[HN Gopher] Semiconductor Startups - Are they back?
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       Semiconductor Startups - Are they back?
        
       Author : breck
       Score  : 69 points
       Date   : 2021-04-05 03:34 UTC (19 hours ago)
        
 (HTM) web link (semiwiki.com)
 (TXT) w3m dump (semiwiki.com)
        
       | ArtWomb wrote:
       | I'm very bullish on the entire sector. One incumbent vs startup
       | story to watch in the AI accelerator space is NVidia vs
       | Lightmatter, If they can realize the cost savings of photonic
       | computing it looks like a 5-7x improvement. NVidia's Megatron
       | trillion parameter language model requires astounding compute
       | capabilities: 3000+ A100 GPUs, And while I don't see GPU
       | dominance retreating through 2024 at least, as we get into
       | universal translation and global parallel corpora by the end of
       | the decade, the limits become apparent. And it probably won't be
       | talent, design or money that becomes the bottleneck. But the
       | relative difficulty of working with photonic crystals compared to
       | the low hanging fruit of silicon that has provided such a
       | bounteous harvest for the last 70 years.
       | 
       | https://github.com/NVIDIA/Megatron-LM
        
       | hypervisorxxx wrote:
       | No
       | 
       | - someone who worked at a semiconductor startup
        
         | person_of_color wrote:
         | I'm at FAANG hardware, and I never know when to leave to join a
         | startup for a big payday. In hindsight.. the Nuvia exit was
         | pretty obvious :(
         | 
         | Then again, so many other failures.
        
           | nrp wrote:
           | As someone who spent five years in Facebook doing hardware
           | after an acquisition, my advice is to save enough to be
           | comfortable and then apply your passion and knowledge to a
           | startup doing something you believe is worthwhile. Worst case
           | if it fails, you get to move the needle a bit in a space,
           | make useful connections, learn a bunch, and then bounce back
           | to a FAANG job.
        
             | person_of_color wrote:
             | FRL?
        
           | rektide wrote:
           | Exit before validation is so specious
        
             | person_of_color wrote:
             | Yeah, it's an expensive acquihire.
        
               | rektide wrote:
               | Expensive only means anything if you are not made of
               | money: these megacorps are literally made of money.
               | What's $1.4B to keep down a possible competitor? To keep
               | down someone who may have made their chips generally
               | usable? Who may have upstreamed support?
               | 
               | It's just unsatisfying to the world to have absolutely no
               | new evidence, no points of data, no benchmarks in
               | capitalism, no way to figure out what to expect of
               | product, when interesting companies are acquihired &
               | their efforts to do good pulled into the spider web of
               | megacorp-ism. The world literally learns nor understands
               | nothing, after Nuvia got bought. Whatever comes out will
               | be a synthetic other. Similar to so many other
               | acquisitions. The backing of the larger company changes
               | the effort itself, & diminishes the competitiveness of
               | the offering.
               | 
               | And the intent to support the thing well, the desire to
               | form a solid community: dead. The new corporate largess
               | defines the environment for whatever might ship. There
               | will be no radical new upstreamings, new mainlinings. It
               | will be business as usual, alas, most probably: closed,
               | highly proprietary vendor drops. An anti-free anti-
               | accessible system of chipmaking, unsupportability-writ-
               | large, re-asserting itself, over what might have been.
               | 
               | It seemed the world might get a sip of that sweet
               | ambrosia, but now we all sip again as we are permitted
               | from the great leadened chalices. Nothing new will be
               | offered.
        
               | rektide wrote:
               | Anti-trust now (and yesterday too). I can not believe
               | that the DoJ ended the anti-trust suit against
               | Qualcomm[1][2]. This is such capitol evidence about how
               | shitty chip-making is: everyone of potential value gets
               | immediately snatched by a colossus. This system is
               | poisoned. Why are the regulators doing nothing? Why is
               | there no back-pressure against this system of everyone
               | being acquired? Nothing new is ever permitted. Everything
               | is hideously broken.
               | 
               | [1] https://news.ycombinator.com/item?id=26629492
               | 
               | [2]
               | https://www.bloomberg.com/news/articles/2021-03-29/u-s-
               | aband...
        
       | Lramseyer wrote:
       | While my experience is mainly in digital hardware, my tinfoil hat
       | theory as to why the hardware startup scene is so lackluster is
       | because the EDA tools are expensive hot garbage. Not only are the
       | dev tools cost prohibitive, but so are the necessary analog
       | components like PLLs and PHYs (which are more or less required in
       | pretty much every modern VLSI design.)
       | 
       | The same companies that make the EDA tools also make IP blocks
       | that semiconductor companies purchase, so it's in their best
       | interest to prevent an open source hardware scene from thriving.
       | I get that making masks for a chip is expensive for a startup.
       | But if the design, verification, and layout steps were cheaper
       | and more streamlined, I would bet money that the fab costs would
       | work their way down in clever and creative ways.
        
