Category Archives: Metrology

Broadcom Limited (NASDAQ: AVGO) (“Broadcom”), a semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, today announced a proposal to acquire all of the outstanding shares of Qualcomm Incorporated (NASDAQ: QCOM) (“Qualcomm”) for per share consideration of $70.00 in cash and stock.

Under Broadcom’s proposal, the $70.00 per share to be received by Qualcomm stockholders would consist of $60.00 in cash and $10.00 per share in Broadcom shares. Broadcom’s proposal represents a 28% premium over the closing price of Qualcomm common stock on November 2, 2017, the last unaffected trading day prior to media speculation regarding a potential transaction, and a premium of 33% to Qualcomm’s unaffected 30-day volume-weighted average price. The Broadcom proposal stands whether Qualcomm’s pending acquisition of NXP Semiconductors N.V. (“NXP”) is consummated on the currently disclosed terms of $110 per NXP share or the transaction is terminated. The proposed transaction is valued at approximately $130 billion on a pro forma basis, including $25 billion of net debt, giving effect to Qualcomm’s pending acquisition of NXP on its currently disclosed terms.

“Broadcom’s proposal is compelling for stockholders and stakeholders in both companies. Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company,” said Hock Tan, President and Chief Executive Officer of Broadcom. “This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products. We would not make this offer if we were not confident that our common global customers would embrace the proposed combination. With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value.”

Tan continued, “We have great respect for the company founded 32 years ago by Irwin Jacobs, Andrew Viterbi and their colleagues, and the revolutionary technologies they developed. Following the combination, Qualcomm will be best positioned to build on its legacy of innovation and invention. Given the common strengths of our businesses and our shared heritage of, and continued focus on, technology innovation, we are confident we can quickly realize the benefits of this compelling transaction for all stakeholders. Importantly, we believe that Qualcommand Broadcom employees will benefit from substantial opportunities for growth and development as part of a larger company.”

Thomas Krause, Broadcom Chief Financial Officer, added, “The Broadcom business continues to perform very well. Broadcom has completed five major acquisitions since 2013, and has a proven track record of rapidly deleveraging and successfully integrating companies to create value for our stockholders, employees and customers. Given the complementary nature of our products, we are confident that any regulatory requirements necessary to complete a combination with Qualcomm will be met in a timely manner. We look forward to engaging immediately in discussions with Qualcomm so that we can sign a definitive agreement and complete this transaction expeditiously.”

 

“The combined Qualcomm/Broadcom operation would represent the third largest global semiconductor supplier. The Qualcomm shareholders are likely to be split with many viewing this opportunity as a solution to the worsening relations with Apple, whom Broadcom has a good relationship with. The potential merger raises significant questions surrounding the difficult takeover of NXP by Qualcomm and much is still to be discerned regarding the value of the Qualcomm patent holdings and its associated lucrative high-margin revenue stream,” said Stuart Carlaw, Chief Research Officer at ABI Research.

The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached $107.9 billion for the third quarter of 2017, marking the industry’s highest-ever quarterly sales and an increase of 10.2 percent compared to the previous quarter. Sales for the month of September 2017 were $36.0 billion, an increase of 22.2 percent over the September 2016 total of $29.4 billion and 2.8 percent more than the previous month’s total of $35.0 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

highest ever sales

“Global semiconductor sales increased sharply year-to-year in September, and year-to-date sales through September are more than 20 percent higher than at the same point last year,” said John Neuffer, SIA president and CEO. “The industry posted its highest-ever quarterly sales in Q3, and the global market is poised to reach its highest-ever annual revenue in 2017.”

Regionally, year-to-year and month-to-month sales increased in September across all markets: the Americas (40.7 percent year-to-year/5.9 percent month-to-month), China (19.9 percent/2.5 percent), Europe (19.0 percent/1.8 percent), Asia Pacific/All Other (16.8 percent/1.9 percent), and Japan (11.9 percent/0.5 percent).

