Category Archives: Device Architecture

Toshiba America Electronic Components, Inc. (TAEC) this week announced the launch of its JEDEC eMMCTM Version 5.1-compliant embedded NAND flash memory products that feature an enhanced operational temperature range of -40°C to +105°C. The new parts integrate NAND chips fabricated with 15nm process technology and are well suited to industrial applications including PLC and CoMs, as well as factory automation equipment. The new lineup includes densities of 8 gigabyte (GB), 16GB, 32GB and 64GB.

The number of consumer and industrial applications that utilize eMMC for high-density, low power embedded memory continues to grow.  As a result, the variety of e-MMC solutions needed to address these diverse requirements has expanded, as has the need for products with extended temperature ranges. Toshiba is meeting the demand for high temperature solutions by adding to its lineup of high-performance, high-density eMMC products.

As with Toshiba’s existing e-MMC lineup, the new products integrate NAND chips with a controller to manage basic control functions for NAND applications in a single package. By supporting operational temperatures of +105°C, the new e-MMC devices give developers a mass storage solution for industrial applications in high temperature environments.

Worldwide semiconductor capital spending is projected to increase 2.9 percent in 2017, to $69.9 billion, according to Gartner, Inc. This is down from 5.1 percent growth in 2016 (see Table 1).

“The stronger growth in 2016 was fueled by Increased spending in late 2016 which can be attributed to a NAND flash shortage which was more severe in late 2016 and will persist though most of 2017. This is due to a better-than-expected market for smartphones, which is driving an upgrade of NAND spending in our latest forecast,” said David Christensen, senior research analyst at Gartner. “NAND spending increased by $3.1 billion in 2016 and several related wafer fab equipment segments showed stronger growth than our previous forecast. The thermal, track and implant segments in 2017 are expected to increase 2.5 percent, 5.6 percent and 8.4 percent, respectively.

Compared with early 2016, the semiconductor outlook has improved, particularly in memory, due to stronger pricing and a better-than-expected market for smartphones. An earlier-than-anticipated recovery in memory should lead to growth in 2017 and be slightly enhanced by changes in key applications.

Table 1: Worldwide Semiconductor Capital Spending and Equipment Spending Forecast, 2015-2020 (Millions of Dollars)

2016

2017

2018

2019

2020

Semiconductor Capital Spending ($M)

 67,994.0

 69,936.6

 73,613.5

 78,355.6

 75,799.3

Growth (%)

5.1

2.9

5.3

6.4

-3.3

Wafer-Level Manufacturing Equipment ($M)

35,864.4

38,005.4

38,488.7

41,779.7

39,827.0

Growth (%)

7.9

6.0

1.3

8.6

-4.7

Wafer Fab Equipment ($M)

 34,033.2

 35,978.6

 36,241.1

 39,272.8

 37,250.4

Growth (%)

8.1

5.7

0.7

8.4

-5.1

Wafer-Level Packaging and Assembly Equipment ($M)

1,831.2

2,026.8

2,247.6

2,506.9

2,567.7

Growth (%)

3.9

10.7

10.9

11.5

2.8

Source: Gartner (January 2017)

Foundries continue to outgrow the overall semiconductor market with mobile processors from Apple, Qualcomm, MediaTek and HiSilicon as the demand driver on leading-node wafers. In particular, fast 4G migration and more-powerful processors have resulted in larger die sizes than previous-generation application processors, requiring more 28 nanometer (nm), 16/14 nm and 10 nm wafers from foundries. Nonleading technology will continue to be strong from the integrated display driver controllers and fingerprint ID chips and active-matrix organic light-emitting diode (AMOLED) display driver integrated circuits (ICs).

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. Gartner clients can see more in “Forecast Analysis: Semiconductor Capital Spending and Manufacturing Equipment, Worldwide, 4Q16 Update.”

Synopsys, Inc. (Nasdaq:  SNPS) today announced it has completed its acquisition of certain assets of Forcheck b.v., a privately held software company based in the Netherlands that provides a static analysis tool for detecting coding defects and anomalies in Fortran applications. This acquisition provides Synopsys with additional static analysis technology to extend the capabilities of its Software Integrity Platform and create new business opportunities.

Forcheck technology will be integrated into Synopsys’ Coverity® static analysis solution to provide support for software written in the Fortran programming language, which is a popular choice for numerically intensive scientific and engineering applications in industries such as oil and gas, military, defense and aerospace.

The terms of the deal, which is not material to Synopsys financials, have not been disclosed.