         | baybal2 wrote:
         | While EDAs truly are ridiculous expensive garbage, their cost
         | is a pocket change in the age of billion dollar startups
         | without a selling product.
         | 
         | It's just you actually have to make some working product in
         | semiconductors, it's a substantial technical undertaking, and
         | thus a big turn off for the aforementioned billion dollar
         | internet startups.
        
           | varispeed wrote:
           | Isn't that, at least for digital application, many chips can
           | be replaced with FPGA, CPLD or just a good old CPU? Only
           | recently you can see some companies reproducing audio IC from
           | the 80s, but not much of original work. It seems like there
           | is a huge niche in that space, but probably companies think
           | it is too small to be profitable.
        
           | monocasa wrote:
           | The six figure per seat cost of cadence is a lot to the point
           | of being unobtainable for even early stage of what would
           | become unicorns.
           | 
           | It's not like giant checks are generally being written to
           | these startups that have no users and no engineering done
           | yet.
        
         | DivisionSol wrote:
         | I don my tinfoil hat with you. EDA tools are intentionally
         | opaque to maximize IP capture. I have no skin in the game, nor
         | do I have hardware/circuit development experience... But every
         | time I want to dabble as a Hobby-ist it's clear: "You're not
         | allowed to experiment."
         | 
         | Starting that train now is quite difficult. Lots of inertia to
         | overcome with pre-existing closed source tools being chosen by
         | default at colleges and companies.
        
         | tails4e wrote:
         | The EDA tools are often given for almost free to startups, as
         | the vendors recognise startups can't start without them, and if
         | they are too expensive to a fledgling company they are shooting
         | themselves in the foot. Startups get the tools, but not the
         | support. I'm in HW chip design and use EDA tools daily, and
         | while they are not always great, I would not be as concerned
         | about them for a startup as I would getting enough money to
         | create the first prototype, fab costs, lab equipment costs, man
         | years of engineering, and of course the IP.
        
           | monocasa wrote:
           | You need the support though to know why the crappy tools are
           | breaking your design and be able to hack around it.
        
       | jbay808 wrote:
       | It was sad to see what happened to Touchstone Semiconductors.
       | They made some really excellent components with no equal.
       | 
       | It seems like a VC pulled out, they were forced to sell to a big
       | company at a terrible price, and then that company discontinued
       | all their products shortly after.
       | 
       | https://www.edn.com/touchstone-semiconductor-falls-prey-to-h...
       | 
       | https://www.eetimes.com/touchstone-semi-sells-assets-to-sili...
       | 
       | https://www.silabs.com/documents/public/pcns/EOL-1609091-Tou...
        
         | anonytrary wrote:
         | Realistically, what happens to the IP in this case? Can the
         | original founders (or new party) just decide to restart and
         | roll with the same IP and find new VCs? Is the IP locked up
         | forever in the vaults of BigCo? This pattern of "acqukilling" a
         | company seems like smelly, sometimes malicious pattern. I know
         | that FAANG does this to social startups all the time.
        
           | jbay808 wrote:
           | All of Touchstone's patents would have been transferred to
           | Silicon Labs, and they still own them despite discontinuing
           | all the parts. The founders would probably find it very hard
           | to try again.
        
             | colejohnson66 wrote:
             | Yep. Without a contract stating otherwise,[a] the purchase
             | of a company generally transfers all IP of said company to
             | the purchaser. This is especially true in bankruptcy
             | proceedings where a company only buys a bankrupt one for
             | the IP (branding/logos, trade secrets, etc.).
             | 
             | [a] For example, an inventor could _license_ their IP (the
             | patent or whatever) to a company they create with a clause
             | that the license can't be sold (this has varying success
             | from my understanding)
        
       | kumarski wrote:
       | efabless.com
        
       | gvkhna wrote:
       | This would be really great, I think innovations with GaN
       | transistors could be something that startups could tackle and I
       | would love to hear more about it!
       | 
       | But fab is extremely capital intensive and complex to setup, I
       | don't think this is the realm of startups anymore.
        
