Category Archives: Metrology

By Walt Custer, Custer Consulting Group

Broad global & U.S. electronic supply chain growth

The first quarter of this year was very strong globally, with growth across the entire electronics supply chain. Although Chart 1 is based on preliminary data, every electronics sector expanded –  with many in double digits. The U.S. dollar-denominated growth estimates in Chart 1 have effectively been amplified by about 5 percent by exchange rates (as stronger non-dollar currencies were consolidated to weaker U.S. dollars), but the first quarter global rates are very impressive nonetheless.

Walt Custer Chart 1

U.S. growth was also good (Chart 2) with Quarter 1 2018 total electronics equipment shipments up 7.2 percent over the same period last year. Since all the Chart 2 values are based on domestic (US$) sales, there is no growth amplification due to exchange rates.

Walt Custer Chart 2

We expect continued growth in Quarter 2 but not at the robust pace as the first quarter.

Chip foundry growth resumes

Taiwan-listed companies report their monthly revenues on a timely basis – about 10 days after month end. We track a composite of 14 Taiwan Stock Exchange listed chip foundries to maintain a “pulse” of this industry (Chart 3).

Walt Custer Chart 3

Chip foundry sales have been a leading indicator for global semiconductor and semiconductor capital equipment shipments. After dropping to near zero in mid-2017, foundry growth is now rebounding.

Chart 4 compares 3/12 (3-month) growth rates of global semiconductor and semiconductor equipment sales to chip foundry sales. The foundry 3/12 has historically led semiconductors and SEMI equipment and is pointing to a coming cyclical upturn. It will be interesting to see how China’s semiconductor industry buildup impacts this historical foundry leading indicator’s performance.

Walt Custer Chart 4

Passive Component Shortages and Price Increases

Passive component availability and pricing are currently major issues. Per Chart 5, Quarter 1 2018 passive component revenues increased almost 25 percent over the same period last year. Inadequate component supplies are hampering many board assemblers with no short-term relief in sight.

Walt Custer Chart 5

Peeking into the Future

Looking forward, the global purchasing managers index (a broad leading indicator) has moderated but is still well in growth territory.

Walt Custer Chart 6

The world business outlook remains positive but requires continuous watching!

Walt Custer of Custer Consulting Group is an  analyst focused on the global electronics industry.

Originally published on the SEMI blog.

By Jay Chittooran

Jonathan Davis 3Testifying before a U.S. interagency panel weighing trade tariffs against China, a representative from the semiconductor manufacturing industry yesterday called for the removal of more than 100 products from the list of proposed tariffs, stressing that an escalation of the U.S.-Sino dispute could trigger a full-blown trade war and hasten deep, unintended damage including higher consumer prices, an expanded U.S. trade deficit, and a slowdown in U.S. economic growth.

Jonathan Davis, global vice president of industry advocacy at SEMI, the global association representing the electronics manufacturing supply chain, threw the industry’s weight behind protections for valuable intellectual property. But Davis argued that “if implemented as proposed, these tariffs will potentially cost tens of millions annually in additional taxes and lost revenue owing to reduced exports, threaten thousands of high-paying U.S. jobs, and not solve U.S. concerns with China.” Davis said the undue harm will ultimately undercut the ability of U.S. chipmakers to sell overseas, stifling innovation and curbing U.S. technological leadership.

In testimony at the hearing before the government panel that included representatives from the U.S. Trade Representative (USTR), Departments of Treasury, Commerce, State and Defense, and the Council of Economic Advisers, Davis explained that more than 100 lines – products defined for the purpose of setting import duties – of the proposed tariffs would hamstring the semiconductor supply chain. The tariff lines include fundamental components of the semiconductor manufacturing process that are oxygen for the chip industry. As part of his testimony, Davis also submitted comments on the impact of the tariffs.

Charles Gray, general counsel at Teradyne, who also testified at the hearing, explained that the tariffs will threaten growth while penalizing U.S. companies with supply chains that touch China. Gray and Davis were among more than 100 industry leaders who provided more than 3,000 comments in the May 15-17 hearing to evaluate the impact and efficacy of the proposed tariffs.

