Differentiated and customized robotic solutions for faster and more reliable ion processes

The success of Korean conglomerates has had a positive trickle-down effect on domestic suppliers, providing them with growth momentum and core capabilities. However, in recent times, due to an increasingly saturated and competitive domestic landscape, it has become essential for enterprises to think globally to continue their growth trajectories. In order to achieve this goal, Korean companies will need to find their place in the global supply chain. How can Korean companies compete against Japanese and German superpowers? What is the role of Korean SMEs in the global supply chain?

I've been entrenched in the semiconductor industry since 1980, spanning 44 years. My journey began at the Korean branch of Teradyne, the largest semiconductor testing equipment company. Back then, Korea lacked semiconductor technology, mainly focusing on low-end back-end processes and importing everything, primarily from the US and Japan.

In 1990, some Korean entrepreneurs pioneered semiconductor equipment development domestically, localizing the technology. Mirae company was among the first to succeed in developing semiconductor testing equipment in Korea. This success spurred more entrepreneurs to enter the market, driven by the high costs of imported components. Imported parts were exorbitantly priced, making localization imperative. Japanese companies dominated the semiconductor market, prompting the Korean government to incentivize local development of materials, parts, and equipment.

From 1990 onward, Korean chip makers emerged, with one or two fabs established yearly, attracting significant interest from entrepreneurs. Despite this, over 60% of equipment is still imported, primarily from major US companies like Applied Materials and KLA. I entered this market to pursue localization, recognizing its immense potential despite the substantial investment required. However, the market became oversaturated, with Korean chipmakers demanding high-quality products at low prices, squeezing SMEs' margins. As a small company, surviving on minimal margins in the Korean market proved unsustainable. Consequently, I shifted focus to international markets, targeting business opportunities in China and Taiwan.

Due to our small size, we adopted a strategic approach, focusing on a select few promising customers and supporting their growth. One notable partnership was with ACM Research, which we nurtured and grew alongside.

In recent months, international governments have implemented trade policies aimed at promoting supply-chain realignments. One notable example is the Biden Administration’s Inflation Reduction Act and Chips Act, which are indeed facilitating the reshoring of production to the US, benefiting major companies like Samsung and LG. Do you anticipate these policies will also benefit small and mid-sized companies in Korea? What opportunities do these policies create for companies like yours?

I’ll provide my answers with a focus on the semiconductor industry. Chip makers in the semiconductor industry prioritize qualified and proven equipment, regardless of price. They prefer US or Japanese equipment due to their established track records, avoiding potential issues associated with equipment changes. Although many Korean products boast good quality, chip makers often have unique processes, recipes, and specific requirements. Presently, even companies like Samsung and SK Hynix tend to procure more US and Japanese equipment for critical processes, despite having Korean vendors available. Consequently, the opportunities for Korean vendors, especially when venturing into the Chinese market, are limited. The Chinese government favors US or Japanese equipment, followed by local alternatives, aiming to localize US and Japanese technologies. China has already developed its own equipment, such as a scanner similar to ASML's, further reducing opportunities for Korean vendors to enter the market.

Given your extensive experience in automation and robotics, do you believe the challenges faced by growing companies in your field are similar? How do you perceive the semiconductor automation system sector within the context of supply chain realignment and international competitiveness?

Even in our field, which includes machines like wafer transport robots, China has developed its own locally-made machines. Moreover, the Chinese government strongly supports domestic companies. However, there's a critical consideration to be made. As I previously mentioned, chipmakers and equipment manufacturers prioritize safety and reliability when selecting equipment. This assurance isn't always guaranteed with Chinese vendors. If chipmakers and equipment manufacturers opt for Chinese machines, they assume liability and responsibility for any issues that arise during usage.

Given this challenging environment in Korea and the complexities of penetrating markets like Japan and the US, where do you see the future for Korean SMEs? Do you believe partnering up is their only viable option? What's the roadmap to internationalization for Korean SMEs?

Allow me to outline our company's strategy. One of our primary approaches is customization. While there are numerous wafer transfer robot vendors offering standard products, our focus lies in tailored solutions. We advocate for customization, optimizing each product to suit the specific needs of our clients' machines. Particularly in processes like cleaning, where specialized tools are essential, standard robots often fall short. There's no one-size-fits-all solution for cleaning robots. Therefore, we specialize in crafting robots tailored to precise requirements. For instance, our wafer cleaning robot is meticulously designed to ensure it leaves no particles on the wafer surface. Moreover, with the shift toward single wafer processing, where wafers are handled individually, the demand for small chemical baths for wafer cleaning has increased. In response, we offer customized products to meet these evolving needs.

Looking at your company's performance over the past three years, you've experienced significant growth, reaching over $46 million in revenue in 2022. What factors do you attribute to this strong growth? Additionally, could you share a case study illustrating how your ability to customize and optimize solutions has contributed to your success?

One of our key strategies in R&D and product development is differentiation. We avoid simply replicating what's already been done. If we were to follow the same path, our only competitive edge would be price. Instead, we focus on offering unique value propositions. Without providing some form of added value through differentiation, clients are unlikely to be interested.

Allow me to share a specific example: During a competition with a German vendor in Shanghai for a specialized robot, we proposed a three-month delivery timeframe, whereas the German vendor suggested a longer 6–8-month timeframe. German and Japanese companies often prioritize conservatism, prioritizing reliability and safety in their products. While we share these objectives, our approach differs in that we challenge ourselves to meet tighter deadlines. This involves allocating additional resources. Currently, we boast around 100 employees, with 40% dedicated to R&D efforts.

