Chip Design & Fabrication Layer

Chip Design & Fabrication Layer

The silicon foundation — from architecture to wafer fabrication

Chip Design & Fabrication Layer

The semiconductor layer is the bedrock of the AI factory. Every FLOP of AI compute originates here — in the transistor-level decisions made by architects and the atomic-scale precision of fabrication.

The Value Chain

graph LR
    A[Architecture & RTL] --> B[EDA & Verification]
    B --> C[Mask Making]
    C --> D[Wafer Fabrication]
    D --> E[Advanced Packaging]
    E --> F[Test & Assembly]

1. Chip Architecture & Design

Key Players: NVIDIA, AMD, Google, Amazon, Microsoft, Cerebras, Groq, Graphcore, Tenstorrent

CompanyArchitectureProcess NodeKey Products
NVIDIABlackwell, Hopper, AmpereTSMC 4N/3NB200, H100, GB200 NVL72
AMDCDNA, RDNATSMC 5nm/3nmMI300X, MI325X, MI350
GoogleTPU v5/v6TSMC 5nm/3nmTrillium, v5p, v6
AmazonTrainium/InferentiaTSMC 7nm/5nmTrainium2, Inferentia2
MicrosoftMaiaTSMC 5nmMaia 100, Cobalt 100
CerebrasWafer-Scale EngineTSMC 7nm/5nmWSE-3, CS-3
GroqLPUTSMC 14nm/4nmGroqChip, GroqRack

2. EDA Tools & IP (The “Compiler” for Silicon)

Key Players: Synopsys, Cadence, Siemens EDA, Arm, Imagination Technologies

  • Synopsys: DesignWare IP, Fusion Compiler, PrimeTime, VCS simulation
  • Cadence: Genus, Innovus, JasperGold, Palladium emulation
  • Siemens EDA: Calibre, Questa, Tessent, Catapult HLS
  • Arm: Neoverse V2/V3, Cortex-X, Total Compute solutions

3. Wafer Fabrication (Foundries)

Key Players: TSMC, Samsung Foundry, Intel Foundry, GlobalFoundries

FoundryLeading NodeCapacity (wafers/mo)AI Revenue Share
TSMCN3/N3E/N3P/N2~1.4M (300mm equiv)~60%+
SamsungSF3/SF2~500K~15%
Intel18A/14A~300K (ramping)~5%
GlobalFoundries12nm/22nm FDX~800KSpecialty

Critical Bottleneck: ASML EUV Lithography

  • High-NA EUV (EXE:5000): $380M per tool, 1-2 year lead time
  • Global installed base: ~180 EUV tools (mostly Low-NA)
  • TSMC consumes ~70% of global EUV capacity

4. Advanced Packaging (The New Moore’s Law)

Key Players: TSMC, Amkor, ASE, Intel, Samsung

TechnologyProviderApplicationStatus
CoWoS-STSMCH100, H200, B100Volume production
CoWoS-LTSMCB200, MI300X, BlackwellRamping (bottleneck)
CoWoS-RTSMCFuture HBM4Development
SoICTSMC3D stacking, cache on computeLimited volume
EMIB/FoverosIntelPonte Vecchio, Falcon ShoresRamping
I-Cube/H-CubeSamsungHBM integrationVolume

CoWoS Capacity Crisis (2024-2025):

  • TSMC CoWoS capacity: ~35K wafers/month (2024) → ~60K (2025 target)
  • NVIDIA alone needs ~60% of CoWoS-L for Blackwell
  • 18-24 month order backlogs

5. High-Bandwidth Memory (HBM)

Key Players: SK Hynix, Samsung, Micron

GenerationBandwidthCapacityStack HeightKey Customers
HBM3819 GB/s24GB8-hiH100, MI300
HBM3E1.2 TB/s24-36GB8-12-hiB200, MI325X, GB200
HBM41.5+ TB/s48GB+12-16-hi2025/2026 (Rubin, MI400)

Market Share (2024):

  • SK Hynix: ~50% (HBM3E leader)
  • Samsung: ~40% (catching up on HBM3E 12-hi)
  • Micron: ~10% (ramping HBM3E)

Investment Requirements (Per AI Factory)

ComponentCapEx per 100K GPU ClusterLead Time
Wafer allocation (TSMC N3)$2-3B12-18 months
CoWoS-L packaging$500M-1B18-24 months
HBM3E 12-hi supply$1-2B12-18 months
Test & assembly$200-500M6-12 months

The chip layer determines the maximum theoretical performance of the entire AI factory. Every downstream layer — servers, racks, datacenters, power — exists to feed and cool these silicon engines.