The hearing followed the Trump administration’s heated, longstanding criticism of China for what it considers unfair trade practices, focusing specifically on intellectual property violations. In recent months, the administration has begun implementing trade actions against China that will increase tariffs, restrict cross-border investment, and introduce significant uncertainty for U.S. businesses.

The Section 301 investigation that determined China’s forced transfer of technology and intellectual property discriminated against U.S. firms prompted a proposed 25 percent tariff on $50 billion in U.S. imports from China – a punitive measure that would squarely hit the semiconductor manufacturing industry.

SEMI continues to educate policymakers on the deep damage tariffs would exact on the long-term health of the semiconductor industry and the critical importance of balanced trade to the future of the semiconductor industry.

For more information on trade or how to participate in SEMI’s public policy program, please contact Jay Chittooran, SEMI public policy manager, at [email protected].

IC Insights will release its May Update to the 2018 McClean Report later this month.  This Update includes a discussion of the 1Q18 IC industry market results, an update of the 2018 capital spending forecast by company, and a look at the top-25 1Q18 semiconductor suppliers (the top-15 1Q18 semiconductor suppliers are covered in this research bulletin).

The top-15 worldwide semiconductor (IC and O-S-D—optoelectronic, sensor, and discrete) sales ranking for 1Q18 is shown in Figure 1.  It includes eight suppliers headquartered in the U.S., three in Europe, two in South Korea, and one each in Taiwan and Japan.  After announcing in early April 2018 that it had successfully moved its headquarters location from Singapore to the U.S. IC Insights now classifies Broadcom as a U.S. company.

The top-15 ranking includes one pure-play foundry (TSMC) and four fabless companies.  If TSMC were excluded from the top-15 ranking, Taiwan-based fabless supplier MediaTek ($1,696 million) would have been ranked in the 15th position.

IC Insights includes foundries in the top-15 semiconductor supplier ranking since it has always viewed the ranking as a top supplier list, not a marketshare ranking, and realizes that in some cases the semiconductor sales are double counted.  With many of our clients being vendors to the semiconductor industry (supplying equipment, chemicals, gases, etc.), excluding large IC manufacturers like the foundries would leave significant “holes” in the list of top semiconductor suppliers.  As shown in the listing, the foundries and fabless companies are identified.  In the April Update to The McClean Report, marketshare rankings of IC suppliers by product type were presented and foundries were excluded from these listings.

Overall, the top-15 list shown in Figure 1 is provided as a guideline to identify which companies are the leading semiconductor suppliers, whether they are IDMs, fabless companies, or foundries.

Figure 1

Figure 1

In total, the top-15 semiconductor companies’ sales surged by 26% in 1Q18 compared to 1Q17, six points higher than the total worldwide semiconductor industry 1Q18/1Q17 increase of 20%.  Amazingly, the Big 3 memory suppliers—Samsung, SK Hynix, and Micron, each registered greater than 40% year-over-year growth in 1Q18. Fourteen of the top-15 companies had sales of at least $2.0 billion in 1Q18, four companies more than in 1Q17. As shown, it took just over $1.8 billion in quarterly sales just to make it into the 1Q18 top-15 semiconductor supplier list.

Intel was the number one ranked semiconductor supplier in 1Q17 but lost its lead spot to Samsung in 2Q17 as well as in the full-year 2017 ranking, a position it had held since 1993.  With the continuation of the strong surge in the DRAM and NAND flash markets over the past year, Samsung went from having 5% less total semiconductor sales than Intel in 1Q17 to having 23% more semiconductor sales than Intel in 1Q18!

It is interesting to note that memory devices represented 83% of Samsung’s semiconductor sales in 1Q18, up six points from 77% in 1Q17 and up 12 points from 71% just two years earlier in 1Q16.  Moreover, the company’s non-memory sales in 1Q18 were only $3,300 million, up 6% from 1Q17’s non-memory sales level of $3,125 million.

As would be expected, given the possible acquisitions and mergers that could occur this year (e.g., Qualcomm/NXP), as well as any memory market volatility that may develop, the top-15 ranking is likely to undergo a significant amount of upheaval over the next few years as the semiconductor industry continues along its path to maturity.

