Monthly Archives: June 2013

Deca Technologies, an electronic interconnect solutions provider to the semiconductor industry, today announced it has named semiconductor industry veteran Chris Seams its new CEO. Seams brings more than 25 years expertise in managing operations, manufacturing, and sales and marketing. He has also been appointed to the company’s board of directors.

Seams joins Deca from Cypress Semiconductor Corporation, where he served as executive vice president of Sales and Marketing. He takes over for Tim Olson, who will now serve as Deca’s Chief Technology Officer and a member of its board of directors.

"Deca has two key value propositions: truly revolutionary wafer level packaging technology and industry-leading manufacturing efficiency," said T.J. Rodgers, chairman of Deca’s board of directors. "Chris brings a wealth of manufacturing experience to the position. He directly managed Cypress’ manufacturing for 14 years, building up its reputation for world-class efficiency. We are confident Chris will successfully build upon Deca’s strong inroads with top customers and lay the groundwork for the next level of the company’s growth."

"This is an exciting time to be joining Deca," said Seams. "The company is poised for rapid growth with the continued development of its offerings. I welcome the opportunity to lead Deca’s efforts to bring the potential of our wafer scale packaging capabilities to reality. In so doing, we will transform the way our customers­the leading semiconductor manufacturers around the world­approach wafer level packaging."

Seams joined Cypress in 1990, where other assignments included technical and operational management in manufacturing, development, and operations. Prior to joining Cypress, he worked in process development for Advanced Micro Devices and Philips Research Laboratories.

Seams is a senior member of IEEE, serves on the Engineering Advisory Council for Texas A&M University, and is on the board of directors of Tessera Technologies, Inc. Seams earned his bachelor’s degree in electrical engineering from Texas A&M University and his master’s degree in electrical and computer engineering from the University of Texas at Austin.

Toshiba Corporation today announced that it will showcase its leading-edge semiconductor solutions for mobile devices at Mobile Asia Expo 2013. Toshiba will highlight solutions in five areas: "Smart Connectivity," "Smart Imaging," "Smart Audio," "Memory" and "Discrete," under the unifying concept "A Smart Future Starts from Toshiba Semiconductor Solutions."

Mobile Asia Expo 2013 will run from June 26 to June 28 at Shanghai New International Expo Centre (SNIEC) in Shanghai, China and Toshiba will be at booth N1.F78.

Outline of Toshiba’s Exhibition at Mobile Asia Expo 2013:

1) Smart Connectivity: Solutions that use various wireless environments, including near field communication technologies such as TransferJet(TM)and NFC, plus other technologies, among them FlashAir(TM), Bluetooth(TM), Wi-Fi(TM) and wireless charging.

2) Smart Imaging: System solutions including CMOS sensors and image processing technologies that help to create a safe and smart future.

3) Smart Audio: High quality, low noise, low power audio solutions, including a noise/echo canceller that brings clear communications to a variety of ever-changing user environments, such as audio and movie playback and device control through voice recognition.

4) Memory: High capacity memory products that enable users to store all sorts of data: music, movies, smartphone apps and more. The exhibit will also feature "SeeQVault(TM)", a next-generation content protection technology, which makes it possible to store high definition (HD) contents on memory cards.

5) Discrete: Discrete products in ultra-small packages, such as CSP, which support power management and high-speed interfaces on mobile devices. Products on display will include MOSFETs, load switches and ESD protection diodes.  

While military applications continue to drive the GaN device market, commercial applications have emerged that will help fuel rapid market growth. The recently released Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) Forecast and Outlook, "GaN Microelectronics Market Update: 2012-2017," concludes that the overall GaN microelectronics device market closed 2012 with revenues of slightly less than $100 million. The report also forecasts that commercial RF and power management applications will begin shipping in volume during the forecast period and this activity will push the overall market to slightly more than $334 million by 2017.

"The GaN device market has been ‘about to take off’ for a number of years," noted Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs).  "Based on our most recent research, it appears there are segments of the commercial market, like CATV and wireless infrastructure that are seeing higher volumes, but the broad commercial market is still not quite into the production phase. We do anticipate seeing more of these commercial segments contribute over the period and this will be the driver for strong revenue growth."

Asif Anwar, director in the Strategy Analytics Strategic Technologies Practice (STP) added, "Despite the interest and growth in commercial applications for GaN, military applications will continue to account for more than half of the GaN device revenue in 2017. The performance benefits of using GaN devices in military applications are clear and this will keep driving GaN usage."