The addition of Fortran to the growing list of languages and frameworks supported by Coverity aligns with Synopsys’ overarching strategy to extend its best of breed software testing solutions to a broader audience, from organizations developing web and mobile applications to software embedded in critical infrastructure and safety-critical systems. Coverity also supports analysis of software written in C/C++, Objective-C, C#, Java, JavaScript, PHP, Python, Ruby, node.js, and Android.

“Synopsys is committed to expanding its Software Integrity Platform to improve the security and quality of business-, mission- and safety-critical software,” said Andreas Kuehlmann, senior vice president and general manager of Synopsys’ Software Integrity Group. “The acquisition of Forcheck technology provides Synopsys with unique capabilities and extends the utility of the Software Integrity Platform for organizations developing and maintaining critical infrastructure systems written in Fortan.”

Through its Software Integrity Platform, Synopsys provides advanced solutions for improving the security and quality of software. This comprehensive platform of automated analysis and testing technologies integrates seamlessly into the software development process and enables organizations to detect and remediate security vulnerabilities, quality defects and compliance issues early in the software development lifecycle, as well as to gain security assurance with and visibility into their software supply chain.

The pure-play foundry market is forecast to play an increasingly stronger role in the worldwide IC market during the next five years, according to IC Insights’ new 2017 McClean Report, which becomes available later this month.  The 20th anniversary edition of The McClean Report forecasts that the 2016-2021 pure-play IC foundry market will increase by a compound annual growth rate (CAGR) of 7.6%; growing from $50.0 billion in 2016 to $72.1 billion in 2021.

IC foundries have two main customers—fabless IC companies (e.g., Qualcomm, Nvidia, Xilinx, AMD, etc.) and IDMs (e.g., ON, ST, TI, Toshiba, etc.).  The success of fabless IC companies as well as the movement to more outsourcing by existing IDMs has fueled strong growth in IC foundry sales since 1998.  Moreover, an increasing number of mid-size companies are ditching their fabs in favor of the fabless business model.  A few examples include Fujitsu, IDT, LSI Corp. (now part of Avago), Avago (now Broadcom Ltd.), and AMD, which have all become fabless IC suppliers over the past few years.

Figure 1 shows the ranking of the top 10 pure-play foundries in 2016.  In 2016, the “Big 4” pure-play foundries (i.e., TSMC, GlobalFoundries, UMC, and SMIC) held an imposing 85% share of the total worldwide pure-play IC foundry market.  As shown, TSMC held a 59% marketshare in 2016, the same as in 2015, and its sales increased by $2.9 billion last year, more than double the $1.4 billion increase it logged in 2015.  GlobalFoundries, UMC, and SMIC’s combined share was 26% in 2016, the same as in 2015.

The three top-10 pure-play foundry companies that displayed the highest growth rates in 2016 were X Fab (54%), which specializes in analog, mixed-signal, and high-voltage devices and acquired pure-play foundry Altis in 3Q16 to move into the top 10 for the first time, China-based SMIC (31%), and analog and mixed-signal specialist foundry TowerJazz (30%).  In contrast to X-Fab’s 2016 growth spurt, TowerJazz and SMIC have been on a very strong growth curve over the past few years.  TowerJazz went from $505 million in sales in 2013 to $1,249 million in 2016 (a 35% CAGR) while SMIC more than doubled its revenue from 2011 ($1,220 million) to 2016 ($2,921 million) and registered a 19% CAGR over this five-year period.

Seven of the top 10 pure-play foundries listed in Figure 1 are based in the Asia-Pacific region.  Europe-headquartered specialty foundry X-Fab, Israel-based TowerJazz, and U.S.-headquartered GlobalFoundries are the only non-Asia-Pacific companies in the top 10 group.

Figure 1

Figure 1

Further trends and analysis relating to the IC market are covered in the 400-plus page 2017 edition of The McClean Report.

NXP Semiconductors N.V. (NASDAQ:NXPI) today announced that Clarivate Analytics, formerly the Intellectual Property & Science business of Thomson Reuters, has listed NXP in its highly anticipated list of 2016 Top 100 Global Innovators. The report honors the most innovative corporations and institutions in the world determined by analyzing proprietary data including volume and success rates of patents, global reach and invention influence.

NXP was selected, among other attributes, for its strong patent portfolio, which currently includes more than 9,000 patent families. In 2016 alone, the company was granted nearly 1,700 individual national patents and nearly 5,000 other national patent applications are in progress. The impressive volume of patent activity truly reflects the magnitude and scope of the innovative products that NXP brings to market, as well as its strength and leadership in the electronics industry. An example of this innovation can be seen in NXP’s recent product announcements at the 2017 Consumer Electronics Show in Las Vegas (Jan 4-8, 2017).

