In an attempt to develop an advanced stacking technology, International Business Machines Corp. (IBM) recently entered into a partnership with Minnesota-based materials company 3M. Through this collaboration, IBM intends to develop a new material, which will help it to stack 100 or more chips together to build microprocessors that can be used for commercial purposes.
IBM believes that the new microprocessors produced by the technology will have much greater computing and data-storage capability and will utilize much smaller space compared to leading-edge chips that are currently in use.
Stacking of multiple chips is not a new concept. In fact, it is a common process in the semiconductor industry (mostly used for memory chips) and is widely used in small devices such as cellphones. However, IBM’s scale is much larger than the common process and stacking of chips is considered problematic due to the large amount of heat generated by these chips.
3M is currently developing an adhesive, which will safely conduct heat away from the chips. 3M and IBM plan to apply these adhesives to silicon wafers, coating hundreds or even thousands of chips at a single time. Current processes are akin to frosting a cake slice-by-slice.
Under the agreement, IBM will draw on its expertise in creating unique semiconductor packaging processes, and 3M will provide its expertise in developing and manufacturing adhesive materials.
IBM will use through-silicon via (TSV) technology, which essentially comprises vertical connections etched through the silicon wafer and filled with metal. It is expected that TSV would allow multiple chips to be stacked together, allowing greater amounts of information to be passed between the chips.
This will help IBM to build 3-Dimensional (3D) stack chips, which can be 1000 times faster than the horizontal 2D chip, and therefore will help in building powerful portable devices, personal computers and server systems.
3D Chips: IBM versus Intel
Several companies and research institutes all over the world are currently working on the development of 3D system integration technologies. 3D integration technologies based on stacking of chips are currently used by many companies all over the world, including Intel Corp. (INTC).
In May 2011, Intel announced that it would implement three-dimensional transistors (known as tri-gate) in chips that are manufactured using its latest 22-nanometer manufacturing technology. Tri-gate transistors will replace flat, 2D streams of transistors with a 3D structure. A flat, 2-D planar gate will be replaced by a thin, 3D fin that rises up vertically from the silicon substrate.
Intel claimed that the 3D transistors can switch 37% faster than those made with its existing 32-nm process in chips that operate at low voltage, or 18% faster in chips that operate at high voltage. This will reduce power consumption, minimize the size of individual transistors and improve their efficiency.
However, IBM claims that its technology is different from Intel’s. Intel’s technology is not multi-layered like IBM; it is merely a more complicated shape for the single layer of transistors. IBM believes that the stacking of chips rather than miniaturization at current dimensions will be much more effective in speeding up computing at reduced power usage going forward.
Our Take
3D chip packaging technology is expected to play an increasingly important role in the overall semiconductor industry and has immense potential going forward. There is a huge demand for smaller devices, which are capable of doing everything similar to a big device. We believe the stacking chip technology will be able to meet this demand going forward.
IBM has been a pioneer of 3D technology and has been conducting researches over the last 10 years. We believe IBM’s solutions will help in advancing the stacking technology going forward.
However, IBM faces stiff competition in this particular market from a number of semiconductor companies such as GlobalFoundries Inc., Hynix Semiconductor Inc., Intel, Micron Technology Inc. (MU), Samsung Electronics Co. Ltd., Sony Corporation (SNE), Tezzaron Semiconductor Corporation, Toshiba Semiconductors, Ziptronix Inc.
We maintain our Neutral rating on IBM over the long term (6-12 months). Currently, IBM has a Zacks #3 Rank, which implies a Hold rating on a near-term basis.