Category Archives: Device Architecture

Durcan_Mark_2400x3000_1_smlThe Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, announced Mark Durcan, former CEO of Micron Technology, Inc., and a longtime leader in advancing semiconductor technology, has been named the 2017 recipient of SIA’s highest honor, the Robert N. Noyce Award. SIA presents the Noyce Award annually in recognition of a leader who has made outstanding contributions to the semiconductor industry in technology or public policy. Durcan, who retired as Micron CEO on May 8, 2017, will accept the award at the SIA Annual Award Dinner on Tuesday, Nov. 14, 2017 in San Jose, an event that will also commemorate SIA’s 40th anniversary.

“Throughout his impressive career, Mark Durcan has demonstrated the best the semiconductor industry has to offer: hard work, ingenuity, and a relentless focus on promoting innovation,” said John Neuffer, president and CEO, Semiconductor Industry Association. “From his engineering roots to his recent work leading one of the world’s top manufacturers of memory products, Mark has strengthened our industry, advanced semiconductor technology, and reinforced America’s leadership of the global semiconductor market. On behalf of the SIA board of directors, it is a pleasure to announce Mark’s selection as the 2017 Robert N. Noyce Award recipient in honor of his outstanding accomplishments.”

A 30-year company veteran, Durcan rose from his first role as a Process Integration Engineer to Chief Technical Officer, President, and, ultimately, CEO in 2012. A key technical decision maker in bringing Micron’s next-generation technologies to market, Durcan expanded Micron’s global presence and enhanced its capabilities with strategic acquisitions, including Elpida (2012) and Rexchip (2012) and Inotera Memories, Inc. (2016). He also forged long-lasting partnerships with industry leaders such as Intel.

Durcan served as Chairman of the Micron Technology Foundation, Inc., which was formed to advance STEM education and support civic and charitable institutions in the communities in which Micron has facilities. He also currently serves on the board of directors for AmerisourceBergen Corp. and St. Luke’s Health System, a non-profit hospital system in Idaho. Durcan earned both bachelor’s and master’s degrees in chemical engineering from Rice University.

“It is a true honor to be selected for this award, and to join the ranks of its distinguished recipients, who are industry pioneers and icons,” said Durcan. “Nothing that I have accomplished during my career would have been possible without the influence of so many innovative and dedicated colleagues at Micron as well as our customers, suppliers, and partners. It is with sincere appreciation for their contributions to our industry that I gratefully accept this award.”

The Noyce Award is named in honor of semiconductor industry pioneer Robert N. Noyce, co-founder of Fairchild Semiconductor and Intel.

The Semiconductor Industry Association (SIA), in consultation with the Semiconductor Research Corporation (SRC), today announced the winners of its 2017 University Research Award: Dr. Gabor C. Temes, professor of electrical and computer engineering at Oregon State University (OSU), and Dr. Sanjay Banerjee, professor of electrical and computer engineering and director of the Microelectronics Research Center at The University of Texas at Austin (UT Austin). Drs. Temes and Banerjee will receive the awards in conjunction with the SIA Annual Award Dinner on Nov. 14, 2017 in San Jose, Calif.

“Research is at the root of all innovation, breathing life into new technologies that have strengthened our industry, spurred economic growth, and improved people’s lives,” said John Neuffer, president and CEO of SIA, which represents U.S. leadership in semiconductor manufacturing, design, and research. “Throughout their careers, Professors Temes and Banerjee have epitomized excellence in scientific research, leading efforts to advance semiconductor technology and strengthen America’s technological leadership. We are pleased to recognize Dr. Temes and Dr. Banerjee for their groundbreaking achievements.”

Neuffer also highlighted the importance of government investments in basic research funded through agencies like the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST) and applauded recently announced public-private initiatives at the U.S. Department of Energy and the Defense Advanced Research Projects Agency (DARPA) aimed at advancing semiconductor research. He expressed SIA’s readiness to work with the Trump Administration and Congress to ensure enactment of a fiscal year 2018 budget that prioritizes investments in basic research.