“The Americas market continued to stand out, notching its largest year-to-year sales increase in more than seven years,” Neuffer said. “Standouts among semiconductor product categories included memory products like DRAM and NAND flash, both of which posted major year-to-year growth in September, as well as Logic products, which enjoyed double-digit growth year-to-year.”

The 2017 GLOBALFOUNDRIES Technology Conference (GTC) was held today in Shanghai, with GF executives, customers, partners and leaders in the Chinese semiconductor industry gathering to discuss the technologies that will enable a new era of connected intelligence. At the event, GF senior executives shed light on the company’s technologies, design solutions, and manufacturing services. The company also highlighted growing momentum around its differentiated 22FDX® technology, including customer adoption by several leading Chinese chip designers.

Mike Cadigan, GF’s senior vice president for global sales and business development, delivered a keynote speech, emphasizing GF’s expectations to become a strong leader in the Chinese semiconductor market. “Along with the rapid growth of customers, markets and applications in this region of the world, we are also continuously developing new technologies for enabling connected intelligence,” Cadigan said. “China is definitely one of our most important markets, and we will keep bringing advanced and differentiated technologies here to help our customers grow and succeed.”

At the event, GF revealed three Chinese customers that will be adopting its new 22FDX technology for next-generation wireless, battery-powered applications. Shanghai Fudan Microelectronics Group will adopt the 22FDX platform to design and develop highly reliable servers, AI and smart IoT intelligent products in 2018. Rockchip will apply 22FDX technology in the design of ultra-low power WiFi smart hardware SoC and high-performance AI processers. Hunan Goke Microelectronics is planning to adopt 22FDX in its next generation of IoT chips.

China is a key region for GF’s future growth plans. The company is building an advanced 300mm semiconductor fab in Chengdu, where a “truss-hoisting” ceremony was recently held to commemorate a major milestone in the construction of the facility, which will be called Fab 11. The construction of the fab is progressing at a fast pace and is on track to be completed in early 2018.

The company is also working closely with the Chengdu municipality to expand the FD-SOI ecosystem, with an investment of more than $100 million to make Chengdu a center of excellence for FDX IC design and IP development. Several leading semiconductor companies have already committed to supporting the ecosystem initiative, including Invecas, GF’s advanced IP development partner. Invecas has established a strong presence in China, including a recently expanded engineering team in Shanghai and Shenzhen and a commitment to set up an R&D center in Chengdu to develop and support advanced IP and designs for FD-SOI systems.

North America-based manufacturers of semiconductor equipment posted $2.03 billion in billings worldwide in September 2017 (three-month average basis), according to the September Equipment Market Data Subscription (EMDS) Billings Report published today by SEMI.

SEMI reports that the three-month average of worldwide billings of North American equipment manufacturers in September 2017 was $2.03 billion.The billings figure is 6.9 percent lower than the final August 2017 level of $2.18 billion, and is 36.0 percent higher than the September 2016 billings level of $1.49 billion.

“Global semiconductor equipment billings of North American headquartered suppliers for September were $2.0 billion, down 12 percent from the peak level set in June of this year,” said Ajit Manocha, president and CEO of SEMI. “Total billings through the first three quarters of this amazing year have surpassed total billings for all of 2016.”

The SEMI Billings report uses three-month moving averages of worldwide billings for North American-based semiconductor equipment manufacturers. Billings figures are in millions of U.S. dollars.

Billings
(3-mo. avg)
Year-Over-Year
April 2017
$2,136.4
46.3%
May 2017
$2,270.5
41.8%
June 2017
$2,300.3
34.1%
July 2017
$2,269.7
32.9%
August 2017 (final)
$2,181.8
27.7%
September 2017 (prelim)
$2,031.1
36.0%

Source: SEMI (www.semi.org), October 2017
SEMI publishes a monthly North American Billings report and issues the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report in collaboration with the Semiconductor Equipment Association of Japan (SEAJ). The WWSEMS report currently reports billings by 24 equipment segments and by seven end market regions.