“Creating secure connections for the smarter world starts with true innovation and a passion for changing lives through technology – it’s in our DNA,” said Richard Clemmer, CEO of NXP Semiconductors. “We believe that our place in this list is the result of the continuing efforts of R&D, our dedicated engineers, and the teams responsible for actively endorsing our IP in the marketplace. I am very proud of what we have accomplished to date and thank Clarivate Analytics for this recognition.”

SEMI’s Industry Strategy Symposium (ISS) opened yesterday with a theme focused on new industry forces and new markets.  The annual three-day conference of C-level executives gives the year’s first strategic outlook of the global electronics manufacturing industry. Today’s keynote, economic trends, and market perspectives highlighted market and technology opportunities and marked the rising tide for 2017 investments in the semiconductor manufacturing supply chain. While Day 1 brought both insight and optimism to the more than 200 attendees, deeper discussions on technology, applications, regional opportunities, and an expert panel on mergers and acquisitions will be presented on Day 2 and Day 3 of SEMI’s business leader annual kick-off event.

Opening keynoter Gary Patton, CTO and senior VP of worldwide R&D at GLOBALFOUNDRIES, presented a wide-ranging overview of industry growth and opportunities. Referencing Thomas Friedman’s three disruptive trends:  globalization, climate change, and Moore’s Law, Patton showed 2016’s global semiconductor merger and acquisition activity exceeding a staggering $130 billion and China’s rapidly growing IC production which is forecast to reach more than 20 percent of global output in 2020.

Patton identified five areas of semiconductor growth: IoT (Internet of Things), Automotive, 5G (mobile network), AR & VR (Augmented & Virtual Reality), and Artificial Intelligence.  From 2016 to 2025, Patton forecasted that semiconductor IoT content will grow from $15 billion to $62 billion, Automotive will grow from $32 billion to $51 billion, 5G will grow from $0 to $20 billion, AR/VR will grow from $4 billion to $131 billion, and Artificial Intelligence will grow from $5 billion to $50 billion.

For these different growth areas, Patton and GLOBALFOUNDRIES see a variety of solutions, what they’re calling “the right technology for the right application.”  This includes FinFET, FD-SOI, and different technology nodes selected for specific applications.  DTCO (Design-Technology Co-Optimization), and collaboration with not just suppliers, but sub-suppliers, raw materials and components manufacturers were key tools for success with Patton calling for greater cooperation in working within SEMI’s Semiconductor Components, Instruments, and Subsystems (SCIS) Special Interest Group.

In the Economic Trends session, presenters took on macroeconomic trends and detailed industry-specific forecasts:

  • Paul Thomas, Economic Stories, long-time former chief economist at Intel, drilled down on the topic of innovation, productivity, and economic stagnation.  Thomas presented data that showed productivity growth rates are not showing the expected benefits of digitization (computers, etc.).  He discussed possible causes for the discrepancies and gave food for thought on the gaps between perceived and measured productivity gains due to digital innovations.
  • Jim Hines, Gartner, provided a recently upgraded semiconductor and electronics market.  With recent improvements in chip prices, increasing semiconductor content, and inventory replenishment 2016 IC revenue was upgraded from 0.9 percent to 1.5 percent for 2016.  2016 is now forecast to come in at $340 billion.  2017 forecasts were adjusted from 5.5 percent to 7.7 percent.  Areas for strong growth are seen to be non-optical sensors (NOS), memory, opto-electronics and automotive growth (driven by connected vehicles, automated driving, and powertrain electrification).
  • G. Dan Hutcheson, VLSI Research, forecasted semiconductor equipment revenue at $54 billion, up 10 percent in 2016 and an outlook for $58 billion, up 8 percent, in 2017. Hutcheson showed data that the industry bottomed in April 2016 and in July 2016 demand pressure shifted the industry into an upturn.  Shortages in semiconductor supply will continue to drive growth in 2017.  Cloud computing and automotive are hot spots with smartphones in China, PC replacement cycles, DRAM pricing and Flash for SSD providing further positive support.
  • Michael Corbett, Linx Consulting provided an overview of the dynamics for wafer fab materials in the semiconductor industry. Corbett noted that the market for semiconductor materials was $18.5 billion in 2015 with the top 50 suppliers accounting for $17.2 billion or 93 percent of the materials sold.  M&A has been active in materials with recent combination of Dow & DuPont (proposed), Linde and Praxair, and Air Liquide and Airgas.  Corbett identified key trends impacting WFM suppliers including a consolidating customer base while at the same time the industry finds new entrants from China.
  • Matt Gertken, BCA Research provided a more academic geopolitical outlook for 2017.  Looking through the lenses of multipolarity, mercantilism, and dirigisme, Gertken provided context for the changes in progressive and protectionist forces over time.  Showing that globalization increased almost monotonically from 1950 through 2010, it appears to have hit a trade globalization peak where globalization plateaued and, in part, set the stage for Brexit and the unexpected Trump win and related more protectionist sentiment.

