In the mid-1980s, the semiconductor industry was dominated by Intel, TI, and NEC. Twenty years later, the key players changed to Intel, Samsung, and TSMC. The three companies announced yesterday that they will aim to shift to the next-generation silicon wafer (450mm, as opposed to 300mm currently in use) by 2012.

Two things:
1. The extraordinary staying power of Intel to remain in leadership
2. The emergence of TSMC as the global powerhouse. As noted earlier in another signal, TSMC is a foundry (a chip-maker that focuses on manufacturing with orders from design-houses).

Intel, Samsung, TSMC To Collaborate On 450mm Wafer Manufacturing Transition [INTC]

5/6/2008 1:37:42 AM Intel Corp. (INTC), Samsung Electronics (SSNKF.PK, SSNLF.PK) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) on Monday announced a deal for an industry-wide collaboration to target a transition to larger, 450mm-sized wafers starting in 2012.

The companies will cooperate with the semiconductor industry to ensure that all of the required components and infrastructure are developed and tested for a pilot line by the target date.

According to the companies, the transition to larger wafers will help maintain a reasonable cost structure for future integrated circuit manufacturing and applications. The total silicon surface area of a 450mm wafer and the number of printed die is more than twice that of a 300mm wafer. Bigger wafers help to lower the production cost per chip and overall use of resources per chip through more efficient use of energy, water and other resources.

Intel, Samsung and TSMC also indicate that the semiconductor industry can improve its return on investment and significantly reduce 450mm research and development costs by applying aligned standards, rationalizing changes from 300mm infrastructure, and working toward a common timeline. Further, the companies agree that a cooperative approach will minimize risk and transition costs.