Gail Flower, Editor-in-Chief
From the 27 industry experts answering our questions about 2006, every one reflected an anticipation of robust growth. Trends include: further migration to lower cost production areas of the globe; continued sales for consumer electronics; more wafer-scale packaging; continued interest in flip chip production; cost and process control in manufacturing; “smart” wire bonders; and enterprise-wide package designs.
Though in the past packaging was considered just one step between the front end and board design, 2006 may prove to be the year that the demands of OEMs and SATS providers take the lead. Those who deliver cost-effective, high-quality, reliable product designs, and turn them into volume-manufactured advanced packages, will experience a profitable year. As for 2006, the industry could use more good news. Bring it on.
Don Naugler
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VJ Electronix
By the beginning of 2006, most of the required changes for the transition to lead-free will have taken place or will be well under way. 2006 will be a year for refinement and focusing on efficiencies. On the rework side, we will offer more power in our top heaters, and options to boost the efficiency of our bottom heater; both key factors in lead-free process. For X-ray, we will offer greater automation and report-generation in manual X-ray systems.
Nick Hadland
X-Tek Systems
Although migration to offshore manufacturing continues, U.S.-based microelectronic component R&D and lead-free process development remains robust. X-Tek Group supports this field with digital 2- and 3-D imaging developments supplied in our standard range of systems, providing the end-user with a multi-purpose X-ray inspection tool to visualize and characterize defects such as tin whiskers and micro-voiding.
Michael C. Shores
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Texas Prototypes
In 2006, Texas Prototypes’ Packaging Division will offer advanced packaging services for quick-turn design and prototyping of multi-chip modules, SiP, molded chip packages, chip-on-board, and other “small-form-factor” PCB assemblies. Our capability to assemble direct die attach to board will not only help our customers with product shrinks, but also help with improved electrical performance.
Hamed El Abd
WKK International
We foresee continued growth in our industry and in WKK. Customers and their manufacturing processes are demanding more; placing emphasis on quality. As such, WKK will focus on products and processes that offer our clients greater improvements in reliability and cost efficiency. As more customers expand or move production to China, WKK will expand its semiconductor products. Further, WKK will diversify its product portfolio.
Jeroen Schmits
Universal Instruments
We are aligning Universal to leverage the trend of product manufacturing and geographic migration to lower-cost production regions by providing equipment sets and localizing global resources where the customers need them. Universal is also well-positioned to accommodate the needs of medical and automotive electronics manufacturing in Europe and the U.S. Growth in the system-in-package (SiP) market continues as these devices are more widely specified by designers.
Stuart J. Erickson
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Ultrasonic Systems
Ultrasonic Systems is expanding in 2006 with the Prism Coating System. Applications for precision coatings are growing quickly in the electronics and semiconductor markets as packaging of complex boards and substrates are used in everyday products. USI is also opening a new office in 2006 for the Asia-Pacific market.
George Szekely
Tyco Electronics
Tyco is involved in the emerging RFID inlay assembly space with patent-pending solutions, and we are successfully applying industry-leading technologies for addressing lead-free requirements. Additional niche products round out product offerings.
Steve Anderson
Surfect Technologies
Surfect is developing precision, single-wafer cell plating for high productivity and low cost-of-ownership. Higher I/O counts combined with a decrease in chip size have increased the demand for new bumping methodologies in wafer-level packaging (WLP) and wafer-level chip scale packaging (WLCSP). Surfect plans to offer an advanced wafer-bumping process using single-wafer cell, multi-metal plating technology.
Tim Going
StratEdge
In design and production of semiconductor packages for microwave, millimeter wave, and high-speed digital devices, we see the continuation and expansion of demand for the 10-Gb driver amplifier package. The telecom industry has seen the resurgence in applications such as Internet telephony and Internet backbone hardware, and a move from 2-Gbps to 10- through 18-Gbps switches.
David Loaney
Premier Semiconductor Services
We are ready for the RoHS deadline, offering our customers well-established lead-conversion processes. Our acquisition of Cirrus Logic’s test/probe operation in Austin in early 2005 provided another key element to our line of services. By bringing a quality-oriented, U.S.-based, “one-stop shop” for final manufacturing services to the market, we will provide a complete array of back-end semiconductor services.
Roger Gibbs
PDR
PDR will be bringing new, cost-conscious products to the marketplace in 2006, offering greater automation while continuing to build and strengthen our distributor partnerships. North American and European business has grown steadily in 2005, and we plan to increase activities in India, Southeast Asia, and Japan. We also plan to increase the momentum of our “keep rework simple” message for lead-free and array packages.
