Can New Fab Capacity Support Legacy Parts?

In the rapidly evolving landscape of semiconductor manufacturing, the push towards smaller, faster and more energy-efficient components often captures the spotlight. However, an equally critical challenge that significantly impacts electronic designers and engineers is the support of legacy parts at new semiconductor fabs. These legacy components have stood the test of time and continue to play a pivotal role in many applications, providing a blend of reliability and performance that cannot always be met by the latest advancements.

The question of whether new fabs will be able to support the production of legacy parts is more than a matter of technological capability. It is a puzzle that intertwines considerations of economic viability, technical feasibility and strategic importance. As new fabs come online with cutting-edge technologies and increased capacities, will they be leveraged to ensure the continued availability of legacy parts?

The Role and Value of Legacy Parts

Many legacy parts have outlived their expected lifecycle and remain essential for various applications. These parts range from simple connectors and discrete components to more complex integrated circuits and microcontrollers. Despite the rapid pace of technological advancement, legacy parts remain in high demand in sectors such as automotive, industrial automation and defense due to their proven reliability, compatibility with existing systems, and, in some cases, unique functionalities that have not been replicated in newer components. The demand in these sectors will continue to drive efforts toward sustaining legacy part production.

Despite their importance, the production and support of legacy parts face several challenges. The primary issue is the obsolescence of manufacturing processes and equipment, which can make the continued production of these parts technically challenging and economically unviable. Additionally, sourcing raw materials for older components can become increasingly difficult as suppliers shift their focus to more profitable, modern products.

A Fab Building Boom is Underway

More than $300 billion worth of active semiconductor projects are in various stages of development with 42 new fabs expected to go online in 2024. The U.S. government is spurring this development with the $280 billion CHIPS act, which includes $52.7 billion earmarked for semiconductor manufacturing, R&D and workforce development. In addition, China has dedicated some $73 billion to semiconductor subsidies.

The advent of new fabrication capacities in the semiconductor industry represents a significant shift, bringing both opportunities and limitations when it comes to legacy parts. These state-of-the-art facilities promise increased production efficiencies, smaller feature sizes and reduced power consumption. 

While new fab capacities offer exciting opportunities for the semiconductor industry, their ability to support legacy part production is nuanced. It involves weighing the benefits of advanced manufacturing capabilities against the challenges of technical compatibility, economic viability and strategic resource allocation. The successful integration of legacy parts into new fab production lines requires careful planning, innovative solutions and new business models to make it a feasible and sustainable endeavor.

Integrating Legacy Parts into New Fabs

As the semiconductor industry continues to evolve, the future of legacy part support is shaping up to be a complex yet vital aspect of the sector. This future is influenced by various factors, including technological advancements, market demands and strategic industry shifts. A few of the innovations and strategies being deployed to assure the supply of legacy chips include:

Advanced fab retrofitting techniques: One emerging approach is the development of advanced retrofitting techniques that enable legacy parts to be manufactured using modern fab technologies. This involves adapting older component designs to be compatible with new manufacturing processes, potentially offering a balance between the old and the new.

Specialized fab units for legacy production: Some industry players are considering the establishment of specialized fab units dedicated to legacy part production. These units will operate alongside modern fabs but focus solely on the production of legacy components, ensuring their continuous supply without interfering with the production of more advanced semiconductors.

Collaborative ecosystems: The establishment of collaborative ecosystems involving chip manufacturers, equipment suppliers and end-users is crucial. Such collaborations can foster innovation in legacy part production and ensure that the needs of various industries relying on these components are effectively met.

Case Studies: Successes and Challenges

In exploring the integration of legacy part production into new fabs, a few examples offer insights into the successes and challenges faced in this endeavor.

Texas Instruments (TI) analog production in new 300-mm wafer fabs: TI has made strides in balancing new and legacy part production. They are building new 300-mm wafer fabs specifically to serve their analog production needs at less than cutting-edge nodes. “This new fab is part of our long-term, 300-mm manufacturing roadmap to build the capacity our customers will need for decades to come," said Haviv Ilan, President and CEO at TI. This strategic approach demonstrates the feasibility of leveraging new fab capacities for legacy part production​​.

Samsung's expansion with legacy nodes: Samsung Foundry has expanded its capacity to include legacy nodes, demonstrating a recognition of the ongoing demand for such components. This move is part of a broader strategy to increase productivity and remain competitive in the semiconductor market, showing a successful integration of legacy and modern production capabilities​​.

Recent automotive industry legacy chip shortages: The U.S. automotive industry faced significant challenges due to shortages of legacy chips during the Covid-19 pandemic. Despite high production capacities, the domestic supply could not meet the demand for legacy chips, particularly those at the 40nm node or larger. This shortage severely impacted U.S. auto production, substantially reducing vehicle manufacturing schedules and contributing to inflation​​.

While companies like Texas Instruments and Samsung have demonstrated successful strategies, the broader industry still faces challenges in addressing all the issues and ramifications of supporting legacy part production in new fabs. 

The Future of Legacy Part Support

One of the main challenges in supporting legacy parts will be balancing the cost of production with technological feasibility. Adapting older designs to new manufacturing processes can be expensive, and the economic viability of these efforts will be a key consideration. In addition, the supply chain for legacy parts will need to adapt to changes in manufacturing processes and material availability. This could involve finding new suppliers or developing alternative materials that are compatible with both old and new manufacturing technologies.

Looking ahead, the support for legacy parts in new fab capacities is not merely a technical issue – it is a strategic imperative that requires a concerted effort from many stakeholders. From policymakers to manufacturers and from suppliers to end-users, a collaborative approach is critical. As the industry continues to innovate and grow, the successful integration of legacy part production into new fabs will stand as a testament to the industry’s ability to honor its past while forging a sustainable and progressive future.

Learn More on the Octopart YouTube Channel

In our recent video "The Semiconductor Landscape: Balancing Legacy Vs. Modern," Joel delves into the semiconductor industry's challenge of supporting both legacy and modern technologies within fabrication facilities. The video outlines the significant role that legacy semiconductors continue to play due to their proven reliability and unique functionalities, which are crucial for many industries.

Additionally, it discusses the industry's efforts in juggling the production of these older parts alongside cutting-edge components through innovative approaches such as advanced retrofitting and the development of specialized legacy fab houses. Key points emphasized include the ongoing demand for legacy parts, the balance of new and old production techniques, and the crucial need for collaboration among manufacturers, suppliers, and end-users to navigate the complexities of the semiconductor ecosystem effectively.

This exploration highlights the dynamic interplay between maintaining valuable legacy technologies and embracing modern advancements to sustain a robust semiconductor landscape.