The Strategy Analytics forecast segments the GaN device market by RF and power management applications, as well as substrate technology. The report also discusses technology advantages and challenges for GaN, along with trends and differentiators for commercial and military market segments. A summary of GaN research projects details contributions to the current state of the technology. 

For decades, electronic devices have been getting smaller, and smaller, and smaller. It’s now possible—even routine—to place millions of transistors on a single silicon chip. But transistors based on semiconductors can only get so small.

"At the rate the current technology is progressing, in 10 or 20 years, they won’t be able to get any smaller," said physicist Yoke Khin Yap of Michigan Technological University. "Also, semiconductors have another disadvantage: they waste a lot of energy in the form of heat."

Scientists have experimented with different materials and designs for transistors to address these issues, always using semiconductors like silicon. Back in 2007, Yap wanted to try something different that might open the door to a new age of electronics.

"The idea was to make a transistor using a nanoscale insulator with nanoscale metals on top," he said. "In principle, you could get a piece of plastic and spread a handful of metal powders on top to make the devices, if you do it right. But we were trying to create it in nanoscale, so we chose a nanoscale insulator, boron nitride nanotubes, or BNNTs for the substrate."

Electrons flash across a series of gold quantum dots deposited on a boron nitride nanotubes.

Yap’s team had figured out how to make virtual carpets of BNNTs, which happen to be insulators and thus highly resistant to electrical charge. Using lasers, the team then placed quantum dots (QDs) of gold as small as three nanometers across on the tops of the BNNTs, forming QDs-BNNTs. BNNTs are ideal substrates for these quantum dots due to their small, controllable, and uniform diameters, as well as their insulating nature. BNNTs confine the size of the dots that can be deposited.

In collaboration with scientists at Oak Ridge National Laboratory (ORNL), they fired up electrodes on both ends of the QDs-BNNTs at room temperature, and something interesting happened. Electrons jumped very precisely from gold dot to gold dot, a phenomenon known as quantum tunneling.

"Imagine that the nanotubes are a river, with an electrode on each bank. Now imagine some very tiny stepping stones across the river," said Yap. "The electrons hopped between the gold stepping stones. The stones are so small, you can only get one electron on the stone at a time. Every electron is passing the same way, so the device is always stable."

Yap’s team had made a transistor without a semiconductor. When sufficient voltage was applied, it switched to a conducting state. When the voltage was low or turned off, it reverted to its natural state as an insulator.

Furthermore, there was no "leakage": no electrons from the gold dots escaped into the insulating BNNTs, thus keeping the tunneling channel cool. In contrast, silicon is subject to leakage, which wastes energy in electronic devices and generates a lot of heat.

Other people have made transistors that exploit quantum tunneling, says Michigan Tech physicist John Jaszczak, who has developed the theoretical framework for Yap’s experimental research. However, those tunneling devices have only worked in conditions that would discourage the typical cellphone user.

"They only operate at liquid-helium temperatures," said Jaszczak.

The secret to Yap’s gold-and-nanotube device is its submicroscopic size: one micron long and about 20nm wide.

"The gold islands have to be on the order of nanometers across to control the electrons at room temperature," Jaszczak said. "If they are too big, too many electrons can flow." In this case, smaller is truly better: "Working with nanotubes and quantum dots gets you to the scale you want for electronic devices."

"Theoretically, these tunneling channels can be miniaturized into virtually zero dimension when the distance between electrodes is reduced to a small fraction of a micron," said Yap.

Yap has filed for a full international patent on the technology.

The microelectronics industry in Russia has been receiving quite a lot of attention recently with growing realization that intensive industry development is crucial to achieve import substitution and eventually compete in the international market. At the conference that took place recently in Zelenograd as part of SEMICON Russia 2013, which is devoted to the development of microelectronics in Russia, Practise Director of Frost & Sullivan’s Technical Insight division in Europe, Ankit Shukla, shared with the audience his vision for growth of the microelectronics industry in changing business conditions.

"A number of fundamental aspects need attention for the harmonious development of microelectronics," noted Mr. Shukla. "The foremost is government and the private sector support for new trends in the technology. The formation of a nuanced state policy oriented towards the interests of the industry and the business community will play a strong role in the development of the microelectronics market, both in Russia and across the world. In this regard, providing tax exemptions and institutional support for the industry is a necessity for its progress."