“The University Research Award was established to recognize lifetime achievements in semiconductor research by university faculty,” said Ken Hansen, president & CEO of SRC. “Drs. Temes and Banerjee have repeatedly advanced the state-of-the-art semiconductor design and technology in their respective fields. These esteemed professors’ influence on their students has produced new leaders and contributors in the semiconductor industry. The research output from the cooperative universities plays an integral role in next-generation innovations. It is with great appreciation and admiration that the entire SRC team congratulates Dr. Temes and Dr. Banerjee.”

Dr. Temes will receive the honor for excellence in design research. In particular, he will be recognized for contributions in interface electronics, including analog-to-digital and digital-to-analog converters, switched-capacitor filters and amplifiers, and sensor interfaces. Before joining OSU, Dr. Temes held academic positions at the Technical University of Budapest, Stanford University, and UCLA. He also worked in industry at Northern Electric R&D Laboratories (now Bell-Northern Research), as well as at Ampex Corp. Dr. Temes received his undergraduate education at the Technical University and Eotvos University in Budapest, Hungary, and his Ph.D. in electrical engineering from University of Ottawa, Canada.

Dr. Banerjee will receive the award for excellence in technology research. Specifically, he will be honored for contributions in MOS and nanostructure device modeling, Si-Ge-C heterostructure devices, and ultra-shallow junction technology. Before joining the Cockrell School of Engineering at UT Austin, Dr. Banerjee was at Texas Instruments from 1983-1987, where he worked on polysilicon transistors and dynamic random access trench memory cells used by Texas Instruments in the world’s first 4Megabit DRAM. He received his undergraduate degree from the Indian Institute of Technology, Kharagpur, and his M.S. and Ph.D. from the University of Illinois at Urbana-Champaign, all in electrical engineering.

In its upcoming Mid-Year Update to The McClean Report 2017 (to be released at the end of July), IC Insights addresses the amazing growth of the 2017 DRAM and NAND flash memory markets.

Sales of both memory types—DRAM and NAND—are expected to set record highs this year.  In both cases, the strong annual upturn in sales is being driven almost entirely by fast-rising average selling prices.  In the case of DRAM, unit shipments are actually forecast to show a decline this year.  Moreover, NAND shipments are forecast to increase only 2%, providing a small, added boost to the market growth in that segment. Prices for DRAM and NAND first began increasing in the second half of 2016, and continued with quarterly increases through the first half of 2017. Figure 1 plots the robust quarterly ASP growth rates, which, from 3Q16 through 2Q17, averaged 16.8% for DRAM and 11.6% for NAND.

Figure 1

Figure 1

With DRAM ASPs surging since the third quarter of 2016, DRAM manufacturers once again stepped up their spending for this segment.  However, the majority of this spending is going towards technology advancements and not toward capacity additions.

IC Insights believes that essentially all of the spending for flash memory in 2017 will be used for 3D NAND flash memory process technology as opposed to planar flash memory.  A big increase in NAND flash capital spending this year is expected from Samsung as it ramps 3D NAND production at its large, new fab in Pyeongtaek, South Korea.

Historical precedent in the memory market shows that too much spending usually leads to overcapacity and subsequent pricing weakness. Samsung, SK Hynix, Micron, Intel, Toshiba/SanDisk, and XMC/Yangtze River Storage Technology each plan to significantly ramp up 3D NAND flash capacity over the next couple of years (with additional new Chinese producers possibly entering the market).  The likelihood of overshooting 3D NAND flash capacity over the next few years is very high.

IC Insights shows the DRAM quarterly ASP growth rate peaked in 4Q16 but continued a strong upward trend through 2Q17. IC Insights forecasts the DRAM ASP to increase (though marginally) into 3Q17 before edging slightly negative in 4Q17, signaling the end of another cyclical upturn.

Even though DRAM ASP growth is forecast to slow in the second half of the year, the annual DRAM ASP growth rate is still forecast to be 63%, which would be the largest annual rise for DRAM ASPs dating back to 1993 when IC Insights first started tracking this data.  The previous record-high annual growth rate for DRAM ASP was 57% in 1997.  For NAND flash, the 2017 ASP is forecast to increase 33%, also a record high gain. (In the year 2000, the predominantly NOR-based flash ASP jumped 52%).

