The economics of semiconductors begins with the closely related observation that memory and logic chips
have become cheaper at a truly staggering rate.
Jason Chen pointed out that TSMC depends on IC design houses for around 80% of its revenue and most of them are logic chip
The South Korean tech giant generates the bulk of its profit from its bread and butter memory chips and has been beefing up development of logic chips
such as mobile processors, image sensors and automotive chips to diversify.
Samsung Electronics Co Ltd (KRX:005930), a provider of advanced semiconductor technology, announced on Wednesday the commencement of mass production of advanced logic chips
utilising its 14nm (nanometre) LPP (Low-Power Plus) process, the second generation of the company's 14nm FinFET process technology.
According to Cult of Mac, the next generation chips are different from the previous ones such that they can be categorized as logic chips
. They also carry considerably higher margins.
The investment was primarily motivated by an interest in expanding the existing plant's expertise in logic chips
, the chips that control the operation of digital devices.
To cut its heavy reliance on Qualcomm and to diversify its sources for logic chips
, LG Electronics has contracted with more chip designers to develop the mobile application processors for its G line of tablets and smartphones, said LG officials.
For the next quarter, the company will focus on server and mobile DRAM and NAND products including Solid State Drives (SSDs) for notebook PCs, Embedded Multimedia Cards (eMMC) and logic chips
, said Robert Yi, head of investor relations.
Suppliers of Apple iPhone 5 core logic chips
Chip spec Designer Foundry ARM-based A6 processor Apple Samsung Power IC for A6 core Dialog TSMC 3G/4G LTE baseband chip Qualcomm TSMC Power IC for baseband chip Qualcomm TSMC Wireless networking combo chip Broadcom TSMC, UMC Audio Codec chip Cirrus Logic TSMC Packaging and IC substrate Chip spec test house supplier ARM-based A6 processor Amkor Ibiden, SEMCO Power IC for A6 core Siliconware Kinsus 3G/4G LTE baseband chip ASE Kinsus Power IC for baseband chip ASE Kinsus Wireless networking combo chip ASE, Siliconware Kinsus Audio Codec chip Siliconware Kinsus Sources: the companies
That comes on top of $2 billion of spending Samsung unveiled two months ago to build a new chip plant and the conversion of existing chip lines to make logic chips
to power mobile gadgets.
When used to stack memory chips on logic chips
, this technology is expected to reduce package size by 35%, decrease power consumption by 50%, and increase data bandwidth by a factor of eight or more times.
Etch, the smartest, fastest silicon etch system ever made for the volume production of the world's most advanced memory and logic chips
. Featuring an unprecedented eight process chambers - six etch and two plasma clean chambers - the compact Centris system can process up to 180 wafers per hour, lowering the per-wafer cost by up to 30%.