During the event, Frost & Sullivan and Semiconductor Equipment and Materials International (SEMI) presented the first results of the research entitled "The Russian Microelectronics Market" based on a survey of representatives from domestic and foreign companies operating in the Russian market. Results showed that for a three-year outlook, all respondents expect a positive growth trend for the market. In addition, 45 per cent of those surveyed believe that their turnover will outpace industry growth rates.

A majority – 64 per cent – of respondents expect the processors segment, including microcontrollers (MCUs) and microprocessor units (MPUs), to be among the most promising in the market. Other indicated areas of development included radiofrequency modules and components by 43 per cent, optoelectronics by 36 per cent, and microcircuitry and sensors by 29 per cent of respondents.

An effective support tool for the microelectronics industry is the creation of special economic zones and clusters as evidenced by the experience in Russia as well as Asian and European countries. Such economic zones already exist in Zelenograd and Skolkovo. Human resources can also be a compelling aspect as the educational level of Russian technical specialists has traditionally been highly valued in the world. Such potential will unquestionably help market growth but the problem of migration of highly qualified personnel to other countries is one that cannot be ignored. Thus, retaining professionals within the country and creating an attractive work environment for them should be a fundamental task to further market development.

"In order to excel in the microelectronics market we must develop partnership programs on several levels since a simple a technology-oriented approach will not be enough," advised Mr. Shukla. "Market participants must concentrate their efforts on diversification, development of new technologies, optimization of expenditure, and development of new market niches."

North America-based manufacturers of semiconductor equipment posted $1.32 billion in orders worldwide in May 2013 (three-month average basis) and a book-to-bill ratio of 1.08, according to the May EMDS Book-to-Bill Report published today by SEMI.  A book-to-bill of 1.08 means that $108 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in May 2013 was $1.32 billion. The bookings figure is 12.5 percent higher than the final April 2013 level of $1.17 billion, and is 18.1 percent lower than the May 2012 order level of $1.61 billion.

The three-month average of worldwide billings in May 2013 was $1.22 billion. The billings figure is 12.6 percent higher than the final April 2013 level of $1.09 billion, and is 20.5 percent lower than the May 2012 billings level of $1.54 billion.

“The SEMI Book-to-Bill continues to show steady improvement as the ratio remains at or above parity for the fifth consecutive month,” said Daniel P. Tracy, senior director of Industry Research and Statistics at SEMI.  “The spending outlook for the year is improving as foundries continue to invest in advanced technologies and NAND manufacturers plan to increase spending on equipment.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

 

Billings 
(3-mo. avg)

Bookings
 (3-mo. avg)

Book-to-Bill

December 2012

1,006.1

927.4

0.92

January 2013

968.0

1,076.0

1.11

February 2013

974.7

1,073.5

1.10

March 2013

991.0

1,103.3

1.11

April 2013 (final)

1,086.3

1,173.9

1.08

May 2013 (prelim)

1,223.3

1,321.2

1.08

Source: SEMI, June 2013

The data contained in this release were compiled by David Powell, Inc., an independent financial services firm, without audit, from data submitted directly by the participants. SEMI and David Powell, Inc. assume no responsibility for the accuracy of the underlying data.

The data are contained in a monthly Book-to-Bill Report published by SEMI. The report tracks billings and bookings worldwide of North American-headquartered manufacturers of equipment used to manufacture semiconductor devices, not billings and bookings of the chips themselves. The Book-to-Bill report is one of three reports included with the Equipment Market Data Subscription (EMDS).

 

Researchers at UC Santa Barbara, in collaboration with University of Notre Dame, have recently demonstrated the highest reported drive current on a transistor made of a monolayer of tungsten diselenide (WSe2), a two-dimensional atomic crystal categorized as a transition metal dichalcogenide (TMD). The discovery is also the first demonstration of an "n-type" WSe2 field-effect-transistor (FET), showing the tremendous potential of this material for future low-power and high-performance integrated circuits.

This is a schematic view of a back-gated field-effect-transistor fabricated by UCSB researchers using monolayer tungsten diselenide (WSe2) channel material.

Monolayer WSe2 is similar to graphene in that it has a hexagonal atomic structure and derives from its layered bulk form in which adjacent layers are held together by relatively weak Van der Waals forces. However, WSe2 has a key advantage over graphene.

