Category Archives: Materials and Equipment

The team, led by David Cumming and Tim Drysdale, from the university’s department of electronics and electrical engineering, will take advantage of a phenomenon called plasmon resonance in their efforts to create a microchip for cameras and other imaging equipment that will produce sharper, more colorful images.

January 6, 2009: FEI Co., which provides high-resolution imaging and analysis systems, has acquired substantially all of the assets of Intellection Holdings Pty. Ltd. of Brisbane, Australia, FEI announced in a news release.

Delivery devices already exist that can release two drugs, but the timing of the release must be built into the device — it cannot be controlled from outside the body. The new system is controlled externally and theoretically could deliver up to three or four drugs.

January 5, 2009: Ensysce Biosciences Inc., a nanotechnology company focused on the use of fullerene carbon nanotubes for therapeutic cancer applications, has appointed Dr. Lynn Kirkpatrick as president and CEO.

By Christian Gregor Dieseldorff, SEMI

SEMI’s World Fab Forecast tracks money spent on frontend semiconductor fabs that are equipping, including R&D and pilot fabs, fab construction projects, and capacity investments per fab. Unlike the SEMI Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data, the World Fab Forecast and its related Fab Database reports track any equipment needed to ramp the fab, upgrade, expand, or change its wafer size regardless if it is new equipment, used equipment, or transferred equipment, while WWSEMS tracks only new equipment.

Money spent on fabs equipping: Lowest level in 10 years

A preliminary analysis of the World Fab Forecast (Dec. 16, 2008) reveals that spending on equipping of frontend semiconductor fabs (including R&D and pilot lines) is expected to be about $26 billion in 2008, a change of -31% to 2007. Given recent announcements since early December, the data predict 2009 equipment spending could decline by 30%-40%, and to drop down to the $16B range (see Figure 1) — resulting in the lowest spending level over the past 10 years.


Figure 1: Money spent on fabs equipping by quarter by region.

For 2008, Japan is expected to spend the most on fab equipment compared to other regions at $6.0B. This number is expected to drop by over 50% to less than $3.0B in 2009. Korea will be the second largest equipment market in 2008, though the market is expected to decline about 40% to $2.7B in 2009. The largest spenders in Japan in 2008 and 2009 are the flash JVs between Toshiba and Sandisk, Elpida, Toshiba, and Fujitsu. The Flash Alliance alone is the second largest spender for equipment, second only to Samsung in 2008 — even with cutbacks in capital spending. This is also projected to be the case for 2009.

Although most other regions show double-digit contractions in 2009 for capital equipment, Europe and the Mideast show flat to low positive growth. However, the absolute dollar amount is much less, about $2B compared to other regions such as Korea, Japan and the Americas (who are in the $2.7B-$3.0B range). But the contrast is still remarkable. Europe and the Mideast have had steady spending in the range of $2.0-$2.6B since 2007. The European semiconductor industry does not focus on memory, so non-memory makers — such as Intel with Fab 28 (Kiryat Gat, Israel) and AMD (Dresden, Germany), which recently received a financial injection from investors in Abu Dhabi — are expected to drive this positive growth rate.

Taiwan will experience the largest cutbacks in money spent on fabs equipping: from about $9.0B in 2007 to $4.5B in 2008 and an additional reduction of 53% in 2009 to reach about $2.0B-$2.5B on equipment. Equipment spending in almost all other regions is expected to drop by 20% to 50% in 2009.

Figure 2 shows spending on equipping of frontend semiconductor fabs on a year-by-year basis. 2009 is predicted to decrease in the range of -30% to -40%. This is measured against an already weak year 2008. If we compare the spending numbers of 2009 against 2007, we get a decline of 60%.


Figure 2: Money spent on fabs equipping by year.

Money spent on fab construction projects down 32% in 2009

In 2008, out of a total of 10 major construction projects, five are for new fabs and four are for 300mm fabs. In 2009, out of a total of at least 16 known planned fab construction projects, only six (four of which are for 300mm volume fabs and smaller lines) have a higher probability to begin construction by mid- to second half of the year.