The afternoon session focused on Market Perspectives, including consumer, artificial intelligence (AI), Internet of Things (IoT), and automotive.

  • Shawn DuBravac, Consumer Tech Association, gave a summary of CES 2017 which just ended the day before.  DuBravac found three unifying trends at this year’s event:  voice, AI, and connections and computations.  It is anticipated that we are entering the era of faceless computing. The next computer interface is voice – with vocal computing replacing the traditional GUIs for robots and other emerging computing devices.
  • Prasad Sabada, Google, in his presentation on “Cloud and Moore: Disruptors for Semiconductors,” discussed two inflection points.  Tectonics shift #1:  Cloud. Tectonic Shift #2:  No more Moore’s Law.  Sabada sees the industry entering an era of accelerators – application specific devices that may leapfrog up to three Moore’s Law node generations.  Sabada called upon the semiconductor manufacturing industry for the need for speed (launch changes at the speed of software), the need for balanced system integration (innovation across the system), and the need for open innovation and collaboration.
  • Dario Gill, IBM Research, focused on “the new frontiers” of computing.  Gill talked about “Beautiful Ideas.”  He presented two:  Artificial intelligence, a beautiful idea with consensus; and Quantum Computing a beautiful idea (currently) without consensus.  He went on to show the value of artificial intelligence and the complicated and extraordinary potential for Quantum Computing.
  • Mark Bünger, Lux Research, believes the industry needs to rethink sensors, networks, and autonomy in automotive. Bünger forecast that autonomy could proceed much faster than diffusion of other car features because of its massive potential for improving utilization. It is not without disruption, though, as carmakers are worried about “losing the dashboard.”  Bünger provided several visceral examples of autonomous driving scenarios to make the case for AI moving to the IoT edge – and not relying on the Cloud.
  • Andrew Macleod, Mentor Graphics, discussed how automotive electronics are “a non-linear system of systems.”  Macleod pointed out that there have been three waves of recent progress in automotive electronics.  The first wave was globalization in 1984 when VW (and others) moved into the China market and pioneered automotive R&D decentralization and regional customization.  In the second wave came automotive drive electrification with the Toyota Prius in 1997.  The third wave was digitalization and the democratization of automotive.  The car is now becoming a consumer device and needs new design tools to manage the enormous amount of electronics complexity and permutations.

Days 2 and 3 at ISS will delve deeper into the industry ─ technology, manufacturing, public policy, and global forces, including China’s new focus on semiconductor manufacturing ─ with presentations from: AMEC, Applied Materials, Cadence Design Systems, imec, JSR, McKinsey & Company, Shanghai Huali Microelectronics (HLMC), IC Knowledge, International Business Strategies, Nikon, SanDisk, and SEMI. The Tuesday morning keynote is presented by Diane M. Bryant of Intel. Diego Olego of Philips Healthcare will offer the closing keynote on Wednesday, immediately before the ISS Panel on “The Future of M&A in the Semiconductor Industry,” with panelists from DCG Systems, FormFactor, MKS Instruments, and Stifel Nicolaus; moderated by Robert Maire, Semiconductor Advisors.

The SEMI Industry Strategy Symposium (ISS) examines global economic, technology, market, business and geo-political developments influencing the global electronics manufacturing industry along with their implications for your strategic business decisions. For more than 35 years, ISS has been the premier semiconductor conference for senior executives to acquire the latest trend data, technology highlights and industry perspective to support business decisions, customer strategies and the pursuit of greater profitability.

Sales of memory ICs are expected to show the strongest growth rate among major integrated circuit market categories during the next five years, according to IC Insights’ new 2017 McClean Report, which becomes available this month.  The 20th anniversary edition of The McClean Report forecasts that revenues for memory products—including DRAMs and NAND flash ICs—will increase by a compound annual growth rate (CAGR) of 7.3% to $109.9 billion in 2021 from $77.3 billion in 2016.

