The escalating trade tensions between the U.S. and China, coupled with Japan's export restrictions in 2019, underscored the importance of economic security in key industries. This trend, amplified by the global semiconductor supply chain crisis, has led major domestic Integrated Device Manufacturers (IDMs) to prioritize the localization of key materials, components, and equipment. Additionally, these companies have begun exploring investment opportunities with prominent overseas suppliers. Against this backdrop, Looxent conducted a project focused on exploring Japan’s semiconductor supply chain and identifying viable investment opportunities.
Technological Evolution in Semiconductor Processes
The adoption of Extreme Ultraviolet (EUV) lithography has driven process miniaturization to the sub-nanometer scale, sparking significant technological advancements:
- EUV Lithography Ecosystem: Increasing adoption of EUV photoresists and ancillary materials.
- High Aspect Ratio Etching: Expansion of plasma and cryogenic etching technologies.
- Atomic Layer Deposition (ALD): Advanced deposition techniques for next-generation materials.
- Inspection Technology: Transition to multi-beam and e-beam systems for enhanced throughput and pattern alignment.
- Advanced Packaging (PKG): Integration of innovative methods such as Through-Silicon Via (TSV) and 3D stacking to meet high-speed processing needs.
These advancements have led to more process steps, necessitating continuous productivity improvements and substantial investments in related technologies.
Key Insights on Equipment and Materials
- Photolithography: EUV equipment, led by ASML, faces increasing demand, with EUV photoresists and ancillary materials becoming critical for future ecosystems.
- Etching: Technological advancements include high-selectivity, eco-friendly etching gases and next-generation cryogenic equipment, primarily developed by LAM Research.
- Deposition: High-k precursors and ALD equipment are driving next-gen deposition processes.
- CMP: Integration of advanced metal-based slurries to support precision machining.
- Inspection (MI): The adoption of multi-beam inspection systems addresses throughput and resolution challenges, while advanced CD and overlay tools enhance pattern alignment within stacked structures.
- Advanced Packaging: Emerging techniques like TSV and 3D stacking are reshaping PKG processes, driving related material and equipment development.
Approach to Value-Chain Analysis
Looxent defined the status and trends of key equipment and materials for each process step, analyzing the supply chain structures of global leaders, particularly focusing on Japanese suppliers. Recognizing the challenges associated with engaging Tier-1 vendors—dominated by established players—Looxent concentrated on Tier-2 and Tier-3 vendors. These smaller suppliers often possess cutting-edge technologies and high growth potential, making them attractive investment opportunities.
To ensure accuracy, Looxent conducted rigorous assessments of proprietary technologies, including detailed reviews of patent lists and evaluations of patent competitiveness. This comprehensive methodology facilitated the identification of high-potential items and promising companies within the semiconductor value chain.
Looxent provided the client with a detailed value-chain study for each semiconductor process step and a curated list of final investment targets. The client plans to conduct further evaluations of the identified targets' investment feasibility, leveraging the insights to make informed strategic decisions.
This project demonstrated Looxent’s ability to navigate complex supply chain structures and provide actionable insights. By mapping the semiconductor process value chain and evaluating the competitive landscape, the client is positioned to strengthen its supply chain resilience, enhance technological autonomy, and secure strategic advantages in the evolving semiconductor ecosystem.
The escalating trade tensions between the U.S. and China, coupled with Japan's export restrictions in 2019, underscored the importance of economic security in key industries. This trend, amplified by the global semiconductor supply chain crisis, has led major domestic Integrated Device Manufacturers (IDMs) to prioritize the localization of key materials, components, and equipment. Additionally, these companies have begun exploring investment opportunities with prominent overseas suppliers. Against this backdrop, Looxent conducted a project focused on exploring Japan’s semiconductor supply chain and identifying viable investment opportunities.
Technological Evolution in Semiconductor Processes
The adoption of Extreme Ultraviolet (EUV) lithography has driven process miniaturization to the sub-nanometer scale, sparking significant technological advancements:
These advancements have led to more process steps, necessitating continuous productivity improvements and substantial investments in related technologies.
Key Insights on Equipment and Materials
Approach to Value-Chain Analysis
Looxent defined the status and trends of key equipment and materials for each process step, analyzing the supply chain structures of global leaders, particularly focusing on Japanese suppliers. Recognizing the challenges associated with engaging Tier-1 vendors—dominated by established players—Looxent concentrated on Tier-2 and Tier-3 vendors. These smaller suppliers often possess cutting-edge technologies and high growth potential, making them attractive investment opportunities.
To ensure accuracy, Looxent conducted rigorous assessments of proprietary technologies, including detailed reviews of patent lists and evaluations of patent competitiveness. This comprehensive methodology facilitated the identification of high-potential items and promising companies within the semiconductor value chain.
Looxent provided the client with a detailed value-chain study for each semiconductor process step and a curated list of final investment targets. The client plans to conduct further evaluations of the identified targets' investment feasibility, leveraging the insights to make informed strategic decisions.
This project demonstrated Looxent’s ability to navigate complex supply chain structures and provide actionable insights. By mapping the semiconductor process value chain and evaluating the competitive landscape, the client is positioned to strengthen its supply chain resilience, enhance technological autonomy, and secure strategic advantages in the evolving semiconductor ecosystem.