Actual spending on major fab construction projects for frontend semiconductor fabs (including R&Ds and pilot lines) in 2008 is expected to decline by 41% year-over-year as more projects are pushed out or put on hold (see Figure 3). Construction spending in 2009 is expected to decline about 32%, to reach its lowest level in six years.


Figure 3: Money spent on fab construction projects by quarter by region.

The Americas and Japan stand out with positive growth rates in construction spending for 2009. Japan is expected to spend twice as much as the Americas, mainly driven by Toshiba, the Flash/Alliance JV, and Panasonic. Worldwide, Toshiba and the Toshiba/Sandisk Alliance represent the largest spenders on fab construction projects in 2009. In the Americas, AMD has announced the construction of its $4.0B fab in upstate New York, which is receiving an additional $1.2B in incentives from the state. This will be the only new high-volume fab project beginning construction in the Americas over the past three years. The last new high volume fab in the Americas was Samsung’s 300mm fab in Austin, Texas, which began construction in 2006.

Capacity growth at lowest levels since 2002

The World Fab Forecast tracks and forecasts out over six quarters capacities company-by-company and fab-by-fab. From 2003 through 2007, semiconductor fab capacity increased near or above double-digit rates annually, but as a result of global economic uncertainty capacity growth rates will be much lower for both 2008 and 2009. Wafer fab capacity is forecasted to reach less than 16 million wafers/month (in 200mm-equivalent wafer size) by the end of 2009 compared to 15.3M wafers/month capacity expected by year-end 2008.

In 2008, we expect overall fab capacity to grow by about 4.5%, and in 2009 to grow by about 3%-4%. These growth rates are the lowest since 2002. The growth rate for 300mm fabs in 2008 is the lowest since devicemakers begin to invest and ramp 300mm volume fabs, with the 300mm capacity ramp slowing even more in 2009.

In response to the economic crisis, oversupply, and falling average selling prices (ASP), most memory companies are closing their 200mm fabs. However, some companies maintain smaller but still positive capacity growth rates of their 300mm fabs. For 2009, foundries are expected to maintain the strongest capacity growth rate, about 7%-8%, followed by MPU and memory.

Foundries make drastic cuts in utilization

Utilization rates in 4Q08 for foundries are expected to reach the lowest levels in years. For example, UMC’s utilization rate may drop as low as 55% in 4Q08, the lowest since 2001. Chartered utilization rates for 4Q08 may drop to 58% (down from 85% in 3Q08). We expect utilization rates to remain low through first half of 2009.

As of mid-November 2008, most foundries reiterated their planned capex for 2008. Only UMC has announced cuts in its 2008 capex from $600M to $450M. SMIC has suspended expansion plans in 2009 and slashed its 2009 capex to $200M from $790M in 2008. At of the beginning of December 2008, Chartered cut its guidance for fourth-quarter sales to $343M-$353M million and a net loss of $76M-$84M, but the foundry has not yet announced any cuts of its 2008 capex plan (currently $630M). We expect that Chartered also will cut its 2009 capex. TSMC is expected to cut its 2009 capex by about 20%, and has also announced hiring freezes and asked employees to take unpaid leave to cut costs.

How the outlook changes

At the beginning of 2008 and even into mid 2008, the outlook for 2009 looked positive, but this changed very quickly (see Fig. 3) in light of the current economic conditions. In mid-December 2008, Gartner revised its 2009 semiconductor revenue growth to be -16.3%, down 14.1 percentage points from their previous 4Q08 forecast.

Our data tracking the money spent on fabs equipping follows the same trend over the past quarter (Figure 4), but the downward revision is more severe as money spent on equipping fabs is for future capacity growth. With extremely challenging economic and semiconductor conditions forecasted for 2009, device makers have significantly cut investments in new capacity.


Figure 4: Worldwide spending on equipping frontend fabs.

Since the burst of the “dot.com” bubble, the semiconductor industry has become more dependent on consumer products, and therefore on the consumer. The entire industry, and especially the memory segment, has experienced falling average selling prices since 2007, mainly due to oversupply. Yet, the memory segment outlook was still positive because of increasing demand forecasts due to high consumer confidence.

The collapse of the credit market and mortgage bubble in September 2008 changed all that. People who are losing their homes are not likely to spend money on the latest gadgets, so prospects for consumer spending have dropped, and with it, the demand of electronics and semiconductor devices.

