It grasps the lifeblood of Intel, Samsung and TSMC
Speaking of photolithography, the machine that only a few companies around the world can produce is known as the flower of modern industry. And in the field of high-end lithography, ASML is the undisputed hegemon. Why is that? ASML is a major supplier and manufacturer of semiconductor lithography systems. More than 90% of the high-end market share is occupied by ASML. And due to the cost of research and development and related technical difficulties, Nikon and Canon are gradually abandoning the high-end lithography market.
Especially in the field of EUV (Extreme Ultraviolet) lithography, the only one in the world that can manufacture EUV lithography is Esmor. Because of its complete monopoly on the EUV lithography market, Esmor has a firm grip on the lifeblood of three world-class tech giants: Intel, Samsung and TSMC. So why did Canon and Nikon give up the high-end lithography market? The truth is, there's no way around it.
First of all, Exmoor has strong partners. In the world's lithography field, the number of patent applications, Germany's Zeiss is the first, Esmor is the second, while South Korea's Hynix is the third. As a result, the first and third are still partners of Asmor.
Furthermore, there is a unique model of cooperation with Esmor. There is only one way to get priority supply from Esmole, and that is to take a stake in Esmole. So, Intel, TSMC, Samsung with 4.1 billion euros, 838 million euros and 503 million euros into the Esmoor.
The last point, the amazing R & D investment of Esmoor. Every year, Esmoor has to take out 30% of its revenue for R&D, which is roughly 1.3 billion euros. And that's only half of Esmole's R&D costs. Where does the other half come from, you must ask? This is very interesting, the other half by the three semiconductor giants Intel, TSMC, Samsung out. That's awesome, it's a great way to get a huge amount of money and also form a **** same interest body, it's like killing two birds with one stone.
If you think that's the best thing about Esmole, you're wrong.
Only 18 machines a year, and one sells for $870 million!
Currently, state-of-the-art EUV lithography machines can make chips up to 7 nm. 7 nm is a what concept?1 mm = 1,000,000 nm. So, this kind of precision can be imagined. It is such exquisite technology in the hands of a company, resulting in monopoly. And photolithography is not want to make can be made, a year can make a hundred is very good, and EUV photolithography manufacturing is even more difficult.
According to the 2018 financial report released by Esmole, the global photolithography shipments totaled 294 units in 2017, of which, Esmole accounted for 68%, of which 11 EUV photolithography machines are all made by Esmole. Each of these 11 lithography machines was sold for more than 100 million euros (equivalent to RMB 870 million.) In 2018, Acemore's annual revenue was 10.9 billion euros (equivalent to RMB 82.5 billion), while only 18 EUV lithography machines were made.
What's the concept of $870 million for one machine? Let's take a more understandable example, let's take the Boeing 737 MAX made by Boeing. According to Boeing, a discounted Boeing 737-800 is quoted at $80 million (RMB 560 million), which means that an EUV lithography machine is more than 300 million more expensive than a Boeing 737!
The main airplane you want to buy can still buy, while EUV lithography is not yet you want to buy can buy. Currently, China can only buy low to mid-range products from Exmoor as well.
China's chip manufacturing industry
Previously, there was news that SMIC had purchased an EUV lithography machine from Exmoor. The reason for the lack of domestic purchases is that EUV lithography is suitable for processes below 7 nanometers, while domestic mass-produced chips are still at 14 and 28 nanometers.
But in recent years, the domestic chip industry is booming. Take Huawei Haisi, burning billions of dollars a year to engage in research and development, not only to break the monopoly of foreign countries but also to enter the international market, to take the United States of America's digital camera market of less than 200 U.S. dollars, and even the world's top 500 Honeywell have adopted the Haisi chip.
In addition to Huawei, Spreadtrum Communications has become a rising chip giant in recent years. Last year, its baseband chip shipments accounted for about 27% of the world, about 700 million sets, second only to Qualcomm and MediaTek Pai, becoming the world's third world-class giant in shipments. And its single product SC6531 (cell phone chip) shipments even force Qualcomm, MediaTek.