semiconductor manufacturing

Technology

A critical technology sector where the U.S. has strategic vulnerabilities. The discussion highlights the U.S. reliance on foreign components and China's rapid progress in developing its own domestic capabilities.


entitydetail.created_at

7/22/2025, 3:50:38 AM

entitydetail.last_updated

7/22/2025, 5:41:50 AM

entitydetail.research_retrieved

7/22/2025, 5:41:50 AM

Summary

Semiconductor manufacturing, also known as semiconductor device fabrication, is a highly complex and automated multi-step process essential for creating integrated circuits like microprocessors, memory chips, and displays. This process, primarily utilizing photolithography and physico-chemical techniques, involves gradually building electronic circuits onto silicon wafers within specialized facilities called foundries or "fabs," which maintain ultra-clean "mini-environments" to ensure high yield. While advanced devices can take up to 15 weeks to fabricate, the industry average is 11-13 weeks. Key equipment manufacturers like ASML, Applied Materials, Tokyo Electron, and Lam Research are crucial to this industry, which is increasingly exploring AI-enabled manufacturing and advanced packaging. Geopolitically, semiconductor manufacturing is a critical sector, particularly for nations like the United States, which faces dependence on foreign firms like ASML and is impacted by trade policies, tariffs, and competition with countries like China, especially concerning the supply of rare earth metals.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Facilities

    Semiconductor fabrication plants (foundries, fabs), clean rooms

  • Key Products

    Integrated circuits (microprocessors, microcontrollers, memories, RAM, flash memory), LCD displays, OLED displays, diodes, transistors

  • Process Type

    Multi-step photolithographic and physico-chemical process

  • Key Materials

    Rare earth metals

  • Automation Level

    Highly automated

  • Primary Material

    Silicon (also compound semiconductors for specialized applications)

  • Emerging Technologies

    AI-enabled manufacturing and design, advanced packaging, new materials, AI/ML for defect detection, real-time process optimization, predictive maintenance, digital twins

  • Wafer Transport Method

    FOUPs (sealed plastic boxes, often with nitrogen atmosphere)

  • Number of Process Steps

    Hundreds (up to 500 for a wafer)

  • US Employees (MNI Data)

    160,488 workers

  • Average Fabrication Time

    11-13 weeks

  • US Manufacturers (MNI Data)

    732 companies

  • Maximum Fabrication Time (Advanced Devices)

    Up to 15 weeks

Semiconductor device fabrication

Semiconductor device fabrication is the process used to manufacture semiconductor devices, typically integrated circuits (ICs) such as microprocessors, microcontrollers, and memories (such as RAM and flash memory). It is a multiple-step photolithographic and physico-chemical process (with steps such as thermal oxidation, thin-film deposition, ion-implantation, etching) during which electronic circuits are gradually created on a wafer, typically made of pure single-crystal semiconducting material. Silicon is almost always used, but various compound semiconductors are used for specialized applications. This article focuses on the manufacture of integrated circuits, however steps such as etching and photolithography can be used to manufacture other devices such as LCD and OLED displays. The fabrication process is performed in highly specialized semiconductor fabrication plants, also called foundries or "fabs", with the central part being the "clean room". In more advanced semiconductor devices, such as modern 14/10/7 nm nodes, fabrication can take up to 15 weeks, with 11–13 weeks being the industry average. Production in advanced fabrication facilities is completely automated, with automated material handling systems taking care of the transport of wafers from machine to machine. A wafer often has several integrated circuits which are called dies as they are pieces diced from a single wafer. Individual dies are separated from a finished wafer in a process called die singulation, also called wafer dicing. The dies can then undergo further assembly and packaging. Within fabrication plants, the wafers are transported inside special sealed plastic boxes called FOUPs. FOUPs in many fabs contain an internal nitrogen atmosphere which helps prevent copper from oxidizing on the wafers. Copper is used in modern semiconductors for wiring. The insides of the processing equipment and FOUPs is kept cleaner than the surrounding air in the cleanroom. This internal atmosphere is known as a mini-environment and helps improve yield which is the amount of working devices on a wafer. This mini environment is within an EFEM (equipment front end module) which allows a machine to receive FOUPs, and introduces wafers from the FOUPs into the machine. Additionally many machines also handle wafers in clean nitrogen or vacuum environments to reduce contamination and improve process control. Fabrication plants need large amounts of liquid nitrogen to maintain the atmosphere inside production machinery and FOUPs, which are constantly purged with nitrogen. There can also be an air curtain or a mesh between the FOUP and the EFEM which helps reduce the amount of humidity that enters the FOUP and improves yield. Companies that manufacture machines used in the industrial semiconductor fabrication process include ASML, Applied Materials, Tokyo Electron and Lam Research.

