Issue link: https://iconnect007.uberflip.com/i/1490123
16 PCB007 MAGAZINE I JANUARY 2023 First, you would need to select the process for these advanced substrates. Next, you would see what equipment is available, including plat- ing chemistries. Johnson: If a U.S. company wanted to move into this area, would it make sense to do it in small steps, small volumes first? Vardaman: Yes, you would first build a proto- type line. But a production line will cost at least $300 million—I don't think you can do it for much less, given the equipment cost. To do this properly, an inspection system for metrol- ogy alone will be $1 million, and another $1.2 million for the lithography equipment. What's the total once you list out everything from the ground to the building to the equip- ment? Johnson: Is there room for the typical U.S. PCB fabricator to get into this business? Vardaman: TTM bought the Endicott line and moved it to Wi s cons in , s o cer tainly they're pursuing that. Obviously, you could do this. Historically, some printed circuit board suppliers have moved into IC substrate fabrication, but it's been a process over time. Remember, for the next generation of inter- connect, it is not clear what level of commit- ment you must have. Johnson: It seems to me like this is an opportu- nity for some of those large OEMs, who need this technology, to put together a consortium and build their own facility. Vardaman: ose companies design stuff and have it fabricated at high margin. Substrate fab is a low margin business. ey're not interested in lowering their gross mar- gins by investing in a low margin business. TSMC doesn't make substrates; they want to establish long-term agreements with peo- ple to supply the substrate. ey won't make their own and they won't put together a group to do it. Johnson: Funding a low margin business that allows you to reliably produce your high mar- gin product is one way to look at it. Vardaman: e numbers just aren't adding up. If you make a new process to make an advanced substrate process, maybe there's a different set of equipment that wouldn't be using this other set of equipment. We'll have to see what players bring that equipment to market. You also need to qualify it all, and it's very complicated. is hasn't happened because it's a very complicated process and procedure. Johnson: Right now, there is some government funding to help with this, if you put together the right proposal. Vardaman: ere's some government fund- ing, but it's only for a fixed period, so there's a question there. Fundamentally, we don't like to exit our existing supply chain; that's one of the problems we face. Johnson: Jan, thank you. is has been very helpful. Vardaman: You're welcome, glad we could chat. PCB007 Historically, some printed circuit board suppliers have moved into IC substrate fabrication, but it's been a process over time.