[Semiconductor 101] SK hynix Explores How Semiconductors Are Made & How to Build a Career in the Growing Industry

 

From designing intricate circuit boards to fabricating chips thinner than a human hair, the journey from concept to creation in the semiconductor industry is extraordinary. This final episode of the Semiconductor 101 series delves into how semiconductors are made, detailing each step in a sophisticated and precise process. The article also covers how semiconductor chips operate, explores how the industry has progressed, and shares insights on how to break into this dynamic field.

How do semiconductors work?

As their name suggests, semiconductors are materials between conductors, which allow electricity to flow easily, and insulators, which block it. Typically made from silicon, semiconductors are capable of controlling electrical current which makes them crucial in electronic devices.

These materials are used to make semiconductor chips, which come in various types, including memory, logic, and DAO (discrete, analog, and other) chips. Although these chips have different functions, they all rely on the same basic principles. A typical semiconductor chip includes the following components, among others, which are essential for managing electricity and ensuring functionality:

• Transistors: These are the primary components in semiconductors, acting as on/off switches for electrical current. By controlling the flow of electricity, they enable semiconductors to perform computations and process data.
• Diodes: Diodes function like one-way streets for electricity, allowing it to flow only in one direction. This feature prevents the backward flow of current, which could potentially damage the device.
• Capacitors: These components act as temporary storage units for electrical energy in semiconductors. They store and release electrical energy as needed, playing a crucial role in regulating voltage, filtering signals, and stabilizing the power supply in electronic devices.
• Resistors: As the protective components of a semiconductor, resistors limit the flow of electrical current by ensuring the circuit receives the appropriate amount of power. This regulation prevents electrical overloads that could damage or disrupt the chip’s operation.

Semiconductors feature various components which support functionality and electricity management

 

An integrated circuit (IC) combines all the above components into a single chip. Think of an IC as a miniature city, where various elements work together to ensure smooth operation. The IC organizes electrical flow, directs current, stores and releases energy, and protects the device—all within a tiny, energy-efficient package. This integration allows ICs to perform complex functions while saving space, making them essential in everything from cellphones to cars and medical devices.

How are semiconductors made?

Semiconductor development is a complex process, starting with planning, running through to the manufacturing phase and ending in mass production. Let’s look in detail at the key steps involved in this procedure.

Semiconductor development involves product planning, design, manufacturing, and mass production

 

Product Planning & Design

Development generally starts with market research and analysis, as well as consideration of specific customer requirements. Attention then turns to design specifications which involves tasks such as evaluating circuit specifications and establishing performance requirements. The planning phase also includes logistical steps such as setting project timelines and a budget.

After planning wraps up, the chip design phase begins which includes selecting the product’s design architecture and function as well as finalizing its physical layout. Verification tools are then used to optimize and validate the design. Once complete, a prototype is tested to ensure performance and functionality before production.

Manufacturing

The manufacturing process itself can be broken down into the following three stages:

1. Wafer¹ manufacturing: The process begins with producing silicon wafers—the foundation of semiconductor devices. This includes purifying the silicon, slicing it into thin wafers, and polishing them. The finished wafers are sent to a fabrication plant (fab) for the next stage.
2. Front-end process: This involves building the actual semiconductor devices on a wafer through several key processes such as: oxidation (creating a protective layer), photolithography (etching the circuit pattern onto the wafer), etching (removing excess material), deposition (adding thin layers of material), and metallization (establishing electrical connections).
3. Back-end process: This mainly includes packaging and testing. While packaging involves protecting the chip from damage and building mechanical and electrical connections, testing ensures a product’s quality and reliability.

Mass Production

Following successful testing and validation, production ramps up. Focus is placed on yield optimization, increasing the number of functional chips per wafer through process refinements and defect reduction. Effective supply chain management ensures the smooth flow of materials, while continuous monitoring and optimization throughout mass production ensure consistent, high-quality results. The finished products are then shipped to customers.

How big is the semiconductor industry?

While the origins of semiconductor technology can be traced back to the 19th century, the industry only began to experience explosive growth since the 1980s in line with technological developments. By tracking the semiconductor industry’s expansion over the years, one can truly appreciate the current size of the sector. (Check out the When episode for further information on the progress of semiconductor technology.)

Following decades of growth, the semiconductor market is now more than 18 times larger than in 1987

 

1980s-1990s: Foundations for Growth
The computer industry’s growth in the 1980s, which brought PCs into people’s homes for the first time, led to increased demand for memory, logic, and DRAM products. In 1987, the global semiconductor market was worth 33 billion USD, rising to 102 billion USD in 1994² which set the stage for future growth.

