Semiconductor industry and market
Which appropriately describes investment in advanced semiconductor fabs?
- AA cutting-edge fab can be built with a small investment (a few hundred million yen)
- BManufacturing equipment such as exposure tools is expensive, and building an advanced fab can require investment on the scale of trillions of yen
- CProduction relies mainly on manual labor with almost no manufacturing equipment
Show answer and explanation
Answer: B. Manufacturing equipment such as exposure tools is expensive, and building an advanced fab can require investment on the scale of trillions of yen
Manufacturing equipment is very expensive; a single advanced exposure tool can cost tens of billions of yen or more. Building an advanced fab can therefore require investment on the scale of trillions of yen, which has led to manufacturing being concentrated at foundries and to subsidy policies by governments.