What the future holds

As the economy continues to slide into a deepening recession, more and more semiconductor companies are posting losses and are forced to make cuts.

For the memory industry, the first half of 2009 may look even worse. Companies will be forced to execute different cost-control strategies such as layoffs, pay cuts, capacity reduction and employees unpaid leave. However, these strategies may not bring any benefits if the consumer confidence continues to be low and consumer spending stagnates.

Companies without large cash reserves are struggling and vulnerable. We can expect more mergers, such as Micron’s purchase of Qimonda’s share in Inotera (mid-October 2008); Panasonic’s efforts to acquire Sanyo (November 2008); and other rumors such as Toshiba buying Sandisk and Micron acquiring Qimonda. Mergers will create redundancy, which generally leads to more layoffs.

The Sandisk and Toshiba joint venture companies, Flash Partners and Flash Alliances, are facing severe price erosion and revenue decline. These joint ventures, among the largest flash memory makers and with the largest fabs in the world, watched revenues sink from 20% growth in 2007 to a 6% decline in 2008 (YTD 3Q08). On Dec. 16, 2008, they announced a halt in production of their Fab 3 and Fab 4 in Yokkaichi, Japan scheduled from Dec. 31 to Jan. 12, after which they will continue production at 70% utilization until market conditions improve.

All these factors may make the first half of 2009 even weaker than 2008 for the semiconductor industry. This downturn will last for a while. A recovery will most likely be in 2010, but it will be slower than we experienced before given the broader economic factors.

Light at the end of the tunnel

There is still activity for new fab construction and new fabs coming online in 2009. As mentioned above, six new fab construction projects are projected in 2009 with higher probability beginning construction, four of which are 300mm facilities. Out of 12 known fabs originally planned to come on-line in 2009, 4-5 are very likely to begin ramp (at least one is a 300mm volume fab), while the remaining projects will likely be delayed.

Two big companies in our industry still hold strong positions but are not unaffected by the current market. Samsung still has $7.6B in cash reserves as of October 2008, but they are not invincible. We expect Samsung to cut its 2009 capex by 30%-50% and have capacity growth at single digits if not flat. Intel cut its 4th quarter outlook from $10.1B-$10.9B down to $8.7B-$9.3B; job cuts may be evident in 2009.

But there is one company that suddenly stands out with a move that was unexpected for many at the beginning of 2008 — AMD, which made a surprising announcement involving outside investor ATIC from Abu Dhabi. AMD’s fab plans received a huge financial boost, which spurs investment at its fab in Dresden and in Luther Forest in upstate New York where the company plans to build new fabs. The Luther Fab alone, dubbed Fab 4x, has an estimated investment of $4.6B and will create over 1,400 jobs.

In times of struggling markets and economic recession, new ideas are born and new opportunities are created. The oil crisis sparked increased interest in renewable

energy and energy conservation, such as the solar industry. Additionally, the population continues to grow and consumables must be replaced, which means that there is a natural demand. Severe cuts in spending will create an economic vacuum which will need to be filled. Once we reach the bottom, we will see growth again. The semiconductor industry experiences severe slowdowns about every 5-8 years, especially after exuberant spending results in oversupply. At the moment all data indicate that we see growth again in 2010.

SEMI’s World Fab Forecast report provides high-level summaries and graphs; in-depth analyses of capital expenditure, capacity, technology and products, down to the detail of each fab; and forecasts for the next 18 months. These tools are invaluable for understanding how 2009 will look, and learning more about capex for construction projects, fab equipping, technology level, and products. Visit www.semi.org/fabs for additional information on these reports.

Christian Gregor Dieseldorff is sr. analyst and director of market research for SEMI’s Industry Research and Statistics Department, San Jose, CA

For the past 50 years, the thermal management industry has offered only heatsinks, fans, and thermal grease as methods for electronics thermal management. While these techniques have been refined and improved over the years, nothing new has been introduced to address the exponential growth of thermal issues in modern-day electronics.

The electronics industry has reached a breaking point — a sort of thermal overload. As components, packages, and systems continue to shrink in size, we are simultaneously adding functionality. The heat generated in these dense electronic systems can be quite large and in-turn lead to significant increases in temperatures that cause component-, device-, and system-level failures.