Kevin Conlon
Palomar Technologies
We have been developing some new automated control tools for wire- and die-bonding products and processes that will be sold into emerging growth market segments in 2006. We will introduce some of the world’s first “smart” bonders that will be used to manufacture advanced automotive sensors, mini-disk drives for cell phones, and high-efficiency, high-brightness LEDs. We will continue focusing on improving our internal efficiency in 2006.
Mark Cowell
OK International
We will continue our “products for the electronic workbench” mission under a single OK International brand. It is time for us to reposition OK International as a supplier of mainstream production tools, not just niche technical products. To coincide with the re-branding, we will launch a line of cost-effective soldering, fume-extraction, and fluid-dispensing products. To improve responsiveness to customer inquiries, we have moved customer service to our supply chain team, and we will strengthen our manufacturing efficiency by consolidating our North American operations.
David Wiens
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Mentor Graphics
Due to the trend toward market globalization, our company and our industry have evolved into “enterprise” environments. Enterprises operate multiple global sites to leverage localized products and resources. They closely guard intellectual property and find ways to use it in more than one product to shorten design time and cut engineering costs.
Kyle Doyel
Kyzen
Advanced packaging (AP) production is surging, and Kyzen’s 10-year investment in cleaning technology development unique to AP paid off and will require staff additions throughout the organization. 2006 will celebrate the one-year anniversary of our Asian headquarters in Singapore ⎯ which accounted for double-digit increases in 2005 and 2006. We expect our efforts to deliver Kyzen technology to the EU to meet similar results.
C. Scott Kulicke
Kulicke & Soffa Industries
K&S can no longer be content to be profitable just at the top of any semiconductor market cycle. Therefore, K&S is moving forward to a longer-term cost containment strategy to generate acceptable returns on invested capital over the course of each semiconductor swing that includes both up and down cycles. Due to the market shifts in our chip industry, K&S can’t afford to lose significant amounts of money anywhere in the cycle.
Roland Heitmann
Hover-Davis
We will continue to engage new customers with our complete SSF Siemens-compatible tape feeder and DDf Ultra die feeder product lines. Through partnerships with Laurier and Cogiscan, we will expand our feeding solution products to include JEDEC tray feeding and intelligent feeding solutions. By deepening relationships with assembly equipment platform manufacturers, we will increase the accessibility of our core competencies.
Mike Quail
Henkel Electronics Group
In the semiconductor packaging arena, our joint venture with Huawei in China is key to Henkel’s progress for 2006. This will put volume manufacturing of premier “green” lead-free enabling technologies on the doorstep of our customers in China. Our comprehensive expertise and integrated resources, our ability to deliver material sets, and continuing investment in our Irvine technical center and China makes 2006 a pivotal time for Henkel.
Jon Dupree
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COMET North America
FEINFOCUS is working with other COMET business units to develop a “one-stop shop” for microfocus X-ray inspection. We have expanded our service capability by installing test and repair centers in Stamford, CT, and San Jose, CA. We have also partnered with Xradia to develop advanced 3-D X-ray inspection techniques for semiconductor packages that allow users to scan packages in 3-D at full resolution.
Doug McClure
FocalSpot
FocalSpot is currently working toward business expansion in 2006 with an increase in manufacturing production capabilities of FocalSpot’s X-ray inspection systems. We will expand global customer support and technical services partners, and add multinational partners and master distributors to increase our sales and distribution network.
Rich Heimsch
DEK International
It’s a non-stop race to stay ahead. 2006 will be no different. The war against commoditization is relentless and requires passionate, uninterrupted commitment to design and innovation. Our core product line-up will be retooled once again to address next-generation packaging, manufacturing traceability, and cost of ownership. Meanwhile, our process focus will continue to offer our customers a smooth transition to lead-free.
Bjorn Dahle
KIC
2006 will be an interesting year for KIC with continued growth in the thermal process segment of our industry. The industry’s focus is shifting toward thermal processes because of the impact lead-free conversion has on quality and productivity of reflow, wave solder, and selective solder. There is also a growing requirement in the industry for full thermal process traceability and automation.
Terence Q. Collier
CVInc.
CVI offers singlulated die bumping for customer development and small production needs. Our ratio of lead-free to leaded solder shipments has increased and we expect that trend to grow in 2006. A number of our customers that process small and partial wafers are converting from wire-bonded packages and gold stud-bumping to improve cost and performance.
François Monette
Cogiscan
In 2006, the deadline for RoHS compliance in Europe and the increasing number of partnerships we’ve made with equipment providers in our industry will fuel the interest in our products. All manufacturers are facing the necessity to track, trace, and control their tin-lead and lead-free materials, including moisture-sensitive devices (MSDs). These companies quickly realize the difficulty of tracking all this information with manual procedures.
Paul Magill, Ph.D.
