Microeconomics of advanced process window control for 50-nm gates

Fundamentally, advanced process control enables accelerated design-rule reduction, but simple microeconomic models that directly link the effects of advanced process control to profitability are rare or non-existent. In this work, we derive these links using a simplified model for the rate of profit generated by the semiconductor manufacturing process. We use it to explain why and how microprocessor manufacturers strive to avoid commoditization by producing only the number of dies required to satisfy the time-varying demand in each performance segment. This strategy is realized using the tactic known as speed binning, the deliberate creation of an unnatural distribution of microprocessor performance that varies according to market demand. We show that the ability of APC to achieve these economic objectives may be limited by variability in the larger manufacturing context, including measurement delays and process window variation.