Category Archives: Materials and Equipment

IP Piracy


April 17, 2007

Central to the outsourcing debate is the issue of protection for intellectual property (IP). Multinational companies (MNCs) must often accept the trade-off of low labor costs for engineering and component packaging, and lax IP-protection legislation in a given outsourcing region. This month, President Bush announced that the U.S. will bring copyright and IP violation charges against China to the World Trade Organization (WTO). Two major cases, focused on entertainment commodities, argue that China lacks the necessary legal structure to enforce copyrights and related trademarks, reports National Public Radio (NPR) correspondent Adam Davidson. This battle highlights the struggle between industry groups and the outsourcing strategies that maintain the electronics industry.

(April 18, 2007) SAN DIEGO &#151 StratEdge released “Power Packages,” a package series that incorporates beryllium oxide (BeO) ceramic and a copper-composite base to provide thermal management for high-frequency, high-power chips. Package construction directly affects chip performance, said Jerry Carter, senior applications engineer, adding that the series is constructed for design engineers considering performance and reliability of their chips.

April 16, 2007 – Data for semiconductor equipment demand seemed to be holding steady in January and February, according to initial data from SEMI — but apparently equipment demand was really in line with other slowing trends in the industry, as the group now admits its tool sales & orders data were incorrectly too high.

Revised data from SEMI now shows January equipment sales were just $1.45 billion, nearly 10% below the $1.60 billion initially reported, and actual bookings were more than 13% below initial estimates, at $1.44 billion instead of $1.67 billion. The book-to-bill ratio for January was at an even 1.00, not 1.04 as initially reported.

February data also turns out to be lower than SEMI had indicated — about 9% lower in sales ($1.43 billion vs. $1.58 billion) and more than 15% off in bookings ($1.49 billion vs. $1.65 billion), pushing the B:B below parity to 0.98 instead of a 1.05 mark that suggested healthy demand (orders outpacing sales).

SEMI blames a data input error in its February report for the miscalculation, and a spokesperson further clarified that the changes were “based on revised data from one or more participants.” Such miscalculations are rare but have happened occasionally in the past given the complex collection of data from 60+ SEMI members, the spokesperson explained. SEMI says additional processes have been implemented to catch such errors in the future.

So, here is the revised version of the past 12 months of SEMI’s semiconductor equipment sales/orders data:

North American equipment bookings, billings — Jan 2006-Feb 2007

Month…….Billings…….%M-M………%Y-Y……….Bookings……..%M-M……..% Y-Y………B:B
………… (3-mo. avg.)……………………………………(3-mo. avg.)……………………………………..

Jan’06…………..1259.4…….2.9%………0.1%……….1225.9……..7.3%…….24.3%……..0.97
Feb’06…………..1283.3…….1.9%……..-3.6%……….1293.2……..5.5%…….26.3%……..1.01
Mar’06…………..1338.7…….4.3%………5.2%……….1385.3……..7.1%…….40.2%……..1.03
Apr’06…………..1448.5…….8.2%……..16.9%……….1602.4…….15.7%…….60.4%……..1.11
May’06…………..1452.6…….0.3%……..19.8%……….1619.0……..1.0%…….59.5%……..1.11
June’06………….1557.4…….7.2%……..35.2%……….1782.3…….10.1%…….71.7%……..1.14
July’06………….1637.9…….5.2%……..51.9%……….1734.6…….-2.7%…….72.2%……..1.06
Aug’06…………..1742.8…….6.4%……..65.1%……….1729.7…….-0.3%…….69.6%……..0.99
Sep’06…………..1672.8……-4.0%……..53.7%……….1639.2…….-5.2%…….66.6%……..0.98
Oct’06…………..1562.9……-6.6%……..36.4%……….1468.6……-10.4%…….34.3%……..0.94
Nov’06 (f)……….1486.1……-4.9%……..26.0%……….1426.5…….-2.8%…….30.5%……..0.96
Dec’06 (f)……….1482.3…..-0.20%…….21.10%……….1497.2…….5.00%……31.00%…….1.01
(old) Jan’07 (p)…..1604.5……8.2%……..27.4%………..1674.7……11.9%…….36.6%……..1.04
(new) Jan’07 (p)…..1448.0……-2.3%…….15.0%………..1445.8……-3.4%……17.9%……..1.00
(old) Feb’07 (p)…..1577.6……-1.7%……..22.9%………..1652.8……-1.3%…….27.8%……..1.05
(new) Feb’07 (p)…..1428.8……-1.3%…….11.3%………..1400.9……-3.1%…….8.3%………0.98