Reaching their highest recorded quarterly level ever, worldwide silicon wafer area shipments jumped to 3,084 million square inches during the first quarter 2018, a 3.6 percent increase over fourth quarter 2017 area shipments of 2,977 million square inches and a 7.9 percent rise over first quarter 2017 shipments, according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.

“Global silicon wafer shipment volumes started the year at historic levels,” said Neil Weaver, chairman SEMI SMG and Director, Product Development and Applications Engineering of Shin-Etsu Handotai America. “As a result, silicon shipments, like device shipments, are positioned to be strong this year.”

Silicon* Area Shipment Trends

Millions of Square Inches
1Q 2017
2Q 2017
3Q 2017
4Q 2017
1Q 2018
Total
2,858
2,978
2,997
2,977
3,084

Source: SEMI, May 2018

*Semiconductor applications only

Silicon wafers are the fundamental building material for semiconductors, which, in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin round disks are produced in various diameters (from one inch to 12 inches) and serve as the substrate material on which most semiconductor devices or “chips” are fabricated.

All data cited in this release includes polished silicon wafers, including virgin test wafers and epitaxial silicon wafers, as well as non-polished silicon wafers shipped by the wafer manufacturers to end users.

The Silicon Manufacturers Group acts as an independent special interest group within the SEMI structure and is open to SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi, etc.). The purpose of the group is to facilitate collective efforts on issues related to the silicon industry including the development of market information and statistics about the silicon industry and the semiconductor market.

 

By Lung Chu

Lung ChuThe growth of China’s semiconductor industry outstripped sector expansion in many other regions in 2017 thanks in part to heavy government investments and supportive state policies. But China’s chip industry also struggled under the weight of overheated investment, inconsistent project quality, insufficient investment in research and development, a poor ability to innovate, and barriers to international cooperation. To overcome these headwinds to growth, China must identify global trends in the development of global semiconductor industry and better understand the forces it needs to mobilize to further expand its own semiconductor sector.

AI and 5G fuel global semiconductor industry growth

In 2017, global semiconductor industry revenue reached a seven-year peak, expanding 22 percent to nearly USD 420 billion, and entered a new growth phase with artificial intelligence (AI), 5G and other new technologies leading the surge with greater market segmentation, diversification and decentralization. The emergence of smart automobiles, smart cities, smart medicine, AR/VR and other new markets headed the list of new applications. In the next three to five years, semiconductor industry growth is expected to remain stable, with no marked declines. In 2018, the growth rate is expected to fall to between 5 percent and 8 percent, with the expansion more comprehensive and balanced.

The memory market, in particular, will find it hard to match its 2017 blistering growth rate. The market’s expected growth of 10 percent to 20 percent will be chiefly driven by DRAM and 3D NAND Flash. In 2019, NAND growth will continue but DRAM shipments could decline.

Emphasis on both innovation and investment key to sustainable growth of Chinese IC

Under the China government’s Guidelines to Promote National IC Industry Development, designed to provide key policy guidance and capital support for the development of China’s IC industry, the Chinese semiconductor industry is seeing particularly rapid growth that is expected to be a key contributor to continuing global industry expansion. In IC design, HiSilicon and Unigroup Spreadtrum & RDA ranked among the top 10 in the world. In wafer fabrication, Chinese IC manufacturing accounted for 13 percent to 15 percent of global market capacity despite SMIC and Huahong Group lagging international competition in advanced processing. In packaging and testing – China’s strongest segment – JCET, NFME and Huatian Technology also ranked in the global top 10.

The Guidelines to Promote National IC Industry Development has fueled a boom in capital investments. However, investments must go well beyond fab construction to add new capacity for China’s semiconductor industry to flourish. A strategy for sustainable, long-term chip industry growth must focus more on technology innovation while continuing heavy capital investments, though it takes time for innovation to lead to higher capacity demand and GPD growth and more jobs.

Despite large investments by the 02 Special Project in semiconductor equipment and materials, China trails other regions of the world in advanced technologies. Global spending on semiconductor equipment reached a record-breaking USD 56 billion in 2017, with Korea a major driver. In 2017, Samsung alone invested USD 25 billion in semiconductor equipment, followed by TSMC (USD 10.8 billion), Intel (USD 11.5 billion), Hynix (USD 8.5 billion), Micron (USD 0.5 billion), SMIC (USD 2.3 billion) and YMTC (USD 2 billion). In 2018, Samsung’s equipment spending is expected to drop slightly, to USD 24 billion, while investments by Intel and TSMC will be remain roughly equal.