The 250+ page Mid-Year Update to the 2017 edition of The McClean Report further describes IC Insights’ updated forecasts for DRAM and NAND flash memory for 2017-2021 and includes a refreshed outlook on its semiconductor capital expenditure forecast.

Transistors, as used in billions on every computer chip, are nowadays based on semiconductor-type materials, usually silicon. As the demands for computer chips in laptops, tablets and smartphones continue to rise, new possibilities are being sought out to fabricate them inexpensively, energy-saving and flexibly. The group led by Dr. Christian Klinke has now succeeded in producing transistors based on a completely different principle. They use metal nanoparticles which are so small that they no longer show their metallic character under current flow but exhibit an energy gap caused by the Coulomb repulsion of the electrons among one another. Via a controlling voltage, this gap can be shifted energetically and the current can thus be switched on and off as desired. In contrast to previous similar approaches, the nanoparticles are not deposited as individual structures, rendering the production very complex and the properties of the corresponding components unreliable, but, instead, they are deposited as thin films with a height of only one layer of nanoparticles. Employing this method, the electrical characteristics of the devices become adjustable and almost identical.

These Coulomb transistors have three main advantages that make them interesting for commercial applications: The synthesis of metal nanoparticles by colloidal chemistry is very well controllable and scalable. It provides very small nanocrystals that can be stored in solvents and are easy to process. The Langmuir-Blodgett deposition method provides high-quality monolayered films and can also be implemented on an industrial scale. Therefore, this approach enables the use of standard lithography methods for the design of the components and the integration into electrical circuits, which renders the devices inexpensive, flexible, and industry-compatible. The resulting transistors show a switching behavior of more than 90% and function up to room temperature. As a result, inexpensive transistors and computer chips with lower power consumption are possible in the future. The research results have now been published in the scientific journal “Science Advances“.

“Scientifically interesting is that the metal particles inherit semiconductor-like properties due to their small size. Of course, there is still a lot of research to be done, but our work shows that there are alternatives to traditional transistor concepts that can be used in the future in various fields of application”, says Christian Klinke. “The devices developed in our group can not only be used as transistors, but they are also very interesting as chemical sensors because the interstices between the nanoparticles, which act as so-called tunnel barriers, react highly sensitive to chemical deposits.”

GLOBALFOUNDRIES and VeriSilicon today announced a collaboration to deliver the industry’s first single-chip IoT solution for next-generation Low Power Wide Area (LPWA) networks. Leveraging GF’s 22FDX® FD-SOI technology, the companies plan to develop intellectual property that could enable a complete cellular modem module on a single chip, including integrated baseband, power management, RF radio and front-end module combining both Narrowband IoT (NB-IoT) and LTE-M capabilities. The new approach is expected to deliver significant improvements in power, area, and cost compared to current offerings.

With the proliferation of connected devices for smart cities, homes, and industrial applications, network providers are developing new communications protocols that better meet the needs of emerging IoT standards. LPWA technology takes advantage of the existing LTE spectrum and mobile infrastructure, but focuses on delivering ultra-low power, extended range, and much lower data rates for devices that transmit small amounts of infrequent data, such as connected water and gas meters.

The two leading LPWA connectivity standards are LTE-M, which is expected to get traction in the U.S. market, and NB-IoT, which is gaining ground in Europe and Asia. For example, the Chinese government has targeted NB-IoT for nationwide deployment over the coming year. The combination of these two technologies is expected to push cellular M2M module shipments to nearly half a billion by 2021, according to ABI Research.

GF and VeriSilicon are developing a suite of IP to enable customers to create single chip cost- and power-optimized solutions for worldwide deployment, based on a dual-mode carrier-grade baseband modem with integrated RF front-end module. The design will be fabricated using GF’s 22FDX process, which leverages a 22nm FD-SOI technology platform to provide cost-effective scaling and power reduction for IoT applications. 22FDX is the only technology that allows efficient single-chip integration of RF, transceiver, baseband, processor, and power management components. This integration is expected to deliver more than an 80 percent improvement in both power and die size compared to today’s 40nm technologies.

