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Semiconductors Supply chain - Coggle Diagram
Semiconductors Supply chain
What are Semiconductors
Types by industry sector
Select one sector and define reason
Define
process
Analyse complexity
Give numbers
Graphs
Pictures
Labor availibility
Raw
materials
Silicon Carbide(SiC)
China drives 200mm wafer capacity
boom
Bosch faces capacity crunch for SiC power
chips
Boom for SiC wafer demand with shift to 800V
EVs
Gallium Manganese Arsenide (GaAs)
Gallium Oxide
Market
Copper Indium Gallium Selenide (CIGS)
95% global production of gallium under control of
china
Selenium - China world leader followed by
japan
Molybdenum Disulfide (MoS₂)
Bismuth Telluride (Bi2Te3)
Bismuth- Dominated by
China
Tellurium - China leading producer of refined
Tellurium
Analysis of Semiconductor
Wafers
Tech
Geo Politics
Sustainability
Geography
Social impact
Economics
Why the complexity?
Takes 26 weeks from start to finish
Manufacturers need huge facilities with dust-free rooms and costly
equipment
foundational constraint: the process of fabricating crystals for silicon wafers, which are used in microchips. These grow at a fixed rate, and though microchip assembly comprises roughly 700 steps over a 14-week period, the bulk of this time is tied up in waiting for crystals to grow.
“It’s physics. You can’t speed it up,” Kelly said. “You can add more people. You can add more equipment. But if you don't have that front-end product to supply to the back end, then you’re not going to get
anywhere.”
The response: retrofitting, reworking,
reshoring
https://pubs.usgs.gov/periodicals/mcs2022/mcs2022.pdf
Talent
Fabrication
Analysis of Semiconductor
Wafers
Packaging
Design
EDA-design software - 96% owned by
US
CORE IP-Intellectual property- 52% US | 43%
Europe
US is leader across all segments
Neon
gas
Define components
Problem statement
Germanys top automotive chips manufacturing industry = Infineon
Which Nm size chips are in shortage
The supply is intermittent, Risks present
Describe supply chain
Design
Raw materials
Fabrication
Packaging
the war in Ukraine has disrupted the global supply of neon gas, which is used to make
semiconductors
Ukraine supplies about 60 percent of the world’s neon.
Globally, 14 nm is still the mainstream process for most mid-to-high-end chips, and it is currently one of the most market-valued process technologies. Market research reveals that only 17 percent of the integrated circuit products released in 2020 use below the 10nm node, and 83 percent of the products use relatively mature technology nodes. During the first half of 2019, the market size of semiconductor sales was approximately US$200 billion, of which 65 percent of the chips used 14nm process technology. It is to be noted that many of the products that ran out of stock during last year’s crisis belonged to the 14nm process. Automotive chips were the first to go short in supply, followed by industrial chips, chips for the home industry, and then the entire semiconductor supply chain from foundry to
packaging
most future automotive-wafer demand will involve nodes of 90 nanometers (nm) and above because many vehicle controllers and electric powertrains, including electric drive inverters and actuators, rely on these mature chips. Such nodes will account for about 67 percent of automotive demand in
2030
Industry demand for semiconductors varies by node
size
Most future automotive-wafer demand will involve nodes of 90 nm and above because many vehicle controllers and electric powertrains, including electric drive inverters and actuators, rely on these mature chips, McKinsey
reported
Conventional cars are heavily reliant on legacy and mature nodes, unlike many more advanced
devices
Why automotive chips
1970 only 5% cost, now more than 40%, expected to increase to 45% by
2030
If companies are not able to get chips in time, they would have invested 60% of the cost in the rest of the vehicle and then 60% of the inventory will be left waiting
Critical component- Can lead to failure, accident
15 million cars recalled due to electronic component
failure
Global Automotive Semiconductor Market is valued at USD 45.98 Billion in 2020 and expected to reach USD 81.40 Billion by 2027 with a CAGR of 8.5% over the forecast
period
Volkswagen (OTCPK:VLKAF) said this week that it lost production of about 100,000 cars worldwide due to the chip shortage, and that it is sitting a large backlog of unbuilt vehicles due to the chip shortages and the problems caused by the winter storm in
Texas
Toyota managed to stockpile enough chips ahead of time to suffer only minimal
impact
Volkswagen said it lost 500m euros in profits due to chip
shortage
the automotive industry only uses 5% to 10% of annual semiconductor production; most chips go to consumer
electronics
Chipmakers have not actively sought out increasing their automotive portfolio products because of low profitability. Semiconductors within cars are not only cheap–usually, when not in the midst of a shortage–but made to last a decade at minimum. Leading-edge semiconductors today, like 5nm chips used in Apple phones, are far more profitable due to large order demand and shorter
lifespan.
Infineon investor
report
Delloitte
report
Mckinsey
report
Gassel said the shortages are "most pronounced" in logic chips manufactured using generations-old technologies, specifically those in the 20-nanometer to 100-nm range. Such chips are embedded in microcontrollers widely used in vehicles, and Infineon predominantly outsources their manufacturing to foundries in Asia, including Taiwan Semiconductor Manufacturing Co., the executive
said.
Thesis Do's & Dont's
Do's
Add sources in Problem statement, Give examples with sources, etc.
Mention stoppage costs with sources
How much is attributed to automobiles
Objective
Not to study or understand
Give solutions
To reduce production stoppages
Mention costs of stoppages
When giving values mention the year of reference
Identify risks and measure the impact of risks, by probability of occurance
Research paper by Ayush Grade 1.3
https://www.mybib.com/#/projects/82OX9y/citations
Dont's
Words like - Highly integrated, Highly complex, chokepoints, well known, huge,extreme,
Thoughts
Reluctance to invest in legacy nodes. Major focus towards cutting edge nodes
Automotive designs use legacy and old nodes
BEVs use advanced nodes and sales of BEVs and advanced features is increasing.
ICEs
Advanced features
Advanced nodes
Short term strategy because current market is still dominated by ICE and require legacy nodes
Core features
Legacy nodes
Design
Inputs
EDA
Usually available
Core IP
Available
Fabrication
Inputs
Design
Available
Equipment
Electronic
design
Roland
berger
Raw materials
ATP
BEVs
Semiconductor strategy in europe
Link Title
Germany semiconductor
insights
Semiconductor-Strategy-for-Germany-and-Europe
Link Title
The “Semiconductor Crisis” as a Result of the COVID-19 Pandemic and Impacts on the Automotive Industry and Its Supply Chains
Link Title
German Mineral Resources Agency
Link Title
https://www.mckinsey.com/industries/semiconductors/our-insights/semiconductor-shortage-how-the-automotive-industry-can-succeed
https://www.rolandberger.com/en/Insights/Publications/Semiconductor-crisis-in-the-automotive-industry.html
Current manufacturing methods of commercially usable silicon carbide are limited to wafer sizes of about six inches, which is significantly smaller than silicon wafers. Reduction in wafer size results in a higher chip production cost and, therefore, higher capital expense for silicon carbide
designs.