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Mask Cost and Profitability in Photomask Manufacturing: An Empirical Analysis

An empirical study of the economics of manufacturing photomasks concludes that the uncontrolled growth of optical proximity effect correction and resolution enhancement techniques is driving up the cost of pattern generation and mask inspection to levels that threaten the profitability of photomask manufacturing. The intrinsic cost of some leading edge photomasks has already exceeded the price that customers are willing to pay for them. A model of the lifecycle of photomask manufacturing, developed from interviews involving the 1990-to-2005 operations of six mask shops and a survey of seven photomask manufacturers, shows that design for manufacturability (DFM) constitutes the most promising approach for alleviating this market impasse. Unilateral action by mask shops to increase their capital productivity is necessary but insufficient and perhaps unaffordable. DFM solutions will require the majority of participants in the lithography value chain to collaborate according to a volatile demand schedule that is driven by semiconductor manufacturers