Semiconductors: The Engine Driving Technological Advancements

A semiconductor is a product made of materials such as silicon, with a conductivity between that of an insulator and a pure conductor. By introducing impurities, its conductivity and performance are changed to meet the specific needs of electronic components.semiconductor testing Semiconductors, also known as chips, are widely used in fields such as computers, smartphones, devices, gaming hardware, and medical devices.

There are four basic types in the semiconductor industry: memory, microprocessors, commodity integrated circuits, and complex SOC. Memory chips serve as temporary storage for data and transmit information within computer devices. Microprocessors are the basic logical units that execute tasks, and Intel dominates in this field. Commodity integrated circuits are widely produced for routine processing, led by large Asian chip manufacturers. Complex SOC is an integrated circuit chip that integrates the entire system function, and the market demand is constantly growing.

The success of the semiconductor industry depends on manufacturing smaller, faster, and cheaper products.semiconductor failure analysis The advantage of being compact is that more functions can be placed on the same chip, thereby improving work speed. This has sparked fierce competition, and new technologies have reduced production costs, leading to a continuous decline in chip prices. Moore's Law states that the number of transistors in dense integrated circuits roughly doubles every two years. This puts continuous pressure on chip manufacturers to provide better or even cheaper products. Therefore, semiconductor companies need to maintain a large R&D budget.

Traditionally, semiconductor companies control the entire production process from design to manufacturing.aotomatic prober However, many chip manufacturers are now entrusting more and more production to other companies. Foundry companies become attractive suppliers for outsourcing choices. In addition, increasingly professional designers and chip testers are also emerging. Chip companies are becoming increasingly lean and efficient.

In the 1980s, the survival rate of chip manufacturers was only 10% to 30%. However, in order to maintain competitiveness, today's chip manufacturers must maintain a yield of 80-90%. This requires expensive manufacturing processes. Therefore, many semiconductor companies choose to outsource some or all of their manufacturing to fabless chip manufacturers, which have enormous growth potential as they are not burdened by indirect costs related to manufacturing.

The classic challenge faced by semiconductor companies is whether technology drives the market or market driven technology. Investors should recognize that both are effective for the semiconductor industry.