Philips was the second largest chips manufacturer on the planet. Now it is out of a market led by its creation: ASML

What we have promised you in the head of this article is strictly true. As Marc Hijink explains in his highly recommended and fresh out of the oven ‘Focus: The Asml Way’during the decade of the 70s of the last century Philips was the second largest manufacturer of semiconductors of the world. The leader in this market at that time was the American company Texas Instrumentsbut the Dutch firm had a long career in the field of innovation and technological development.

In the early 70th Philips had more than 400,000 employees, and approximately 90,000 worked in the Netherlands. At that time his business was mainly held on The design and manufacture of televisionsradios, medical equipment, appliances and lighting solutions. His Porfolio was not but that nothing wrong, although his true strength was that absolutely everything was designed and manufactured within Philips. Today this strategy would be impracticable.

Anyway, if we stick to the production of integrated circuits, the interesting thing is that the lithography equipment used at that time had also been devised and manufactured by engineers of the company itself. In fact, its first flirting with the semiconductors dates back to the late 50s of the last century. At that time the Philips Board of Directors realized of the enormous potential the chips had And he decided to create several research centers, as well as collaborate with technological universities and laboratories.

ASML is the result of an inspired alliance

During the decades of the 60s and 70th Philips was already a great technological emporium. In the early 80s he had acquired a lot of experience in the field of semiconductor manufacturing, but the industry sued smaller and capable chips. These requirements represented a technical challenge for company engineers who were responsible for the design of photolithography equipment, so in 1984 the Philips directive dome made a very important decision: he decided to associate with the Dutch company ASM International (Advanced material semiconductor).

The purpose of this alliance was to take advantage of Philips’s extensive experience in the set -up Design and manufacture avant -garde photolithographic equipment. The result of this collaboration was the birth of ASML (Advanced Materials Semiconductor), the Dutch company that leads the production industry of these machines thanks to the enormous success that their teams have had extreme ultraviolet lithography (UVE).

Currently all companies that produce advanced semiconductors have in their plants the machines of deep ultraviolet lithography (UVP) or extreme ultraviolet asml. Some of them are TSMC, Samsung, Intel, SK Hynix, Micron Technology, SMIC or UMC. However, once we have reached this moment it is reasonable that we ask ourselves why Philips is no longer a relevant actor in the integrated circuit manufacturing industry. In ‘Focus: The Asml Way’Marc Hijink tells us that after the creation of Asml Philips he settled. Its chips factories lost competitiveness and little by little they ceased to be able to develop the semiconductors required by the market.

Jon Yu, the person in charge of the Newsletter The Asianometrysuggests essentially the same During the conversation who has maintained with Ben Thompson, the author of the interesting publication Stratechery. “As they count on ASML, Philips failed. It was a company with Too much bureaucracy and too much clinging to their customs. It is something similar to what happened with the Japanese in the 90s. Philips had already fulfilled his cycle and deserved to conclude, although he apparently sold his participations too soon. “It is a pity. And it is because there is no doubt that in the Current situation to Europe would have two leading companies in semiconductors.

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Image | ASML

BIBLIOGRAPHY | ‘Focus: The Asml Way’by Marc Hijink

More information | The Asianometry

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