“Our 22FDX technology is perfectly positioned to support the explosive growth of low-power, battery-operated IoT devices,” said Alain Mutricy, senior vice president of product management at GF. “We are especially excited about the opportunities presented by the China market, which is leading the way with a nationwide commitment to IoT and smart cities. This new initiative expands on our long standing relationship with VeriSilicon—an important partner helping us build an FD-SOI ecosystem around our new 300mm fab in Chengdu.”

“Started from more than five years ago, as a Silicon Platform as a Service (SiPaaS) company, VeriSilicon has developed FD-SOI IPs and achieved first silicon success of many chips based on FD-SOI technologies. For IoT applications, besides cost advantages, integrated RF, body bias, and embedded memory, such as MRAM, are the key benefits of FD-SOI technologies beyond 28 nm bulk CMOS.” said Wayne Dai, VeriSilicon Chairman, President and CEO. “Integrated with RF and PA on GF 22FDX, the baseband and protocol stack are being implemented on our energy efficient and programmable ZSPnano that is optimized for control and data flow with powerful low latency, single cycle instructions for signal processing. GF’s new 300 mm fab for FDX in Chengdu and IP platforms such as this single chip solution for integrated NB-IoT and LTE-M, will have significant impact on China IoT and AIoT (AI of Things) industries.”

GF and VeriSilicon expect to tape out a test chip based on the integrated solution, with silicon validation in Q4 2017. The companies plan to pursue carrier certification in mid-2018.

In its upcoming Mid-Year Update to The McClean Report 2017 (to be released at the end of July), IC Insights forecasts that the 2017 global electronic systems market will grow by only 2% to $1,493 billion while the worldwide semiconductor market is expected to surge by 15% this year to $419.1 billion. Moreover, IC Insights forecasts that the total semiconductor market will exceed $500.0 billion four years from now in 2021.  If the 2017 forecasts come to fruition, the average semiconductor content in an electronic system will reach 28.1%, an all-time record (Figure 1).

Figure 1

Figure 1

Historically, the driving force behind the higher average annual growth rate of the semiconductor industry as compared to the electronic systems market is the increasing value or content of semiconductors used in electronic systems.  With global unit shipments of cellphones (0%), automobiles (2%), and PCs (-2%) forecast to be weak in 2017, the disparity between the slow growth in the electronic systems market and high growth of the semiconductor market is directly due to the increasing content of semiconductors in electronic systems.

While the trend of increasing semiconductor content has been evident for the past 30 years, the big jump in the average semiconductor content in electronic systems in 2017 is expected to be primarily due to the huge surge in DRAM and NAND flash ASPs and below average electronic system sales growth this year. After dipping slightly to 28.6% in 2020, the semiconductor content figure is expected to climb to 28.9% in 2021, an average yearly gain over the 2016-2021 timeperiod of about 0.8 percentage points.

Of course, the trend of increasingly higher semiconductor value in electronic systems has a limit. Extrapolating an annual increase in the percent semiconductor figure indefinitely would, at some point in the future, result in the semiconductor content of an electronic system reaching 100%.  Whatever the ultimate ceiling is, once it is reached, the average annual growth for the semiconductor industry will closely track that of the electronic systems market (i.e., about 4% per year).  In IC Insights’ opinion, the “ceiling” is at least 30% but will not be reached within the forecast period.

The 250+ page Mid-Year Update to the 2017 edition of The McClean Report further describes IC Insights’ IC market forecast data for 2017-2021.

By Michaël Tchagaspanian, Vice President of Sales and Marketing, Leti

Digital disruption begets innovation. Challenges equal opportunities. Those were clear messages during Leti Innovation Days recently in Grenoble, France. Over two days at the annual event, which this year coincided with Leti’s 50th anniversary, speakers and exhibitions highlighted challenges of the digital revolution and presented specific current-and-anticipated solutions for industry, healthcare and energy and the environment.

Coinciding with the launch of the administration of French President Emmanuel Macron, who has already talked of France becoming “a start-up nation”, Leti also noted the importance of creating and supporting startups that will help consumers, companies and countries address the challenges and opportunities of the digital revolution.

Citing challenges in the energy sector, Thierry Lepercq, executive vice president of research, technology and innovation at the international French energy company ENGIE, warned of potential energy blackouts and financial problems for traditional energy providers due to the growing penetration of alternative energy sources, the switch from fossil fuels – and energy sharing by households.

