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Understanding Fabless IC Technology Understanding Fabless IC Technology Prelims-H7944.indd i 7/10/07 4:47:55 PM This page intentionally left blank Understanding Fabless IC Technology Jeorge S. Hurtarte Evert A. Wolsheimer Lisa M. Tafoya AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK OXFORD • PARIS • SAN DIEGO • SAN FRANCISCO SINGAPORE • SYDNEY • TOKYO Newnes is an imprint of Elsevier Prelims-H7944.indd iii 7/10/07 4:47:56 PM Newnes is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2007, Elsevier Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, E-mail: permissions@elsevier. com. You may also complete your request online via the Elsevier homepage (http://elsevier.com), by selecting “Support & Contact” then “Copyright and Permission” and then “Obtaining Permissions.” Recognizing the importance of preserving what has been written, Elsevier prints its books on acid- free paper whenever possible. Library of Congress Cataloging-in-Publication Data Hurtarte, Jeorge S. Understanding fabless IC technology / Jeorge S. Hurtarte, Evert A. Wolsheimer, Lisa M. Tafoya. p. cm. Includes bibliographical references and index. ISBN 978-0-7506-7944-2 (pbk. : alk. paper) 1. Integrated circuits—Design and construction. 2. Integrated circuits industry. I. Wolsheimer, Evert A. II. Tafoya, Lisa M. III. Title. TK7874.H8835 2007 621.3815—dc22 2007023423 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-0-7506-7944-2 For information on all Newnes publications visit our Web site at www.books.elsevier.com 07 08 09 10 11 12 10 9 8 7 6 5 4 3 2 1 Typeset by Charon Tec Ltd (A Macmillan Company), Chennai, India www.charontec.com Printed in the United States of America Prelims-H7944.indd iv 7/10/07 4:47:58 PM Dedication “Only Real Men Have Fabs.” Jerry Sanders III, CEO of AMD, c. 1991 “Only Real Men Go Fabless!” FSA, c. 2007 This book is dedicated to our colleagues in the fabless semiconductor industry who, despite the loud criticism, broad skepticism and fi nancial risk, had the courage and tenacity to design, manufacture and market their innovative products using the fabless business model. These mavericks knew in their hearts this was the way of the future. Jeorge, Evert and Lisa v Prelims-H7944.indd v 7/10/07 4:47:58 PM This page intentionally left blank Contents Acknowledgements .............................................................................................xv Preface .............................................................................................................xvii PART 1 – Manufacturing Strategies: Understanding Fabless IC Technology ....... 1 Chapter 1: More than a Decade of Transition in the Semiconductor Industry .............. 3 1.1 FSA is Established .........................................................................................3 1.2 Early Success ................................................................................................3 1.3 Early Success Trend Continues .......................................................................6 1.4 Semiconductor Business Models ....................................................................7 1.4.1 Integrated Device Manufacturer ............................................................8 1.4.2 Fabless ................................................................................................8 1.4.3 Hybrids ...............................................................................................9 1.4.4 Foundries ..........................................................................................10 1.5 Outsourcing Will Accelerate ........................................................................10 1.6 IDMs are Going Fabless ...............................................................................14 1.6.1 Semiconductor Firms are Forging a New Path ......................................14 1.6.1.1 Outsourcing: A Fundamental Model for Success ......................15 1.7 A Case Study: Cypress Semiconductor ..........................................................18 1.8 More IDMs are Outsourcing ........................................................................20 1.9 Geographic Manufacturing Centers .............................................................22 Chapter 2: Fabless Semiconductor Manufacturing ................................................. 25 2.1 Foundry Revenue Growth ............................................................................25 2.2 Semiconductor Back-End Services ................................................................27 2.3 Semiconductor Equipment ..........................................................................29 Chapter 3: Qualities of Successful Fabless Companies ............................................ 33 3.1 Defi ning Events for the Fabless Market .........................................................33 3.2 Thriving in the Fabless Model ......................................................................33 3.2.1 Application-Specifi c Standard Products ..............................................34 3.2.2 Programmable Logic ..........................................................................34 vii Prelims-H7944.indd vii 7/10/07 4:47:59 PM Contents 3.2.3 High-Performance Processors ............................................................34 3.2.4 High-Speed SRAM .............................................................................34 3.3 Key Qualities for Success .............................................................................35 3.3.1 Essential Market and Customer Understanding ..................................35 3.3.2 Relentless Focus on Execution ............................................................36 3.3.3 Relentless Focus on Costs ..................................................................36 3.3.4 Management ....................................................................................37 3.4 The Future of Fabless ..................................................................................37 PART 2 – An In-Depth Understanding of the Fabless Semiconductor Business Model ............................................................................................... 39 Chapter 4: Semiconductor Manufacturing Basics ................................................... 41 4.1 Semiconductor Processes ............................................................................41 4.1.1 CMOS ..............................................................................................41 4.1.2 Specialty/Compound ........................................................................41 4.2 Semiconductor Manufacturing Steps ...........................................................42 4.3 Wafer Size ..................................................................................................43 4.4 Manufacturing Costs ..................................................................................44 4.5 Conclusion .................................................................................................45 Chapter 5: Fabless ASICs ................................................................................... 47 5.1 Introduction ...............................................................................................47 5.2 Origins of the ASIC Industry ........................................................................47 5.3 Emergence of the Fabless ASIC Business Model ............................................48 5.4 The Fabless ASIC Model: How It Works .......................................................48 5.5 The Services and Capabilities of a Fabless ASIC Supplier ...............................49 5.5.1 Physical Design .................................................................................49 5.5.2 Selecting and Integrating IP into an SOC Design .................................51 5.5.3 Package Design .................................................................................51 5.5.4 Design for Testability and Production Test ..........................................51 5.5.5 Characterization ...............................................................................52 5.5.6 Quality and Reliability .......................................................................52 5.5.7 Volume Manufacturing .....................................................................53 5.6 Conclusion .................................................................................................54 Chapter 6: Electronic Design Automation ............................................................. 55 6.1 Fabless EDA Overview .................................................................................55 6.2 Fabless EDA Selection Process .....................................................................56 6.2.1 Device and Interconnect Models ........................................................57 viii Prelims-H7944.indd viii 7/10/07 4:47:59 PM Contents 6.2.2 Cell Libraries .....................................................................................58 6.2.3
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