is undergoing with a new facility in Lingang.
2. Beijing Fab: SMIC's Beijing facility holds a pivotal position within the company's manufacturing landscape, spanning technology nodes from 180nm down to 28nm. This diverse capability enables the production of semiconductor chips employing various processes and technologies, essential for meeting the diverse demands of different market segments.
With its significant role in SMIC's manufacturing capacity, the Beijing fab contributes significantly to the company's supply chain. Moreover, SMIC Beijing actively engages in research and development on process nodes. These efforts are geared towards enhancing manufacturing processes, exploring innovative technologies, and optimizing chip performance and efficiency. By 2024 a new fab in Jingchen is planned to be operative and will mainly produce 28nm process nodes.
3. Tianjin Fab: Situated in Tianjin, China, this fab is another significant site for SMIC's manufacturing operations for mature nodes between 0.35um and 90nm. Another fab in Xiqinq is under construction.
4. Shenzhen fab: SMIC's Shenzhen fab has been involved in manufacturing semiconductor chips across various technology nodes, ranging from mature nodes to relatively more advanced nodes. This likely includes nodes such as 0.35um, 90nm and up to 28nm, and potentially other nodes suitable for a variety of applications across different industries.
SMIC typically tailors its fabs to accommodate different process technologies based on market demand, industry requirements, and the evolution of semiconductor technology. The Shenzhen fab, like other SMIC facilities, contributes to the production of chips for consumer electronics, communication devices, automotive applications, and more.
SMIC 2023 Q3 revenue snapshot
SMIC’s revenue comes primarily from manufacturing semiconductor products for various applications and customers. Here is an introduction to SMIC's revenue:
1. Foundry Services: SMIC generated revenue primarily by offering foundry services, manufacturing semiconductor chips for a diverse range of customers. These customers included fabless semiconductor companies, integrated device manufacturers (IDMs), and other entities designing and producing semiconductor products.
2. Technology Nodes: SMIC's revenue came from producing chips across different technology nodes. This included mature nodes like 180nm, 130nm, and 65nm, as well as more advanced nodes like 28nm, 14nm, and potentially others. Revenue generation was influenced by the demand for chips across these various nodes from different industries and applications.
3. Market Segments: SMIC served various market segments such as consumer electronics, telecommunications, automotive, industrial applications, and more. The revenue was diversified across these sectors based on the demand for semiconductor chips used in different products and technologies.
The main applications covered by SMIC's revenue include:
Smartphone (25.9% of total revenue in 2023 Q3): This segment contributes the largest portion of revenue, signifying a significant focus on manufacturing semiconductor chips for smartphones. It indicates a strong presence in the mobile device market, including smartphones and possibly other mobile-related technologies.
IoT (11.5% of total revenue in 2023 Q3): The Internet of Things (IoT) segment represents a remarkable but smaller portion of the revenue. This could suggest that SMIC is actively involved in producing semiconductor chips for various IoT applications such as smart home devices, wearables, connected appliances, and industrial IoT applications.
Consumer Electronics (24.1% of total revenue in 2023 Q3): This category includes a broad spectrum of electronic devices beyond smartphones and IoT, encompassing products like televisions, audio systems, gaming consoles, and more. This segment's revenue contribution signifies a significant presence in the broader consumer electronics market.
Other (38.5% of total revenue in 2023 Q3): This segment covers a mixed range of industries and applications beyond smartphones, IoT, and consumer electronics, such as automotive, industrial, networking, and various specialized applications.
In a nutshell, while smartphones, consumer electronics, and IoT collectively constitute a substantial portion of SMIC's revenue, all the other categories are playing a significant role, covering a broad array of applications and industries that contribute considerably to the company's overall revenue stream. This diversification across multiple sectors indicates SMIC's strategy to adapt to various markets with a very strong presence in China (84% of total revenue), followed by America (12,9%) and Eurasia (3,1%).
Here below the SMIC’s 2023 Q3 revenue data chart:
Intel Foundry Services (IFS)
Intel Foundry Services (IFS) is a division within Intel Corporation that offers semiconductor manufacturing services to external customers. This initiative by Intel aims to leverage its advanced manufacturing capabilities to provide foundry services, enabling other companies to access Intel's process technologies. Here's an overview along with details about process node coverage:
1. Manufacturing Capabilities: IFS provides access to Intel's leading-edge process technologies. Intel's manufacturing process capabilities ranged from 10nm to 7nm nodes and beyond 2023 aiming to reach 2nm in 2024 and 1.8nm by end 2024/early 2025. These advanced nodes offer high transistor density, improved performance, and energy efficiency, making them suitable for a wide range of applications, including high-performance computing, artificial intelligence, automotive, and more.