These developments, which ENGIE calls “Full 3D” – decarbonization, decentralization and digitalization – have destabilized traditional power systems and providers.

For example, a German residential battery-storage supplier allows residents to store energy at home and swap it on the grid, cutting out traditional electricity providers. Lepercq also noted that the rapid growth in the use of electric vehicles can load the grid with demand that was not anticipated even a few years ago. But the digital revolution also has prompted entrepreneurial responses. EV-Box, the Dutch company that has deployed more than 40,000 vehicle-charging stations in 20 countries, is gathering usage data, which will help officials understand the vehicles’ demands on the grid.

ENGIE acquired EV-Box this year as a strategic step towards operating in a completely new global energy paradigm.

Driving toward a new economy

Last month, Intel released a study that predicted autonomous vehicles will create a “Passenger Economy” – with mobility-as-a-service – that could grow to $800 billion in 2035 and to $7 trillion by 2050.

With autonomous vehicles, the car will no longer be a “stand-alone vehicle”, but “something that reacts with the environment”, said Mike Mayberry, corporate vice president and managing director of Intel Labs. Intel has opened advanced vehicle labs in the U.S. and Germany to explore the various requirements related to self-driving vehicles and the future of transportation. That includes sensing, in-vehicle computing, artificial intelligence, connectivity, and supporting cloud technologies and services.

When a panel discussion on driverless cars was asked when these vehicles will be in general use, Jean-François Tarabbia, CTO of Valeo, the automotive supplier to automakers worldwide, said “the better question is ‘why’”. And that depends in part on the industry’s ability to demonstrate vehicle safety. He said that traffic jams could be reduced by 30 percent with autonomous cars. Still, the cars will require a driver inside who will do something other than driving until he or she is needed to operate the vehicle.

Pierrick Cornet, brand incubator at Renault Nissan, said autonomous cars also will have to accommodate owners who occasionally want to drive their vehicles. For carmakers like Renault Nissan, the challenges are managing the cost and weight of the vehicles, which are loaded with batteries, as well as computing and sensing gear – and making them able to charge quickly.

Fabio Marchiò, automotive digital general manager at STMicroelectronics, noted that cars are the least-used appliance/machine in the household. He agreed with Tarabbia that safety and consumer resistance are primary roadblocks for the vehicles, but added that government regulations could slow down their widespread use.

Moore’s Law obtains

Outlining some of Intel’s R&D programs, Mayberry brushed aside frequent predictions that Moore’s Law has run its course. He said Intel expects Moore’s Law to be in effect at least through the next decade, because of the industry’s continued evolution to smaller technology nodes with new IC technologies.

In addition to focusing on enabling Moore’s Law going forward, Intel’s research on components and hardware includes developing novel integration techniques. But Intel Labs also is focused on enabling future product capabilities and “imagining what’s next”.

As part of that effort, Intel Labs has partnered with Princeton University to decode digital brain data, which is scanned using functional magnetic resonance imaging (fMRI). The goal is to reveal how neural activity gives rise to learning, memory and other cognitive functions such as human attention, control and decision-making.

Leti and Intel agreed last year to collaborate on strategic research programs, including the Internet of Things, high-speed wireless communication, security technologies and 3D displays.

Quantum computing

Also peering into the more-distant future, Leti CEO Marie Semeria noted development of Leti’s Si-CMOS quantum-technology platform.

“The quantum topic has recently become central, thanks to the huge advances made in solid-state implementation, both in superconducting systems and in silicon technologies,” she said. “Interest in silicon-based technologies is huge because of their reliability and their capability to reproduce industrial standards along with the low-noise characteristics and low variability of CMOS devices.”

Noting that the University of New South Wales recently demonstrated a promising two-qubit logic gate based on the silicon-28 isotope, Semeria said Leti had demonstrated the compatibility of such circuits with state-of-the-art CMOS processes.

“From an architectural point of view, it is clear that the future quantum computer will be hybrid. It will combine a quantum engine with a classical digital computer,” she explained. “The program that will run on such a machine will need to combine at least two computing models: a classical part, to prepare data and process results, and a quantum one. A tight connection between the two programming models will be necessary.”