In competing against Japanese or German competitors, you've excelled in reducing the development cycle time and achieving a three-month delivery timeline. How do you manage to accomplish development, prototyping, and production within such a short timeframe?

While we share these objectives, our approach differs in that we challenge ourselves to meet tighter deadlines. This involves allocating additional resources. Currently, we boast around 100 employees, with 40% dedicated to R&D efforts.

Could you share some insights into your future internationalization strategy?

Looking ahead, our strategy involves expanding our customer base. Currently, we have a client in Taiwan for an end station for ion implantation. To provide some context, my career began at Teradyne, a semiconductor testing equipment company based in Boston. I then spent a decade at Eaton Corporation, leading their semiconductor division as the country manager for Korea. During my tenure, Eaton Corporation manufactured ion implanters, establishing itself as a market leader. Given my familiarity with the market and ion implantation technology, I conceived an idea to enhance productivity and reduce particle contamination. This led to the development of the end station for ion implantation systems, a component not yet localized in Korea. The end station is a critical segment of the ion implantation system, comprising approximately 35-40% of the total device. Leveraging our expertise, we successfully developed this component and proposed it to implanter companies in Shanghai and Taiwan. The initiative proved fruitful, with over 40 machines already shipped to Taiwan, where they are utilized by top tier chip makers.

You've expanded your portfolio from offering solutions for cleaning equipment makers to specializing in ion implantation processes. How do you envision the future of your company? Do you see future opportunities for highly customized robots and models?

Currently, our focus lies primarily on end station for ion implanters and customized robots. We're involved in tasks such as fastest robot for track system for lithography process. The robot system for the track system requires a highly efficient and reliable system.

In an industry as competitive and fast-moving as yours, we've observed significant trends like System on Chip 2.5 and 3D architecture. How do you adapt to this rapidly changing environment in terms of technology evolution and the continuously shifting specifications required for semiconductor manufacturing?

We maintain close communication with end-users, the chip makers, to stay abreast of future process trends. This allows us to develop more advanced technology accordingly. Nowadays, semiconductor equipment demands precision in loading and unloading. We've also developed a specialized sensor for tracking all wafer movements. While many Japanese companies already offer high-quality sensors, our customers seek even greater precision. Consequently, we've integrated special sensors into our robots. If customers require unique treatments or handling of wafers, we tailor our solutions accordingly. For instance, we've developed a wafer handling system for track machines that require swift movement. However, customers now demand even faster robots operating seamlessly 24/7, especially considering the significant investment in equipment like EUV scanners, which cost up to $150-200 million. The stakes are high, as a single day of downtime results in substantial losses. Since chip makers have limited options for purchasing such expensive equipment, they prioritize throughput and productivity. ASML's announcement of a machine capable of handling 450 wafers per hour signals a future trend. Consequently, track suppliers and equipment vendors must develop faster and more reliable robots to keep pace. Price is secondary to performance; chip makers are willing to invest more for reliability and speed. My strategy is to develop high-performance robots without compromising on price. I aim to challenge myself to deliver faster and more reliable robots, believing it's achievable.

Ninebell has developed several wafer handling robots, such as the 300mm Load-lock & Vacuum Transfer Module (VTM), which boasts a wafer position repeatability error of less than 50 micrometers and high speed achieved through the use of direct drive motors. Also, Ninebell's wafer handling robot HIZ series offers a comprehensive range of features, capable of flipping, incorporating various wafer grips, and resistant to corrosion from the most common chemicals used in the industry. The robots are designed in two versions: link and slide types, offering either more motion complexity or more cost-effectiveness. Out of all the technologies and products that you've come up with throughout the years, which product or technology are you the proudest of and why?

Let me provide you with two examples. One is the scan robot used for ion implantation systems. It holds a wafer and moves up and down, a specialized function for ion implantation. This functionality is unique to this market. When ion beams are present, the robot scans in different directions. Ninebell holds patents not only in Korea but also in Taiwan and China for this feature. We're the sole provider of such robots. Essentially, when ions approach at certain angles, the robot can twist and reduce errors, thus enhancing overall quality, which is crucial. That’s why top tier chip makers or ion implanter vendors purchase this robot from us.

The second example is another exclusive product by Ninebell. It’s a robot with a linear shaft motor. The linear motor employs magnet levitation, resembling a round shaft type. However, ours incorporates permanent magnets with continuous S and N poles, termed the linear shaft model. Surrounding this motor, we utilize a mover controlled by an electric magnet. This electric magnet moves along the shaft, with the arm installed on the moving shaft. During movement, there's no pressure; it’s floating. Typically, sliding-type robots employ belts and pulleys, resulting in pressure and particle generation, a significant concern for customers. Hence, we developed the linear shaft model, patented by Ninebell.

You're already collaborating with Chinese equipment makers, and you've developed your proprietary technology along with securing patents. Consequently, you've enjoyed robust growth over the last few years, nearly doubling annually. If we were to reconvene in five years, where would you like Ninebell to be? What objectives would you aim to achieve in terms of expansion or internationalization?

Over the next five years, I plan to develop highly specialized semiconductor equipment, particularly more powerful end stations for ion implanters. We aim to expand our business in the U.S. with these end stations, securing more customers in Taiwan, China, and the U.S. to showcase our future-ready solutions. With patents already registered, and successful simulations conducted with the new end stations, we are poised for growth and innovation.

For more details, explore their website at http://www.ninebell.co.kr/default/00/02.php