Semiconductor Equipment

Report: Intel and 14 Japanese vendors to develop back-end chipmaking

10 May 2024

Intel Corp. and 14 Japanese companies are collaborating to develop automated back-end semiconductor processors such as packaging.

According to a report from Nikkei News, the goal will be to achieve automation by 2028 to stave off reduced geopolitical risks in the semiconductor supply chain.

Some of the companies that intel is working with include:

  • Omron
  • Yamaha Motor
  • Resonac
  • Shin-Etsu Polymer

Intel and the Japanese vendors will invest hundreds of billions of Japanese Yen in R&D. According to data from market research firm TrendForce, the Japanese government earlier this year approved a $344.1 million subsidy to Rapidus to assist in back-end technology development.

Additional incentives will be offered to global back-end capacity providers to establish operations in Japan, TrendForce said.

Why it is needed

Back-end semiconductor practices are becoming a more important aspect of the chip manufacturing process with renewed focus on chip stacking and advanced packaging.

Currently, back-end processes are carried out through manual labor and is mostly completed in factories in China and other areas of Southeast Asia. Establishing plants in Japan and the U.S. will require automated back-end technologies because the labor costs are higher in these countries compared to China.

Under the alliance, Japanese vendors will establish back-end production lines aimed at full automation including manage and control manufacturing, inspection and equipment processing procedures in a single system.

TrendForce said Japanese vendors have a 30% market share of the global chip production equipment market and about half of the semiconductor materials market.

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