Web Search Results
  • The Future of the Semiconductor Industry - IEEE IRDS™

    How semiconductor manufacturers produce devices and source materials -------------------------------------------------------------------------------------------------------------------------------- The process for manufacturing semiconductor devices consists of hundreds of steps. Semiconductor manufacturers must apply both precision and expertise when manufacturing semiconductor chips, transistors, and any other semiconductor products. Learn more about semiconductor manufacturers. [...] ### The process of making semiconductor devices To produce a semiconductor device, manufacturers must heat, cut, grind, and polish a semiconductor “ingot” into a wafer-thin form. Next, the wafer goes through a process called photoresistor masking. This applies highly complex circuits to the wafer and can take months to complete. [...] Semiconductor manufacturing depends on substances known as rare earth metals. These materials play an integral role in the manufacturing of most electronic devices. China has nearly monopolized the production of these metals. However, because of US-China trade disputes, the prices for these metals have risen.

  • Top 10 Semiconductor Manufacturers in the U.S. - IndustrySelect®

    Chips are complex structures made of millions or even billions of transistors and other components. Semiconductors are manufactured in special manufacturing facilities called “fabs”, which is short for “Semiconductor Fabrication Plants”. It can take up to 500 steps to develop a wafer. Semiconductors are used in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. ### Semiconductor Manufacturing Industry Data [...] MNI, compiler and publisher of industrial business profiles for the U.S. manufacturing sector, recently collected new data on the semiconductor manufacturing industry and found 732 manufacturers of semiconductors operating in the U.S. that employ 160,488 workers. Another 1,900+ U.S. companies are involved in printed circuit board production and assembly, electronic connector manufacturing, specialized machinery, and other related activities. [...] ### About The Top 10 US Semiconductor Manufacturers Intel Corp., based in Hillsboro, Ore., manufactures processors, systems and devices, chipsets, wireless products and other computer system items. With 19,300 employees at this massive location, the company innovates in the semiconductor sector. Intel has three other semiconductor facilities in Folsom, California; Santa Clara, California; and Rio Rancho, New Mexico.

  • Semiconductor industry outlook 2025 | Infosys Knowledge Institute

    The semiconductor industry is undergoing significant transformation driven by innovations in advanced packaging, new materials, and AI-enabled manufacturing and design (Figure 5). These developments are enhancing performance, energy efficiency, and manufacturing precision, addressing the growing demands of AI, high-performance computing, and emerging technologies. Below, we explore key advancements shaping the future of semiconductor technology. [...] Research is advancing in the use of AI and machine learning (ML) to improve defect detection accuracy, speed, and yield optimization in semiconductor manufacturing. Real-time process optimization and predictive maintenance further ensure more efficient production, minimizing downtime. Semiconductor fabricators are expected to deploy ML more efficiently in 2025. In addition, integration with digital twins allows for real-time adjustments and optimized workflows.

  • Top 10 Semiconductor Trends in 2025 | StartUs Insights

    #### Gauss Labs enables AI-assisted Semiconductor Manufacturing Gauss Labs is a US-based startup that offers AI-based solutions for semiconductor manufacturing. Since the semiconductor industry requires high accuracy in chemical, mechanical, and optics processing, it is necessary to optimize them reliably. To achieve that, the startup offers solutions such as virtual metrology, root cause analysis, and image metrology. [...] Chinese startup TSD Semiconductor manufactures advanced packaging machines. The startup’s range of products includes wafer grinding, chemical and mechanical cleaning, lapping, and polishing machines. They find applications in flip chip assembly, wafer bumping, and production of SIPs. TSD Semiconductor’s surface processing equipment enables chip makers to thin the die for better semiconductor properties and improve electrical execution.

  • [PDF] KPMG Global Semiconductor Industry Outlook 2025

    KPMG Global Semiconductor Industry Outlook 4 Rising concerns over tariffs and geopolitics Industry issues and strategic priorities Semiconductor manufacturing, assembly, test, and distribution spans multiple countries, making it sensitive to geopolitical shifts and conflicts. A great amount of geopolitical instability affects much of the world, from international trade tensions to conflicts in Europe and the Middle East. The trajectory of these and their ripple effects remain uncertain, yet [...] Impact on manufacturing, production, and assembly decisions The combination of tariffs and export controls has prompted US semiconductor companies to reconsider their manufacturing and production strategies. Many are exploring reshoring, nearshoring, and friendshoring options to reduce dependency on foreign suppliers and mitigate risks associated with international trade policies. This shift, while potentially increasing operational costs, offers greater control over the supply chain. [...] In addition, tech giants and platform companies venturing into the design and manufacture of semiconductors could potentially disrupt the market dynamics, given their financial prowess, established distribution networks, and customer bases.

Location Data

European Semiconductor Manufacturing Company (ESMC), Rähnitz, Klotzsche, Dresden, Sachsen, 01109, Deutschland

construction

Coordinates: 51.1318488, 13.7441687

Open Map