The answer to these problems has always been to use a larger fan or larger heatsink to move all of the heat out of the electronic package and into the system environment. That’s easiest but it costs the most to manage.

The EPA estimates that by 2011, energy consumption by U.S.-based data centers could top more than 100B kwh, representing an annual cost of at least $7.4B. According to a recent study by Emerson Network Power, 50% of the power consumed in data centers goes toward battling heat with air conditioning.

The most efficient thermal management system involves embedding thermal management functionality at the source of the heat to remove excess heat before passing the remaining heat on to the next level. The cost of implementing thermal management solutions can be compared to the level in which the solution is introduced. Implementing heatsinks, fans, and large-scale cooling creates an energy savings potential. Introducing localized cooling in the overall thermal management design translates to a greater cost savings potential at the rack and data center levels.

Localized thermal management solutions have been introduced∗ that work deep inside electronic components using thin-film thermoelectric structures known as thermal bumps. The thermal bump is made from a thin-film thermally active material that is embedded into flip chip interconnects (in particular copper pillar solder bumps) for use in electronics packaging.

Thermal bumps act as solid-state heat pumps and pull heat from one side of the device and then transfer it to the other as current is passed through the thermoelectric material. Thermal bumps today are already extremely small — 238

December 23, 2008: Owing to the novel properties of carbon nanotubes (CBNs), a series of problems associated with in vitro toxicity assessments of carbon nanotubes (CNTs) have appeared in many literatures. In order to properly evaluate the potential risk to human health, the cell toxicity assay of CBNs can not be conducted by traditional methods employed in common toxicology.

Ying Zhu and Wenxin Li in Laboratory of Nanobiology and Medicine, Shanghai Institute of Applied Physics, gave this point of view in their review articles. This paper, “Study on Cytotoxicity of Carbon Nanotubes” was published in Issue 51 of the Science in China Series B: Chemistry.

With their production and application at large scale, CNTs may cause adverse response to the environment and human health. Thus, the study on bio-effects and safety of CNTs has attracted great attention from scientists and governments worldwide. Unfortunately experimental information obtained thus far on CNTs’ cytotoxicity is often lack of comparability, or even in contradiction.

This paper systematically reviewed most of the experimental results reported in the literatures. Emphasis was placed on the examination of a variety of factors affecting CNTs cytotoxicity, including species of CNTs, impurities contained, lengths of CNTs, aspect ratios, chemical modification, and assaying methods of cytotoxicity. Based on analysis of the research status on cytotoxicity of CNTs, the authors suggested that care should be taken for several issues such as chemical modification and realistic exposure, more complete and quantified characterization of CNTs, determination methods of cell viability. More importantly, the studies on physical and chemical mechanisms of CNTs’ cytotoxicity should be strengthened.

In view of novel properties of CNTs, namely huge surface areas, high adsorption activity, and great ability of internalization into cells, CNTs are able to deliver various molecules in surroundings which usually can not enter cells due to poor cell permeability, into the cell interior and then effectively perform their biological activity. Accordingly “nanotoxicology should have its own characteristics differing from common toxicology in respect to research thinking, assay methods, technical routes, and evaluation criteria”, as pointed out by the authors in this paper.

Finally, the authors hoped that the scientists should deeply understand the uniqueness of nanomaterials, enhance the collaboration of physics, chemistry and toxicology, and push forward the study of nanotoxicology with the goal of making contribution to application of nanoscience and nanotechnology in various fields of national economy.

December 22, 2008: Research done by scientists in Italy and Switzerland has shown that carbon nanotubes may be the ideal “smart” brain material. Their results, published December 21 in the advance online edition of the journal Nature Nanotechnology, are a promising step forward in the search to find ways to “bypass” faulty brain wiring.

The research shows that carbon nanotubes, which like neurons are highly electrically conductive, form extremely tight contacts with neuronal cell membranes. Unlike the metal electrodes that are currently used in research and clinical applications, the nanotubes can create shortcuts between the distal and proximal compartments of the neuron, resulting in enhanced neuronal excitability.

