Category Archives: Metrology

Since President Obama took office in 2009, the Administration has focused on promoting innovation for the purposes of strengthening the economy, improving quality of life, and protecting the safety and security of our country.

Last week, the President’s Council of Advisors on Science and Technology (PCAST) announced the formation of a new working group focused on strengthening the U.S. semiconductor industry in ways that benefit the nation’s economic and security interests.

Semiconductors are essential to many aspects of modern life, from cellphones and automobiles to medical diagnostics to reconnaissance satellites and weapon systems. The semiconductor industry directly employs 250,000 workers, is the third largest source of U.S. manufactured exports, and has the highest level of investment in research and development (R&D) as a percentage of sales of any major industry. In addition, the semiconductor industry creates foundational technologies that enable innovation in virtually every sector of the U.S. economy. A loss of leadership in semiconductor innovation and manufacturing could have significant adverse impacts on the U.S. economy and even on national security.

In a world where the supply chains are global, policies being pursued by other countries are posing new challenges to the U.S. semiconductor industry. Specifically, some countries that are important in this domain are subsidizing their domestic semiconductor industry or requiring implicit transfer of technology and intellectual property in exchange for market access. Such policies could lead to overcapacity and dumping, reduce incentives for private-sector R&D in the United States, and thereby slow the pace of semiconductor innovation and realization of the economic and security benefits that such innovation could bring.

The industry may also be approaching technological and economic inflection points. Based on the currently commercialized approach to semiconductor technology, the industry may soon be unable to continue the pace of advance described by “Moore’s Law”—doubling the processing power of chips every 18–24 months—a pace that has brought with it rapid advances in the capabilities of systems that use semiconductors, opened up new applications, and thus fueled economic growth while increasing quality of life and strengthening national security. Indeed, the exponentially growing cost of designing and fabricating higher-performance chips in the conventional mold is already stifling innovation, making it more difficult for startups and new ideas from university research to create new markets—a key source of competitive advantage for America’s entrepreneurial economy.

Additional public and private investments in R&D are almost certain to be required if the past remarkable pace of improvements in price and performance of semiconductors and the benefits deriving therefrom are to continue—R&D that looks to create new technologies that can leapfrog beyond the limits of today’s technology and explore entirely new computer architectures and their integration into systems well beyond the traditional computing sphere, including automotive and other mobile applications.

The time is therefore right for a fresh look at the policy issues shaping innovation and global competition in the semiconductor industry. The new PCAST working group will identify the core challenges facing the semiconductor industry at home and abroad and identify major opportunities for sustaining U.S. leadership. Based on its findings, the working group will deliver a set of recommendations on initial actions the Federal government, industry, and academia could pursue to maintain U.S. leadership in this crucial domain.

The full working group includes the following members:

  • John Holdren (Director, OSTP; PCAST Co-Chair); Working Group Co-Chair
  • Paul Otellini (Former President and CEO, Intel); Working Group Co-Chair
  • Richard Beyer (Former Chairman and CEO, Freescale Semiconductor)
  • Wes Bush (Chairman, CEO, and President, Northrop Grumman)
  • Diana Farrell (President and CEO, JP Morgan Chase Institute)
  • John Hennessy (President Emeritus, Stanford University)
  • Paul Jacobs (Executive Chairman, Qualcomm)
  • Ajit Manocha (Former CEO, GlobalFoundries)
  • Jami Miscik (Co-CEO and Vice Chairman, Kissinger Associates; Co- Chair, President’s Intelligence Advisory Board)
  • Craig Mundie (President, Mundie and Associates; Former Senior Advisor, Microsoft; Member of PCAST)
  • Mike Splinter (Former CEO and Chairman, Applied Materials)
  • Laura Tyson (Distinguished Professor of the Graduate School, UC Berkeley; Former CEA Chair and NEC Director)

Qualcomm’s proposed acquisition of NXP Semiconductors marks the latest deal in a wave of industry consolidation that includes increasingly expensive transactions with greater focus on expanding scope rather than economies of scale, according to Fitch Ratings. Fitch believes consolidation in the chip industry will continue through the intermediate term within the context of cheap financing and tepid demand in more mature semiconductor markets.

