The next big step in chip manufacturing will be the industry's move from 300mm wafers to 450mm wafers, which should help chip makers improve the performance of their products while keeping costs down.

Chip makers Intel, Samsung Electronics and Taiwan Semiconductor Manufacturing announced early this month that they will collaborate to move chip manufacturing onto 450mm silicon wafers, with pilot tests to start in 2012. Some other companies are resisting the move, however, because the switch will require the industry to invest billions of dollars, and some companies say they are content with manufacturing on the current 300mm wafers.

Lose the resistance, because the time for change has come, says Joe Draina, associate director of International Sematech Manufacturing Initiative, in an interview conducted before the announcement. The last big change in wafer size was in the 1990s, and the investments are needed to make up lost ground on productivity and profitability, he argued.

ISMI is a subsidiary of Sematech, an industry association that represents the industry's biggest semiconductor manufacturers. It has started a programme that researches productivity improvements and cost effectiveness that should come from the switch to 450mm wafers.

Draina talked with the Techworld-affiliated IDG News Service about the industry's move to the 450mm wafer size. Following is an edited transcript.

Does Sematech have any specific timeline to move chip manufacturing onto 450mm silicon wafers? If you look at the ITRS [International Technology Roadmap for Semiconductors] roadmap they look at 2012...but we recognise that the market conditions are going to dictate what the timing is for all that.

How does wafer size and the size of features on a chip relate to each other? As we get down to 22-nanometers and smaller, the complexities of delivering that particular device ... are problematic with cost and productivity at 300mm. Once we get down to those kinds of devices, it is highly desirable to [move to] the next wafer size.

When you talk about productivity gains with 450mm wafers, what numbers are we looking at? When you look at the ... historic productivity curve ... we have calculated that there are hundreds of millions of dollars of productivity opportunity that we've missed out on. If you look out from 2012 to 2018 or something like that, it can be hundreds of millions of dollars. If you look out 15 years past 2012, if we ... stay at 300mm you are talking of billions of dollars of lost productivity.

Some people may say "so what, you're still making profits." Yeah... but you're not making as much. That means less money that you can put back into research and development. Your whole engine for technology pace begins to slow down. That affects all other electronic devices that we have come to know well.