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42 SMT007 MAGAZINE I JANUARY 2023 e ability to build multiple plants engaged in high-volume manufacturing is important; the more a company manufactures, the bet- ter they get at it. Yield—the percentage of chips that aren't discarded—is the key mea- sure. Anything less than 90% is a problem. But chipmakers only exceed that level by learning expensive lessons repeatedly and building on that knowledge. e brutal economics of the industry mean fewer companies can afford to keep up. Most of the roughly 14 billion smartphone proces- sors shipped each year are made by TSMC. Intel has 80% of the market for computer pro- cessors. Samsung dominates in memory chips. For everyone else, including many new and aspiring companies in China, it's not easy to break in. (Source: Bloomberg) • Many NA fabs already, expanding foundry capability in 2024 (TSMC, Intl, Samsung)—fabless model • It should be noted that there is significant advanced packaging development at the foundries • Fabless model growth and success (Qualcomm, Broadcom, NVIDIA, MediaTek, AMD, Apple) Migration to Chiplets Chiplets will be a key enabler for next 10-20 years. With the high cost of monolithic inte- gration, it is no longer possible to achieve the same economic advantages as was once observed. Rising manufacturing costs include up front expenses such as mask sets and cost per chip, increased complexity of design rules in leading-edge nodes, and the architectural challenges of meeting the relentless demand for more and more computation power. In response, there is a trend toward disintegra- tion of system on chips (SoCs) into multiple smaller chiplets (Figures 3–5). Figure 1.