While the NXP deal is expensive (and the largest ever) at $47 billion, including nearly $8 billion of net debt at NXP, Qualcomm will be able to tax-efficiently use offshore cash to fund a material amount of the all-cash transaction, given NXP’s Dutch incorporation. Fitch estimates Qualcomm will use approximately $28 billion of its $31 billion of total available cash at June 26, 2016 (more than $28 billion is located outside the U.S.) of offshore cash as of June 26, 2016 (versus $31 billion of total cash) and $11 billion of new debt, resulting in a Fitch estimated total leverage (total debt to operating EBITDA) of roughly 3.2x at closing. Despite the high price tag, Fitch believes the 4.6x revenue purchase multiples is in line with averages paid in large transactions completed over the last year, which Fitch estimates was roughly 5x revenues.

The Qualcomm deal with NXP is the latest example of chip companies acquiring capabilities within growth markets, particularly automotive and internet of things (IoT), as traditional semiconductor PC and smartphone markets mature. Qualcomm expects the acquisition will increase its addressable market by 40%, driven by increasing semiconductor content per car in automotive markets, exponential growth of connected devices in IoT markets and growing adoption of credit card security technologies.

Avago Technologies’ Feb. 2, 2016 acquisition of Broadcom for $37 billion focused on leveraging Broadcom’s leading wi-fi technology for the IoT market. Qualcomm’s August 2016 $2.4 billion acquisition of CSR plc strengthened Qualcomm’s nascent automotive and IoT offerings with significant semiconductor and software capabilities. Intel’s December 2015 acquisition of Altera Inc. for $16.7 billion acquisition of Altera diversified Intel away from personal computers by combining Altera’s field-programmable gate arrays with Intel’s low power processors for IoT applications. Even NXP’s December 2015 $12 billion acquisition of Freescale Semiconductor focused on expanding already strong capabilities and share in automotive and IoT markets.

Qualcomm has been in strategic review mode over the past few years amid growth concerns reflecting intensifying competition in the maturing smart phone market from the likes of Intel and a less robust long-term outlook for licensing revenue in China, where most smartphone unit growth is expected. The acquisition of NXP meaningfully diversifies Qualcomm’s end market exposure, reducing wireless handset exposure to below 50% of mobile products sales from 61% currently, and provides a top line growth catalyst, as well as earnings growth beyond significant share repurchases.

Fitch believes deal integration may be complicated by NXP’s ongoing integration of Freescale, which was structured largely as a merger of equals, and lack of technology overlap, given Qualcomm’s system-on-a-chip for mobile devices and telecom equipment focus and NXP’s focus on mixed-signal semiconductors and microprocessors and microcontrollers.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $88.3 billion for the third quarter of 2016, marking the industry’s highest-ever quarterly sales and an increase of 11.5 percent compared to the previous quarter. Sales for the month of September 2016 were $29.4 billion, an increase of 3.6 percent over the September 2015 total of $28.4 billion and 4.2 percent more than the previous month’s total of $28.2 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 rebounded markedly in recent months, with September showing the clearest evidence yet of resurgent sales,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The industry posted its highest-ever quarterly sales total, with most regional markets and semiconductor product categories contributing to the gains. Indications are positive for increased sales in the coming months, but it remains to be seen whether the global market will surpass annual sales from last year.”

Regionally, month-to-month sales increased in September across all markets: China (5.4 percent), the Americas (4.6 percent), Asia Pacific/All Other (4.2 percent), Japan (2.3 percent), and Europe (1.6 percent). Compared to the same month last year, sales in September increased in China (12.0 percent), Japan (4.2 percent), and Asia Pacific/All Other (1.7 percent), but decreased in the Americas (-2.4 percent) and Europe (-4.0 percent).

“China stood out in September, leading all regional markets with growth of 5 percent month-to-month and 12 percent year-to-year,” Neuffer said. “Standouts among semiconductor product categories included NAND flash and microprocessors, both of which posted solid month-to-month growth in September.”

