Samsung Electronics has been confirmed to be planning to introduce extreme cold etching equipment from Tokyo Electron (TEL) for the mass production of 400-layer 10th generation (V10) NAND flash. Previously, Samsung Electronics had utilized only U.S. Lam Research equipment for the advanced extreme cold etching process of the previous generations V8 (236-layer) and V9 (286-layer) NAND flash. With TEL newly entering the supply chain of extreme cold etching equipment for the world's top NAND flash producer, Samsung Electronics, it is expected that there will be a crack in Lam Research's monopoly system.
According to the industry on the 24th, Samsung Electronics is said to be preparing to complete the mass production of V10 this year. In this process, it has been noted that Samsung Electronics plans to newly introduce TEL's extreme cold etching equipment. A senior official of Samsung Electronics said, "We have been using Lam Research's low-temperature and extreme cold etching equipment up to V8 and V9, but from V10 mass production, we plan to also utilize TEL equipment."
Etching is a process that engraves circuits on semiconductor wafers and removes unnecessary materials, being one of the key technologies in NAND flash production. Among them, extreme cold etching refers to the etching process conducted at temperatures ranging from -30 degrees to a maximum of -60 to -70 degrees, unlike the general etching process that normally occurs at around 20 degrees. The advantage of performing etching at low temperatures is that chemical reactions are less intense compared to high temperatures, allowing for precise etching of surfaces without a protective film, and enabling etching to be carried out up to three times faster.
U.S. Lam Research, along with U.S. Applied Materials and Dutch ASML, is considered one of the world's top three semiconductor equipment companies and is a strong player in the manufacturing of etching equipment. Lam Research holds over 50% market share in this field. In pursuit of the 400-layer NAND flash mass production, TEL has launched extreme cold etching equipment alongside Lam Research.
Since last year, Samsung Electronics is known to have introduced TEL's extreme cold etching equipment to its 3rd Pyeongtaek Campus (P3) NAND line, in addition to Lam Research, and has been conducting tests to apply it to the mass production of V10 and V11 NANDs. An official from the semiconductor industry noted that, "While we are receiving evaluations of falling behind in technological capabilities compared to competing companies in the advanced DRAM space, there is a strong determination to not lose control in the NAND flash market," adding, "Kioxia is ahead in the NAND flash stacking competition, leading to deeper considerations about not only process development but also equipment utilization strategies."
It is interpreted that Samsung Electronics aims to reduce its reliance on Lam Research for the mass production of V10 NAND, looking for cost reductions and stabilization of advanced equipment supply chains. Kwang Sung-cheol, a research fellow at the Semiconductor Display Technology Association, stated, "From the perspective of memory semiconductor corporations, the excessive dependence on specific equipment companies can be burdensome. If TEL has the necessary technological capabilities, it will be beneficial not only for cost reduction but also in terms of stabilizing the supply chain."
Earlier, TEL indicated during its earnings conference call that it expects revenue from advanced extreme cold etching equipment to begin this year. TEL stated, "Extreme cold etching equipment has been adopted for mass production by one customer, and other customers are conducting tests for mass production," and added that due to the demands for advanced process transitions from NAND flash memory companies, the market size for NAND flash is expected to grow more than twice compared to the previous year.