         | ohazi wrote:
         | Basically all of the chip startups from the last 20 years are
         | fabless, including the ones that this article is referring to
         | ("high" capital costs in the $tens-of-millions vs. $billions)
        
         | Fordec wrote:
         | Take the story of Bethleham Steel. Unassailable entrenched
         | incumbent in steel production due to high capital costs.
         | 
         | Then a completely new way of steel production came about.
         | Nothing iterative about it, a completely different set up that
         | came with its downsides but had better economies of scale.
         | 
         | If there is a change to come, it's not by building a bigger fab
         | that has higher capital costs. It's by making the idea of a fab
         | entirely obsolete by finding a way to bypass all the steps
         | involved in the current manufacturing process and producing a
         | slightly inferior product in some way but isn't a multi-month
         | long process with capital costs measured in $10s of billions.
         | Fabless manufacturing was a great boon in its time by changing
         | the business model around fabs but it didn't change the
         | underlying engineering. Somebody, ultimately, owned a fab in
         | the chain.
         | 
         | The real trick will be something that bypasses the whole idea
         | of pure crystal ingots as the core of the process that has to
         | be processed in batches with 100s of steps. Something more
         | continuous and simplified would be revolutionary.
         | Hypothetically, imagine instead of growing a perfect crystal
         | and etching or doping it, you grew an imperfect crystal but
         | that growth was controlled in the direction that got you 80% of
         | the way to the layout of the final design. Or imperfections
         | were embraced and utilised as a feature for randomised bias in
         | AI cores than a flaw that wasn't tolerated.
         | 
         | All of this, hypothetical of course, but my point is even if we
         | are at the end of this fabbing game, the _real_ trick is
         | creating a completely new game entirely.
        
           | why_only_15 wrote:
           | I'm not so familiar with steel - in the Bethlehem Steel
           | analogy, is the newcomer you're talking about Nucor?
        
             | Fordec wrote:
             | Yep, the mini-mill tech they adopted was pretty disruptive
             | at the time because of it's economics.
        
           | GistNoesis wrote:
           | I like the idea of yokogawa's minimal fab, which removes the
           | necessity of a clean room. It still needs plenty of
           | fabrication steps, so you still need plenty of different
           | machines and the entry ticket is ~10M.
           | 
           | I'm convinced that there are plenty of design space that is
           | not explored. In particular, the fabrication process today is
           | mainly 2 dimensional with a very high necessity of control.
           | 
           | If you relax one of this strong constraint and build the
           | system bottom-up instead of top-down. It reduces to a search
           | for the chemical compound, which can self-assemble into an
           | interesting structure. It should look like a biological
           | machine but running at computer frequency.
           | 
           | Plenty of nano-computing units interacting. For example today
           | we can already build some silicon-nanorobots (
           | https://www.electronicdesign.com/industrial-
           | automation/artic... ). Give each one a small memory unit,
           | processor, and radio-link, and you can build tons of them on
           | imperfect crystal using standard process. Then your processor
           | is a 3d volume of these bots instead of a 2d-surface. You
           | will still be constrained by heat dissipation but if you put
           | them inside a liquid, it would be less problematic, but
           | you'll have to compensate for nano-processor brownian drift.
        
           | totalZero wrote:
           | If you know where the lattice imperfections are, you can
           | maybe go around them.
        
       | person_of_color wrote:
       | How much raw resources for semiconductors do we have left?
        
         | akiselev wrote:
         | Silica, a precursor to silicon wafers, makes up about 10% of
         | the Earth's crust by mass [1].
         | 
         | [1]
         | https://onlinelibrary.wiley.com/doi/abs/10.1002/14356007.a23...
        
           | [deleted]
        
         | Fordec wrote:
         | Raw resources? You mean Silicon? You mean 27%[0] of the planets
         | crust? Yeah, we have a bit.
         | 
         | [0] https://www.rsc.org/periodic-table/element/14/silicon
        
           | adrian_b wrote:
           | While the raw materials needed for silicon and silicon
           | carbide are extremely abundant, the semiconductor industry
           | needs many other elements that are much less abundant, e.g.
           | gallium, germanium, arsenic, antimony or hafnium and also
           | some that are extremely rare on Earth, e.g. indium, tellurium
           | or gold.
           | 
           | The rare elements may be needed as dopants, when they are
           | needed in very small quantities for each device, but those
           | quantities add to non-negligible values for the entire huge
           | production of semiconductor devices.
           | 
           | However, the rare elements can also be the main constituents
           | for the so-called III-V and II-VI semiconductors.
           | 
           | The fact that the other better semiconductors require large
           | quantities of rare elements has been a very important reason
           | that has prevented the replacement of silicon in a large
           | number of applications where it is an inferior solution.
           | 
           | For example, the GaN transistors and the white LEDs need not
           | only gallium but also relatively large quantities of the much
           | less abundant indium, which might limit some time in the
           | future the expansion of their applications.
        
             | totalZero wrote:
             | > The fact that the other better semiconductors require
             | large quantities of rare elements has been a very important
             | reason that has prevented the replacement of silicon in a
             | large number of applications where it is an inferior
             | solution.
             | 
             | Maybe, but silicon is also damn good because of the
             | adherence and dielectric nature of its oxide. Not to
             | mention that several of the so-called superior
             | semiconductors, even if you can get them in large
             | quantities, are more difficult than silicon to crystallize
             | without many defects. And silicon also conducts heat
             | relatively well, meaning that it draws thermal energy away
             | from hotspots within a chip better than some of the more
             | expensive semiconductors.
             | 
             | Not disputing the larger point about rare metals. Just
             | asking you to put some respect on the name of my boy Si.
        