September 2016

Billions

Month-to-Month Sales                               

Market

Last Month

Current Month

% Change

Americas

5.43

5.68

4.6%

Europe

2.71

2.76

1.6%

Japan

2.74

2.80

2.3%

China

8.99

9.47

5.4%

Asia Pacific/All Other

8.37

8.73

4.2%

Total

28.24

29.43

4.2%

Year-to-Year Sales                          

Market

Last Year

Current Month

% Change

Americas

5.82

5.68

-2.4%

Europe

2.87

2.76

-4.0%

Japan

2.69

2.80

4.2%

China

8.45

9.47

12.0%

Asia Pacific/All Other

8.58

8.73

1.7%

Total

28.41

29.43

3.6%

Three-Month-Moving Average Sales

Market

Apr/May/Jun

Jul/Aug/Sept

% Change

Americas

4.94

5.68

15.0%

Europe

2.68

2.76

3.0%

Japan

2.53

2.80

10.8%

China

8.29

9.47

14.2%

Asia Pacific/All Other

7.97

8.73

9.5%

Total

26.41

29.43

11.5%

The Global Semiconductor Alliance (GSA) announced the winner of the 2016 Dr. Morris Chang Exemplary Leadership Award: President and CEO of Cadence Design Systems, Inc. and Founder and Chairman of Walden International, Mr. Lip-Bu Tan. He will be presented with this achievement award during the GSA Awards Dinner Celebration on Thursday, December 8, 2016, at the Santa Clara Convention Center in Santa Clara, Calif.

“Lip-Bu Tan epitomizes what the Dr. Morris Chang Exemplary Leadership Award encompasses,” said Jodi Shelton, president of GSA. “We are honored to present this year’s award to someone who is a true global technology visionary that first helped pioneer the concept of venture capitalism worldwide and then lead Cadence Design Systems to the success, growth and strong customer focus that it enjoys today. Tan’s contribution to GSA and the entire semiconductor industry has and will continue to make a lasting impact.”

Established in 1999, the first GSA “Exemplary Leadership Award” was given to Dr. Morris Chang, chairman and chief executive officer of Taiwan Semiconductor Manufacturing Corporation (TSMC). Today, the Dr. Morris Chang Exemplary Leadership Award recognizes individuals for their exceptional contributions, exemplifying how their vision and global leadership have transformed and elevated the entire semiconductor industry.

“I am extremely honored and humbled to receive this award named after my close friend and role model Morris Chang, and which has been bestowed earlier on many amazing pioneers in our industry,” said Lip-Bu Tan. “I have learned so much from my peers in the global semiconductor industry and it has been my privilege to contribute in some way to their success through investments by Walden and collaboration by Cadence, leading to the delivery of some truly inspiring end products.”

Tan has served as President and CEO of Cadence Design Systems, Inc. since January 2009 and has been a member of the Cadence Board of Directors since February 2004. In 2015 and 2016, Cadence was named to FORTUNE’s list of the “100 Best Companies to Work For”. Tan founded Walden International in 1987 and currently serves as Chairman. Tan has been active in the venture capital industry for more than two decades. He specializes in cross border & early-stage technology investment. Prior to Walden International, he was Vice President at Chappell & Co. and held management positions at EDS Nuclear and ECHO Energy.

Tan is Co-Chairman of the Board of Directors of the Electronic System Design Alliance (ESD Alliance) and serves on the board of Global Semiconductor Association (GSA), as well as the boards of Ambarella Inc., Hewlett Packard Enterprise Co., and Semiconductor Manufacturing International Corp. He also serves on the Board of Trustees and the School of Engineering Dean’s Council at Carnegie Mellon University (CMU).

Tan holds an M.S. in Nuclear Engineering from Massachusetts Institute of Technology, an M.B.A. from the University of San Francisco, and a B.S. in Physics from Nanyang University in Singapore.