The 2017 McClean Report separates the total IC market into four major product categories: analog, logic, memory, and microcomponents.  Figure 1 shows the forecasted 2016-2021 CAGRs of the four major IC product categories compared to the projected total IC market annual growth rate of 4.9% during the five-year period.  As shown, the memory IC category is forecast to show the strongest growth rate through 2021 while the weakest increase is expected to occur in the logic category, which includes general-purpose logic, ASICs, field-programmable logic, display drivers, and application-specific standard products.

Figure 1

Figure 1

The strong memory CAGR is driven by surging low-power memory requirements for DRAM and NAND flash in portable wireless devices like smartphones and by growing demand for solid-state drives (SSD) used in big-data storage applications and increasingly in notebook computers.  Moreover, year-over-year DRAM bit volume growth is expected to increase throughout the forecast to support virtualization, graphics, and other complex, real-time workload applications.

Analog ICs, the second-fastest growing segment, are a necessity within both very advanced and low-budget systems. Power management analog devices are critical for helping extend battery life in portable and wireless systems and have demonstrated strong market growth in recent years.  In 2017, the signal conversion market is forecast to be the fastest growing analog IC category, and the second-fastest growing IC product category overall, trailing only the market growth of 32-bit MCUs.

Total microcomponent sales have cooled significantly.  Fortunately, marginal gains in the cellphone MPU market and strong gains in the 32-bit MCU market have helped offset weakness of standard PC and tablet microprocessor sales.

The McClean Report includes sales history and forecast information for each IC product within these four large product categories for the 2014-2021 time period.  Included are market, unit, average selling price (ASP), and 2016-2021 compound average growth rate (CAGR) for all IC categories. Further trends and analysis relating to the IC market are covered in the 400-plus page 2017 edition of The McClean Report.

The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached $31.0 billion for the month of November 2016, an increase of 7.4 percent compared to the November 2015 total of $28.9 billion and 2.0 percent more than the October 2016 total of 30.4 billion. November marked the market’s largest year-to-year growth since January 2015. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Global semiconductor sales continued to pick up steam in November, increasing at the highest rate in almost two years and nearly pulling even with the year-to-date total from the same point in 2015,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Chinese market continues to stand out, growing nearly 16 percent year-to-year to lead all regional markets. As 2016 draws to a close, the global semiconductor market appears likely to roughly match annual sales from 2015 and is well-positioned for a solid start to 2017.”

Month-to-month sales increased modestly across all regions: the Americas (3.3 percent), China (2.7 percent), Europe (2.5 percent), Asia Pacific/All Other (0.7 percent), and Japan (0.4 percent). Year-to-year sales increased in China (15.8 percent), Japan (8.2 percent), Asia Pacific/All Other (4.8 percent), and the Americas (3.2 percent), but fell slightly in Europe (-1.6 percent).

Worldwide combined shipments of PCs, tablets, ultramobiles and mobile phones are projected to remain flat in 2017, according to Gartner, Inc. Worldwide shipments for these devices are projected to total 2.3 billion in 2017, the same as 2016 estimates.

There were nearly 7 billion phones, tablets and PCs in use in the world by the end of 2016. However, Gartner does not expect any growth in shipments of traditional devices until 2018, when a small increase in ultramobiles and mobile phone shipments is expected (see Table 1).

“The global devices market is stagnating. Mobile phone shipments are only growing in emerging Asia/Pacific markets, and the PC market is just reaching the bottom of its decline,” said Ranjit Atwal, research director at Gartner.

“As well as declining shipment growth for traditional devices, average selling prices are also beginning to stagnate because of market saturation and a slower rate of innovation,” added Mr. Atwal. “Consumers have fewer reasons to upgrade or buy traditional devices (see Table 1). They are seeking fresher experiences and applications in emerging categories such as head mounted displays (HMDs), virtual personal assistant (VPA) speakers and wearables.”

Table 1 
Worldwide Devices Shipments by Device Type, 2016-2019 (Millions of Units)

Device Type

2016

2017

2018

2019

Traditional PCs (Desk-Based and Notebook)

219

205

198

193

Ultramobiles (Premium)

49

61

74

85

PC Market

268

266

272

278

Ultramobiles (Basic and Utility)

168

165

166

166

Computing Devices Market

436

432

438

444

Mobile Phones

1,888

1,893

1,920

1,937

Total Devices Market

2,324

2,324

2,357

2,380

Note: The Ultramobile (Premium) category includes devices such as Microsoft Windows 10 Intel x86 products and Apple MacBook Air.
The Ultramobile (Basic and Utility Tablets) category includes devices such as Apple iPad and iPad mini, Samsung Galaxy Tab S2, Amazon Fire HD, Lenovo Yoga Tab 3, and Acer Iconia One.
Source: Gartner (January 2017)

The embattled PC market will benefit from a replacement cycle toward the end of this forecast period, returning to growth in 2018. Increasingly, attractive premium ultramobile prices and functionality will entice buyers as traditional PC sales continue to decline. The mobile phone market will also benefit from replacements. There is, however, a difference in replacement activity between mature and emerging markets. “People in emerging markets still see smartphones as their main computing device and replace them more regularly than mature markets,” said Mr. Atwal.

