For the past 30 years, plasma etching technology has led in the efforts to shrink the pattern size of ultralarge-scale integrated (ULSI) devices. However, inherent problems in the plasma processes, such as charge buildup and UV photon radiation, limit the etching performance for nanoscale devices. To overcome these problems and fabricate sub-10-nm devices in practice, neutral-beam etching has been proposed. In this paper, we introduce the ultimate etching processes using neutral-beam sources and discuss the fusion of top-down and bottom-up processing for future nanoscale devices. Neutral beams can perform atomically damage-free etching and surface modification of inorganic and organic materials. This technique is a promising candidate for the practical fabrication technology for future nano-devices.