Avo Photonics
The photonics industry appears to be on a rebound not only in telecommunications, but also in the military and medical markets. In 2006, we expect to see telecommunications companies continuing to move away from vertical manufacturing; military and aerospace market growth due to continued emphasis on homeland security; and further demand for photonics from the medical industry for testing and other uses.
Neil O’Brien
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Finetech
As miniaturization continues to drive more function to the chip level and increase the need for high-accuracy packaging, Finetech expects to see continued growth for its 5- and 1-µm device bonders in R&D, prototype, and initial production.
Mike Konrad
Aqueous Technologies
2005 began a new era for Aqueous Technologies that will continue into 2006. Lead-free has caused engineers to reconsider several segments of their manufacturing processes. As we enter 2006, I expect the cleaning/defluxing industry to once again grow as defluxing returns to the mainstream of conventional wisdom. We will continue to expand into a greater worldwide distribution of our products throughout China, other Asian markets, and Eastern Europe.
Hamed El Abd
WKK International
The greatest challenge facing us in 2006 is the continued pressure on pricing that, in turn, affects our margin. Customers are pressured to reduce their prices to remain competitive, and that comes down the manufacturing chain. Customers will need to upgrade their machinery and soldering process to comply with lead-free legislation. Many customers have yet to begin the process, and waiting until the last minute will create real problems.
Don Naugler
VJ Electronix
The challenge for us will be to help customers respond to change with answers to new demands. Changes to our product line will allow quick turnaround on orders. In some cases, popular options will be rolled into standard products. New products are being designed for modularity, allowing us to customize configurations even after the product is well into the manufacturing process. Software development plans include greater use of network communications for data sharing.
Kevin Conlon
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Palomar Technologies
The steep technical and support requirements of our customers in the advanced packaging segments will pose increasing challenges for us. We need to stay closer to our customers’ product and technology roadmaps in order to meet their requirements, and improve how we partner with them. Providing a total solution means we must continue to strengthen our technology development and our relationships in sales and customer support, so that we add more value to our customers.
Jeroen Schmits
Universal Instruments
Compared to 2005, we anticipate no major changes in the market in any regions. However, the industry will be going through the lead-free transition period – so getting this process right and adapting to the new metrics for yields and costs will be the focus for many organizations. The drive is to scale down the equipment footprint and reduce the capital investment required to set up manufacturing.
Stuart Erickson
Ultrasonic Systems
As we gear up for 2006, we expect to see a continued increase in market demand for coating systems, and we will expand our production needs to meet these requirements. With the lead-free deadline quickly approaching, we are preparing for an increase in production for our fluxing product line. The company is well-positioned to meet these needs and increase production entering the new year.
Kyle Doyel
Kyzen
Kyzen’s first challenge in 2006 will be to continue lowering the cost of ownership for our customers with new technology. This broad-based development program will demand more efficient use of our technical resources and more resources for our R&D group. AP operations span the globe, and so does Kyzen’s support network. A key challenge will be keeping our global footprint well-balanced with the needs of our customers.
George Szekely
Tyco Electronics
For Tyco, the biggest challenge of 2006 will not only be to correctly read the key industry trends driven by macro-economical and political factors, but to spot them early. Companies with the best “early warning systems” will be the winners.
Steve Anderson
Surfect Technologies
The semiconductor industry is moving to single-wafer processing for increased throughput in its wafer plating and bumping processes. The challenge comes in providing the strict process control and high-precision processing required to meet growing density and uniformity demands in a cost-effective manner. Surfect is meeting this challenge by providing precision, multiple-layer deposition in a single-wafer cell tool.
Mark Cowell
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OK International
Living up to the new OK International slogan “re-defining benchtop assembly” will be the greatest challenge. Accomplishing this will require a new attitude from all our employees that focuses less on technical aspects of our products and is more customer-centered. Adding value for our customers at a competitive price is a difficult objective, which will take fresh ideas combined with flawless execution to achieve. I look forward to leading this charge and am excited with the line of upcoming products that will define the new OK.
Roger Gibbs
PDR
Competing in the Asian market is a challenge facing PDR. We pioneered the use of focused IR technology in SMT/BGA rework almost 20 years ago, helping companies find simple solutions to their rework needs. In 2006, more than ever, we plan to increase the awareness of this technology, which has proved itself with complex and miniature components, and is now an obvious choice for lead-free rework, guarding against the possibility of board and component damage.
David Loaney
Premier Semiconductor Services
As the market continues to change and volume moves overseas, it is more important than ever for companies to accurately evaluate the costs associated with keeping certain services in-house vs. outsourcing them. One of our goals is to help companies analyze these costs and offer cost-effective, domestic alternatives to off-shore or in-house processing. We’re also focusing on planning and logistics to help our customers meet the challenges and tight timelines associated with their lead conversion projects.
