The Chip insider: Tales behind the Crunch

Abu Bakr Siddiq
Just to talk about
Published in
5 min readFeb 23, 2024

Have you ever wondered about the tiny chips that power our everyday gadgets? From smartphones to missiles, these chips have revolutionized the world of electronics. But have you ever thought about their history? In this article, I’ll take you on a journey through time, exploring the tales that have shaped the evolution of chips and the electronics industry as we know it today. So fasten your seatbelts and get ready to learn about the fascinating history behind these tiny yet mighty devices.

The story of chips began after World War II, a time when steel reigned supreme. Back then, a simple computer was a behemoth machine, consisting of more than 18000 vacuum tubes and taking up an entire room. The glow from these tubes attracted a horde of bugs, and the engineers spent much of their time “debugging” the machines. These computers were prone to failure, and there was a growing need for something that could replace the vacuum tubes. It was in late 1947 that Bardeen and Brattain from Bell Labs came up with the first semiconductor transistors, based on William Shockley’s theories. And so began the era of chips, which would change the course of history forever.

Shattered Genius: The broken dream of Shockley

Portrait of Shockley, by Gemini AI

Shockley was passionate about discovering semiconductor transistors himself, was fuming when someone else beat him to it. So, he left his job at Bell Labs and started his own firm, hoping to make a name for himself and a lot of money in the process. He put together a team of eight people who would help him achieve his dream. However, things did not go as planned, and the team eventually left Shockley due to differences. After which many of his employees went on to establish Fairchild Semiconductors, which eventually led to the creation of the titans of today’s chip industry, INTEL and AMD. While Shockley’s dream did not come true, his legacy lives on.

Flipping perspectives: The invention of photolithography

We all know that the smaller the size of a chip, the better! A smaller chip not only allows us to add more transistors to it, but also helps in reducing the power consumption. And this trend of miniaturization is not new, it has been going on for decades. Back in the day, we were only able to put a few transistors on a chip, but then came along Jay Lathrop with his genius idea to miniaturize chips. He turned the microscope upside down and projected a big chip design onto a small chip. This allowed for the pattern to be printed on chips, and thus began the journey of miniaturization. And guess what? Even today we use the same principles with Extreme UV light to print transistors of ever smaller sizes.

The Samurai Charge: Japan enters the chip industry

Modern age Samurai, by Gemini AI

After the devastation caused by the nuclear bombing, Japan fell under American control, and Americans encouraged commercialization in Japan. They started promoting the semiconductor industry, which turned out to be the game-changer Japan needed. From being minnows in the field, they became experts in DRAM (memory chips) in just a decade. This was the start of the success story of many Japanese companies, including Sony, founded by Akio Morito, who became a household name in the consumer electronics business worldwide.

However, the rise of Japan in the DRAM manufacturing space made America uneasy, and they decided to impose trade restrictions. A worthy adversary in the DRAM industry was needed to compete with the Japanese manufacturing might, and Micron was born. Interestingly, Micron was founded by a potato chips tycoon who believed that there was not much difference between potato chips and silicon chips. With Micron's efficiencies, frugal technique, and manufacturing discipline soon took a lead in the DRAM space and slowed down the Samurai nation’s charge.

The S-Pop phenomenon: Samsung’s symphony in innovation

Koreans Endorsing Chips, by Gemini AI

After Japan pulled out, American firms were in dire need of an offshore facility to help in chip manufacturing, and that’s when South Korea jumped in. The South Korean government saw this as an opportunity to better its economic state, and soon, with the help of conducive policies, the country’s flagbearer, Samsung, entered the game. But wait for it - Samsung started as a fish trading company! That’s right, you heard it correctly. From fish to chips, Samsung’s transformation into a leader in the electronics industry is absolutely miraculous! The company started with basic memory chips (DRAM) fabrication, and soon moved on to designing and manufacturing its chips. Today, Samsung contributes about 20% of Korea’s GDP, and is a leader in world innovation.

TSMC: Pioneering the Semiconductor Battlefield

A chip inspired battle, by Gemini AI
A chip inspired battle, by Gemini AI

The world of chip fabrication is a complex and costly one, requiring significant investments to set up fab labs. However, not everyone can afford to have an in-house facility. This is where the fabless revolution comes in, enabling companies to design chips that can be fabricated elsewhere. Taiwan, in particular, saw the potential of this approach and created the Taiwan Semiconductor Manufacturing Company (TSMC). Today, TSMC is the backbone of the semiconductor industry, producing half of all chips and 90% of advanced chips. China has also recognized the importance of chip sector and is attempting to develop its own semiconductor industry. As the semiconductor battlefront unfolds in the Taiwan Strait, the question remains: will China succeed in establishing its own semiconductor industry?

The process of manufacturing a chip can be incredibly complex and challenging. The laser alone used in the fabrication process requires 500,000 parts, with many more advanced parts and software used that are only manufactured by single companies in parts of the Netherland, Germany, and other countries. Even large companies like Nvidia, AMD, Apple, and INTEL have opted to outsource their fabrication needs to specialized labs such as TSMC.

If you are still contemplating about entering the semiconductor industry, May God save you!

Reference:

This article is based on the Book “Chip War” by Chris Miller

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