Defense Industrial Base Assessment: U.S. Integrated Circuit Design and Fabrication Capability U.S. Department of Commerce Bureau of Industry and Security Office of Technology Evaluation March 2009 DEFENSE INDUSTRIAL BASE ASSESSMENT: U.S. INTEGRATED CIRCUIT FABRICATION AND DESIGN CAPABILITY PREPARED BY U.S. DEPARTMENT OF COMMERCE BUREAU OF INDUSTRY AND SECURITY OFFICE OF TECHNOLOGY EVALUATION May 2009 FOR FURTHER INFORMATION ABOUT THIS REPORT, CONTACT: Mark Crawford, Senior Trade & Industry Analyst, (202) 482-8239 Teresa Telesco, Trade & Industry Analyst, (202) 482-4959 Christopher Nelson, Trade & Industry Analyst, (202) 482-4727 Brad Botwin, Director, Industrial Base Studies, (202) 482-4060 Email: [email protected] Fax: (202) 482-5361 For more information about the Bureau of Industry and Security, please visit: http://bis.doc.gov/defenseindustrialbaseprograms/ TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................... i BACKGROUND................................................................................................................................ iii SURVEY RESPONDENTS............................................................................................................... iv METHODOLOGY ........................................................................................................................... v REPORT FINDINGS.......................................................................................................................... 1 CONVENTIONAL IC PRODUCTS – FABRICATION CAPABILITY....................................................... 1 RADIATION RESISTANT IC PRODUCTS – FABRICATION CAPABILITY............................................ 2 CONVENTIONAL PRODUCTS – DESIGN CAPABILITY OF FABRICATION COMPANIES ...................... 3 RADIATION RESISTANT IC PRODUCTS – DESIGN CAPABILITY OF FABRICATION COMPANIES ...... 4 CONVENTIONAL PRODUCTS – FABLESS DESIGN CAPABILITY ...................................................... 6 RADIATION RESISTANT IC PRODUCTS – FABLESS DESIGN CAPABILITY....................................... 7 UTILIZATION RATES .................................................................................................................... 8 FABRICATION AND DESIGN OF NATIONAL SECURITY PRODUCTS ................................................. 9 PERFORMANCE AND OUTSOURCING OF PRODUCTION FUNCTIONS BY FABRICATION CO............ 10 PERFORMANCE AND OUTSOURCING OF DESIGN FUNCTIONS BY FABRICATION CO..................... 12 PERFORMANCE AND OUTSOURCING OF DESIGN FUNCTIONS BY FABLESS COMPANIES .............. 12 INDUSTRY FINANCIAL PERFORMANCE ....................................................................................... 13 RESEARCH AND DEVELOPMENT AND RELATED EMPLOYMENT .................................................. 15 CAPITAL EXPENDITURES............................................................................................................ 16 REPORT DATA AND ANALYSIS ..................................................................................................... 18 I. CONVENTIONAL IC PRODUCTS – FABRICATION CAPABILITY............................................ 18 TECHNOLOGY NODE RANGE .................................................................................................. 19 SEMICONDUCTOR MATERIALS ............................................................................................... 22 FABRICATION CAPABILITY BY WAFER SIZE .......................................................................... 26 DEVICE FABRICATION CAPABILITIES ..................................................................................... 28 II. RADIATION RESISTANT IC PRODUCTS – FABRICATION CAPABILITY .............................. 32 PREVIOUS RADIATION RESISTANT MANUFACTURING EXPERIENCE ....................................... 35 WILLINGNESS TO MANUFACTURE FOR THE U.S. GOVERNMENT ............................................ 36 TECHNOLOGY NODE RANGE .................................................................................................. 38 SEMICONDUCTOR MATERIALS ............................................................................................... 40 FABRICATION CAPABILITY BY WAFER SIZE .......................................................................... 44 DEVICE FABRICATION CAPABILITIES ..................................................................................... 45 III. CONVENTIONAL PRODUCTS – DESIGN CAPABILITY OF FABRICATION COMPANIES ...... 48 TECHNOLOGY NODE RANGE .................................................................................................. 49 SEMICONDUCTOR MATERIALS ............................................................................................... 