2000s: Decade of Rapid Expansion
By 2001, the global semiconductor market reached 139 billion USD and it continued to grow rapidly throughout the decade. Despite the 2008 financial crisis, demand for consumer electronics, PCs, and mobile devices kept semiconductor sales resilient.

2010s: Diversification & Innovation
The semiconductor market was worth 298.3 billion USD in 2010 and expanded over the following years, propelled by the advent of technologies such as cloud computing and proliferation of mobile devices. SK hynix responded to and drove such technological developments throughout the 2010s, advancing its LPDDR³ mobile DRAM lineup among other innovations.

2020s: Surging Industry Demand & Future Projections
By 2023, the global semiconductor market reached 611 billion USD—more than 18 times bigger than it was back in 1987—as the sector has transformed into a cornerstone of the global tech landscape and economy. The industry’s growth in this decade has been driven by increased demand from industries such as AI, machine learning, and autonomous vehicles. Innovations from companies like SK hynix, including its world’s best-performing HBM3E⁴, have solidified the company’s AI memory leadership and drove industry growth. Looking ahead, the semiconductor market is expected to surpass $1 trillion by 2030 as demand for high-performance chips continues to surge.

How can one start working in the semiconductor industry?

As shown in the previous question, the semiconductor industry is growing, creating exciting career opportunities for those looking to break into the sector. Here is how to get started:

1. Define professional goals: Before entering the industry, it is important to understand career goals and identify roles that align with one’s interests. A clear vision helps in making informed decisions.
2. Obtain relevant education: Most semiconductor roles require at least a bachelor’s degree in fields such as computer science, software engineering, applied physics, or materials science.
3. Develop technical & soft skills: Both technical and soft skills are crucial. Proficiency in programming, data analysis, and semiconductor processes is key. Internships or hands-on experience help develop these skills.
4. Consider internships: Internships offer valuable industry experience. SK hynix offers annual internship programs designed to educate, engage and encourage the thinkers of tomorrow to expand their horizons.

The semiconductor industry welcomes people from a diverse range of fields

 

The semiconductor field is no longer limited to traditional engineering roles. It is now a multidisciplinary domain, welcoming talent from not only typical fields such as electrical engineering and mathematics but also economics and social sciences. Some examples of in-demand positions for the future may include:

• Cybersecurity analyst: Ensures the security and integrity of company operations by protecting intellectual property and sensitive data, as well as preventing cyberattacks.
• Environmental engineer: Focuses on ensuring the sustainability of the semiconductor manufacturing process and compliance with environmental regulations.
• AI & machine learning specialists: Integrates AI into the manufacturing processes, optimizing the entire production pipeline or advancing the supply chain.

With such a wide range of positions available in the industry, it is important to take the time to find a suitable role. As Vice President Jang Jieun, head of Volume Product Design at SK hynix, advises: “People perform at their best when doing what they love, so keep exploring what truly excites you.”

This concludes the Semiconductor 101 series, which has provided an overview of the world of semiconductors and a glimpse into its future. With a clear understanding of the basics of this vital technology, one will find it easier to follow the latest breakthroughs as the industry continues its evolution.

¹Wafer: A thin, flat slice of silicon used as the base for fabricating semiconductor chips, where intricate circuits are formed during the manufacturing process.
²Source: Statistics for this section are from Statista’s report “Semiconductor market revenue worldwide from 1987 to 2025,” which uses data from the Semiconductor Industry Association (SIA) and World Semiconductor Trade Statistics (WSTS).
³Low Power Double Data Rate (LPDDR): Low-power DRAM for mobile devices, including smartphones and tablets, aimed at minimizing power consumption and featuring low voltage operation.
⁴HBM3E: HBM3E is the fifth generation of High Bandwidth Memory (HBM), a high-performance memory technology that boosts data processing speeds by stacking multiple chips and connecting them with through-silicon via (TSV).

 

<Other articles from this series>

[Semiconductor 101] SK hynix’s Guide to Who’s Who in the Semiconductor Industry

[Semiconductor 101] SK hynix Explains “What’s What” in the Semiconductor World

[Semiconductor 101] When Semiconductors & SK hynix Made Their Mark on the World

[Semiconductor 101] “Where” in the World Are Semiconductors Made and Applied? SK hynix Reveals All

[Semiconductor 101] “Why” Modern Tech Needs Semiconductors & SK hynix’s Key Contributions