World Gold Council, SEMI survey packaging industry on wire bonding material choices

(January 25, 2010) — On behalf of the World Gold Council (WGC), SEMI conducted a survey titled “Semiconductor Industry Opinions Concerning the Selection of Bonding Wire Material.” The survey was intended to gauge the semiconductor industry’s use of copper bonding wire versus gold for packaging applications. The WGC is a commercially driven organization focused on creating demand for gold. While 41% of semiconductor companies surveyed use copper bonding wire, none use it in the majority of their products. However, the majority of respondents will consider copper bonding wire in their new products.

With respondents for 14 of the top 20 semiconductor suppliers (2008 ranking), the survey included 46 companies, IDM and fabless, with 2008 revenues totaling $137 billion. This is representative of 55% of the global semiconductor industry in terms of revenues. Over the past 5 years, the price of gold has climbed steadily, with the exception of a late-2008 plummet that coincided with the recession. Copper prices, on the other hand, have fluctuated greatly, currently in a long decline that began mid-2008.

SEMI asked survey participants, on behalf of the World Gold Council: What do you consider to be important advantages of gold bonding wire over copper bonding wire in packaging applications? To what degree do you currently use copper bonding wire technology in your products/packages? To what degree is your company considering a switch from gold to copper wire in new product/package developments in the next three years? What are the main issues or concerns that would prevent your use of copper wire technology in the future? To what extent is end-of-life recyclability (of waste electronics) a factor in your current bonding wire material selection? It is estimated that over 50% of the economic value of some end-of-life electronic products is derived from the gold content of the waste. This value contributes to the economic viability of electronics recycling. Were you aware of this or not?

Copper wire use on the rise

Consumption of copper wire has been growing in the industry as the price of gold has increased in recent years. The majority of companies (72%, 33 companies) are considering a switch from gold to copper wire for some types of new products. Of those surveyed, 13% are considering it for the majority of products, and 15% are not considering switching. Seven companies will not use copper wire for new products, though two of those companies use and will continue to use flip chip technology. Six companies are considering copper wire technology for a majority of their new products.

According to the recently completed Global Semiconductor Packaging Materials Outlook report issued by SEMI and TechSearch International, 2009 copper wire shipments from the major wire suppliers to the semiconductor industry will reach approximately 5.8% of total shipments (in meters), up from just 1.6% of the shipments reported in 2007.

Gold bonding wire remains a mainstay

All respondents except one identified advantages of gold bonding wire over copper bonding wire. Twelve companies selected “Total Cost” as their only response in identifying advantages of gold wire over copper wire.

59% of the companies surveyed do not use copper interconnect wire. Of the 46 companies responding to the question, a total of 27 companies currently are not using copper wire in products, including 14 IDM and 13 fabless. The main concerns that would prevent the companies using copper wire technology in the future (in order) is in-service reliability, closely followed by process yield, and unproven historical performance. Companies also stated that advanced packaging needs, such as formation of complex wire loop shapes and high metal layer counts and complex pad structures prevent switching to copper wire. Gold is also credited with better electrical performance.

Although sustainability of electronic goods is becoming an increasingly important issue, very few companies are aware of, or are influenced by, the economic value or recyclability of EOL electronic packages. Eighteen companies surveyed were unaware that over 50% of the economic value of some end-of-life (EOL) electronic products is derived from the gold content and only 21% of companies consider the impact on recyclability of waste electronics when selecting bonding wire material.

Methodology

The surveys were conducted from October 13, 2009 through December 15, 2009. Surveyed companies include both integrated device manufacturers (IDM) that have internal semiconductor device (chip) production and fabless semiconductor companies that design their own chips but outsource the manufacturing of both the die and package. Wafer foundries and packaging subcontractors were not included in the survey as final design decisions rest with the IDM and fabless companies. While many IDMs package their own chips, some utilize packaging subcontrac¬tors for the final packaging, assembly, and testing of their chips. These back-end manufacturing partners offer gold and, increasingly, copper bonding wire capacity.

Twenty-eight IDMs and 18 fabless companies responded to the survey. Combined revenues of the 46 responding companies totaled $137 billion in 2008, or 55% of the total worldwide, $248.6 billion, reported by World Semiconductor Trade Statistics Bluebook. The 46 companies responding to the survey were globally selected. The survey includes responses from fourteen of the top twenty ranked suppliers for 2008. This report documents responses to six questions covering trends and issues related to both current and future bonding wire needs. Some companies did not reply to every question.

The survey operators

The World Gold Council’s mission is to stimulate and sustain the demand for gold and to create enduring value for its stakeholders. The organization represents the world’s lead¬ing gold mining companies, who produce more than 60% of the world’s annual gold production in a responsible manner and whose Chairmen and CEOs form the Board of the World Gold Council (WGC). The WGC has its headquarters in London and operations in the key gold demand centers of India, China, the Middle East and United States.

The SEMI Industry Research and Statistics group provides market data and research reports covering semiconductor capital equipment, semiconductor materials, packaging materials, and fabs. We collect actual data from suppliers around the world following strict professional standards of confidentiality. Our reports help the industry make important investment, strategic and planning decisions by providing timely and accurate market research and market forecasting programs. For more information visit www.semi.org/marketinfo

Related reading:

The Great Debate: Copper vs. Gold Ball Bonding
Towa’s Novel Chip Packaging Technique Uses Less Gold
Flip Chip Interconnection Using Copper Wire Bumps 
Wire bonding 
The back-end process: Step 4 – Wire bonding step by step

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