China’s equipment spending will continue to grow in 2018, with SMIC and YMTC maintaining investment levels similar to last year’s and other China semiconductor manufacturers starting to ramp up investments. In 2018, China is expected to surpass Taiwan in equipment spending to claim the number two position after Korea.

SIIP China dedicated to international connection and cooperation

The huge investments in China’s semiconductor industry need to be supported by robust business strategies, greater international cooperation, deeper expertise in advanced technologies, and more skilled workers. China lags the global industry in all of these areas. The rapid rise of China’s semiconductor industry has raised concerns among many countries over China’s growing influence, with some, most notably the United States, going so far as to implement containment measures. Other regions including Japan, Korea and Taiwan followed suit.

The continued growth of China’s semiconductor industry hinges on technological innovation enabled by international cooperation, as well as strong international communication to allay concerns and misunderstandings over the rising prominence of China’s chip sector. China must overcome these obstacles. One partial solution is for China to convince the rest of the world that its need a thriving semiconductor industry if only to meet enormous demand for electronics products within its own borders.

As the largest international semiconductor industry association, SEMI enjoys a unique ability to strengthen the connection between China’s semiconductor sector and its international counterparts. SEMI is well-known for its vital support of the traditional semiconductor equipment and materials markets, but SEMI’s work also spans IC design, manufacturing, packaging and testing. What’s more, SEMI has expanded into innovative market vertical applications such as AI, smart manufacturing, smart transportation and smart automotive as it aims to bring together supply chains across these growth areas.

For its part, SEMI China remains dedicated to improving communications and cooperation between the Chinese and global semiconductor industries. SEMI China will also continue to encourage deeper collaboration among individual enterprises and government institutions in the interest of industry growth while making full use of SEMI’s international, professional and localization platform to promote the development of China’s semiconductor industry.

Last year, we established SEMI Innovation Investment Platform (SIIP) China to help grow China’s pool of skilled workers, promote advanced technology, generate industry capital, and expand China’s semiconductor industry while developing stronger connections with chip sectors in other regions. SIIP China is focused on the following:

  • Promoting sustainable development of the Chinese semiconductor industry
  • Establishing stronger connections to help take advantage of global technology and investment opportunities
  • Providing a platform for open communications between the Chinese and global semiconductor industries
  • Promoting greater coordination between China and its global partners
  • Helping newly enterprises secure funds for expansion

Encouraging greater cooperation with foreign semiconductor manufacturers in the interest of openness and mutual benefit will be the best way for China to overcome obstacles to the development of its semiconductor industry. Meanwhile, China will continue to strive to merge into the global semiconductor industry and become a key partner.

SEMICON China has witnessed the development of Chinese semiconductor industry

SEMICON China-1

SEMICON China marked its 30th anniversary this year. Over the past three decades, China’s semiconductor industry has seen remarkable growth. This year’s SEMICON China was the largest ever. SEMICON China and FPD China 2018 numbered 3,628 booths, covered 74,000 square meters of exhibition space and attracted 1,116 exhibitors from 21 countries and regions and 91,252 professional attendees from 58 countries and regions.

Most of China’s top device makers and global leading packaging houses, together with their equipment and materials suppliers, exhibited at SEMICON China and FPD China 2018, representing the global IC manufacturing ecosystem. The number of SEMICON China and FPD China 2018 visitors jumped 32.3 percent from last year, with representation by professionals from the design, manufacturing, assembly and test, equipment and materials sectors.

Lung Chu is President of SEMI China.

Originally published on the SEMI blog.

UnitySC, a developer of advanced inspection and metrology solutions, today announced the opening of its Asia subsidiary, Unity Semiconductor Limited Company (UnitySC Asia). The entity was established to deliver enhanced customer support for UnitySC’s growing installed base of inspection and metrology tools throughout the region. UnitySC Asia is headquartered at Tai-Yuan Hi-Tech Industrial Park, Jubei City, Hsinchu, Taiwan, and has field offices in Singapore, Korea, and Shanghai, as well as a presence in Japan.