The ConFab, to be held May 20-23 at The Cosmopolitan of Las Vegas, is excited to announce IBM’s Dr. Rama Divakaruni will be the opening keynote for the 2018 conference. Dr. Divakaruni’s presentation is entitled, “How AI is Driving the New Semiconductor Era“. He will address the Artificial Intelligence era demands for dramatic enhancement in computational performance and efficiency of AI workloads, and discuss the needs and changes required in algorithms, systems and chip design as well as in devices and materials.

“Increased use of artificial intelligence will radically change how semiconductors are designed and manufactured, and I’m delighted IBM’s Rama Divakaruni will be sharing his insights at The ConFab in 2018,” said Pete Singer, Editor-in-Chief of Solid State Technology and the conference chair of The ConFab.

Dr. Divakaruni is responsible for IBM Advanced Process Technology Research (which includes EUV technologies and advanced unit process and enablement technologies) and he is the main interface between IBM Semiconductor Research and IBM’s Systems Leadership. Dr. Divakaruni is an IBM Distinguished Engineer and one of IBMs top inventors with over 225 issued US patents.

An impressive background – since 1994, Dr. Divakaruni has been working on advanced semiconductor technologies at IBM. Through 2003, while in DRAM Technology Development, his team introduced the world’s first sub-8F2 vertical transistor DRAM trench technology. The next two years, Dr. Divakaruni worked as the technical lead for the 90nm strained silicon technology which was the world’s first to introduce dual stress liner technology; the technology was the basis of the Nintento Wii, XBOX360 and the PlayStation3 game platforms. After a year serving as project manager for the Unit Process team, he was program manager and technical lead for the development of 45nm industry standard bulk technologies for IBM’s Joint Development Alliance. At 45nm, IBM and its development partners introduced strained silicon technology for low power mobile products thus launching strained silicon across the spectrum of bulk low power and SOI performance CMOS technologies. This technology was the basis for the first Apple I-pad, early Apple I-phones and was the technology that IBM’s partners, including Samsung, used for all their mobile platforms and devices. 

SEMI recently completed its annual silicon shipment forecast for the semiconductor industry. This SEMI forecast provides an outlook for the demand in silicon units for the period 2017–2019. The SEMI forecast shows polished and epitaxial silicon shipments totaling 11,448 million square inches in 2017; 11,814 million square inches in 2018; and 12,235 million square inches in 2019 (refer to table below). Total wafer shipments this year are expected to exceed the market high set in 2016 and are forecast to continue shipping at record levels in 2018 and 2019.

“Silicon shipment volumes are expected to ship at historic highs for this year and into 2019,” said Dan Tracy, senior director of Industry Research & Statistics at SEMI. “The expectation is for steady annual growth due to the proliferation of connected devices required for automotive, medical, wearables, and high-performance computing applications.”

2017 Silicon Shipment Forecast
(Millions of Square Inches, MSI)

Actual
Forecast
2015
2016
2017
2018
2019
MSI
10,269
10,577
11,448
11,814
12,235
Annual Growth
4.5%
3.0%
8.2%
3.2%
3.6%

Total Electronic Grade Silicon Slices* – Does not Include Non-Polished Wafers
Source: SEMI (www.semi.org), October 2017
*Shipments are for semiconductor applications only and do not include solar applications

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 is inclusive of polished silicon wafers, including virgin test wafers and epitaxial silicon wafers shipped by the wafer manufacturers to the end-users. Data do not include non-polished or reclaimed wafers.

Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 0981.HK), the largest and most advanced foundry in mainland China, today announced the appointment of Dr. Haijun Zhao and Dr. Liang Mong Song as SMIC Co-CEO and Executive Director.

Dr. Zhao, age 54, was appointed as the Chief Executive Officer of the Company on May 10, 2017. Dr. Zhao joined the Company in October 2010 and was appointed as Chief Operating Officer and Executive Vice President in April 2013. In July 2013, Dr. Zhao was appointed as General Manager of Semiconductor Manufacturing North China (Beijing) Corporation, a joint venture company established in Beijing and a subsidiary of the Company. Dr. Zhao received his bachelor of science and doctor of philosophy degrees in electronic engineering from Tsinghua University (Beijing) and a master degree in business administration from the University of Chicago. He has 25 years of experience in semiconductor operations and technology development.