50 DEVICE DESIGN CAPABILITY ................................................................................................. 52 IV. RADIATION RESISTANT IC PRODUCTS – DESIGN CAPABILITY OF FABRICATION COMPANIES ....................................................................................................................... 56 PREVIOUS RADIATION RESISTANT DESIGN EXPERIENCE........................................................ 58 WILLINGNESS TO MANUFACTURE FOR THE U.S. GOVERNMENT ............................................ 60 TECHNOLOGY NODE RANGE .................................................................................................. 61 SEMICONDUCTOR MATERIALS ............................................................................................... 63 DEVICE TYPE DESIGN CAPABILITY........................................................................................ 65 V. CONVENTIONAL PRODUCTS – FABLESS DESIGN CAPABILITY........................................... 68 TECHNOLOGY NODE RANGE .................................................................................................. 68 SEMICONDUCTOR MATERIALS ............................................................................................... 71 DEVICE DESIGN CAPABILITY ................................................................................................. 72 VI. RADIATION RESISTANT IC PRODUCTS – FABLESS DESIGN CAPABILITY ........................ 76 PREVIOUS RATION RESISTANT DESIGN EXPERIENCE ............................................................. 79 WILLINGNESS TO MANUFACTURE FOR THE U.S. GOVERNMENT ............................................ 80 TECHNOLOGY NODE RANGE .................................................................................................. 82 SEMICONDUCTOR MATERIALS ............................................................................................... 83 DEVICE DESIGN CAPABILITY ................................................................................................. 84 VII. UTILIZATION RATES........................................................................................................ 87 WAFER START CAPACITY AND COMPANY UTILIZATION RATES............................................. 87 FACILITY CLOSINGS BY 2011................................................................................................. 90 VIII. FABRICATION AND DESIGN OF NATIONAL SECURITY PRODUCTS ................................ 92 FABRICATION OF NATIONAL SECURITY-RELATED PRODUCTS ............................................... 92 DESIGN OF NATIONAL SECURITY-RELATED PRODUCTS......................................................... 93 TRUSTED SUPPLIERS - BACKGROUND .................................................................................... 95 OUTLOOK FOR TRUSTED SUPPLIERS ...................................................................................... 97 IX. PERFORMANCE AND OUTSOURCING OF PRODUCTION FUNCTIONS BY FABRICATION COMPANIES ..................................................................................................................... 100 U.S.-BASED MANUFACTURING STEPS ................................................................................. 100 NON-U.S. OUTSOURCING OF MANUFACTURING STEPS ........................................................ 102 OUTSOURCING BY TECHNOLOGY NODE AND MATERIAL TYPE ............................................ 104 REASONS FOR OUTSOURCING .............................................................................................. 105 RETENTION OF MANUFACTURING STEP CAPABILITY THROUGH 2011.................................. 106 PROJECTED U.S.-BASED AND NON-U.S. OUTSOURCING...................................................... 108 X. PERFORMANCE AND OUTSOURCING OF DESIGN FUNCTIONS BY FABRICATION COMPANIES ....................................................................................................................... 111 U.S.-BASED DESIGN STEPS.................................................................................................. 111 NON-U.S. OUTSOURCING OF DESIGN STEPS ........................................................................ 112 RETENTION OF DESIGN STEP CAPABILITY THROUGH 2011.................................................. 114 XI. PERFORMANCE AND OUTSOURCING OF DESIGN FUNCTIONS BY FABLESS COMPANIES119 U.S.-BASED DESIGN STEPS.................................................................................................. 119 NON-U.S. OUTSOURCING OF DESIGN STEPS ........................................................................ 120 RETENTION OF DESIGN STEP CAPABILITY THROUGH 2011.................................................