Substrate, a San Franisco-based chipmaking equipment startup, is looking to make a splash in the semiconductor manufacturing space with a system it claims rivals the most advanced extreme ultraviolet (EUV) lithography tools.
According to a report from Reuters, Substrate’s tool is part of a larger strategy to build a chip-manufacturing business that could ultimately compete with Taiwan Semiconductor Manufacturing Co (TSMC).
The report said that Substrate would slash the cost of chipmaking by producing cheaper tools than rivals like ASML that is the main vendor producing EUV machines. The company said it could cut the cost of wafer tools from about $100,000 to about $10,000 by the end of the decade.
EUV lithography tools generate light that allow etching of features on advanced chips like AI, smartphones and computer semiconductors. More advanced tools like High-NA technology are used for even more advanced systems.
The startup has raised $100 million through investment firms In-Q-Tel, General Catalyst, Allen & Co, Long Journey Ventures and Valor Equity Partners.
Long climb
The lofty ambitions of Substrate are not just to replace ASML but to eventually challenge the world’s largest foundry and chipmaker, TSMC.
This would include building a network of its own fabs equipped with its own lithography machines. This large-scale production could begin as early as 2028, the report said.
However, this is a long climb considering the lead both of these companies have over Substrate.
Just having fabs and equipment is one piece of the puzzle but maintaining accuracy and reliability for wafers operating at high speeds is extremely difficult.
Market research firm Trendforce said that Chinese firms have spent years trying to overcome similar hurdles with no success.
