Why the world is crazy about tech nodes?

Through the lens of a prominent tech giant, Apple, we delve into the intricate relationship between geopolitics, cost, and tech nodes.

What is a tech node?

In the context of semiconductor manufacturing, a tech node (also known as a process node or technology node) refers to the size of the smallest feature that can be created on a semiconductor wafer. It is a critical metric that determines the level of miniaturization and performance of integrated circuits (ICs), such as microprocessors and memory chips. Tech nodes are usually measured in nanometers (nm), indicating the size of the transistors and interconnects on the chip. For example, 10nm tech node means that the smallest feature size on the chip is 10nm.

Most recently, due to various marketing and discrepancies among foundries, the number itself has lost the exact meaning it once held. Recent technology nodes such as 22 nm, 16 nm, 14 nm, and 10 nm refer purely to a specific generation of chips made in a particular technology. It does not correspond to any gate length or half pitch.

Nevertheless, the name convention has stuck and it’s what the leading foundries call their nodes. Since around 2017 node names have been entirely overtaken by marketing with some leading-edge foundries using node names ambiguously to represent slightly modified processes. Additionally, the size, density, and performance of the transistors among foundries no longer matches between foundries. For example, Intel’s 10 nm is comparable to foundries 7 nm while Intel’s 7 nm is comparable to foundries 5 nm.

Why the world is crazy about it ?

The world is crazy about tech nodes because they are the driving force behind the advancement of electronics. As tech nodes shrink, more transistors fit into the same area. This results in faster, more powerful, and more energy-efficient chips. These advancements open new possibilities for innovation. For example, smaller chips enable thinner, lighter smartphones with longer battery life. They also allow for more powerful and portable laptops.

The race to develop smaller tech nodes is a constant one, as each new node brings with it new possibilities. The current state-of-the-art is the 7nm node, but there are already plans to develop 5nm, 3nm, and even 1nm nodes in the future.

Here are some of the benefits of smaller tech nodes:

  • Increased transistor density: This means that more transistors can be packed into the same area, which leads to faster, more powerful, and more energy-efficient chips.
  • Lower power consumption: Smaller transistors consume less power, which can extend battery life and improve performance.
  • Reduced heat generation: Smaller transistors generate less heat, which can improve reliability and performance.
  • New design possibilities: Smaller tech nodes open up new design possibilities, such as the ability to create chips with more complex architectures.

As you can see, there are many reasons why the world is crazy about tech nodes. They are the driving force behind the advancement of electronics, and they open up new possibilities for innovation. It will be exciting to see what the future holds for tech nodes, and how they will continue to shape the world of electronics.

Moore’s law

The significance of tech nodes lies in Moore’s Law, which states that the number of transistors on a chip doubles approximately every two years, leading to increased computing power and performance. Advancing to smaller tech nodes allows chip manufacturers to pack more transistors into the same area, improving performance, power efficiency, and reducing costs per transistor.

Moore’s Law is really a thing about human activity, it’s about vision, it’s about what you’re allowed to believe. Because people are really limited by their beliefs, they limit themselves by what they allow themselves to believe about what is possible.

~Carver Mead, Professor, California Institute of Technology

Apple leveraging tech nodes in new iPhones

Now, let’s take the example of Apple to demonstrate the importance of tech nodes in the semiconductor industry:

Imagine that Apple is developing a new iPhone with a highly advanced and powerful processor. To achieve better performance and energy efficiency, they want to use the latest semiconductor manufacturing process with the smallest tech node available at that time. Let’s assume that when they started developing the iPhone, the latest tech node was 7nm.

Cost and Tech Nodes in Apple’s iPhones

Suppose Apple is developing a new iPhone with an advanced processor. They have two options: a 10nm tech node and a more advanced 7nm tech node.

Wafer Cost:

As tech nodes shrink, more transistors can be placed on a single wafer. For example, let’s assume that a 10nm wafer can accommodate 10,000 chips, while a 7nm wafer can hold 20,000 chips of the same size. The cost of manufacturing a 7nm wafer is higher due to the complexity and precision required in the manufacturing process.

Yield and Defects:

Smaller tech nodes present greater challenges in manufacturing, leading to lower yields and higher defect rates. The probability of defects increases as features become smaller, impacting the number of viable chips on a wafer. This reduces the yield and raises the per-chip cost.

Equipment and R&D Costs:

The transition to a more advanced tech node often requires significant investments in new manufacturing equipment and research and development (R&D). The cost of procuring and installing state-of-the-art equipment, as well as funding R&D efforts to optimize the manufacturing process, is higher for advanced nodes.

Performance and Market Demand:

While advanced tech nodes offer superior performance, they also come at a higher cost. The decision to use a more advanced tech node depends on factors such as the target market segment, competitive landscape, and the willingness of consumers to pay a premium for improved performance.

Apple’s Consideration:

Suppose Apple is weighing the choice between using a 10nm tech node and a 7nm tech node for its new iPhone processor:

  • The 7nm tech node provides better performance and energy efficiency due to the smaller transistors, resulting in a more powerful and energy-efficient processor.
  • However, the manufacturing cost per chip using the 7nm tech node is higher than using the 10nm tech node due to the increased complexity and lower yield.

In this scenario, Apple must balance the advantages of performance and energy efficiency against the increased cost of manufacturing at the more advanced tech node. They will consider factors such as market demand, pricing strategy, competition, and profit margins before making a decision.

Conclusion:

Tech nodes directly impact the cost of semiconductor manufacturing. Smaller tech nodes offer improved performance and efficiency, but they come with higher manufacturing costs due to increased complexity, lower yields, and the need for new equipment and R&D investments. Companies like Apple carefully evaluate these factors to strike a balance between technological advancements and cost-effectiveness in their product offerings.

Hence, the world is crazy about tech nodes in semiconductors because they directly impact the performance and efficiency of electronic devices like smartphones, computers, IoT devices, and more. Companies like Apple constantly strive to use the latest and most advanced tech nodes to push the boundaries of what their products can achieve in terms of speed, capabilities, and power efficiency. As technology continues to evolve, the race to smaller and more efficient tech nodes remains a key factor in driving innovation in the tech industry.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Priyadarshi is a prominent figure in the world of technology and semiconductors. With a deep passion for innovation and a keen understanding of the intricacies of the semiconductor industry, Kumar has established himself as a thought leader and expert in the field. He is the founder of Techovedas, India’s first semiconductor and AI tech media company, where he shares insights, analysis, and trends related to the semiconductor and AI industries.

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. He couldn’t find joy working in the fab and moved to India. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL)

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