The semiconductor industry is a relatively new one, with the first manufacturing operations starting in the 1960s. Yet the technological achievements over the past half-century are something else. The first commercial silicon wafer was produced in 1965, and then a handful of years later, Intel produced its first microprocessor. Today, we are looking to build leading-edge semiconductor fabs that will continue to redefine our digital landscape.
This post explores what is involved in building a semiconductor fab today and provides an opinion on future costs.
How Much Does It Cost to Build a Semiconductor Fab?
The cost of building a semiconductor fab depends on various factors including the size of the facility and the technology used. The cost also depends on whether it is being built in an existing structure or as a new facility.
There are several stages involved in the construction of a semiconductor fab. They include: site selection, construction planning, procurement and supply chain management, installation and commissioning of equipment, testing and acceptance, training of staff etc.
According to the McKinsey Global Institute, it costs between $6 billion and $8 billion to build a 300-mm wafer plant. The construction costs for 200-mm wafer plants are between $3 billion and $5 billion.
Costs are even higher when they include equipment and infrastructure upgrades required to expand capacity or increase production efficiency. These costs can be as high as $15 billion.
Costs Associated with Building a Semiconductor Fab
Construction costs: This category includes costs for land acquisition, construction of buildings, manufacturing equipment and utilities such as water and electricity. Construction costs can be anywhere between 30% – 50% of total project cost.
Equipment costs: Equipment costs include wafer production tools such as furnaces and metrology tools along with supporting equipment like clean rooms, assembly lines etc. Equipment costs are typically 20% – 25% of total project cost.
Conclusion
In this piece, you learned about the history and development of the semiconductor industry, the cost of building a semiconductor fab, and the expenses tied to chip production and facility equipment. For more informative guides, stay connected to Buildersviller.