WaferNEWS source: SEMI

April 13, 2007 – Aviza Technology Inc. is touting its suite of low-k patents, including a new one for making low-k dielectric SiOC films, and is “pursuing active licensing programs,” the company said today in a statement.

The company says the new US patent it received in December 2006, US Patent #7,153,580 entitled “Low-k dielectric inorganic/organic hybrid films and method of making,” covers dielectric films for structures comprised substantially of cyclic Si-O-Si groups and chains as well as organic side groups attached to the structures. The films may be formed in thermal- or plasma-based systems, which utilize organosilicon precursors. Aviza plans to utilize the technology for organosilicon-based silicon-organic-carbon (SiOC) films targeted at intermetal dielectric films containing very low dielectric constant values.

“We believe that the suite of low-k patents granted to Aviza will be of significant interest and benefit to chipmakers and semiconductor equipment manufacturers focusing on low-k deposition technologies, as Aviza’s patented processes related to this technology virtually spans the entire spectrum of low-k manufacturing,” said Nitin Shah, Aviza’s VP of business development, in a statement.

April 13, 2007 – Wafer processing equipment supplier Semitool Inc. says its fiscal 2Q07 revenues will be down about 7% below prior expectations to a range of $51-$53 million, representing a 22%-25% decline from fiscal 1Q07 ended in December.

Bookings are expected to drop to $30.7 million, about 32% below the previous quarter and more than 25% below the year-ago quarter, due to order delays and postponements in all target markets, the company said in a statement.

Matt Petkun, an analyst with DA Davidson quoted by Reuters, noted that the lowered projections could be tied to news last week from main customer AMD, which is cutting back 2007 capex by 25% ($500 million). He also suggested there may be softness in demand from the memory market.

Semitoo also has lowered its sales outlook for the entire fiscal 2007, to $210-$230 million, about 20%-25% lower than the $260-$310 million it had originally anticipated.

In a statement when releasing F1Q07 results, company president/COO Larry Murphy had said the company was focusing on building share for copper plating and FEOL cleaning applications, and noted the addition of a new flash/DRAM supplier for 300mm copper plating.

IntelliSuite 8.2 enables nanoscale and nanotube simulation. (Image: IntelliSense)

Apr. 13, 2007 — IntelliSense has announced a major new version of its software for small-tech designers. With IntelliSuite v8.2, says company CEO, Sandeep Akkaraju, “we have now entered the nano domain.”

Akkaraju explains that researchers have been needing software to enable the development of next generation micro/nano devices. IntelliSuite v8.2 promises to facilitate the design of nanostructures as well as combined MEMS-nanostructure products.

The new version also expands upon the software’s multiphysics capability. “Next generation device design will depend upon seamless integration of fully coupled thermal, mechanical, piezo, electrostatic, magnetostatic, fluidic and high frequency electromagnetic simulation. Our focus in 2007 will be to enable interaction between these varied simulation domains in a single package,” the company says.

New IntelliSuite features include:
– Nanoscale and Carbon Nanotube simulation capabilities
– Thermo-Electro-Magneto-Mechanical (TEMM) module that allows for the design and simulation of electrostatic and magnetostatic and Lorentz force based sensors and actuators
– New 3D Boundary Element Formulation based Full Wave analysis solver designed for Fast Impedance extraction and signal integrity analysis
– Full 3D Coupled Electrostatic-Mechanical-Fluidic and High Frequency (RF FullWave) simulator optimized for the design of RF-MEMS
– Electrowetting on dielectric (EWOD) based digital microfluidics module
– VisualEase, advanced data visualization and data exploration module

Apr. 12, 2007 — LITMUS Defense, LLC has entered into a formal agreement with the U.S. Naval Air Warfare Center, Weapons Division (NAWCWD), for the research and development of carbon nanostructures in advanced rocket motors and warheads.

