Semiconductors | From Sand to Supercomputers

Many investors have heard of microchip manufacturers such as Nvidia, AMD, Intel, TSM, Qualcomm and Samsung needing semiconductors for their products. But where do the materials come from, and is the shortage really the cause behind the lack of chip supply globally?

As a foregone conclusion, we can mention that the problem with the supply of semiconductor it is not a matter of the raw materials used. Since they are among the most abundant on the planet, nor of precious metals, since they are used in small quantities.

On the other hand, the photolithography machinery required for production, although expensive, mostly represents occasional and non-recurring investments.

In other words, to better understand what may be the cause of this limitation of chips in the market, we must first understand what materials and processes are required.

A microchip is the result of the extraction and processing of semiconductor materials that are then printed with the patterns needed to operate a processor.

Some semiconductor materials are:

• Silicon (Si): A good semiconductor, it allows electricity to pass through while acting as an insulator at the same time. Silicon of 96-99% purity is manufactured by reducing sand with pure coke. The largest producers are China (responsible for extracting 5,400,000 tons each year), followed by Russia, Brazil, Norway, the United States and France. One of the largest processors of this material is the Japanese company Shin Etsu Chemical. It supplies metalloid silicone cylinders for the production of wafers.

• Gallium Nitride (GaN): Obtained by smelting gallium and mixing it with nitrogen to create a crystalline structure, most commercial gallium is extracted as a by-product of aluminum and zinc production. Its largest extractors are Australia, Russia, France and Germany. Companies producing GaN are Wolfspeed, Aluminum Corporation of China and Neo Performance Materials.

• Precious Metals (gold, silver and palladium): are used in their purest forms to develop processor connector pins for all kinds of applications. However, due to their size, the amount in each is only 1/5 of a gram.

• The technology sector accounts for about 8% of global gold demand. The main suppliers of these metals are, in order: Australia, Brazil, Russia, the United States and Canada. Some of the leading companies are Newmont Mining Corp, Barrick Gold Corporation and Vale.

Print a microchip with semi-conductors

This process is not as simple as it sounds, as it requires a very special and precise printer. It must be in an extremely clean environment that could be compared to an operating room, as any contaminant can ruin the final product.

First, a silicon wafer, provided by companies such as SUMCO Corp, is obtained, which must be cleaned and polished to perfection to ensure accurate and durable circuit etching.

Instruments known as "surface preparers" are used to treat the wafers, which are provided by manufacturers such as LAM Research and Tokyo Electron in conjunction with special cleaning supplies such as solvents, solutions and alcohols developed for the specific semiconductor application by companies such as Chan Chun Group.