               | adrian_b wrote:
               | You are right that silicon has many other advantages
               | besides being abundant.
               | 
               | Also correct is that the price of a semiconductor
               | material in the form as it enters a semiconductor plant
               | depends not only on the abundance of the raw material but
               | also on how easy it can be purified and grown into
               | crystals with very few defects.
               | 
               | The latter 2 operations are indeed much easier for
               | silicon than for compound semiconductors.
               | 
               | Nevertheless, the choice of materials for any
               | semiconductor device results from compromises between a
               | very large number of properties and while silicon is good
               | at some, it is worse at other properties, e.g. energy
               | bandgap, breakdown electric field, velocity limits of
               | charge carriers, electron mobility, leakage currents and
               | others.
               | 
               | So there are applications for which silicon may be the
               | best choice, even if the cost of the materials is
               | ignored.
               | 
               | However, in more and more applications silicon continues
               | to be used only because of its lower cost.
               | 
               | It is likely that the use of silicon for the active part
               | of the semiconductor devices will continue to decrease
               | and this trend will accelerate.
               | 
               | For example, to make faster CPUs, there are not a lot of
               | remaining possible improvements.
               | 
               | Three-dimensional silicon devices are a possibility for
               | increasing the multi-thread performance, but only if it
               | would become possible to circulate some liquid coolant
               | through channels in the device, to eliminate the heat.
               | 
               | Otherwise, the only chance is to use some other material
               | than silicon for the active regions of the device.
               | 
               | Even if the active semiconductor devices would be made
               | from other materials, it is likely that silicon crystals
               | will continue to be used as substrates long after that,
               | due to the 2 advantages that you have mentioned, i.e.
               | very few crystal defects and high thermal conductivity.
               | 
               | For the record, I have worked for many years in a plant
               | where silicon devices were made and I have handled
               | thousands of silicon wafers, breaking just a few ;-( .
               | 
               | Therefore, I actually have a lot of respect for your boy
               | Si !
        
           | person_of_color wrote:
           | Can that be readily converted to silicon wafers?
        
             | peytn wrote:
             | You can heat up some rocks with carbon to get silicon and
             | CO2, then use the Czochralski method invented in 1915 to
             | produce a single giant crystal by essentially dipping a
             | stick into molten silicon and slowly pulling it out. Then
             | you can slice up that big crystal into wafers.
             | 
             | There's a cool photo on Wikipedia of somebody just growing
             | a crystal: https://commons.m.wikimedia.org/wiki/File:Silico
             | n_grown_by_C...
             | 
             | There's a bit of waste, but AFAIK it's not too bad compared
             | to other things.
        
             | blihp wrote:
             | It's not the raw materials that makes semis expensive,
             | rather it's the extensive processing it has to go through
             | to get be transformed into the final product. The biggest
             | issues with materials I'm aware of are often the 'conflict
             | resources' which are in high demand but large percentages
             | of the supply are mined in regions that for social and/or
             | geopolitical reasons limit supply.
        
             | adammunich wrote:
             | Yup
        
             | Fordec wrote:
             | To be blunt, yes. It's mostly a function of how much you
             | need and applying heat to burn off impurities and separate
             | out by weight. Suck out the liquid silicon layer,
             | crystalize it, slice it. Boom, wafer.
             | 
             | Sand is used because of the high surface area so lower
             | amount of heat needed to be applied, but sand is just
             | ultimately worn down rock. Quartz for example is just pure
             | oxidized silicon in a non-uniform crystal structure. And
             | there's a _lot_ of quartz. Don 't like quartz? It's also in
             | the even _more_ common feldspar too. We as a species will
             | run out of _water_ before running out of silicon.
        
               | baybal2 wrote:
               | No sand goes into silicon production directly.
        
         | pjc50 wrote:
         | The raw consumption of resources is tiny: remember that
         | semiconductors are tiny objects!
         | 
         | Of more concern are the energy and clean water input, and the
         | ability to cleanly dispose of used solvent. Much of the old
         | silicon valley factories are now "superfund" cleanup sites
         | because of this.
        
         | blihp wrote:
         | Of all the natural resources we consume, semis would be the one
         | I'd worry the least about. We'll likely run out of many other
         | (more vital) things before semis make it to the top of the
         | list.
        
       | RicoElectrico wrote:
       | Can somebody more experienced than me chime in and say whether
       | Bizen [1] could be worked to be a viable alernative to CMOS at
       | least in some niches? While CMOS has accumulated decades of
       | improvement, much of it wrt. lithography would be transferred.
       | 
       | [1] https://www.wafertrain.com/index.php/theprocess/what-is-
       | bize...
        
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