Passage:
In recent years, semiconductor foundries have increasingly relied on extreme ultraviolet (EUV) lithography to print sub-seven-nanometer circuit patterns onto silicon wafers. However, EUV systems require mirrors coated with dozens of alternating layers of molybdenum and silicon, manufactured to atomic-level precision, to reflect light at a wavelength of 13.5 nanometers. Because these mirrors degrade quickly under intense ultraviolet exposure, foundries must replace them far more frequently than the optics used in older deep ultraviolet (DUV) systems. Despite these frequent replacements and the soaring operational costs associated with maintaining ultra-clean vacuum environments for EUV equipment, top-tier foundries have consistently reported higher net profit margins on EUV-fabricated chip batches than on DUV-fabricated batches of equivalent volume. Economists attribute this phenomenon to the significantly higher transistor density achieved via EUV lithography, which enables semiconductor designers to cram more processing power into smaller dies, allowing microchip vendors to command premium pricing that more than offsets the elevated capital and maintenance expenses borne by the foundries.
Statement: Based on the passage, the higher profit margins of EUV-fabricated chip batches depend on premium market pricing enabled by greater transistor density rather than lower maintenance overhead.
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