Detailed IC bottom-up calculation : Transparent analysis of cost structures in semi-finished production

In today's semiconductor industry, the IC bottom-up calculation is a key method for precisely determining the manufacturing costs of integrated circuits. For cost engineers in particular, this approach enables a well-founded analysis of direct and indirect costs along the entire value chain - from the wafer to the finished package.

The process is based on a detailed breakdown of all individual production steps and their respective resource requirements. Starting with wafer production, which produces high-quality silicon crystals using the Czochralski process, key cost components can already be identified at this early stage of production. The use of high-purity silicon, the energy input and the material losses when sawing the ingots into wafers make a decisive contribution to the overall cost profile.

In the subsequent front-end process, the electrical structure of the IC is transferred to the wafer. Lithography dominates here as the most cost and technology-intensive process step. It is decisive for the structure size, packing density and functionality of the component. The smaller the technology nodes, the higher the demands on the lithography systems used. While DUV lithography is still sufficient for many standard ICs, EUV technology is required for state-of-the-art chips - with machine investments of up to 300 million US dollars per system. The IC bottom-up calculation takes these high investment costs into account through linear depreciation in the cost allocation per die produced.

The manufacture of an IC also requires a number of other processes such as coating, doping, etching and polishing. Each step incurs specific costs due to machine times, process materials such as photoresists, etching agents and special gases as well as the necessary cleaning effort. All of these costs are recorded transparently in a complete bottom-up calculation and allocated to the individual components in accordance with their origin.

Once front-end production is complete, the back-end process follows, in which the individual die is separated, contacted and packaged. Although this process stage only accounts for around 20% of the total cost of an IC, it should not be neglected. In particular, wire bonding, encapsulation and final testing of the components entail varying material and labor costs. In addition, this process step is often outsourced to specialized OSAT companies.

Overheads are a central component of the IC bottom-up calculation. On average, they account for around 35% of total production costs and include personnel expenses, building operation, infrastructure, IT systems and quality assurance. The precise recording of these costs is essential for the comparability and reliability of the calculation. Industry-standard benchmarks - adapted to regional differences - help with plausibility checks.

A remarkable result of the bottom-up calculation of a 32-bit microcontroller presented in the specialist literature shows that lithography alone accounts for around a quarter of the total costs. The high capital intensity of this technology and its key function in the production process make it the decisive cost factor in semiconductor production. Material costs such as photomasks, the price of which can run into the millions for advanced nodes, are also included in the analysis in detail.

The IC bottom-up calculation therefore not only provides a detailed understanding of the production costs of a semiconductor component, but also creates a reliable basis for business decisions in purchasing, cost planning and quotation calculation. It is an indispensable tool for cost engineers to evaluate technical and economic scenarios in an increasingly complex global supply chain.

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