“Asia is experiencing very strong growth in the semiconductor industry,” said Kamel Ait-Mahiout, CEO, UnitySC. “We’re seeing customers ramp up new advanced packaging technologies in their factories to meet the demands of multiple market drivers. It is evident that being local is quickly becoming a requirement, so that we can provide application development along with our existing customer support capabilities. UnitySC Asia is a key piece of our growth strategy, following the recent acquisition of HSEB GmbH, which broadened our process control portfolio.”

Seventy percent of UnitySC’s global customer installed base is located in Asia. The region’s rapid growth is driven by expanding markets: wireless and connectivity, as well as automotive, which includes electric vehicles and autonomous driving. These trends are fueling increased demand for advanced packaging, power devices and sensors.

“While UnitySC has long maintained a customer service presence in Asia, growth in the region calls for a local sales force as well as experienced application engineers who can respond to complex process questions quickly,” said Patrick Desjardins, general manager, UnitySC Asia. “Moreover, as our installed base of tools grows in the region, we will be able to provide the high-quality support our customers have come to expect directly from our local offices.”

UnitySC is growing in the Asia Pacific region and is staffed to support all areas of service. The local team includes engineers, experienced application engineers and customer service personnel, and also offers on-site customer support and assistance.

 

By Emmy Yi, SEMI Taiwan Marketing

Emboldened by advances in self-driving and Internet of Vehicles (IoV) technologies, Taiwan’s microelectronics sector is investing heavily in manufacturing processes and equipment as engines of innovation and growth for autonomous driving, the world’s next market goldmine. But breaking into the self-driving vehicle industry can be an uphill struggle. Semiconductor players bent on securing their piece of the potentially massive market must know how to navigate the automotive industry’s unique ecosystem of suppliers, not to mention its lofty standards for safety and reliability.

To explore opportunities and challenges in the automotive semiconductor market, SEMI recently organized Mobility Tech Talk – a gathering of invited professionals from Strategy Analysis, Yole Développement, Renesas, X-FAB and IHS Markit to examine the evolution of sensors for autonomous cars, advanced driver-assisted system (ADAS) applications, and new energy vehicles (NEVs) in China. Nearly 200 participants exchanged in-depth, forward-looking insights and perspectives as the event successfully reinforced connections among different segments. Here are four key takeaways from the event.

Lidar: The hottest sensing technology for smart automotive

Lidar, mmWave radar, cameras and inertial measurement units (IMUs) are the most important sensing devices for autonomous cars. As sensor and high-speed computing technologies mature, 2018 may mark the beginning for an era of autonomous cars, with 350,000 self-driving vehicles expected to hit the road by 2027. But before a single car takes to the roadways, self-driving technology must become expert at monitoring a vehicle’s environment.

That’s where Lidar, the hottest of all sensing technologies and the key to the holy grail of safe self-driving, comes into the picture. Lidar’s versatility supports multiple essential functions such as mapping, object detection and object movement, but mass production is still impossible due to its high cost. What’s more, technical issues must still be sorted out with solid-state lidar, mechanical lidar and MEMS. Both startups and traditional tier-1 semiconductor players have aggressively invested in related research and development, all hoping to pre-position themselves for the new opportunity.

Smart automotive sets new quality and safety standards

As cars become smarter, so too must silicon. Chips must support vastly more data generated by in-vehicle connectivity, ADAS, electrification, autonomous driving and a multitude of other functions that rely on advanced automotive electronics components. Demand for smarter silicon is prompting Taiwan companies to directly tap the automotive chip market or serve as OEMs for major automakers.

With quality and safety top priorities for automotive applications, in-vehicle semiconductors must meet strict requirements across areas including vehicle control, robustness, liability, cost and quality management to conform to the automotive specifications necessary to securing certifications. Smart silicon must also pass all AEC-Q liability standards promoted by automakers in North America, and score “zero defect” for the ISO/TS 16949 Automotive Quality Management System.

