Advancing Semiconductors – Could ‘Donut’ Beams to ‘Lego’ Blocks Be Set to Upend Industry Approaches?

An essential component of electronic devices, semiconductors have woven themselves into the very fabric of our daily existence. These tiny yet powerful elements are the cornerstone of modern technology, driving innovations in computing, communications, clean energy, healthcare, transportation, military systems, and a myriad of other critical applications. 

In a striking testament to their ubiquitous influence, the size of the global semiconductor market is actually expected to grow to $1.38 trillion by 2029, up from $573.44 billion in 2022.

A Look into Semiconductors Advancement

Semiconductors are materials that conduct electricity more than an insulator but less than a pure conductor. These materials, which can be either pure elements or compounds, undergo a significant transformation in conductivity when small amounts of impurities are added to them.

It's because of semiconductors that we have access to radios, TVs, smartphones, computers, video games, and advanced medical diagnostic equipment. The advancements in semiconductor technology over the past many decades have enabled these electronic devices to become smaller, faster, cheaper, and more reliable.

Also referred to as integrated circuits (ICs) or microchips, semiconductors have revolutionized the way we live, impacting how we work, communicate, travel, treat illness, entertain, and harness energy.

As the foundational building blocks of modern technology, semiconductors continue to drive the world's most significant breakthroughs, holding immense potential.

Some of the most exciting innovations in the semiconductor industry include quantum computing, which demands new types of semiconductors that operate at low temperatures; neuromorphic computing, aiming to develop computer chips that mimic the human brain's structure and function for intelligent machines; silicon photonics, which utilizes light to transfer data between computer chips; and advanced packaging, essential for developing high-performance electronic devices.

These advanced semiconductor solutions stand to play a key role in Artificial Intelligence (AI), which is becoming increasingly important in various industries. Semiconductors can help AI applications perform complex tasks more efficiently. Semiconductors also have huge potential in autonomous vehicles, intelligent image-processing systems, and renewable energy systems.

Semiconductor Manufacturing

In the semiconductor industry, the focus is on creating smaller, faster, and cheaper products, a goal that ties directly into the principle that being tiny means more power can be placed on the same chip. This compactness is crucial because the more transistors there are on a chip, the faster it works.

This is where Moore's Law comes into the picture, as it states that “the number of transistors in a dense integrated circuit doubles about every two years.” This highlights the pressure on chipmakers to constantly innovate and provide more efficient and cheaper semiconductors while ensuring quality control and fast availability of the product for sale.

The majority of demand for the semiconductor industry comes from smartphones and industrial equipment, but the advent of AI, the IoT, and autonomous vehicles have changed the outlook of the industry. 

Now, the growing demand has semiconductor firms needing to put a greater focus on research and development, increase functionality, and have more efficient production times. These requirements have consequently led to significant challenges for the industry, with the greatest one being how to provide smaller, more powerful chips at affordable costs.

Also, innovations have increased the complexity of manufacturing processes in the semiconductor industry. This escalation in complexity naturally calls for the need for more efficient supply chains, a necessity further amplified by the ever-increasing demand from AI companies. This requires not only a diverse range of performance capabilities but also shorter delivery times.

The manufacturing of semiconductor chips involves purification of the wafer, building multiple layers to create integrated circuits, and then assembly and packaging of multiple components into the final product.

So, semiconductor manufacturers have to face the challenge of materials handling, recycling, and process improvements, which are critical aspects of their operations. But the scope of their challenges isn't limited to just this; factors such as geopolitics also significantly affect resource availability and trade, as has been exemplified in the case of the US and China.

For some time now, supply chain issues have actually been among the top issues in the industry. This situation is further complicated by factors such as geopolitical tensions and trade disputes, with black swan events like the pandemic exacerbating the problem of chip availability even more.

In addition to these challenges, the industry also has to grapple with the widening gap between the demand for skilled professionals and the availability of qualified people. Given the intense competition and rapid pace of advancement in the sector, the existence of a talent shortage and skills gap is not surprising.

Despite all these challenges, however, the industry continues to thrive. Breakthroughs that have the potential to transform the future are constantly happening, showcasing the sector's resilience and innovative spirit.