Tim Going
StratEdge
The challenge is to continue driving the performance of the package to higher levels while reducing the overall cost, even as raw material costs, such as metals, continue to increase. We have to look at innovative package solutions using non-traditional material combinations and packaging materials. These are under development at StratEdge.
Bjorn Dahle
KIC
Perhaps the biggest challenge for KIC in 2006 is to manage the company’s strong growth. The electronics industry is dynamic and volatile, leading to the boom and bust cycles that we have seen in recent years. How do we expand our resources to accommodate the needs in the marketplace, help our customers achieve success, and train people fast enough? And of course, we need to do all of that while continuously increasing our profits.
David Wiens
Mentor Graphics
No longer is producing electronic products with the latest technology sufficient for market domination. Our customers must consider country-specific directives that restrict product operation and material content, and compete with increasing competition from remote corners of the globe. Our challenge is to position ourselves to deliver electronics design automation software that allows our customers to address emerging technology challenges within a global enterprise.
C. Scott Kulicke
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Kulicke & Soffa Industries
Semiconductor companies like K&S are challenged by the changing industry structure. As the customer base consolidates, fewer customers represent larger percentages of sales. Often, customers are actually outsourced suppliers to some other, ultimate, customer. The nature of outsourcing creates a “disconnect” between the economic rewards for technological innovation, which accrue to our customers’ customer, even though the expenses were borne by us. Lowering our costs will be a major objective in 2006.
Roland Heitmann
Hover-Davis
Keeping on top of the ever-changing needs of our market affects all aspects of the business. We must continually find ways to be more effective, more efficient, and accelerate our pace in nearly all areas. We also need to take advantage of the opportunities in China, focusing on improving our ability to engage customers, and sourcing more materials and manufacturing more of our products there.
Mike Quail
Henkel Electronics Group
Most of the immediate challenges for us are China-focused. Keeping pace with the rapid pace of change in the region is one. Finding and retaining the right people in the region to implement a locally resourced business model is another.
Doug McClure
FocalSpot
FocalSpot is working to manage and control foreseeable challenges in 2006. Maintaining product revenue margins and consumer pricing through strong vendor relationships and streamlined production planning is a priority. We must accurately forecast material needs and production requirements to obtain best pricing and uninterrupted supply. Meeting customer expectations for timely service support will require accurately forecasting service and spare-parts stock requirements.
Neil O’Brien
Finetech
There are many emerging technologies from diverse areas such as MEMs, SiP, LED, and RFID, with end-users working on commercial, military, and medical applications. They need the flexibility to bond using various technologies, such as thermo-compression, thermo-sonic, conductive film, adhesive, and hot-gas soldering. In particular, customers will seek alternatives to high-temperature eutectic soldering. Two options that will present new challenges are high-density arrays (using conductive adhesives) and gold-bump ultrasonic bonding.
Rich Heimsch
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DEK International
It will be a significant challenge for the industry to sustain the revenue and earnings growth it has enjoyed over the past 2 years, and some of the biggest influences are likely to be from outside electronics or even technology. With more than half of all electronics now aimed at individuals, high energy prices draining consumer strength become a real concern.
Terence Q. Collier
CVInc.
We expect a big rush of lead-free requests in 2006 as the RoHS deadline approaches. We are also receiving more requests for die-bumping with smaller pitch and bump size. The board suppliers will have to work to keep up with sub-150-µm pitch requirements on bumped die.
Jon Dupree
COMET North America
The trend toward lower-cost assemblies and higher I/O counts has created a need for WLP and WLCSP. These use lower-density materials than traditional wire bond and flip chip techniques; and require a high-resolution image chain that can detect the slightest internal defects. COMET has introduced a product which provides digital images for high-magnification applications.
François Monette
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Cogiscan
The main challenge for our company will be to meet the increasing market demand while maintaining customer satisfaction and short lead times. We are often under significant pressure to have functional systems up and running within a few weeks of receiving the purchase order. This is why our products have been designed with the objective of being simple to use and quick to implement.
Paul Magill, Ph.D.
Avo Photonics
The biggest challenge for Avo and the industries we serve is making sure we keep ourselves focused on the processes and design trends that continue to evolve rapidly. It is one thing to be at the leading edge of technology, but it is another to stay on the leading edge. Meeting this challenge will allow the photonics industry and photonic product manufacturing to stay in the U.S.
Mike Konrad
Aqueous Technologies
Two things can hurt any business — no growth and too much growth. We are working hard to manage current and expected growth. Our expansion into foreign markets will continue to present challenges. In 2006, we will be rolling out a regionalization plan that allows most of our cleaning equipment to “speak” the local language, allowing for a greater number of qualified operators and a shorter training cycle. Our primary perennial challenge remains unchanged: convince engineers that clean assemblies – free of contamination – reduce liability, increase reliability, and ultimately save money.