2. Foundry Services: IFS aims to adapt to the needs of various industries and businesses, offering customized foundry services tailored to specific requirements. This includes providing access to Intel's advanced semiconductor manufacturing technologies and expertise.
IFS process node portfolio and strategy
The expected trajectory for Intel's process node portfolio was projected to include nodes such as 5nm, 3nm, up to 1.8nm, aiming to address the industry's demand for increasingly advanced semiconductor technologies. These nodes would likely enable enhanced capabilities for a broad range of applications spanning high-performance computing, AI, 5G, automotive, and other emerging technologies.
Intel plans a dual-track approach for future nodes, utilizing both regular EUV and High-NA EUV technologies across Intel 4 to Intel 18A. A 'Risk Reduction Test Node' (Intel 3b) is in progress, exploring new techniques like PowerVia for backside power delivery, aiding Intel 20A's development and yield scalability. While the Intel 3b test node receives substantial attention for risk management, there are no immediate plans for full production or customer chip designs using this technology.
In June 2023, Intel unveiled a change in its operational strategy aimed at significant cost savings and enhanced profitability by 2025. The company is moving its internal product units to a foundry-style relationship with its manufacturing division, a pivotal change that promises long-term growth, efficiency, and cost reduction.
This new "internal foundry" model signifies Intel's shift towards a standalone profit and loss structure for its manufacturing units, mirroring fabless semiconductor companies engagement with external foundries. The model aims to introduce market-based pricing to internal units while maintaining close collaboration between product groups and technology development teams.
Intel highlighted this model's potential to drive efficiencies, targeting gross margins of 60% and operating margins of 40%. The company outlined optimization opportunities such as streamlining manufacturing processes, reducing test times, all projected to yield substantial annual savings.
The internal foundry model aims to enhance Intel's foundry by prioritizing service levels, security, and transparency. Additionally, it plans to preserve the process for external customers by transitioning to the latest 18A process technology by 2025, positioning Intel as a robust Integrated Device Manufacturer (IDM) and, at the same time, a key player in the foundry market.
This pivotal shift in Intel's operational strategy marks a fundamental transformation, aiming to achieve IDM 2.0 by fostering efficiency, transparency and service excellence. The company's objective is to drive substantial cost reductions, enhance profitability, and redefine its position in the semiconductor industry.
In October 2023, IFS announced the Intel 16 process technology, a 16nm-class node derived from the existing 22FFL process tech. IFS with this offering targets customers needing low-power chips for everyday tasks. With this move, IFS Positioned against nodes like TSMC's N12e, Intel 16 aims for wide usage across sectors like aerospace, defense, IoT, radios, and other applications that prioritize cost efficiency over cutting-edge performance.
Intel Foundry Services has been positioning itself to offer access to these advanced process nodes to external customers, aiming to provide opportunities for innovation and be competitive with other IC pure play foundries.
Intel Foundry Services (IFS) fab list
Intel Foundry Services have several fabs across EMEA and US
1. Fab 11X
- Main Process Node Production: 22nm/14nm (Upgraded in 2021)
- Location: Rio Rancho, New Mexico, USA
- Additional Info: Intel Foundry Services (IFS) to produce chips for Tower using 65nm technology from 2024. Tower plans to invest up to $300 million in fab tools for Intel's Fab 11X.
2. Fab D1X
- Main Process Node Production: 14nm/2nm (Expanding till ~2024/2025)
- Location: Oregon, Gordon Moore Park, USA
- Additional Info: D1X Mod 3 expansion at the Ronler Acres site. Features a massive 270,000 square feet clean room space.
3. Fab 12, Fab 22, Fab 32, Fab 42, Fab 52, Fab 62
- Main Process Node Production: 22nm/14nm/10nm/2nm (planned)
- Locations: Chandler, Arizona, USA
4. Fab 24, Fab 34
- Main Process Node Production: 14nm/7nm
- Location: Leixlip, Ireland
5. Fab 28, Fab 38
- Main Process Node Production: 22nm/14nm/10/7nm (Expanding)
- Locations: Kyriat Gat, Israel
6. Fab 27, Fab 29
- Main Process Node Production: 7nm/2nm (Planned)
- Locations: Licking Country, Ohio, USA (Fab 27), Magdeburg, Germany (Fab 29)
Tower Semiconductor
Tower Semiconductor, is a global specialty foundry leading the manufacture of analog integrated circuits.