"In addition to its atomically smooth surfaces, it has a considerable band gap of 1.6 eV," explained Kaustav Banerjee, professor of electrical and computer engineering and Director of the Nanoelectronics Research Lab at UCSB. Banerjee’s research team also includes UCSB researchers Wei Liu, Jiahao Kang, Deblina Sarkar, Yasin Khatami and Professor Debdeep Jena of Notre Dame. Their study was published in the May 2013 issue of Nano Letters.

"There is growing worldwide interest in these 2D crystals due to the many possibilities they hold for the next generation of integrated electronics, optoelectronics and sensors," commented Professor Pulickel Ajayan, the Anderson Professor of Engineering at Rice University and a world renowned authority on nanomaterials. "This result is very impressive and an outcome of the detailed understanding of the physical nature of the contacts to these 2D crystals that the Santa Barbara group has developed."

"Understanding the nature of the metal-TMD interfaces was key to our successful transistor design and demonstration," explained Banerjee. Banerjee’s group pioneered a methodology using ab-initio Density Functional Theory (DFT) that established the key criteria needed to evaluate such interfaces leading to the best possible contacts to the monolayer TMDs.

The DFT technique was pioneered by UCSB professor emeritus of physics Dr. Walter Kohn, for which he was awarded the Nobel Prize in Chemistry in 1998. "At a recent meeting with Professor Kohn, we discussed how this relatively new class of semiconductors is benefitting from one of his landmark contributions," said Banerjee.

Wei Liu, a post-doctoral researcher in Banerjee’s group and co-author of the study, explained, "Guided by the contact evaluation methodology we have developed, our transistors achieved ON currents as high as 210 uA/um, which are the highest reported value of drive current on any monolayer TMD based FET to date." They were also able to achieve mobility of 142 cm2/V.s, which is the highest reported value for any back-gated monolayer TMD FET.

"DFT simulations provide critical insights to the various factors that effectively determine the quality of the interfaces to these 2D materials, which is necessary for achieving low contact resistances." added Jiahao Kang, a PhD student in Banerjee’s group and co-author of the study.

"Nanoelectronics and energy efficient computing technology are key areas of research at UCSB, fields in which our faculty members are renowned for their achievements. With these results, Professor Banerjee’s team continues to make important research contributions to next-generation electronics," commented Rod Alferness, dean of the College of Engineering at UCSB

VirtualWorks Group co-founder and Chairman Edward E. Iacobucci passed away at his home this morning after a 16-month battle with pancreatic cancer. Iacobucci was a renowned technology pioneer and entrepreneur who co-founded Citrix.

Recipient of the 1998 Ernst & Young International Entrepreneur Award, Iacobucci was quoted as saying, “Every human being has his own vision of what’s happening in the future. I was lucky in that what I thought would happen did happen. When we know we can do it and the rest of the world doesn’t – that’s when things get interesting.”

“Ed’s clear vision of the technological future is becoming more of a reality every day,” stated Erik Baklid, VirtualWorks President and CEO. “His courage and entrepreneurial spirit were matched by his inclusive leadership style, warm heart and good humor. Ed will be deeply missed by the many employees, customers, partners and friends whose lives he touched.”

"We are deeply saddened by the loss of Ed Iacobucci and we send our sincerest sympathies, thoughts and prayers to his family,” said Mark Templeton, President and CEO of Citrix Systems. “Ed’s spirit of entrepreneurship, creativity, passion and persistence will always remain at the core of Citrix. We are proud to carry his wondrous torch forward.”

Iacobucci was born on September 26, 1953 in Buenos Aires, Argentina to Dr. Guillermo and Costantina Iacobucci. He is survived by his wife, Nancy Lee (Iacobucci); his three children, Marianna (Eden), William (Iacobucci), and Michelle (Iacobucci); mother, Costantina (Iacobucci); brother, Billy (Iacobucci); and three grandchildren, Sophia, Haven and Estelle.

MEMS devices are proliferating in mobile devices. Yole Développement counts 25+ sensors and actuators in production or in development for mobile applications, including MEMS accelerometers, MEMS gyroscopes, magnetometers, 6-axis e-compasses, 6-axis IMU combos, 9-axis combo solutions, silicon microphones, microspeakers, pressure sensors, humidity/temperature sensors, BAW filters and duplexers, MEMS switches and variable capacitors, silicon MEMS oscillators/resonators, micromirrors for picoprojectors, microdisplays, MEMS auto-focus, IR sensors and micro bolometers, bio-chemical detectors & gas sensors, MEMS touchscreen, MEMS joystick, radiation detectors, MEMS fuel cells, energy harvesting, UV sensors, ultrasonic sensors and more.