Click here for the list of the best semiconductor equipment stocks for manufacturing support.

‘Doughnut' Beams Allow Viewing Incredibly Small Objects

This month, a new study took detailed images of tiny objects using doughnut-shaped beams of light, which would not have been possible with traditional microscopes. The study was conducted by CU Boulder researchers and is expected to help scientists improve the basic details of a range of “nanoelectronics,” including mini semiconductors found in computer chips.

This is the latest advancement in the field of ptychography, which is a computational imaging technique for microscopic imaging. Ptychography tools, unlike traditional microscopes, do not view very small things directly; rather, they shine lasers at a target and then measure how the light scatters away.

According to the senior author of the study, Margaret Murnane, until recently, this approach, while working well, “completely failed for highly periodic samples, or objects with a regularly repeating pattern” because it includes nanoelectronics. 

Murnane, a fellow at JILA – a joint research institute of CU Boulder and NIST – explained the challenges scientists face in using ptychography to view the structures of some semiconductors. These structures, made of atoms like silicon arranged in incredibly uniform small grids, present difficulties due to their lack of variation.

So, in the new study, researchers created beams of extreme ultraviolet light instead of using regular lasers in their microscopes to make shadow puppets. Then, by using a spiral phase plate, they twisted their shape into doughnuts, and when these beams bounced off repeating structures, the shadow puppets created were much more complex than those by traditional lasers. This allowed the accurate collection of images of tiny and delicate structures. 

These structures are about 10 to 100 nanometers in size, and in the future, the team expects to zoom in to view even smaller structures. The idea is to make this doughnut strategy even more accurate, which will allow the team to see even more fragile objects, maybe even biological cells, one day.

Up until now, imaging tools using lenses could only see down to a resolution of about 200 nanometers, not allowing scientists to capture many viruses accurately. But now, with this research, the fundamental limits of microscopes have been pushed, and scientists will be able to capture these pathogens in action in real-time in the future. “Instead of using a lens to retrieve the image, we use algorithms,” she said.

Moreover, the beams do not harm tiny electronics in the process and, hence, can be used “to inspect the polymers used to make and print semiconductors for defects, without damaging those structures in the process,” said Murnane.

Overall, this new study has great potential to impact the semiconductor industry by enhancing the inspection of nanoelectronic components with more precise quality control. This could also enable researchers to inspect delicate semiconductor structures without compromising their integrity. As more advancement happens in ptychography techniques, we could see more versatile imaging methods for semiconductor research and development.

Photonic Chips That Will “Reshape” the Semiconductor Landscape

In yet another new study, researchers at the nanoscience facility of the University of Sydney Nano Institute, in collaboration with scientists at the Australian National University, designed a novel semiconductor architecture in which they integrated electronics with photons to expand the bandwidth and filter control. This means more information can flow through the chip while allowing for advanced filter controls. 

“This work paves the way for a new generation of compact, high-resolution RF photonic filters with wideband frequency tunability, particularly beneficial in air and spaceborne RF communication payloads, opening possibilities for enhanced communications and sensing capabilities.” 

– said Dr Moritz Merklein, senior research fellow and co-author of the study

To build this chip, researchers utilized an emerging technology in silicon photonics, using which they were able to integrate diverse systems on semiconductors fewer than 5 millimeters wide, which is like putting together Lego building blocks. This way, it can provide a scalable and modular approach to chip design, opening up new possibilities for creating complex and highly efficient semiconductor devices.

“The combined use of overseas semiconductor foundries to make the basic chip wafer with local research infrastructure and manufacturing has been vital in developing this photonic integrated circuit.” 

– Dr. Alvaro Casas Bedoy, Associate Director for Photonic Integration in the School of Physics

This new compact silicon semiconductor chip expands radio-frequency (RF) bandwidth substantially and can control information flowing through the unit accurately. You can see its application in advanced radar, wireless networks, satellites, and roll out of 6G and 7G telecommunications. Also, this means devices that can adapt to diverse applications, making it applicable in a wide range of scenarios.