The company offers a wide range of leading-edge specialty process technologies, focusing on Radio Frequency (RF), High Performance Analog (HPA), Power Management, CMOS Image Sensors (CIS), and Mixed-Signal/CMOS technologies, along with expertise in Micro-Electro-Mechanical Systems (MEMS).
Tower Semiconductor process node portfolio includes:
1. 180nm and above: These nodes were commonly used for various analog, mixed-signal, RF, and power management applications. It provided a balance between performance and cost-effectiveness.
2. 130nm: This node was suitable for a wide range of applications, including analog, mixed-signal, RF, CMOS image sensors, and more. It offered improved performance compared to the 180nm node.
3. 65nm: Tower Semiconductor's 65nm node was aimed at applications demanding higher performance, lower power consumption, and increased integration. It was suitable for digital, RF, and mixed-signal designs.
4. 45nm: This node was tailored for applications requiring even higher performance, lower power consumption, and smaller form factors. It was utilized in various advanced applications including mobile, IoT, and wireless communication.
Tower Semiconductor fab list
Tower Semiconductor, owns several fabs across multiple regions worldwide. The company’s strategic approach involves leveraging the diverse expertise and capabilities of nodes present within its various fabs.
The company operates fabrication facilities in key locations, each specializing in different technologies and serving specific market needs. In Migdal Haemek, Israel, Tower Semiconductor covers both 6-inch and 8-inch fabs catering to CMOS, CIS, Power, Power Discrete, RF Analog, MEMS, and various other technologies across a range of process nodes from 1um to 0.13um.
Expanding its global footprint, Tower Semiconductor has established facilities in Agrate, Italy, focusing on 12-inch wafers, primarily covering Analog RF, Power, and Displays at the 65nm process node.
In a strategic alliance, STMicroelectronics (ST) and Tower Semiconductor have announced a collaboration that will see Tower joining ST's Agrate R3 300mm fab, currently under construction at the Agrate Brianza site in Italy. This collaboration aims to expedite the fab's ramp-up, crucial for achieving high utilization levels and competitive wafer costs.
Under the agreement, ST and Tower will share cleanroom space and facility infrastructure while individually investing in their process equipment. The joint effort will focus on accelerating fab qualification and subsequent volume ramp-up.
The early stage of the fab will focus on qualifying 130nm, 90nm, and 65nm processes for smart power, analog mixed signal, and RF processes. These technologies will be instrumental in automotive, industrial, and personal electronics applications.
In the United States, the company operates fabs in Newport Beach, CA, and San Antonio, TX, both utilizing 8-inch wafers for diverse applications like CMOS, CIS, RF Analog, MEMS, Power, and more, at process nodes ranging from 0.18um to 0.13um.
Notably, TPSCo, a joint venture between Tower Semiconductor and Nuvoton Technology Corporation Japan, creates two fabs in Hokuriku, Japan, with a legacy of over 35 years in manufacturing large-scale integrated circuits, specialized in covering process node for automotive applications.
Revenue by main application in 2023 Q3
Tower Semiconductor's recent revenue distribution for Q3 of 2023 sheds light on the company's diversified semiconductor manufacturing capabilities across various applications, marking its profound influence in the industry.
In this quarter, the RF Mobile segment emerged as a prominent revenue driver, contributing a 26% share. This high share represents Tower Semiconductor's strength in supplying RF solutions for mobile devices, including smartphones and IoT gadgets, essential for wireless connectivity.
Power ICs closely followed, securing a 21% share of the revenue. Tower Semiconductor's contributions in this sector highlight its expertise in manufacturing power management solutions, relevant components for energy-efficient systems across automotive, industrial, and consumer electronics.
Furthermore, the Sensor & Display segment accounted for 18% of the revenue share. Tower Semiconductor's involvement in sensor technology and display-related semiconductor solutions underscores its significance in enabling advanced imaging, sensing, and display technologies used in various applications, including automotive, healthcare, and consumer electronics.
Discrete products constituted 17% of the revenue pie, indicating Tower Semiconductor's role in producing discrete semiconductor components crucial for various electronic devices and systems.
The RF Infrastructure sector followed suit, representing 10% of the revenue share. Tower Semiconductor's presence in this segment signifies its contribution to RF infrastructure components used in telecommunications and network equipment.
The contributions from Mixed-Signal/CMOS and other applications were below 10% representing the remaining share of the total revenue for the quarter. This collective segment highlights Tower Semiconductor's engagement in diverse applications beyond the major revenue contributors.