Each year the GSA recognizes companies that have demonstrated excellence through their vision, strategy, execution and future opportunity. The celebration honors the achievements of semiconductor companies in several categories ranging from outstanding leadership to financial accomplishments, as well as overall respect within the industry. The Awards Dinner Celebration will start at 5:00 p.m. with a networking reception, followed by dinner at 6:15 p.m. To make reservations to attend the Awards Dinner, visit the event website.

Qualcomm to acquire NXP


October 27, 2016

Qualcomm Incorporated (NASDAQ:  QCOM) and NXP Semiconductors N.V. (NASDAQ:  NXPI) today announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP.  According to Qualcomm’s official press release, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding common shares of NXP for $110.00 per share in cash, representing a total enterprise value of approximately $47 billion.

NXP is a developer of high-performance, mixed-signal semiconductor electronics, with products and solutions and leadership positions in automotive, broad-based microcontrollers, secure identification, network processing and RF power.  As a semiconductor solutions supplier to the automotive industry, NXP also has leading positions in automotive infotainment, networking and safety systems, with solutions designed into 14 of the top 15 infotainment customers in 2016.  NXP has a broad customer base, serving more than 25,000 customers through its direct sales channel and global network of distribution channel partners.

“With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry.  The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,” said Steve Mollenkopf, CEO of Qualcomm Incorporated.  “By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”

The combined company is expected to have annual revenues of more than $30 billion, serviceable addressable markets of $138 billionin 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.  The transaction has substantial strategic and financial benefits:

  • Complementary technology leadership in strategically important areas: The transaction combines leadership in general purpose and automotive grade processing, security, automotive safety sensors and RF; enabling more complete system solutions.
    • Mobile: A leader in mobile SoCs, 3G/4G modems and security.
    • Automotive: A leader in global automotive semiconductors, including ADAS, infotainment, safety systems, body and networking, powertrain and chassis, secure access, telematics and connectivity.
    • IoT and Security: A leader in broad-based microcontrollers, secure identification, mobile transactions, payment cards and transit; strength in application processors and connectivity systems.
    • Networking: A leader in network processors for wired and wireless communications and RF sub-segments, Wave-2 11ac/11ad, RF power and BTS systems.
  • Enhanced go-to-market capabilities to serve our customers:  The combination of Qualcomm’s and NXP’s deep customer and ecosystem relationships and distribution channels enables the ability to deliver leading products and platforms at scale in mobile, automotive, IoT, industrial, security and networking.
  • Shared track record of innovation and commitment to operational discipline: Both companies have demonstrated a strong commitment to technology leadership and best-in-class product portfolios with focused investments in R&D.  Qualcomm and NXP have both taken action to position themselves for profitable growth, while maintaining financial and operational discipline.  
  • Substantial financial benefits: Qualcomm expects the transaction to be significantly accretive to non-GAAP EPS immediately upon close.  Qualcomm expects to generate $500 million of annualized run-rate cost synergies within two years after the transaction closes.  The transaction utilizes Qualcomm’s strong balance sheet and will be efficiently financed with offshore cash and new debt. The transaction structure allows tax efficient use of offshore cash flow and enables Qualcomm to reduce leverage rapidly.

Mollenkopf continued, “We have taken significant action to build a foundation for profitable growth and the acquisition of NXP is strongly aligned with our strategy.  Our companies both have substantial expertise in delivering industry-leading solutions to our global customers, built upon a shared commitment to technology innovation, focused R&D investments and strong financial and operational discipline.”

“The combination of Qualcomm and NXP will bring together all technologies required to realize our vision of secure connections for the smarter world, combining advanced computing and ubiquitous connectivity with security and high performance mixed-signal solutions including microcontrollers. Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security,” said Rick Clemmer, NXP Chief Executive Officer. “United in a common strategy, the complementary nature of our technologies and the scale of our portfolios will give us the ability to drive an accelerated level of innovation and value for the whole ecosystem. Such a strong fit will bring opportunities for our employees and customers, as well as provide immediate attractive value for our shareholders, in creating the semiconductor industry powerhouse.”