China’s new energy vehicles to fuel semiconductor growth

To promote NEVs and thus reduce fuel consumption by cars with internal combustion engines (ICEs), late last year the Chinese government introduced the Measures for the Parallel Administration of the Average Fuel Consumption and New Energy Vehicle Credits of Passenger Vehicle Enterprises. With China the world’s largest market for NEVs, the policy is forcing automakers in Japan, the U.S. and Europe to accelerate moves towards NEVs that, in turn, will fuel growth in the semiconductor and automotive battery industries. NEVs in China are expected to number 2 million by 2020 before more than doubling to 4.9 million by 2025. Today, most cars still run on ICEs as environmentally friendly motor drives are still under development. In unit shipments, motor drives are expected to exceed ICEs by 2025.

Cross-field collaboration is the key

The rise of smarter, fully autonomous vehicles – a disruptive “Car 2.0” – is unlikely to happen overnight. The global automotive semiconductor market will continue rapid growth, with safety and powertrain applications driving the strongest chip demand. Meanwhile, automakers are focusing more on innovations from startups and non-traditional suppliers, and some have even started developing their own IP and solutions. These paradigm industry shifts are diversifying the automotive supply chain into a cross-domain collaborative network of suppliers, pushing the closed, one-way automotive supply chain into lesser relevance. In the near future, rivals and partners may become indistinguishable as traditional turf wars begin to wane.

As ADAS and autonomous cars evolve, and the era of electric cars nears, automotive semiconductors are rising as the engine of growth for the global semiconductor industry. The automotive semiconductor market is expected to grow at a CAGR of 5.8 percent, reaching US$48.78 billion by 2022.

To help the semiconductor and automotive industries thrive in the era of self-driving vehicles, SEMI has established the Smart Automotive special interest group, a platform for better connecting elite professionals from the microelectronics and automotive sectors. Focusing on trends and innovation in the global autonomous semiconductor industry, the SEMI Smart Automotive SIG promotes industry development and cross-domain collaboration so members can create more business opportunities.

Originally published on the SEMI blog.

EV Group (EVG), a supplier of wafer bonding and lithography equipment for the MEMS, nanotechnology and semiconductor markets, today announced that it has started construction work for the next expansion phase of its corporate headquarters. The new building will house EVG’s “Manufacturing III” facility, which will more than double the floor space for the final assembly of EVG’s systems.

“With our innovative manufacturing solutions for the high-tech industry as well as new biomedical applications, we operate in very dynamic markets with great future prospects,” stated Dr. Werner Thallner, executive operations and financial director at EV Group. “In light of the high capacity utilization in all areas of our existing facilities, as well as the positive market outlook, we decided to implement our plans for building our Manufacturing III facility this year. This will support our long-term growth targets at our corporate headquarters in St. Florian am Inn.”

EVG Manufacturing III Photo 1

The new Manufacturing III building, adjacent to the new test room site that was opened just a few months ago, will be built next to the river Inn. The ultramodern building will provide approximately 4,800 square meters of additional space in total, which will benefit not only manufacturing but other departments as well. In addition to an expansion of warehouse space, a new delivery area with a dedicated packaging site designed for cleanroom equipment will be created, along with an airfreight security zone and new truck loading docks for the shipment of the completed systems to EVG’s worldwide customers.

The construction of the new Manufacturing III building is set to be completed in early 2019.

The top 10 IC suppliers in the $54.5 billion analog market last year accounted for 59% of the category’s worldwide sales in 2017, according to a recent monthly update to IC Insights’ 2018 McClean Report. Collectively, the top 10 companies generated $32.3 billion in analog IC sales last year compared to $28.4 billion in 2016, which was a 14% increase and a gain of two percentage points in marketshare during 2017, said the 50-page April Update to The McClean Report.  Eight of the top-10 suppliers exceeded the 10% growth rate of the total analog market in 2017, according to the update.

With analog sales of $9.9 billion and 18% marketshare, Texas Instruments was again the leading supplier of analog integrated circuits in 2017.  In 2016, TI’s marketshare was 17% in analog ICs.  The company’s analog sales increased by about $1.4 billion last year—rising 16%—compared to 2016 and were more than twice that of second-ranked Analog Devices (ADI). TI’s 2017 analog revenue represented 76% of its $13.0 billion in total IC sales and 71% of its $13.9 billion total semiconductor revenue, based on IC Insights’ estimates.