With its history of pioneering in technology and its culture of spinning out new companies to further develop and commercialize innovative technologies, Leti is poised to help France achieve Macron’s goal: “I want France to be a ‘start-up nation’, meaning both a nation that works with and for the start-ups, but also a nation that thinks and moves like a start-up.”

Leti has launched 64 startups, including 13 in the past four years.

Digital innovations in healthcare

Jai Hakhu, president & CEO of HORIBA International Corporation (U.S.), explained how the digital revolution is creating in vitro diagnostics business potential by enabling delivery of preventive healthcare services in even remote regions of the world. In one of HORIBA and Leti’s joint projects, they are developing a hematology, microfluidics-based, lensfree, point-of-care and home-testing system that can be used in underdeveloped countries.

The collaboration is helping realize HORIBA’s vision of providing preventive self-testing anywhere in the world.

Leti’s start-up Avalun has developed a portable medical device for multiple-measurement capabilities using point-of-care testing. Other recent healthcare-related startups include Diabeloop, which is in the final stages of testing an artificial pancreas, and Aryballe Technologies, which is developing olfactory and gustatory sensors.

Routes to innovation

Those new companies were among the presenters at Leti’s immersive exhibition, “Routes to Innovation”, which was the focus of day two of the event. Entrepreneurs and Leti scientists offered more than 60 demonstrations of patented technologies, to show with concrete examples how Leti’s technological know-how and industrial transfer expertise can help French and international companies innovate and become more competitive.

The three “Digital Revolution” topics included “Micro-Nano Pathfinding”, showing how the diversity of Leti’s digital technologies are available to all economic sectors; “Cyber Physical Systems”, and “Business-Model Disruption”.

The “Environmental Transition” demos covered “Sustainable Activities”, “Monitoring Our World’ and “More with Less”. The “New Frontiers for Healthcare” demos covered “Prevention, Independence, Well Being”, “New Therapies” and “Analysis & Diagnosis”. 

Collaborating for technological sovereignty

During the event, Semeria and Fraunhofer Group for Microelectronics Chairman Hubert Lakner announced a wide-ranging collaboration to develop innovative, next-generation microelectronics technologies to spur innovation in their countries and strengthen European strategic and economic sovereignty.

The two institutes will initially focus on extending CMOS and More-than-Moore technologies to enable next-generation components for applications in the Internet of Things, augmented reality, automotive, health, aeronautics and other sectors, as well as systems to support French and German industries.

‘Smart everything everywhere’

Over the two days, a record number of guests, including CEOs, CTOs, journalists and special guests and speakers heard and saw examples of Leti’s advanced technology platforms, its commitment to research excellence and its vision for applying innovative technologies to challenges of the digital era.

Max Lemke, head of the Components and Systems Unit at the European Commission, noted that Leti’s contributions extend beyond microelectronics to cyber-physical systems, 5G, the Internet of Things, photonics and post-CMOS technologies. By supporting the digital transformation of industry, Leti plays a leading role in “smart everything everywhere”, Lemke said.

“Leti is excellently positioned to continue doing forward-looking research” on components and systems to build the foundation for Europe’s future competitiveness, and to play an instrumental role in supporting French and European industry in their digital transformation, he said.

Worldwide industrial semiconductor revenues grew by 3.8 percent year-over-year in 2016, to $43.5 billion, according to the latest analysis from business information provider IHS Markit (Nasdaq: INFO).

Industrial electronics equipment demand was broad-based, with continued growth in commercial and military avionics, digital signage, network video surveillance, HVAC, smart meters, traction, PV inverters, LED lighting and various medical electronics such as cardiac equipment, hearing aids and imaging systems, IHS Markit said.

The U.S. economy continued to boost industrial spending while improved economic conditions in Europe and large emerging countries like China, India and Brazil toward the end of 2016 that propelled growth. These economic conditions are expected to continue thorough 2017, according to the IHS Markit analysis.