Sir Peter Bonfield, Chairman of NXP’s Board of Directors, said, “This is a major step in my ten years’ Chairmanship of NXP, and I am very pleased to see that the board of NXP has unanimously approved the proposed transaction and fully supports and recommends the offer for acceptance to NXP shareholders.”

SEMICON Europa will open its doors tomorrow, showcasing the latest product, tools, and technologies for advanced microelectronics manufacturing. Co-located with the IoT Planet exhibition at the Alpexpo in Grenoble, France, SEMICON Europa features more than 400 international exhibitors representing all segments and sectors of the semiconductor supply chain. SEMICON Europa 2016 will run from 25-27 October.

Presenting and attending companies include Intel, STMicroelectronics, CEA-Leti, imec, GLOBALFOUNDRIES, INFINEON, EVG, Sony, among others.  The market data and technological developments and strategies presented will keep attendees informed about current industry practices and achievements and help propel them into the future of the electronics industry.

SEMICON Europa sessions and conferences, including the Fab Management Forum, Advanced Packaging Conference, Imaging Conference, Power Electronics Conference, and the new 2016FLEX Europe Conference offer attendees a real connection to the complete electronics supply chain, from silicon to system, with a strong emphasis on application-driven markets, including imaging, power electronics, automotive, MedTech, and flexible hybrid electronics (FHE).

More than 6,000 industry professionals are expected to attend this year’s event. In addition to the exhibition and conferences, dozens of start-up and early-stage companies and more than 60 speakers will participate in the Innovation Village program. Located on the SEMICON show floor, Innovation Village showcases start-up talent, incubators, and investment opportunities within Europe and abroad.

For more information visit www.semiconeuropa.org.

SEMI and Messe München today announced that SEMICON Europa will co-locate with productronica and electronica (alternating years) in Munich, Germany. For the first time, the co-located events (productronica and SEMICON Europa) will be held next year (14-17 November 2017), creating the strongest single event for electronics manufacturing in Europe, and broadening the range of attendees across the electronics supply chain.

productronica, the world’s leading trade fair for electronics development and production, and electronica, the world’s leading trade fair for electronic components, systems and applications, will now offer attendees an extended platform. With the inclusion of SEMICON Europa, which is focused on the electronics manufacturing supply chain and largely the semiconductor manufacturing, the co-located events will expand attendee opportunities to exchange ideas and promote technological progress.

Falk Senger, managing director of Messe München, says: “The co-location of these events strengthens the global orientation of electronica and productronica, in addition to reinforcing the importance of Munich as one of the epicenters of the international electronics industry.”

SEMICON Europa features the most advanced and innovative electronics manufacturing platform in Europe. Key segments include: semiconductor front-end and back-end manufacturing, MEMS/sensors, secondary equipment, advanced packaging, and applications such as the Internet of Things (IoT).

“The co-location of SEMICON Europa with productronica and electronica is an excellent fit with SEMI’s global trade association strategy to connect the breadth of the global electronics manufacturing supply chain. SEMICON Europa brings a wide range of focused programs that address Europe’s electronics manufacturing issues and opportunities,” says Denny McGuirk, president and CEO of SEMI.

Munich is a convenient central location in Europe with easy access for international visitors. The co-located events will brings tens of thousands of visitors together to connect for electronics business.

To learn more about SEMI (and SEMICON Europa) and Messe München  (and electronica and productronica), please visit the websites.

North America-based manufacturers of semiconductor equipment posted $1.60 billion in orders worldwide in September 2016 (three-month average basis) and a book-to-bill ratio of 1.05, according to the September Equipment Market Data Subscription (EMDS) Book-to-Bill Report published today by SEMI.  A book-to-bill of 1.05 means that $105 worth of orders were received for every $100 of product billed for the month.

SEMI reports that the three-month average of worldwide bookings in September 2016 was $1.60 billion. The bookings figure is 8.5 percent lower than the final August 2016 level of $1.75 billion, and is 3.2 percent higher than the September 2015 order level of $1.55 billion.