Device vendors are increasingly trying to move into faster-growing emerging device categories. “This requires a shift from a hardware-focused approach to a richer value-added service approach,” said Mr. Atwal. “As service-led approaches become even more crucial, hardware providers will have to partner with service providers, as they lack the expertise to deliver the service offerings themselves.”

More detailed analysis is available to clients in the reports “Forecast: PCs, Ultramobiles and Mobile Phones, Worldwide, 2013-2020, 4Q16 Update.”

Adding intelligence to materials and products facilitates the fully decentralized operations model associated with Industry 4.0.

BY FRANCISCO ALMADA LOBO, Critical Manufacturing, Moreira da Maia, Portugal

Industry 4.0 is coming. It is the next major industrial revolution that will re-define manufacturing as we know it today. But what does Industry 4.0 bring to benefit an industry that already has highly advanced sophisticated manufacturing techniques?

The semiconductor industry is currently not one of those embracing Industry 4.0. Some of the reasons for this are based around the far reaching supply chain the industry uses, some because of the size of batches is still large in some businesses, and some because the idea of gathering greater quantities of information from machines is really not a new concept for the industry. To understand the benefits of Industry 4.0 to semiconductor production, let’s first look at exactly what it is.

A little about Industry 4.0

Industry 4.0 takes innovative developments that are available today and integrates them to produce a modern, smarter production model. It merges real and virtual worlds and is based on Cyber-physical Systems (CPS) and Cyber-physical Production Systems (CPPS), as show in FIGURE 1. The model was created to increase business agility, enable cost-effective production of customized products, lower overall production costs, enhance product quality and increase production efficiency. It brings with it new levels of automation and automated decision making that will mean faster responses to production needs and much greater efficiency.

FIGURE 1. Industry 4.0 merges real and virtual worlds and is based on Cyber-physical Systems (CPS) and Cyber-physical Production Systems (CPPS)

FIGURE 1. Industry 4.0 merges real and virtual worlds and is based on Cyber-physical Systems (CPS) and Cyber-physical Production Systems (CPPS)

The Industry 4.0 model is inherently a de-centralized one with masses of data being transferred. The reduced cost of computer technology enables it to be embedded into shop floor materials and products. CPS then integrate computational networks with the surrounding physical world and its processes. Using the Industrial Internet of Things (IIoT), products will have the ability to collect and transmit data; communicate with equipment, and take intelligent routing decisions without the need for operator intervention. Cloud computing technology further gives a ready platform to store this data and make it freely available to systems surrounding it.

As CPPS compete to provide services to CPS devices a smart shop floor is created that acts as a marketplace. Adding communication and integration throughout the wider supply chain also means that different manufacturing facilities and even individual processes within a factory can compete for work; creating a Manufacturing as a Service (MaaS) model.

With hundreds of devices and shop floor entities producing information, Big Data and advanced analytics are also a major part of Industry 4.0. Simply collecting a lot of data doesn’t improve a factory’s performance. Advanced analytical software is needed to transform structured and unstructured data into intelligent, usable information. Having huge volumes of data also means this powerful software can be used to help predict production scenarios to further drive efficiencies and improve production strategy.

The intelligent operation and advanced analytics within Industry 4.0 will enable smarter decision making and provide the opportunity to further enhance processes. It will enable new products to be created, tested and introduced at a much faster rate with assured quality, consis- tency and reliability. The benefits are far reaching and so significant that this revolution will certainly come but the change will be gradual. To be sure not to be left behind, manufacturers will need to plan for the implementation of this predicted industrial revolution.

What does Industry 4.0 mean for semiconductor manufacturers?