Top 20 company ranks: Global industrial semiconductor market share

Texas Instruments (TI) maintained its position as the largest industrial semiconductor supplier in 2016 followed by Intel, STMicroelectronics, Infineon Technologies and Analog Devices. Intel surged to second place, swapping spots with Infineon, which dropped to fourth. The Intel IoT group’s double-digit revenue growth is attributed to strength in factory automation, video surveillance and medical segments.

“Toshiba, ON Semiconductor and Microchip Technology climbed into the top 10 industrial semiconductor supplier ranks in 2016,” said Robbie Galoso, principal analyst, industrial semiconductors for IHS Markit. Toshiba’s industrial market share rank jumped to number six, according to survey feedback. Toshiba’s industrial electronics revenue grew from $1.1 billion in 2015 to $1.4 billion in 2016—a 30.5 percent bounce driven by discretes, microcomponent integrated circuits (ICs), memory and logic IC solutions in manufacturing and process automation, power and energy as well as security and video surveillance.

Mergers and acquisitions make an impact

The semiconductor industry had another cycle of merger and acquisition in 2016 that affected the competitive landscape. The combined ON Semiconductor – Fairchild organization generated $1.3 billion in 2016 industrial revenues, catapulting the consolidated company into seventh place. The acquisition of Fairchild allowed On Semiconductor to leapfrog to the top ranks of the power discrete market, forecast to be one of the higher growth markets over the next five years, IHS Markit said

On Semiconductor has been a relatively small player in the power discrete segment; with the Fairchild acquisition, it now has the scale and product portfolio to compete effectively with the combined Infineon International Rectifier. On Semiconductor’s 2016 revenue grew nearly 60 percent, largely driven by analog and discretes in the manufacturing and process automation and the power and energy sectors, both of which were sizeable segments for Fairchild.

The Microchip Technology – Atmel merger generated $1.2 billion in revenues in 2016, propelling the combined company into 10th place. The acquisition of leading microcontroller supplier, Atmel, positioned Microchip as the third-ranked supplier of microcomponent ICs in the industrial market, after Intel and TI. The combination of Microchip and Atmel created an MCU powerhouse, allowing it to compete effectively against the combined NXP Freescale. Microchip Technology’s 2016 revenue growth of 53 percent was driven by microcomponent ICs in manufacturing and process automation, Atmel’s bread and butter. Toshiba, Micron and ON Semiconductor displaced Nichia, Renesas and Xilinx in the top 10 rankings.

China’s massive investments in light-emitting diode (LED) manufacturing capacity propelled Chinese firm MLS into the 2016 top 20 industrial semiconductor supplier ranks, displacing Maxim. “MLS posted revenue growth of 27 percent, to $640 million, building its share against competition including top-20 firms Nichia, Osram and Cree,” added Galoso.

Strategic acquisitions will continue to play a major role in shaping the overall semiconductor market rankings in key industrial semiconductor segments. IHS Markit expects Analog Devices to increase its lead in 2017 market shares among the top semiconductor suppliers, due to an acquisition of Linear Technology. A joint Analog Devices – Linear Technology would battle for the number four spot and impressive gains in test and measurement, manufacturing and process automation as well as medical electronics.  Among the top 10 semiconductor suppliers, eight companies achieved growth in 2016, with two companies posting double-digit growth due to mergers.

industrial semi growth

Industrial semiconductor key growth drivers

Optical semiconductors delivered solid performance, driven by continued strength in the LED lighting market. IHS Markit expects the LED segment to grow from $9.4 billion in 2016 to $14.3 billion in 2021. With many countries phasing out incandescent bulbs, mass adoption of energy-efficient LED lighting solutions will continue to gain traction as prices for LED lamps fall to affordable levels for average-income households. Discrete power transistors, thyristors, rectifiers and power diodes are expected grow from $5.7 billion in 2015 to $8 billion in 2021 due to policy shifts toward energy efficiency in the factory automation market. IHS Markit projects that the microcontrollers (MCUs) segment  will grow robustly in the long term, expanding from $4.4 billion in 2016 to $7 billion in 2021, attributing this growth to both shipments and average selling price driven by system level cost savings provided by MCUs through advances in power efficiency and integration integrated features supporting connectivity, security, sensors and HMI.