The three-month average of worldwide billings in September 2016 was $1.53 billion. The billings figure is 10.2 percent lower than the final August 2016 level of $1.71 billion, and is 2.6 percent higher than the September 2015 billings level of $1.50 billion.

“Semiconductor equipment bookings continue to outpace equipment billings,” said Denny McGuirk, president and CEO of SEMI.  “Year-to-date bookings and billings data are on trend to surpass last year’s levels.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

Billings
(3-mo. avg)

Bookings
(3-mo. avg)

Book-to-Bill
April 2016

$1,460.2

$1,595.4

1.09
May 2016

$1,601.5

$1,750.5

1.09
June 2016

$1,715.2

$1,714.3

1.00
July 2016

$1,707.9

$1,795.4

1.05
August 2016 (final)

$1,709.0

$1,753.4

1.03
September 2016 (prelim)

$1,534.4

$1,604.1

1.05

Source: SEMI (www.semi.org), October 2016

POET Technologies Inc.(OTCQX:POETF) (TSX-V:PTK), a developer of opto-electronics fabrication processes for the semiconductor industry, today announced that on October 17, 2016, it entered into an Agreement with the Singapore Economic Development Board (EDB) to expand POET’s research and development (R&D) operations in Singapore.

POET, through its acquisition of DenseLight Semiconductors, reaffirmed its strategic intent to expand its R&D and manufacturing operations in Singapore. POET will establish an Integrated Photonics center within its current operations to further develop and commercialize differentiated photonics and opto-electronic products. This is expected to increase market penetration and enhance market acceptance of the POET portfolio as it is introduced. This center signifies the growing importance of integration in photonics applications as a means to drive increased adoption and improve POET’s competitive positioning. The Singapore operations will further the development and production of POET’s key technologies, including those developed with the joint program POET established with the Institute of Materials Research and Engineering (IMRE) in Singapore earlier this year. The planned initiatives are expected to gradually add up to 30 engineers and scientists to POET, as the R&D center is established.

“EDB’s support will be instrumental in helping us drive the growth of intellectual property, talent and operations in Singapore, thus providing a foundation for compound semiconductor and photonics growth in the region”, said Chairman Mr. Ajit Manocha. “I have been engaged with Singapore for much of my career and value the nurturing and enduring partnerships with the EDB throughout. We chose Singapore because of EDB’s initiative to grow the compound semiconductor and photonics ecosystem in the region, and we are thankful to the EDB for supporting our Integrated Photonics Center of Excellence in Singapore. The country’s business-friendly climate and support from government agencies truly set it apart. We look forward to continuing to work with the EDB as we accelerate the commercialization of our highly differentiated technologies serving a variety of applications and markets.”

“This support from the EDB could potentially allow POET and its subsidiaries, DenseLight and BB Photonics, to accelerate product and revenue growth by leveraging Singapore’s R&D efficiencies, infrastructure, learning institutions and human capital and its strong high-technology manufacturing base”, said CEO Dr. Suresh Venkatesan. “Current projects in Singapore include the research and development of the POET Platform for Display applications, as well as the commercialization of POET, DenseLight and BB Photonics Intellectual Property in the fast growing Data Communications and Sensing markets.

“EDB is committed to developing the compound semiconductor industry through partnerships with companies to perform critical R&D and manufacturing in Singapore. Innovations in compound semiconductor technology can enable the next generation of optical communication solutions needed for increasing requirements in data centers. We are delighted to partner with POET Technologies to lead DenseLight, a company with a strong Singapore core of talent and activities, to greater heights”, said Mr. Pee Beng Kong, Director for Electronics, EDB.

The Company is eligible to receive support up to a maximum of S$10,699,000 over five years pursuant to the EDB letter of offer, subject to headcount and expenditure thresholds. Should the terms of the support agreement with the EDB not be satisfied by the Company, the EDB reserves the right to request repayment of any support advanced to the Company.

