COMPUTERCHIP HIGH CAPACITY WAFER.

The semiconductor industry are increasing efforts to produce silicon wafers that are 300 millimeters in diameter with a potential of increasing productivity by 500% at a 30-40% increased cost in processing.

This effort is expected to promote more than $30 billion in spending on new factories over the next several years. An announcement by Applied Materials, Inc., Santa Clara, CA, indicated that the company, among the largest equipment makers, will produce 21 new machines that handle the new wafers, with a similar announcement made shortly thereafter by ASM Lithography Holding NV.

The tooling necessary for this production has been viewed with some skepticism by the industry because of earlier concerns with reliability. Producers like Intel, Applied Materials, and ASM Lithography are moving forward to outfit factories for 300 millimeter wafer production only based upon an optimistic projection of need. The $2.5 billion projected cost of a 300 millimeter factory could be deterrent if the market for the product is perceived to soften. Should that happen, smaller companies will avoid the investment by using contract manufacturers known as foundries.