The past 12 months have seen big changes. While in the past, cell phone MEMS were limited to three categories (inertial, microphones and filters), we’ve seen strong adoption of new device types targeting environmental sensing. Also, pressure sensors are being heavily adopted in flagship phones and tablets, and humidity sensors are being adopted in the Samsung Galaxy S4. All of these new MEMS killer applications are detailed in Yole Développement’s report.

Changes have even occurred in existing high-volume MEMS areas:

  • Significant architectural changes have been observed in inertial sensors, with current strong adoption of IMU combo sensors. Likewise, a new opportunity has appeared with a camera module’s dedicated OIS gyroscope.
  • A trend has appeared involving integration of a third MEMS microphone to provide HD voice recording (i.e. in the iPhone 5), in addition to the dual microphone architecture described in the last report. This trend is a market booster.
  • Strong adoption of LTE in high-end platforms will boost the duplexer market for the next three years.

The long-term outlook for MEMS companies is brighter than ever, as existing products and products just ramping up will drive solid growth over the next few years. Additionally, a new wave of MEMS products will enable further growth. This report describes why some of these emerging MEMS will ramp up in volume almost overnight, just as pressure and humidity sensors did in the past few months. A nice 19 percent yearly growth is predicted for a market that reached $2.2 billion in 2012, and volume growth will be even more impressive, with 17.5 billion units expected by 2018, up from 4.5 billion in 2012.

Sensor fusion is heating up with its first commercial implementations

As sensor popularity enables new applications, software is key for obtaining the best performance and functionalities. Sensor hubs appeared at the end of 2012, in Windows Phone architectures and also in some Android platforms such as the Samsung Galaxy Note 2 and Galaxy S4, which integrate Atmel hub. This greatly impacts the MEMS value chain, since successful products must offer the right level of software and be qualified with sensor hubs in a timely manner.

Sometime in 2013, evolution is still expected in value partitioning, in particular with sensor fusion integration in the application processor. Also, as the value chain continues moving and novel architectures appear, new killer functionalities will hit the market. In particular, an ecosystem for context awareness or indoor navigation is put in place, with technology demonstrations (such as Movea’s recent demo at CES) and release of the first commercial chipsets enabling new sensor and data fusion concepts (Qualcomm iZat, Gimbal, CSR SiRFusion Platform, etc.). The most recent end- user trends shaping demand for next-generation MEMS devices are carefully analyzed in this report. In fact, one of the strongest impacts on sensor fusion architecture is the growth of connected devices and the use of the cell phone as a hub.

A price war and market share erosion – all in the last year

A large, growing market often comes with a strong price decrease.

“This is true for MEMS in mobile devices, as was observed in 2012,” says Laurent Robin, Activity Leader, Inertial MEMS Devices & Technologies. “Continuous competition between STMicroelectronics and InvenSense, and the arrival of a third player in gyroscope and IMU, had a significant impact on pricing — which decreased 25 percent in just one year!”

In the magnetometer area, the price decrease was even more significant, at 35 percent. Memsic’s aggressive pricing strategy forced market leader AKM to realign. Detailed analysis is available in Yole Développement’s report.

While the big guys still dominate this field and possess most of the business, things are changing. For example, in some cases Yole Développement’s analysts have seen an erosion of market share, for reasons described in this report. In fact, this analysis shows that in one year, Knowles lost 19 percent market share, AKM eight percent and Avago two percent in their respective markets.

Opportunities for challengers are emerging every day, driven by several factors:

  • Technology shift linked to the demand for higher performance in order to enable new-end functionalities and integration levels (this may be happening for magnetometers)
  • New business models, such as integrating MEMS dies, which are sold off-the-shelf (typically by Infineon)
  • Adoption of disruptive concepts for new sensors and actuators

Out of the 20+ players currently doing business in mobile MEMS applications, only three have been able to successfully diversify by enlarging their MEMS product portfolio. It’s a difficult achievement because Yole Développement’s MEMS law remains valid: there is still no standardization for MEMS products and processes. However, all industry players are actively looking to provide new functions and launch new components.

Worldwide semiconductor manufacturing equipment spending is projected to total $35.8 billion in 2013, a 5.5 percent decline from 2012 spending of $37.8 billion, according to Gartner, Inc. Gartner said that capital spending will decrease 3.5 percent in 2013, as major producers remain cautious in the face of market weakness.