By Ji-Won Cho, SEMI Korea

SEMI Korea has hosted a SEMI member event every year for its members since 2008 to provide networking opportunities and insight on the ever-changing issues in the industry. This year, over 225 SEMI members in Korea from 132 companies ─ including the chipmakers, Samsung and Dongbu Hitek ─ participated in SEMI Members Day on October 6. Almost 70 percent of the attendees were executive level. Five speakers shared their thought-provoking perspectives: global semiconductor outlook, technology trends, flexible AMOLED technology, autonomous vehicle, and robot industry.

Soo Kyum Kim, director at IDC Korea, presented “Global Semiconductor Industry Outlook.”  Kim pointed out that global semiconductor market will decrease 2.9 percent in 2016 and recover slightly 0.6 percent in 2017 while the dedicated foundry market will face a short correction. He also forecasted that the CAGR of global semiconductor market will be 2.6 percent between 2017 and 2020. This growth will be led by non-traditional areas; automotive, industrial and smart home. He believes that IoT and Intelligent system penetration will drive both MPU and MCU in processor market.

Worldwide-MCU-Opportunity

Sei Cheol Lee, principal analyst at NH Securities, presented “Semiconductor Technology Trends.” Lee discussed how the solid state drives (SSD) and UFS markets are rapidly growing and 3D NAND stack will move from 48 to 64 layers. Lee added that increasing layers will lead to more dry etch than wet etch in processes and incease in KrF patterning, PECVD/ALD,  and test. Lee forecasted that the test market will grow to $3 billion in 2017 from only $2.2 billion in 2016 due to high-end SSD and DDR4’s bus speed enhancement.

Minsu Kang, analyst at IHS Technology, spoke about the Flexible AMOLED Industry Outlook. According to his presentation, flexible displays are mainly used for smartwatch and smartphone, but set manufacturers are also trying to apply them with foldable or rollable form-factors. Flexible AMOLED has clear advantages for flexible display technology, in terms of form-factor, size, PPI and picture quality. He pointed out that flexible AMOLED was expected to increase to over 13 percent of OLED panel shipment in 2016, and it will continue to grow rapidly because more set manufacturers are adopting the technology. Apple may try to apply it to their smartphone in 2017.

Ji-won-Korea article Photo 1

Kang highlighted that many panel manufacturers have been trying to increase flexible AMOLED capacity since 2015, but need to develop experience. He added that the curved forms of flexible display will be the mainstream until 2020, but foldable forms may be the mainstream after.  It depends on how the innovation resonates with the user experience

Seyong Kim, senior manager at Renesas Electronics Korea, presented “Technology Trends of the Autonomous Vehicle.” He said it may be fully realized between 2025 and 2030. Each country is now focusing on establishing the safety standards as like ISO 26262 to gain the initiatives.

Concerning the connected car, he mentioned the most important issue was security. Kim also added that a growing autonomous vehicle industry will need more semiconductors but the market share likely will remain under 10 percent of the entire semiconductor market.

Ji-won-Korea article Photo 2

Dongkyeong Kim, head of R&D center at Future Robot, wrapped up the day with a presentation on Artificial Intelligence (AI) and Intelligent Robots in the semiconductor industry. Kim stated that development of semiconductor technology has driven the Big Data and AI eras and it will increasingly result in strong demand for semiconductors. According to Kim, globally the robot industry has invested 1.8 billion USD and 50 percent of the amount was invested by China in 2015.

The attendees were interested in the topics and an ongoing dialogue took place during the Q&A after each presentation. In the survey, more than 92 percent of attendees responded that they were satisfied. The attendees recommended additional topics for next year’s program, including equipment and materials outlook, advanced packaging market outlook, and technology roadmap.

Jin Soo Ko, VP of Teradyne said, “SEMI Members Day was the best in terms of agenda and contents since I attended from 2007. I am very satisfied with all programs and networking opportunities provided by SEMI.”

Hyun-Dae Cho, president of SEMI Korea, said, “The SEMI Korea Members Day connects our members to peers and industry executives and gives first-hand information on the trends and technology in the industry. I hope SEMI members enjoyed the opportunities through this annual event.”

For information on becoming a SEMI member, visit www.semi.org/en/Membership.