Samsung and TSMC to Go Head to Head for Foundry of 7-Nano Semiconductor Chip

Samsung Electronics and Taiwan’s TSMC is going head to head to win orders for consignment production (foundry) of 7-nano semiconductor chips. They are having fierce competitions to secure supplies from Apple and Qualcomm.

They recorded a tie for 10-nano semiconductor chips as TSMC and Samsung won orders from Apple and Qualcomm respectively. Industries are interested whether or not single business can secure supplies from both Apple and Qualcomm for 7-nano semiconductor chips.

“I believe that our 7-nano chips are superior than Samsung Electronics’ chips in PPA index that indicates Power, Performance, and Area.” said CEO Mark Liu of TSMC at TSMC’s second quarter performance presentation that was held on the 14th. “We are going to start on tape-out on 7-nano chips in first quarter of next year and start mass-producing them in early 2018.”

Samsung Electronics’ System LSI Foundry Business Team is also showing its intentions that it will surpass TSMC in 7-nano chips. During Samsung’s Foundry Forum for its customers that was held privately in Silicon Valley during first half of this year, Samsung emphasized that it can implement more perfect 7-nano chips compared to TSMC’s 7-nano chips. Samsung Electronics’ schedules for tape-out and mass-production on 7-ano chips will happen at a similar time as TSMC’s schedules.

It is heard that TSMC took entire Apple’s chip foundry supply for 10-nano chips. However experts believe that a competition between TSMC and Samsung Electronics ended in a tie as Samsung Electronics took supplies from Qualcomm.

“Because both businesses’ production capacities are expanded fully, one business can secure supplies from both Apple and Qualcomm for 7-nano chips.” said a representative for an industry. “A business that fails in winning orders from them has to halt most of its production lines and will suffer from significant hits in its performance.”

It is expected that there will be huge technical changes starting with 7-nano chips.

Samsung Electronics and TSMC both officially announced that they will use EUV (Extreme Ultraviolet) lithography equipment. “We are going to receive ASML’s 2 most recent EUV equipment called NXE3400 in first quarter of next year and use them partially for producing 7-nano chips.” said CEO Liu. “Many EUV equipment will be used to produce 5-nano chips in 2020.”

Samsung Electronics is also planning to use EUV equipment for 7-nano foundry lines and is using NXE3400 starting from second quarter of next year. Director Jung Eun-seung of Samsung Electronics’ Semiconductor Research Institute flew to ASML Headquarters, which is in Netherland, in first half of this year and confirmed demo of NXE3400 and finished discussing about purchasing NXE3400.

As both businesses are starting to introduce EUV equipment, structure of rear-end industries is expected to change also. Because number of multi-patterning in a field of equipment is decreasing, demands for etching and depositing equipment will decrease also. Unlike immersion equipment that works in an atmospheric state, EUV equipment works in vacuumed state and this will increase demands for vacuumed equipment. Markets for equipment that measures EUV wafers and photo-resist (sensitizer, PR), mask, and reticle that protects mask will bloom as well.

Staff Reporter Han, Juyeop | [email protected]