The study was conducted in the Laboratory of Neural Microcircuitry at EPFL in Switzerland and led by Michel Giugliano (now an assistant professor at the University of Antwerp) and University of Trieste professor Laura Ballerini.

“This result is extremely relevant for the emerging field of neuro-engineering and neuroprosthetics,” explains Giugliano in a statement, hypothesizing that the nanotubes could be used as a new building block of novel “electrical bypass” systems for treating traumatic injury of the central nervous system. Carbon nano-electrodes could also be used to replace metal parts in clinical applications such as deep brain stimulation for the treatment of Parkinson’s disease or severe depression. Furthermore, they show promise as a whole new class of “smart” materials for use in a wide range of potential neuroprosthetic applications.

“There are three fundamental obstacles to developing reliable neuroprosthetics: stable interfacing of electromechanical devices with neural tissue; understanding how to stimulate the neural tissue; and understanding what signals to record from the neurons in order for the device to make an automatic and appropriate decision to stimulate,” according to Henry Markram, head of the Laboratory of Neural Microcircuitry and an author on the paper. “The new carbon nanotube-based interface technology discovered together with state of the art simulations of brain-machine interfaces is the key to developing all types of neuroprosthetics — sight, sound, smell, motion, vetoing epileptic attacks, spinal bypasses, as well as repairing and even enhancing cognitive functions.”

December 19, 2008: A new Nano-Imaging Center has opened on USC’s University Park Campus for scientists and engineers probing the mysteries of nanoscale materials and systems.

The center, which was unveiled Dec. 11 at a special symposium, houses three new scanning electron microscopes (SEMs) that will allow researchers from a broad range of the biological and life sciences to gain a better understanding of nano-materials using the latest, most sophisticated 3-D imaging technology available. The core lab, operated jointly by the Viterbi School and the College, is located in the engineering school’s Center for Electron Microscopy and Microanalysis.

The facility represents an important investment to strengthen USC’s research infrastructure and position the university as a national leader in nano-imaging, nano-analysis and nano-fabrication, said Dennis J. Atkinson, director of Corporate Research Advancement. Chemical engineering and materials science professor Steven R. Nutt, who directs the Viterbi School’s M.C. Gill Foundation Composites Center, believes the new instruments will transform the microscope from a device for static observations to an instrument for bold and vigorous experimentation.

“These new imaging instruments will support multi-disciplinary research in biomedical nanoscience, which could lead to discoveries in the early detection and more effective treatment of disease, as well as the development of prosthetic devices that restore function to tissue and organs,” Nutt said. “They will allow us to pursue 3D nano-imaging, nano-machining and nano-manipulation in a big way.”

The new instruments, considered state-of-the-art for nanoscience imaging and fabrication, were procured with funds from the Provost’s strategic Biomedical Nanoscience Initiative, in cooperation with JEOL (Japan Electron Optics Laboratory), and will be available to all USC faculty and students.

December 17, 2008: University of Southern California graduate students have created a clear, colorless disk, about 5 inches in diameter, that bends and twists like a playing card, with a lattice of more than 20,000 nanotube transistors capable of high-performance electronics printed upon it using a potentially inexpensive low-temperature process.

Its developers believe the prototype points the way to long sought after applications, such as affordable “head-up” car windshield displays. The lattices could also be used to create cheap, ultra thin, low-power “e-paper” displays; be incorporated into fabric that would change color or pattern as desired for clothing or wall covering; or be incorporated into nametags, signage and other applications.

The team at the USC Viterbi School of Engineering that created the new device, described and illustrated it in a paper, called “Transparent Electronics Based on Printed Aligned Nanotubes on Rigid and Flexible Structures” published in the journal ACS Nano.

Fumiaki Ishikawa and Hsiaoh-Kang Chang worked under Professor Chongwu Zhou of the School’s Ming Hsieh Department of Electrical Engineering on the project, solving the problems of attaching dense matrices of carbon nanotubes to flexible highly heat-vulnerable transparent plastic substrates. The researchers also connected them to commercial gallium nitrate (GaN) light-emitting diodes, which change their luminosity by a factor of 1,000 as they are energized.


See-through circuit makers: Hsaioh-Kang Chang, left, and Fumiaki Ishikawa, are pictured with their transparent, flexible transistor array. (Credit: USC Viterbi School of Engineering.)

