When looking at the top 25 in the market share ranking, the three European semiconductor companies total a worldwide semiconductor revenue of $26.484 billion, still below the $31.289 billion performance of Intel alone (first of the list even if declining 9.5 percent in revenue versus 2005).
2-Cost of nanotechnologies
-It is known that process R&D, design and manufacturing costs are skyrocketing when moving to 45-nm node and below.
-This means that only a few organizations worldwide will be able to support such costs that should be driven by a significant worldwide market share.
-Consequently, there is a mandatory need of synergetic cooperation move underlying this statement among the semiconductor companies to survive.
-Pure foundry business is likely to be limited to purely digital products in the short term.
-Following the cost factors given in the following figure, an amount of $5.4 billion is necessary as an entry ticket to enter the 45-nm game (Fab and Process R&D costs).
Source: EETimes 03/30/2007
-then there is a need of a strong design team to address the new challenges of designing hundred million gates, with careful handling of low power consumption, manufacturability including variability contribution and dependability (versus process, soft errors, EMC…).Costs of designing are estimated to run between $20 to $50 million.
-mask costs for a single product are evaluated at $9 million.
3-Interdependence between product and process
Taking as an example the Intel dual core 64b Merom processor (ISSCC 2007 paper 5.6), the main chip applications covers several domains of the server/desktop/mobile markets:
See related image