The NAWCWD is the premier R&D center within the Naval Air Systems Command, conducting basic and applied research of advanced technologies related to tactical naval air weapons systems. NAWCWD has extensive expertise, multi-billion dollar research and test facilities, and information in energetic systems.

The use of high quality carbon nanotubes and nanofibers into various rocket motor and warhead components and propellants promises multiple enhanced properties. These include increasing thermal conductivity and performance, increasing the strength of materials and alloys, and reducing the weight and size of structural components, thereby dramatically affecting the structure and propellants of rockets to provide greater thrust per second into a system.

LITMUS Defense says its experience with integration of carbon nanostructures will enable it not only to conduct the required research, but also to commercialize the resulting technologies.

Apr. 11, 2007 — Bristol, England-based Metryx, Limited, a semiconductor equipment manufacturer specializing in nanotechnology mass measurement techniques, says it has hired two new directors of business development to help the company meet a growing demand for mass metrology.

Mark Berry has been appointed North America and Europe Business Director while Gary Ditmer has joined as Asia Business Director in a move to support the company’s increasing global business development activities. In addition, Liam Cunnane, previously North American Director of Technology, has been promoted to Worldwide Technology Director.

“Both Mark and Gary represent a significant win for us. As we grow, both of their roles will be critical to the company, helping to increase our installed base and concurrently develop our service capability on a global level,” said Metryx CEO Adrian Kiermasz.

Berry comes to Metryx from Veeco where he held positions including Vice President of Sales for Veeco’s compound semiconductor division. Prior to that, he held sales and market development positions with Oxford Instruments Plasma Technology.

Ditmer joined the company in January 2007. Based in Japan, he has extensive business experience in the Far East and has held key sales positions with Oxford Instruments Plasma Technology and Applied Materials.

April 10, 2007 – NEC Corp. has developed a completely new kind of bioplastic composed of plant-based material and carbon fiber, which realizes heat conductivity higher than that of stainless steel, according to the Japan Electronic News. The innovative bioplastic is expected to make electronic products more environmentally sound, while solving conventional heat release issues.

The features of the new bioplastic include creation of a cross-linked structure of carbon fiber through use of a unique binder in the polylactic acid (PLA)*1 resin, achieving high heat diffusion. With carbon fiber of 10% and 30%, the heat diffusion ability of the new bioplastic composite is comparable to and double that of stainless steel, respectively. This enables good heat conductivity in the plane direction of the PLA resin board, which is a characteristic conventionally difficult to attain in metal boards.

The composite is environmentally friendly because it is mainly composed of biomass-based components, including the binder. The biomass ratio exceeds 90%, excluding inorganic components such as the carbon fiber.

The strength and moldability of the composite have been fundamentally verified for use in electronic products. NEC’s newly developed bioplastic composite in the housings of electronic products easily releases the heat generated from electronic parts with high temperatures through whole housing surfaces, while slowing up an increase in the temperature of the housings near parts.

In addition, NEC has also discovered how to add flame retardancy – without using toxic flame retardants – and shape memory to PLA. The new bioplastic achieves high heat conductivity by a new technology for carbon-fiber cross-linking with a unique biomass-based binder, which was realized at NEC’s fundamental and environmental research laboratories. NEC will continue to develop these technologies toward realization of mass production of the bioplastic composite by the end of the fiscal year ending March 2009, after which it will start to use the composite in housings of electronic products and seek out new applications.

Georgia Tech researchers say they’ve developed a “3D multiphoton” technique, a process involving two-photon absorbing molecules that are sensitive to laser light at short wavelengths, that could be applied to simplify and cut costs for patterning 65nm structures.

Conventional lithography techniques involve creating specific mask patterns for each layer and exposing and developing each one. This new two-photon technique, the scientists say, lets them create 3D layered nanostructures just by programming a different pattern for each layer — meaning no more mask templates, and just one pass for coating, exposing, and developing.