“Our results suggest that aligned nanotubes have great potential to work as building blocks for future transparent electronics,” say the researchers.

Earlier attempts at transparent devices used other semiconductor materials with disappointing electronic results, enabling one kind of transistor (n-type); but not p-types; both types are needed for most applications. The critical improvement in performance, according to the research, came from the ability to produce extremely dense, highly patterned lattices of nanotubes, rather than random tangles and clumps of the material. The Zhou lab has pioneered this technique over the past three years.

December 17, 2008: University of Pittsburgh researchers have developed the first natural, nontoxic method for biodegrading carbon nanotubes, a finding that could help diminish the environmental and health concerns that mar the otherwise bright prospects of the super-strong materials commonly used in products, from electronics to plastics.

A Pitt research team has found that carbon nanotubes deteriorate when exposed to the natural enzyme horseradish peroxidase (HRP), according to a report published recently in Nano Letters coauthored by Alexander Star, an assistant professor of chemistry in Pitt’s School of Arts and Sciences, and Valerian Kagan, a professor and vice chair of the Department of Environmental and Occupational Health in Pitt’s Graduate School of Public Health. These results open the door to further development of safe and natural methods-with HRP or other enzymes-of cleaning up carbon nanotube spills in the environment and the industrial or laboratory setting.

“The many applications of nanotubes have resulted in greater production of them, but their toxicity remains controversial,” Star said. “Accidental spills of nanotubes are inevitable during their production, and the massive use of nanotube-based materials could lead to increased environmental pollution. We have demonstrated a nontoxic approach to successfully degrade carbon nanotubes in environmentally relevant conditions.”

The team’s work focused on nanotubes in their raw form as a fine, graphite-like powder. Although small, nanotubes contain thousands of atoms on their surface that could react with the human body in unknown ways, Kagan said. Both he and Star are associated with a three-year-old Pitt initiative to investigate nanotoxicology.

“Nanomaterials aren’t completely understood. Industries use nanotubes because they’re unique-they are strong, they can be used as semiconductors. But do these features present unknown health risks? The field of nanotoxicology is developing to find out,” Kagan said. “We wanted to develop a method for safely neutralizing these very small materials should they contaminate the natural or working environment.”

To break down the nanotubes, the team exposed them to a solution of HRP and a low concentration of hydrogen peroxide at 4 degrees Celcius (39 degrees Fahrenheit) for 12 weeks. Once fully developed, this method could be administered as easily as chemical clean-ups in today’s labs, Kagan and Star said.

December 17, 2008: Foresight Institute, a think tank and public interest organization focused on nanotechnology, awarded prizes to leaders in research in the field of nanotechnology. These prizes are conferred on individuals whose work is moving our society toward the ultimate goal of atomically-precise manufacturing.

The 2008 Foresight Institute Feynman Prizes, named in honor of pioneer physicist Richard Feynman, are given in two categories, one for experimental work and the other for theory in advances in nanotechnology.

“This year we honor major advances in both understanding and building of nanoscale structures,” said Christine Peterson, president of Foresight Institute. “This work moves us forward on the path to systems of complex, atomically-precise molecular machinery.”

Winning in the Experimental category for 2008 is James M. Tour of Rice Universityfor the synthesis of nanocars. Prof. Tour has published more than 330 research articles in fields including molecular electronics, chemical self-assembly, carbon nanotube modification and composite formation, and synthesis of molecular motors and nanocars. The synthesis and testing of nanocars and other molecular machines is providing critical insight in investigations of bottom-up molecular manufacturing. His work on nanocars has involved molecular building blocks that include electro- or photoactive functionality, and he has investigated the synergistic effects of combining functional molecular building blocks.

This year’s winner in the Theory category, George C. Schatz of Northwestern University, has made outstanding theoretical contributions to nanofabrication and sensing. Prof. Schatz has published three books and more than 500 journal articles in theoretical and computational chemistry. In particular, he is cited first for sophisticated modeling and optimization of the dip pen nanolithography method of nanofabrication, and second, for his explanation of plasmon effects in metallic nanodots. The impact of this theoretical work on nanofabrication and single molecule sensing and characterization is leading toward molecular machine systems.