Dr. Liang Mong Song, age 65, graduated with a doctor of philosophy degree in electrical engineering from the Department of Electrical Engineering and Computer Sciences at the University of California, Berkeley. Dr. Liang has been engaged in the semiconductor industry for over 33 years, and was involved in memory and advanced logic process technology development. He owns over 450 patents and has published over 350 technical papers. He is a Fellow of Institute of Electrical and Electronic Engineers (IEEE).

Dr. Zixue Zhou, Chairman of SMIC, commented, “I am very pleased that Dr. Haijun Zhao and Dr. Liang Mong Song have joined the board of directors of SMIC as Executive Directors. I also warmly welcome Dr. Liang Mong Song to join SMIC together with Dr. Haijun Zhao to serve as Co-CEO. For decades Dr. Liang has focused on integrated circuit (“IC”) technology research and development and team management, with excellence and successful experience in advanced IC process development and management. His accession will further enhance SMIC’s ability to develop process technology and narrow the advanced technology gap between SMIC and its international peers; and at the same time, his efforts will further enhance SMIC’s ability to serve its customers and improve the metrics of SMIC’s existing technology. In addition, he brings corporate culture of top tier companies, which will enhance the company’s corporate culture to world class standards. It is believed with Dr. Haijun Zho and Dr. Liang Mong Song’s joint efforts SMIC will be led to a new height and make contributions to the development of IC industry.”

Dr. Haijun Zhao, Co-CEO of SMIC remarked, “I am pleased to join the board of directors of SMIC as Executive Director, and warmly welcome Dr. Liang Mong Song to join SMIC. Dr. Liang’s great achievements in the semiconductor industry are obvious to all. His accession will strengthen our management team, and as Co-CEO I am looking forward to working together with Dr. Liang. Together with our management and staff we will strive to make SMIC a global first-class IC enterprise.”

Dr. Liang Mong Song, Co-CEO of SMIC said, “I am greatly honored to take on the position of Co-CEO and Executive Director of SMIC, which to me, is not merely an opportunity, but also a challenge. SMIC’s rapid developments in recent years have been notable in the industry, and I am looking forward to working closely with the board of directors, Dr. Haijun Zhao and the management team to continuously improve the competitiveness of SMIC in the area of international IC manufacturing.”

With the prospects of large 450mm wafers going nowhere, IC manufacturers are increasing efforts to maximize fabrication plants using 300mm and 200mm diameter silicon substrates. The number of 300mm wafer production-class fabs in operation worldwide is expected to increase each year between now and 2021 to reach 123 compared to 98 in 2016, according to the forecast in IC Insights’ Global Wafer Capacity 2017-2021 report.

As shown in Figure 1, 300mm wafers represented 63.6% of worldwide IC fab capacity at the end of 2016 and are projected to reach 71.2% by the end of 2021, which translates into a compound annual growth rate (CAGR) of 8.1% in terms of silicon area for processing by plant equipment in the five-year period.

capacity install

Figure 1

The report’s count of 98 production-class 300mm fabs in use worldwide at the end of 2016 excludes numerous R&D front-end lines and a few high-volume 300mm plants that make non-IC semiconductors (such as power transistors).  Currently, there are eight 300mm wafer fabs that have opened or are scheduled to open in 2017, which is the highest number in one year since 2014 when seven were added, says the Global Wafer Capacity report.  Another nine are scheduled to open in 2018.   Virtually all these new fabs will be for DRAM, flash memory, or foundry capacity, according to the report.

Even though 300mm wafers are now the majority wafer size in use, both in terms of total surface area and in actual quantity of wafers, there is still much life remaining in 200mm fabs, the capacity report concludes.  IC production capacity on 200mm wafers is expected to increase every year through 2021, growing at a CAGR of 1.1% in terms of total available silicon area. However, the share of the IC industry’s monthly wafer capacity represented by 200mm wafers is forecast to drop from 28.4% in 2016 to 22.8% in 2021.