For the semiconductor industry, the high cost of wafers make attaching electronic components to each wafer carrier or FOUP completely viable and presents huge benefits in increased production efficiency. Adding intelligence to materials and products facilitates the fully decentralized operations model associated with Industry 4.0 (FIGURE 2). With devices communicating with each other, the increased flexibility and productivity this model produces will make it possible to meet an increasing demand for greater manufacturing mixes and individualized products at much lower costs. For the production of semiconductors in particular, the very nature of the product being manufactured means there may also be opportunity and added benefit for some devices to hold their own information without the need for additional electronics. The information gathered from the decentralized model and analytical software used in Industry 4.0 also makes it easier to account for the cost of each item, resulting in better intelligence for business strategy and product pricing.

FIGURE 2. Adding intelligence to materials and products facilitates the fully decentralized operations model associated with Industry 4.0.

FIGURE 2. Adding intelligence to materials and products facilitates the fully decentralized operations model associated with Industry 4.0.

Although equipment used in the production of semiconductors already have sensors and transmit intelligent information into wider systems, the concept of the CPPS using the IoT adds a new level of simplicity to this idea. The cost of production within the semiconductor industry also means that even marginal variable improvements through the increased use of big data analytics will have huge financial benefits. The Internet of Things (IoT) will further enhance flexibility in measurement and actuation possibilities and free manufacturers from the time and cost associated with changes to sophisticated interfaces on production equipment.

The smart marketplace

With components interacting with machines and having the information they need within them about the processing steps they require, this creates a smart marketplace where the CPS requests services (demand) and the CPPS provides them (supply). Using mobile communications and cloud computing, this can of course be further expanded into the wider supply chain.

The concept of Manufacturing as a Service (MaaS) is, to some extent, already present in the semiconductor industry. The full supply chain has many different steps and, because of the high value of the product, transportation costs become pretty much irrelevant. This means that processing steps can be geographically distributed and the smart marketplace bidding for the work can extend throughout the world. Different factories may compete with each other for procuring specific processing steps and still be competitive regardless of location. Industry 4.0 gives the industry all the tools it needs for a smart, highly efficient marketplace that can add significant production flexibility while reducing both costs and production times.

Benefits of virtual and augmented reality

There are already few manual steps in the semiconductor production process with wafer production in particular using highly automated processes. This means there are few operators to oversee significant amounts of operations and equipment. Industry 4.0 opens up new areas in virtual reality (VR) and augmented reality (AR) that will help keep operations running smoothly.

The visualization and control of the wide spread autonomous elements within the CPS and CPPS in a decentralized production model requires a move away from standard, fixed, desk-top like workstations. Mobile devices are now more than capable of handling the demanding tasks of an operator workstation and offer the potential to decrease operational costs and increase productivity (FIGURES 3a and b).

Industry 3

FIGURE 3. Mobile devices are now more than capable of handling the demanding tasks of an operator workstation and offer the potential to decrease operational costs and increase productivity.

FIGURE 3. Mobile devices are now more than capable of handling the demanding tasks of an operator workstation and offer the potential to decrease operational costs and increase productivity.

Using more comprehensive digital data and mobile computing technology, operators would be able to simply point a tablet at a piece of equipment and get real time information about what is happening. Locations of personnel could also be monitored to make most efficient use of human resources available. For the semiconductor industry; the use of secure, mobile devices further reduces the need to take up space in valuable clean-room environments.

Using mobile interfaces, maintenance technicians will also be able to conveniently move between machines without the need to logon at different workstations.

They can interact with different pieces of equipment and gather information about processes while carrying out tasks such as ordering spare parts all from a single mobile device. For specific operations relating to a piece of equipment, apps that automatically launch onto the technician’s tablet depending upon their location may further be used to add important additional infor- mation about a piece of equipment. For example, a particular part may be highlighted to be checked or replaced or additional information about specific machine readings highlighted on the display.

With all the amount of data sent by sensors, products and equipment it will also be possible to visualize in real-time the complete status of a production floor using VR 3D maps. Combining information about where personnel are within the factory and which direction they are facing, this further enables the implementation of some compelling AR scenarios. Indeed, the capability of mobile devices and the increase in real-time data available will likely make the wider use of both VR and AR a fundamental part of shop floor operations.

The Route to Industry 4.0 – the next generation of MES

There are a number of challenges that Industry 4.0 brings with it and its implementation will certainly not happen overnight. The huge benefits the model has to offer, however, can be planned into business strategies and realized over time. One of the first areas to consider is vertical integration of the model. This is important because corporate processes must not be avoided with the autonomy of materials and machines. Business processes for compliance, logistics, engineering, sales or operations all have components inside the plant as well as others that reside beyond the factory that are crucial to a business process being executed effectively. Without these, it’s almost impossible to properly manage a production floor of a certain complexity.