3fed36cb-49c2-4a3f-a24c-a5fd1acf60c4

Figure 1

TI was among the first companies to manufacture analog semiconductors on 300mm wafers.  TI has claimed that manufacturing analog ICs on 300mm wafers gives it a 40% cost advantage per unpackaged chip compared to using 200mm wafers.  In 2017, about half of TI’s analog revenue was generated on devices built using 300mm wafers.

Second-place ADI registered a 14% increase in analog IC sales in 2017 to $4.3 billion, according to IC Insights’ supplier ranking. The 2016 and 2017 revenue numbers shown for ADI include sales from Linear Technology, which was acquired by the company in 1Q17 for $15.8 billion.

NXP was the only supplier in the top-10 ranking that experienced a decline (-1%) in its analog sales last year.  Some of NXP’s analog revenue decline can be attributed to the sale of its Standard Products business to a consortium of Chinese investors consisting of JAC Capital and Wise Road Capital.  The $2.75 billion transaction was completed in February 2017.  The Standard Products business was renamed Nexperia and headquartered in the Netherlands.

Among the top 10, ON Semiconductor showed the largest analog sales gain in 2017, with revenues increasing 35% to $1.8 billion, which represented a 3% share of the market.  This follows a 16% rise in its analog sales in 2016. Some of the strong increases in sales during the last two years were a result of ON Semi’s acquisition of Fairchild Semiconductor in September 2016 for $2.4 billion.  ON’s analog business was also boosted in 2017 by record sales of its power management products to the automotive market, specifically for active safety, powertrain, body electronics, and lighting applications.

The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached $111.1 billion during the first quarter of 2018, an increase of 20 percent compared to the first quarter of 2017, but 2.5 percent less than the fourth quarter of 2017. Sales for the month of March 2018 came in at $37.0 billion, an increase of 20 percent compared to the March 2017 total of $30.8 billion and 0.7 percent more than the February 2018 total of $36.8 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The global semiconductor market has demonstrated impressive growth through the first quarter of 2018, far exceeding sales through the same point in 2017, which was a record year for semiconductor revenues,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales in March increased year-to-year for the 20th consecutive month. All regional markets experienced double-digit growth compared to last year, and all major semiconductor product categories experienced year-to-year growth, with memory products continuing to lead the way.”

Year-to-year sales increased across all regions in March: the Americas (35.7 percent), Europe (20.6 percent), China (18.8 percent), Asia Pacific/All Other (13.3 percent), and Japan (12.4 percent). Month-to-month sales increased in Europe (3.9 percent), China (2.2 percent), Japan (0.5 percent), and Asia Pacific/All Other (0.2 percent), but decreased slightly in the Americas (-2.0 percent).

For comprehensive monthly semiconductor sales data and detailed WSTS Forecasts, consider purchasing the WSTS Subscription Package. For detailed data on the global and U.S. semiconductor industry and market, consider purchasing the 2017 SIA Databook.

Mar 2018

Billions

Month-to-Month Sales                              

Market

Last Month

Current Month

% Change

Americas

8.26

8.09

-2.0%

Europe

3.43

3.57

3.9%

Japan

3.18

3.19

0.5%

China

11.70

11.95

2.2%

Asia Pacific/All Other

10.19

10.22

0.2%

Total

36.76

37.02

0.7%

Year-to-Year Sales                         

Market

Last Year

Current Month

% Change

Americas

5.96

8.09

35.7%

Europe

2.96

3.57

20.6%

Japan

2.84

3.19

12.4%

China

10.06

11.95

18.8%

Asia Pacific/All Other

9.02

10.22

13.3%

Total

30.84

37.02

20.0%

Three-Month-Moving Average Sales

Market

Oct/Nov/Dec

Jan/Feb/Mar

% Change

Americas

8.95

8.09

-9.6%

Europe

3.37

3.57

5.8%

Japan

3.24

3.19

-1.5%

China

12.01

11.95

-0.5%

Asia Pacific/All Other

10.41

10.22

-1.8%

Total

37.99

37.02

-2.5%