Semiconductor Manufacturing

Topic

A critical industrial sector for AI, which the administration aims to expand domestically as part of the AI infrastructure buildout.


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7/26/2025, 7:36:24 AM

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7/26/2025, 7:40:40 AM

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7/26/2025, 7:40:40 AM

Summary

Semiconductor manufacturing, also known as semiconductor device fabrication, is a highly complex, multi-step process essential for creating integrated circuits (ICs) such as microprocessors and memory chips. This process, primarily involving photolithography and physico-chemical techniques like thermal oxidation, thin-film deposition, ion-implantation, and etching, builds electronic circuits onto semiconductor wafers, predominantly silicon. These operations occur in specialized facilities called foundries or "fabs," which are characterized by their central clean rooms and fully automated production lines utilizing automated material handling systems. The manufacturing cycle for advanced devices can span up to 15 weeks, with an industry average of 11–13 weeks. Wafers are transported in sealed FOUPs, often with a nitrogen atmosphere to prevent copper oxidation, a common wiring material. Key equipment manufacturers include ASML, Applied Materials, Tokyo Electron, and Lam Research. In the United States, there is a significant strategic focus, as highlighted by initiatives like the AI Action Plan and legislation such as the CHIPS Act, to bolster domestic semiconductor manufacturing to ensure national leadership in artificial intelligence and secure the supply chain for critical raw materials.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Key Processes

    Photolithography, thermal oxidation, thin-film deposition, ion-implantation, etching, die singulation (wafer dicing)

  • Primary Output

    Integrated Circuits (ICs), microprocessors, microcontrollers, memories, diodes, transistors

  • Automation Level

    Fully automated (automated material handling systems)

  • Primary Material

    Silicon (single-crystal semiconducting material)

  • Alternative Names

    Semiconductor device fabrication

  • Advanced Chip Nodes

    Less than 10 nanometers (nm)

  • Strategic Importance

    Crucial for national leadership in Artificial Intelligence, supply chain security

  • Emerging Technologies

    AI and Machine Learning (ML) for defect detection, yield optimization, real-time process optimization, predictive maintenance

  • Common Wiring Material

    Copper

  • Critical Raw Materials

    Rare earth metals, gallium, germanium, copper, tungsten

  • US Manufacturers Count

    732

  • Wafer Transport Method

    Sealed plastic boxes (FOUPs), often with nitrogen atmosphere

  • Manufacturing Facilities

    Semiconductor fabrication plants (foundries, fabs), clean rooms

  • Raw Material Concentration

    China (nearly monopolizes rare earth metals production)

  • US Manufacturing Employment

    160,488 workers

  • Average Production Cycle Time

    11-13 weeks

  • Max Production Cycle Time (Advanced Devices)

    Up to 15 weeks

Timeline
  • The American AI Initiative (a broader strategy including on-shored Semiconductor Manufacturing as a pillar for AI Infrastructure) is launched by Executive Order 13859 under President Trump's administration. (Source: Related Documents (inferred from context))

    2019-02-11

  • The Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) is signed into law, providing support for infrastructure including semiconductor manufacturing. (Source: Web Search Results)

    2021-11-15

  • The CHIPS and Science Act is signed into law, providing significant incentives and funding to boost domestic semiconductor research, development, and manufacturing in the US. (Source: Web Search Results)

    2022-08-09

  • The Inflation Reduction Act is signed into law, which also includes provisions that can indirectly support domestic manufacturing. (Source: Web Search Results)

    2022-08-16

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.

  • Semiconductors have a big opportunity—but barriers to scale remain

    One of the primary challenges in manufacturing semiconductor materials lies not only in producing the final materials but also in sourcing the critical raw materials and components at the beginning of the process. Many materials used in the manufacturing process are at least somewhat available globally, except for some made primarily in Japan, but essential raw materials such as gallium, germanium, copper, and tungsten are concentrated in a few locations around the world, which increases [...] Over the past several years, countries have been encouraged to strategically regionalize semiconductor manufacturing and the supply chain. In the United States, for example, the Bipartisan Infrastructure Law, the CHIPS Act, the Inflation Reduction Act, and state-specific incentives are enabling major opportunities. Similar incentives are available in other markets, including Europe, India, Japan, Mainland China, Southeast Asia, South Korea, and Taiwan. As a result, public funds that support [...] Leading-edge chips—especially those less than ten nanometers (nm)—and advanced packaging (AP) require increasingly complex manufacturing methods, which increases the demand for the materials that enable these processes and create the finished product. In the United States and Europe, investments have largely been focused on establishing more advanced-manufacturing capacity, while only a fraction of investments announced have been for semiconductor materials. As a result, the United States and

  • 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.

  • U.S. Semiconductor Ecosystem Map

    | NHanced Semiconductors | Odon | IN | IDM | Manufacturing | $236 million | 413 | Announced New Project | Source | | NHanced Semiconductors | Bloomington | IN | IDM | Manufacturing | $150 million | 250 | Announced New Project | Source | | Reliable Microsystems | Odon | IN | Fabless | Chip Design | $7 million | 61 | Announced New Project | Source | | SK hynix | West Lafayette | IN | IDM | Manufacturing | $3.87 billion | 1000 | Announced New Project | Source | [...] | Intel | New Albany | OH | Foundry, IDM | Manufacturing | $28 billion | 3000 | Announced New Project | Source | | EMD | Catoosa | OK | Materials | Manufacturing | | | Existing Facility | | | Chemtrade | Tulsa | Oklahoma | Materials | Manufacturing | | | Existing Facility | | | Moses Lake Industries | Portland | OR | Materials | Research & Development | | | Existing Facility | | | Siltronic | Portland | OR | Materials | Manufacturing | | | Existing Facility | | [...] | TSMC | Phoenix | AZ | Foundry | Manufacturing | $65 billion | 6000 | Announced New Project | Source | | Amkor | Tempe | AZ | OSAT | Research & Development | | | Existing Facility | | | Amkor | Peoria | AZ | OSAT | Manufacturing | $2 billion | 2000 | Announced New Project | Source | | Applied Materials | Tempe | AZ | Equipment | Research & Development | | | Existing Facility | | | Microchip Technology | Tempe | AZ | IDM | Manufacturing | | | Existing Facility | |

Location Data

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

construction

Coordinates: 51.1318488, 13.7441687

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