In a significant development for the 10-year Taiwan Chip-Driven Industrial Innovation Program (TCIIP), certain businesses have expressed their willingness to donate 12-inch wafer fab equipment to the government to support the initiative. This move, endorsed by the National Science and Technology Council (NSTC) minister, Wu Tsung-Tsong, has garnered attention and raised expectations.
It is worth noting that 12-inch wafer fabs can vary widely in cost based on their specific processes. Since the government has not disclosed details regarding the equipment's processes and whether it is new or used, it is difficult to evaluate the true value of the donation, industry insiders said.
Nevertheless, industry insiders believe that even with mature processes, innovation remains possible. If the government acquires affordable mature process equipment and entrusts its management to corporate entities, it could enable academic institutions to access advanced processes such as 7nm technology, compound semiconductors, silicon photonics, and other specialized processes. They could do so by collaborating with established companies and institutions like TSMC, Win Semiconductors, and Belgium's Imec. TSMC has already initiated the provision of the N16 ADFP (academic design foster package) to academic sectors, facilitating their entry into the 7nm technology sphere.
The TCIIP is expected to stimulate substantial downstream demand for IC design tape-outs, mainly originating from academia, corporations, and startups, both domestically and internationally. However, different chip design tape-out teams have distinct requirements for manufacturing processes, materials, equipment, and software packages. These areas encompass digital, analog, compound, heterogeneous integration, and photonic integration, among others. It appears that a single 12-inch production equipment line may not be able to cater to the diverse implementation needs of these various teams.
Where will the acquired equipment be housed?
Speculation arises regarding where the government intends to place the acquired 12-inch wafer fab equipment. Some believe it might be housed at the Taiwan Semiconductor Research Institute (TSRI) or the Electronic and Optoelectronic System Research Laboratories of the Industrial Technology Research Institute (ITRI). TSRI is currently the sole comprehensive semiconductor research and experimental service environment in Taiwan, covering chip design, manufacturing, measurement, and packaging. The institute is actively seeking land for expansion and equipment upgrades, with Yang Ming Chiao Tung University offering land support, while other universities also vie for the opportunity.
The government's approval of the first phase of the ambitious NT$300 billion (US$9.28 billion) 10-year TCIIP initiative is a milestone achievement. This phase includes critical resource support from corporate entities, which will provide services like EDA tools, IPs, photomasks, and tape-outs. TSRI has already unveiled its 2024 chip production schedule, considering factors like wafer fab shuttle times and submission deadlines for master's degree programs at various universities and international flagship conferences.
Among the notable developments, TSMC's 7nm CMOS logic FinFET ELK Cu 1P15M 0.75/1.8V process is set to be available for service in the second half of 2024, playing a pivotal role in validating forward-looking designs such as AI, B5G/6G, and others. Win Semiconductors' 0.12-micron RF high-power GaN-on-SiC HEMT will initiate chip implementation services in the first half of 2024. United Microelectronics Corporation (UMC) is also proceeding according to plan with the 0.18-micron CMOS MEMS chip production.
According to the "300mm Fab Outlook Report to 2026" released by SEMI, the next four years are expected to witness 53 new 12-inch fabs commencing operations. South Korea is projected to invest US$30.2 billion in 12-inch wafer fab equipment in 2026, doubling its expenditure from US$15.7 billion in 2023. Taiwan is estimated to invest US$23.8 billion in 12-inch wafer fab equipment in 2026, ranking second only to South Korea in this regard.
Article translated by Willis Ke