Modern Manufacturing Execution Systems (MES) based on decentralized logic offer a platform for the development of the Industry 4.0 model and a natural route to its vertical integration. MES have always been most effective when integrated into Enterprise Resource Planning (ERP) systems ‘above’ while monitoring and controlling production processes ‘below’.

With the CPS and CPPS communicating directly with each other, the MES can trigger business rules or workflows for the complete production process. For example, quality processes may demand that a device may need additional verification steps before processing continues as part of a higher level quality sampling strategy. This requires communication to intersect the business rules so the quality procedures are not bypassed before the device continues through its production processes.

Another area that is reliant on good vertical integration of systems within Industry 4.0 is Statistical Process Control (SPC). SPC requires data to be collected over time from numerous materials passing through the factory. For example, if a device within the CPS knows it needs to collect a measurable variable, this needs to be confirmed against SPC rules that it is within limits. If it is not, corrective action may be required. Flags for such actions need to be triggered in systems above the CPS and, again, the MES is an ideal platform for this.

By its very nature, the concept of a smart shop floor will generate huge volumes of data. An Industry 4.0 MES will need to aggregate this data and put it into a shop floor context. Indeed, to handle the decentralized logic and vertical integration of the autonomous entities on the shop floor, MES manufacturers need to fully expand their systems’ capabilities to ensure all plant activities are visible, coordinate, managed and accurately measured.

Future MES can also help to realize the full MaaS. This requires horizontal integration so all functions and services can be consumed by all entities on the shop floor including the CPS smart materials and CPPS smart machines. For individual equipment or processes to be procured in single steps, the MES needs to offer exceptional flexibility to expose all available services, capacity and future production plans. With visibility of the complete supply chain, MES also need to consider security and IP related challenges with multi-dimensional security. This needs to be at a service level but also at individual process, step and equipment levels and at any combination of these.

Ultimately it is envisioned that the Cloud will deliver the storage and the ‘anytime, anywhere’ ability to handle the volume of data created from sensors, processing and connectivity capability distributed throughout the plant. The manufacturing intelligence needed and provided by MES today therefore also has to expand to better accommodate the diversity and volume of big data. Fast response to any manufacturing issues will come from real-time analysis where advanced techniques such as “in-memory” and complex event processing may be used to drive operational efficiency even further, where the value of the process makes this a viable return on investment.

Support for advanced analytics in MES is needed to analyse historical data fully understand the performance of the manufacturing processes, quality of products and supply chain optimization. Analytics will also help by identifying inefficiencies based on historical data and pointing staff to corrective or preventive actions for those areas.

Legacy MES

Semiconductor was probably one of the first industries to embrace the idea of MES. First adopters were as early as the 1970s before the term ‘MES’ was even established. Some of these systems still exist today. The problem is that, as the limits of these early systems were reached; small applications have been added around them to meet modern manufacturing demands. These systems are so embedded into production processes that changing them is like replacing the heart of the factory and is no small consideration. There will, however, be some point where these systems can no longer be patched up to meet needs and factories will need to change to survive. The huge potential benefits Industry 4.0 offers may well be the catalyst to change and the basis of sound strategic planning for the future of a business.

Summary

One of the main areas of benefit of the Industry 4.0 decentralized model is the ability to individualize products efficiently with high quality results. This benefits all industries as trends show an increased demand for high mix, smaller batches to meet varying consumer demands. More than for many other industries, the high cost of individualized semiconductors makes the value of adding autonomy to customized processes even higher.

MES have been at the heart of the semiconductor industry for many decades but future-ready MES, based on models with de-centralized logic, offer a pathway to realizing the benefits Industry 4.0 has to offer. For semiconductors these benefits centre on reduced production costs, particularly for small production batches; enhanced efficiency of small workforces, and the business and cost reductions to be gained from the MaaS model and smart supply chain.

Although the semiconductor industry has been somewhat protected, competition is still fierce, especially in areas of mass production. In all different manufacturing areas, however, batch sizes will become smaller and the demand for individualized products will increase. Semiconductor manufacturers that can adapt more quickly to this trend will gain competitive edge and ultimately will be the businesses that survive and grow for the future. Without the Industry 4.0 model manufacturers will of course be able to produce in the future context of more customization, but costs will be much higher than for those who embrace this industrial revolution. If the full scope of Industry 4.0 is realized throughout the supply chain with MaaS, it will be even harder for companies that are outside of this model to compete in the smart marketplace.

With the dawn of Industry 4.0, manufacturing is moving into a new era that brings huge benefits and it is unlikely that the semiconductor industry will let itself be left behind!