"Weak semiconductor market conditions, which continued into the first quarter of 2013, generated downward pressure on new equipment purchases," said Bob Johnson, research vice president at Gartner. "However, semiconductor equipment quarterly revenues are beginning to improve and positive movement in the book-to-bill ratio indicates that spending for equipment will pick up later in the year. Looking beyond 2013, we expect that the current economic malaise will have worked its way through the industry and spending will follow a generally increasing pattern in all sectors throughout the rest of the forecast period."

Gartner predicts that 2014 semiconductor capital spending will increase 14.2 percent, followed by 10.1 percent growth in 2015. The next cyclical decline will be a mild drop of 3.5 percent in 2016, followed by a return to growth in 2017.

Table 1

Worldwide Semiconductor Manufacturing Equipment Spending Forecast, 2012-2017 (Millions of Dollars)

 

2012

2013

2014

2015

2016

 

 

 

2017

Semiconductor Capital Spending ($M)

58,742.8

56,704.5

64,745.6

71,305.9

68,790.4

72,399.6

Growth

-11.9%

-3.5%

14.2%

10.1%

-3.5%

5.2%

Capital Equipment ($M)

37,833.2

35,761.6

42,591.0

47,488.8

44,712.0

48,580.9

Growth

-16.1%

-5.5%

19.1%

11.5%

-5.8%

8.7%

Wafer-Level Manufacturing Equipment ($M)

31,445.8

29,900.7

35,293.4

40,400.0

38,867.7

42,179.1

Growth

-17.8%

-4.9%

18.0%

14.5%

-3.8%

8.5%

Wafer Fab Equipment ($M)

29,644.2

27,957.3

32,831.5

37,750.5

36,344.4

39,215.4

Growth

-18.5%

-5.7%

17.4%

15.0%

-3.7%

7.9%

Wafer-Level Packaging and Assembly Equipment ($M)

1,801.6

1,943.4

2,461.9

2,649.5

2,523.3

2,963.7 

Growth

-3.1%

7.9%

26.7%

7.6%

-4.8%

17.5%

Die-Level Packaging and Assembly Equipment ($M)

3,867.3

3,503.7

4,258.9

3,922.5

3,232.1

3,548.2

Growth

-10.5%

-9.4%

21.6%

-7.9%

-17.6%

9.8%

Automated Test Equipment ($M)

2,520.0

2,357.2

3,038.7

3,166.3

2,612.2

2,853.5

Growth

0.4%

-6.5%

28.9%

4.2%

-17.5%

9.2%

Other Spending ($M)

20,909.6

20,943.0

22,143.3

23,815.1

24,401.2

24,067.9

Growth

-3.1%

0.2%

5.7%

7.6%

2.5%

-1.4%

Source: Gartner (June 2013)

Although capital spending for all products will decline in 2013, logic spending will be the strongest segment, declining only 2 percent compared with a 3.5 percent decline for the total market. This is driven by aggressive investment of the few top players, which are ramping up production at the sub-30-nanometer (nm) nodes. Memory will continue to be weak through 2013, with maintenance-level investments for DRAM and a slightly down NAND market until supply and demand balance returns. For 2014, Gartner sees capital expenditure (capex) returning to growth with an increase of 14.2 percent over 2013. The foundry segment will see an increase in spending of about 14.3 percent this year, while both integrated device manufacturers (IDMs), and semiconductor assembly and test services (SATS) providers will show spending declines. Beyond 2013, memory surges in 2014 and 2015 and a cyclical decline in 2016, while logic returns to a steady growth pattern.

The wafer fab equipment (WFE) market is seeing continuous quarter-over-quarter growth in 2013, as major manufacturers come out of a period of high inventories and a generally weak semiconductor market. Early in the year the book-to-bill ratio passed 1:1 for the first time in months, signaling that the need for new equipment is strengthening as demand for leading-edge devices is improving. Looking beyond 2013, Gartner sees growth returning to the WFE market with double-digit growth in 2014 and 2015, before a modest cyclical downturn in 2016.

The capital spending forecast estimates total capital spending from all forms of semiconductor manufacturers, including foundries and back-end assembly and test services companies. This is based on the industry’s requirements for new and upgraded facilities to meet the forecast demand for semiconductor production. Capital spending represents the total amount spent by the industry for equipment and new facilities.

More detailed analysis is available in the report "Forecast: Semiconductor Capital Spending, Worldwide, 2Q13 Update."

This research is produced by Gartner’s Semiconductor Manufacturing program. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing to device and application market trends.