“In conventional lithography 3D structures have to built up in a layer by layer process, each layer requiring coating, exposure and washing,” explained Joseph Perry, a professor in the Georgia Tech School of Chemistry and Biochemistry and the Center for Organic Photonics and Electronics. “The multiphoton technique is a “one-cycle” method for fabricating 3D structures so there is also a huge savings in terms of volumes of materials and solvents used,” he told SST, adding that another benefit is reduced environmental impact.

In their technique, a laser beam is written across a substrate coated with a film of polymer resin (a blend of acrylic monomers) containing a special dye, “DAPB” (4,4′-bis[di-n-butylamino]biphenyl) as a two-photon photoactivator, with molecules capable of two-photon absorption at 520nm light wavelength that are about 10x more efficient than commercial ultraviolet photoactive materials, which are engineered for single photon absorption. “Essentially it is a negative resist that can be activated by multiphoton laser excitation,” Perry told SST. This particular research involved a glass substrate, though Perry says they’ve also fabricated with silicon, aluminum, and plastic.

The film of DAPB polymer resin is excited when exposed to a Ti: Sapphire pulsed laser, triggering crosslinking that occurs only where molecules have absorbed two photons of light — and only molecules at the laser’s focal point receive enough light to absorb two photons. The remaining insoluble scanned structures are left behind on the surface of the substrate when placed in a developer solution. Controlling the pulsed laser scans can direct the crosslinking reaction in any pattern, including 3D stacks of straight lines; simply turning the laser on and off allows researchers to expose lines of polymer and avoid areas where no lines should be drawn.

Perry, who with fellow GA Tech researcher Seth Marder founded startup Focal Point Microsystems to commercialize the technology, claims they can create a 20×20µm structure with 30 layers in about 10 minutes. “We used laser scan speeds of 60µm/sec,” which is close to what would be needed commercially for benchtop, research lab, or prototyping (perhaps within two years), he suggested. “We are now fabricating at speeds of 20 cm/s and higher speeds are possible,” he added, with production scale systems likely three or four years out depending upon demand and better instruments to increase the throughput.

Others have applied two-photon absorption to fabrication as early as the 1990s (e.g. Cornell U. of California/Irvine applied it to 3D memory and fluorescence, and 3D microfabrication was explored by Satoshi Kawata et. al. at Osaka U.), and work in related area continues today in the US, Europe, Japan, and Australia, Perry noted. Potential applications include simplifying the double-patterning lithography methods contemplated for 32nm. (Pixelligent Technologies LLC, for example, has been developing a nanocrystal-based reversible contrast-enhancement layer material, a coating spun directly onto the photoresist that enhances resolution by absorbing low-intensity light in image regions intended to be dark.)

GA Tech’s two-photon absorption technique enables fabrication of true 3D structures of almost any shape, including those with interlocking or moveable parts, Perry explained — e.g., functional photonic micro-devices with tailored transmission capabilities such as photonic crystals (stacked-up grids of lines). Possible future applications include building compact microspectrometers-on-a-chip for telecommunications and sensors, or for separating multiple wavelengths in fiber-optic cables. Ultimately he sees this technique with application in moderate-scale production of special-purpose ICs, “especially where there is a high diversity of patterns to be fabricated batch to batch.” — J.M.

IMAGE CAPTION: Scanning electron microscope images of woodpile-type photonic crystal structures fabricated with 520nm excitation at (a) higher power and at (b) lower power using DABP. Magnified images of the structures are shown below their respective overview images. (Source: Georgia Tech)

April 6, 2007 – “Uneven” investment patterns between memory and foundry/IDM capacity shook up the final rankings of top semiconductor equipment vendors in 2006, according to Gartner Dataquest. Those outpacing the overall 23% industry growth rate included KLA-Tencor and Lam Research, as well as AMAT and ASML.