By James Amano, International Standards, SEMI

At its recent Spring 2017 meeting, the North American Regional Standards Committee (NARSC) approved formation of a Taiwan chapter of the global SEMI Standards Automation Technology Committee. Taiwan joins existing Automation Technology chapters active in Japan and Europe. The Taiwan chapter will be led by K.C. Chou (ASE), C.S. Wu (MIRDC), Jen-Hui Tsai (Mechanical & Mechatronics Systems Research Laboratories, ITRI), and Gwo-Sheng Peng (Center for Measurement Standards, ITRI).

Co-Chair Chou explains the need for the Taiwan chapter:  “SEMI has a strong reputation for successful standardization, which is why the Taiwan PCB industry has selected the global SEMI Standards platform to develop consensus on equipment communication and other manufacturing areas where standards are needed to drive down cost.”

The initial focus of the Taiwan chapter will be to develop a guide for PCB equipment communication interfaces. The guide will be based on SEMI E4: SEMI Equipment Communications Standard 1 Message Transfer (SECS-I), SEMI E5: SEMI Equipment Communications Standard 2 Message Content (SECS-II), E37: High-Speed SECS Message Services (HSMS) Generic Services, E37.1: High-Speed SECS Message Services (HSMS) Generic Services, and E30: Generic Model for Communications and Control of Manufacturing Equipment (GEM).

David Lai of the Taiwan Printed Circuit Association comments: “Without automation standards, it will be difficult for the PCB industry to achieve its ambitious performance targets. In order to fulfill the goal of PCB automation, the standard will simplify the implementation of data collection & analytics, M2M communication and datamation step by step. Therefore, I am pleased that activities in the Taiwan SEMI Standards Automation Technology TC Chapter are underway.”

While the initial chapters of the Automation Technology Committee are located in Europe, Japan, and Taiwan, all interested parties, regardless of location, are invited to join in the global effort. To get involved, please contact your local SEMI Standards staff or visit: www.semi.org/standards.

 

The SEMI Foundation and the Micron Technology Foundation announced their partnership this week to deliver the 213th SEMI High Tech U (HTU) program which kicks off in earnest today at Micron’s facilities in Milpitas. Forty students from local high schools are attending the three-day science, technology, engineering and math (STEM) program.

The nonprofit SEMI Foundation has been holding its flagship program, SEMI High Tech U, at industry sites around the world since 2001 to emphasize the importance of STEM skills and inspire young people to pursue careers in high technology fields. HTU allows students to meet engineers and volunteer instructors from industry in a face-to-face setting with tech-related, hands-on activities such as etching wafers, making circuits, coding and professional interviews training.

“We are delighted to partner with Micron in our common goal to motivate the next generation of innovators,” said Ajit Manocha, president and CEO of SEMI and the SEMI Foundation. “HighTech U has reached more than 6,000 students in eleven states as well as nine countries internationally. We are pleased to join with Micron to serve students here in Silicon Valley.”

“Micron Technology Foundation has been inspiring learners of all ages and supporting early exposure to technology through our own Micron Chip Camp for 17 years,” said Sanjay Mehrotra, Micron president and CEO. “SEMI High Tech U is complementary to these efforts and we are proud to partner with the SEMI Foundation to deliver our first joint program focused on high school students to promote careers in STEM-related high tech industries such as semiconductor manufacturing.”

 

Ajit Manocha, president and CEO of SEMI, and Sanjay Mehrotra, president and CEO of Micron, with SEMI High Tech U students.

Ajit Manocha, president and CEO of SEMI, and Sanjay Mehrotra, president and CEO of Micron, with SEMI High Tech U students.

Manocha and Mehrotra jointly welcomed participating students to the SEMI HTU program and shared highlights of their professional experience during a pre-event kick-off at Micron in Milpitas on Monday, June 26. Students will spend Tuesday at Micron working on STEM focused, hands-on activities. Micron team members will assist in teaching the modules, offering students a connection to semiconductor professionals. On Wednesday, the program convenes at San Jose State University where students will learn about etching wafers and tour the SJSU campus. The program will culminate Thursday at Micron with critical thinking and soft skills development activities along with mock interviews. Students will “graduate” from SEMI High Tech U on Thursday afternoon at Micron.