According to researchers, this enhanced ability can further help in advanced sovereign manufacturing and the creation of high-tech value-added factories without relying on international manufacturers exclusively. 

This invention, according to Pro-Vice-Chancellor Professor Ben Eggleton, is a significant advancement in the research of microwave photonics and integrated photonics. The chip has the ability to offer a 15-gigahertz bandwidth of tunable frequencies with impressive spectral resolution.

He explained how “microwave photonics plays a crucial role in modern communication and radar applications, offering the flexibility to precisely filter different frequencies, reducing electromagnetic interference and enhancing signal quality.” Moreover, by integrating advanced functionalities into semiconductor chips (chalcogenide glass with silicon), Eggleton believes, it can “reshape the local semiconductor landscape.”

Top Semiconductor Manufacturers 

Given all that is going on in the semiconductor industry, now, let's take a look at some of the prominent semiconductor manufacturers:

1. Taiwan Semiconductor Manufacturing Co. Ltd.

The world's largest semiconductor foundry is engaged in the manufacturing of integrated circuits on behalf of clients. With a market cap of $523.56 billion, the company's shares are trading at $100.75, up 35.52% this year. TSM's revenue (TTM) has been $68.86 bln, EPS (TTM) of 5.36, and P/E (TTM) of 18.84 while it offers a dividend yield of 1.81%.

TSMC is currently on track for volume production of its N2 (2 nanometres) chips, which, according to the company, “will be the most advanced semiconductor technology in the industry in both density and energy efficiency when it is introduced.” The semiconductor manufacturer is also working on its global expansion, which started off with a new facility in Arizona a couple of years ago and now also includes Japan and Germany.

2. Advanced Micro Devices, Inc. 

This global semiconductor company has a market cap of $217.13 billion as its shares trade at $133.52, up 107.52% this year. AMD's revenue (TTM) has been $22.11 bln, and EPS (TTM) of 0.13, but no dividend is offered.

Most recently, Advanced Micro unveiled its new AI chips from the long-awaited MI300 lineup to challenge the flagship AI processors of Nvidia, which controls about 80% of the AI chip market. These new chips are designed for supercomputers and for generative AI applications such as ChatGPT and Dall-E. The company also raised the forecast for its addressable market for AI chips to $400 billion in the next four years.

3. Applied Materials, Inc. 

The company, a leader in providing manufacturing equipment, services, and software to the semiconductor industry, boasts a market cap of $129.78 billion. Reflecting its stature, the shares of the largest semiconductor equipment maker in the US are currently trading at $156.50, marking an impressive upswing of 59.3% this year. Financially, AMAT has reported a revenue (TTM) of $26.51 billion, an EPS (TTM) of 8.11, and a P/E (TTM) of 19.12, alongside offering a dividend yield of 0.83%.

However, Applied Materials is currently navigating challenging waters as it is under US criminal investigation for allegedly sending equipment to China's top chipmaker SMIC, potentially circumventing export restrictions. This situation arises amidst the US government's ban on not only advanced chip shipments but also on equipment to China. In a move signaling its global ambitions and strategic expansion, earlier this year, Applied Materials announced its plan to invest $400 million over four years to establish a collaborative engineering center in India.

4. ASML Holding NV 

The Netherlands-based ASML supplies advanced lithography systems used by chip manufacturers such as TSMC, Samsung, and Intel to add circuitry to silicon wafers. It has a market cap of $286.32 bln while its shares trade at $714.42, up 30% YTD with its revenue (TTM) recorded at 28.871B, EPS (TTM) of 20.42, and P/E (TTM) of 34.78. The dividend yield offered is 0.91%.

The company recently reported Q3 earnings of just over $2 bln, with CEO Peter Wennink saying, “The semiconductor industry is currently working through the bottom of the cycle, and our customers expect the inflection point to be visible by the end of this year.”

Conclusion

Semiconductors are a critical component in devices that are integral parts of our lives. It is actually the backbone of the thriving technology sector. And as demand for semiconductors continues to rise, it is leading to even smaller, faster, and more power-efficient chips. All this advancement and innovation will then allow for the development of new types of devices and applications that were previously impossible!