Total worldwide capital equipment spending totaled $41.95 billion, a 22.9% increase from 2005, in which the sector had seen an overall ~10% decline. Packaging and assembly equipment spending rose 18.2%, while automated test equipment (ATE) expanded 9.3%. Gartner’s initial estimates in Dec. 2006 estimated 24.9% growth in capital equipment sales to $42.38B, with WFE spending up 26.3% to $32.80B, packaging/assembly investments rising 15.2% to $4.83, and ATE spending up 25.8% to $4.75B.

All top 20 firms from the previous year made the list in 2006, though some positions were shuffled due to exposure to higher investments from memory firms, and for certain technology segments, according to Dean Freeman, research VP at Gartner Dataquest. Memory firms have been driving capital investments, and DRAM manufacturing uses several furnace steps requiring etch and deposition steps not found in logic or flash, he pointed out.

Applied Materials ($6.49 billion, 37%), TEL ($4.48B, +16.4%), and ASML ($4.00B, +46.5%) retained their usual 1-2-3 spots in Gartner’s final rankings, while No. 4 KLA-Tencor ($2.06B, +24.3%) and No. 5 Lam Research ($1.88B, +64.1%) climbed the ladder due to strengths in process control and etch deposition, respectively. Firms including Mattson and PSK also did well with their strip processes, Freeman pointed out to WaferNEWS, and “some Korean companies and TEL did well in the metal and high-k CVD for the capacitor.”

By region, Japan and Europe were weaker than the overall market, except with some individual companies who had strong relationships with memory devicemakers.

While most chipmakers remained disciplined and invested carefully in their capacity during 2006, memory firms still dominated the capital spending landscape, with investments rising 36%, noted Klaus Rinnen, managing VP for Gartner’s semiconductor manufacturing research group, in a statement. That, paired with weakness in foundry spending — up only 9% in 2006, attributed to inventory changes and reduced customer order patterns starting as early as May 2006 — created an “uneven” spending behavior that helped individual companies like Lam, and also influenced regional investment patterns.

Which raises the multimillion-dollar question — how much longer can the memory spending bubble last? Freeman told WaferNEWS that memory capex is perfectly within reason given projections of demand drivers, but he thinks that some demand expectations are “a bit optimistic,” which will result in “significant pricing trouble before the year is out.” Still, he doesn’t believe firms will stop spending as long as there’s a whiff of profitability in the sector — “at this time we think most of the memory money for 2007 is committed,” he said. Capex may remain solid through this year, but “2008 should see a dip in memory spending,” he projected. “Whether this is a result of the industry slowing down or hitting the wall remains to be seen.”

Worldwide semiconductor manufacturing equipment vendors
(Revenue estimates* in US $M)

Company…………………….2005 revenues…..2006 revenues…..% growth…..2006 market share (%)

Company…………………..2005 revenue…..2006 revenue…..% growth…..2006 market share (%)

Applied Materials……………..4738.5……………..6493.1……………37.0……………15.2
Tokyo Electron………………….3851.7……………..4481.7……………16.4……………10.5
ASML……………………………….2732.6……………..4004.1…………….46.5……………..9.4
KLA-Tencor………………………1654.9……………..2056.3……………24.3……………..4.8
Lam Research………………….1147.0……………..1881.8……………64.1……………..4.4
Advantest…………………………2089.3……………..1794.0……………-14.1……………..4.2
Nikon……………………………….1507.8……………..1519.2………………0.8………………3.6
Novellus Systems…………….1130.1……………..1389.1…………….22.9……………..3.3
Dainippon Screen………………991.3……………….987.7……………..-0.4……………..2.3
Canon………………………………..836.8………………..924.3…………….10.5……………..2.2
Others……………………………13,999.2…………..17,106.3…………….22.2……………40.1
All companies……………….34,679.2…………..42,637.6…………….22.9………….100.0
OEM elimination…………………538.0……………….687.4…………….27.8……………..-…..
NET MARKET TOTAL……34,141.2…………41,950.2…………….22.9………………-…..

* Includes revenue from acquisitions which occurred in 2006 for the entire year. 2005 data is before 2006 acquisitions.

Source: Gartner Dataquest