By the end of 2023, Dutch lithography machine leader Asma delivered its first high aperture extreme ultraviolet lithography machine, marking a crucial step for the global semiconductor industry towards 2nm.
(Source: X)
With Intel confidently stating that it will enter 2nm process mass production in 2024, the investment market is also closely monitoring opportunities in the semiconductor industry. In its latest 2024 thematic investment report, Morgan Stanley also listed Intel and Microelectronics as one of the "Top 24 bullish stocks globally.".
However, as the market focuses on a group of lithography machine manufacturers and chip manufacturers, multiple material and chemical manufacturers have begun to step forward and remind investors: in the 2nm era, our role will be even more important!
How to say this?
In the latest interview, James O'Neill, Chief Technology Officer of US listed company Entegris, mentioned that in the current process of implementing advanced production processes, the machines that make chips are no longer at the center of the stage, but advanced materials and clean solutions.
O'Neill said, "Thirty years ago, everything was related to lithography machines making transistors smaller (improving performance). Today, claiming that material innovation is the main driving force for improving performance will be a solid proposition."
Although Kai Beckmann, CEO of Merck's electronics business in Germany, may not be so straightforward, he also agrees with this viewpoint. Beckmann stated that the electronics industry is now shifting from the era of relying on tools to advance technology in the past two decades to the next decade of the so-called "material age".
For the 2nm chips that are expected to be mass-produced in 2025, the chip design itself is becoming more complex. When humans broke through the 22nm node, traditional planar transistors began to be replaced by FinFETs. By the 3nm node, Gate All Around FETs had become the industry's preferred solution. From the schematic diagram, it can also be seen that the transistors in the chip are now being stacked in a more complex way.
(Three types of structural diagrams, source: Samsung)
The storage chip aspect is even easier to explain, as manufacturers such as Samsung, SK Hynix, and Micron are competing in the 3D NAND field to determine which chip has more layers. At present, the chip layers produced by these three companies can stack up to 230 layers and are striving to break through 300 layers within 1 to 2 years. The more layers stacked, the larger the storage capacity. At the same time, the industry is actively exploring the development of 3D flash memory chips.
Further development in these two fields not only requires more complex lithography machines, but also new cutting-edge materials.
O'Neill likened the chemicals applied to 3D transistors to "painting New York City while sitting on a helicopter" - requiring the ability to control the material properties sprayed on the top, sides, and horizontal streets of buildings, as well as the ability to clean the streets after completion. For new transistor structures such as GAA, it is also necessary to develop new innovative materials to ensure uniform coverage of the top, bottom, and sides. At present, the materials industry is finding ways to achieve this at the atomic scale.
Another reason why chemicals have become more important is based on production yield, which is crucial for the commercial competitiveness of chip companies. O'Neill stated that high-purity chemicals are crucial for ensuring flawless production and minimizing defects.
Beckmann also gave another example: copper is widely used as a conductive layer in the current chip manufacturing process, but in order to manufacture smaller and more advanced chips, the industry is exploring new materials like molybdenum.
Of course, the word innovation is usually not related to affordability. According to current industry expectations, the cost of a single 2-nanometer wafer may reach up to $30000, which is 50% higher than the state-of-the-art iPhone 15 Pro processor (3nm). Similar to the current AI industry, the stronger the stronger, the more likely it is to remain the tone of this industry.
Bertrand Loy, CEO of Ingrid, concluded that this is a highly capital intensive industry. He expects the same trend to continue - larger companies will become stronger and willing to continue investing, as this will be a source of their competitive advantage.