IC Insights believes there is still much life left in 200mm fabs because not all semiconductor devices are able to take advantage of the cost savings 300mm wafers can provide.  Fabs running 200mm wafers will continue to be profitable for many more years for the fabrication of numerous types of ICs, such as specialty memories, display drivers, microcontrollers, and RF and analog products.  In addition, 200mm fabs are also used for manufacturing MEMS-based “non-IC” products such as accelerometers, pressure sensors, and actuators, including acoustic-wave RF filtering devices and micro-mirror chips for digital projectors and displays, as well as power discrete semiconductors and some high-brightness LEDs.

The semiconductor IP market is expected to be valued at USD 6.22 billion by 2023, at a CAGR of 4.87% between 2017 and 2023, according to the new research report “Semiconductor IP Market by Design IP (processor IP, interface IP, memory IP), Source (royalty and licensing), vertical (consumer electronics, telecom, industrial, automotive, commercial), and Geography – Global Forecast to 2023,” published by MarketsandMarkets. The major factors driving this market include the advancement in multicore technology for consumer electronics sector, increasing demand for modern SoC designs leading to market growth, and growing demand for connected devices.

Consumer electronics to hold largest share of semiconductor IP market during forecast period

The increase in the use of consumer electronics in all the regions is boosting the growth of the semiconductor IP market for the consumer electronics vertical. Moreover, the markets for consumer electronic in APAC and RoW are expected to provide further growth opportunities for the market players as these regions are in a growing phase. In addition, APAC holds dominant share in the market for consumer electronics.

Processor IP to hold largest share of semiconductor IP market during forecast period

Owing to the increased demand for microprocessor, microcontroller, digital signal processor, and graphics processing unit across various verticals, the processor IP segment held the largest share of the semiconductor IP market in 2016, and it is expected to continue the same during the forecast period. The growth of the segment during the forecast period is attributed to the increasing application of processors in the telecom industry for 5G and in high-end cars. The market for processor IP for the automotive vertical is expected to grow at the highest CAGR between 2017 and 2023 due to increasing use of processors in advanced driver assistance systems (ADAS) and infotainment systems.

APAC to hold largest share of semiconductor IP market during forecast period

APAC held the largest share of the market in 2016 and is likely to dominate the semiconductor IP market with the largest market share during the forecast period as well. APAC is a major market for the consumer electronics, telecom, and automotive verticals. Also, this region has become a global focal point for large investments and business expansion opportunities. Moreover, the developments in electric vehicles are expected to provide an opportunity to the growth of the semiconductor IP market in China.

HEIDENHAIN CORPORATION announces the new appointment of David Fuson, Service Operations Manager for North America.

Fuson served for over 20 years in the U.S. Navy where he acquired a strong knowledge of rotating equipment and balancing of components, as well as expert level knowledge in operation, maintenance and repair of systems.  There, he managed repair and maintenance teams, and once Navy retired, continued to utilize his skills in the private sector at Flowserve Corporation where he served as Customer Service Manager instilling a shared, enthusiastic commitment to service.

Now at HEIDENHAIN, Fuson is responsible for overseeing daily service operations, including assisting supervisors, technicians and corporate group colleagues with customer escalations and expedited solutions as needed.  Putting the “Customer First”, Fuson has also recently implemented a HEIDENHAIN Hurricane Recovery Hotline to assist those customers in Texasand Florida who experienced equipment downtime due to those disasters.

“The HEIDENHAIN organization is a place where thoughts and ideas are encouraged, and where teamwork, collaboration and attention to detail are top priorities,” said Fuson.  “I am extremely fortunate to have been chosen for the role of Service Operations Manager here, and I commit to instilling and refreshing these values in the service department every day.”

HEIDENHAIN GmbH, headquartered in Traunreut, Germany, develops and supports motion control feedback solutions for the machine tool, semiconductor, electronics assembly and test, metrology, automation, medical, energy, biotechnology and other global markets.