Category Archives: Metrology

Semiconductor Manufacturing International Corporation (“SMIC”; NYSE:  SMI; SEHK: 981), the largest and most advanced foundry in mainland China, announces the laying of the foundation stone to mark the official launch of its capacity expansion project at SMIC’s TianJin facility. After the project’s completion, SMIC TianJin is expected to become the world’s largest integrated 8-inch IC production line.

SMIC TianJin is located in the Xiqing Economic Technological Development Area, Tianjin, and currently has a mature 8-inch IC production line with a capacity of 45,000 wafers/month. After completion of the expansion project, SMIC TianJin’s capacity will reach 150,000 8-inch wafers/month. The project’s progress and capacity arrangement will depend on customers’ needs. The main product applications supported by the project include IoT related IC’s, fingerprint identification, power management, mixed signal processing, and automotive electronics.

The Chairman of SMIC, Dr. Zixue Zhou, said: “The launch of capacity expansion of our 8-inch production line is another milestone in the history of SMIC TianJin. SMIC TianJin has long been running at full capacity, and this expansion will significantly ease the balance of demand and supply and provide more high-quality capacity to our clients. Moreover, SMIC’s capacity distribution throughout mainland China will be further optimized.”

The TianJin Deputy Mayor, Mr. Shushan He, the Secretary of Xiqing Area, Mr. Xuewang Wang attended the ceremony. The Chairman of SMIC, Dr. Zixue Zhou, and the CEO and Executive Director of SMIC, Dr. Tzu-Yin Chiu, together laid the foundation stone for the new project.

Semiconductor Manufacturing International Corporation (“SMIC”; NYSE:  SMI; SEHK: 981), the largest and most advanced foundry in Mainland China, today held the groundbreaking ceremony of a new 12-inch wafer fab in Shanghai to meet SMIC Shanghai’s increasing production and development needs.

China’s Ministry of Industry and Information Technology (MIIT) and the Shanghai Government have placed a high value on and provided strong support for the new project. Guests and leaders from the IC industry and investment funds attended the ceremony. The Chairman of SMIC, Dr. Zixue Zhou, and the CEO and Executive Director of SMIC, Dr. Tzu-Yin Chiu, together laid the foundation stone for the new project.

SMIC has 8-inch and 12-inch wafer fabs in Beijing, Shanghai, Shenzhen, Tianjin and Italy, and the company’s revenue has continued to hit record highs recently. SMIC booked record revenue of US $1.3245 billion in the first half of 2016 (a year-on-year increase of 25.4%). SMIC has achieved 17 consecutive quarters of profit and is close to full production capacity. Revenue is expected to maintain rapid growth of 20% annually over the next three to four years. SMIC will manage production capacity and arrange facility expansions based on customer and market demand.

The Chairman of SMIC, Dr. Zixue Zhou, said: “The start of our new 12-inch wafer fab in SMIC Shanghai will not only help to meet our growing customer demand for advanced production, but also further strengthen and expand SMIC itself.”

SEMI recently completed its annual silicon shipment forecast for the semiconductor industry. This forecast provides an outlook for the demand in silicon units for the period 2016–2018. The SEMI forecast shows polished and epitaxial silicon shipments totaling 10,444 million square inches in 2016; 10,642 million square inches in 2017; and 10,897 million square inches in 2018 (refer to table below). Total wafer shipments this year are expected to exceed the market high set in 2015 and are forecast to continue shipping at record levels in 2017 and 2018.

“Silicon shipment volumes have been gaining strength in recent months, after a soft start at the beginning of the year,” said Denny McGuirk, president and CEO of SEMI. “This positive momentum is expected to continue and result in modest annual growth for the segment this year, 2017 and into 2018.”

2016 Silicon Shipment Forecast

Total Electronic Grade Silicon Slices* – Does not Include Non-Polished Wafers

(Millions of Square Inches, MSI)

Actual

Forecast

2014

2015

2016

2017

2018
MSI

9,826

10,269

10,444

10,642

10,897
Annual Growth

11%

5%

2%

2%

2%

Source: SEMI, October 2016

* 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.

SEMI today announced the retirement of Dennis (Denny) McGuirk, SEMI’s president and CEO. McGuirk has served on the board of directors and has led SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain, since November 2011. McGuirk will continue to lead SEMI in his current capacity until a successor is appointed.

While at SEMI, McGuirk has had responsibility for driving member satisfaction through SEMI’s global operations – anchored by eight international SEMICON expositions – and SEMI products and services including: Standards, market intelligence, business and technical programs, and industry advocacy. Over the past five years, the electronics manufacturing supply chain has undergone major changes as digital mobility, industry consolidation, and regional investment shifts have reshaped the industry. During this period, McGuirk provided stewardship and new direction to SEMI’s operations, expositions, communities, and partnerships.

“Upon joining, Denny realigned SEMI’s operations to be financially sustainable,” said Y.H. Lee, chairman of SEMI’s board of directors. “Denny has been a consistent and hospitable SEMI ambassador at our SEMICON tradeshows around the globe. We thank Denny for his service and many contributions and wish him well in his retirement.”

“After five years at SEMI, the time is right for me to retire. I am grateful to have worked with SEMI’s exceptional members and outstanding employees – the semiconductor industry is one of the most innovative and fast-paced industries in the world, where only the truly excellent thrive. It’s been great to lead a truly global association such as SEMI with achievements at both regional and international levels. I’m committed to ensure a smooth transition to my successor for the continued success of SEMI.”

A leading executive search firm has been engaged to assist in identifying and evaluating candidates, who can assume the responsibility to continue to focus on the growth and prosperity of SEMI members and drive SEMI’s 2020 vision.

Total wafer demand is expected to return to historical growth rates over the next five years. However, what is uncharacteristic of the past is the wide range of decline and growth that will be logged by specific product categories and technologies. Semico’s recent report Semico Wafer Demand Model Update Q3 2016 indicates that the compound annual growth rates by detailed product breakouts range from a -4.1% decrease all the way up to 11.3% growth, exemplifying the diverse applications within the semiconductor industry.

“The products experiencing growth or decline have a significant impact on the need for certain types of production capacity such as 200mm versus 300mm; logic, memory or other; and advanced versus mature process technology”, says Joanne Itow, Managing Director Manufacturing for Semico. “The process technologies covered in wafer demand model ranges from >1000nm down to 7nm.”

Key findings include:

* Semiconductor revenues are expected to fall 2.5% in 2016
* Total wafer demand in 2016 is expected to exceed 100 million 300mm wafer equivalents
* The main reason for the increase in wafer demand in 2016 is due to continued increases in Other MOS Logic (Automotive, Consumer, Audio, etc.), NAND, DRAM, Discretes/Sensors and Optoelectronics
* DRAM chip revenue is expected to decline 14.7% in 2016
Semico Research’s report, Semico Wafer Demand Model Update Q3 2016, study number MA112-16 , includes an excel spreadsheet which provides wafer demand by 18 product categories and 14 technology nodes over a 10 year time frame from 2010 to 2020. There is also a summary write-up which provides insight into the recent changes compared to the previous quarter.

Other data contained in the report:
* Wafer demand by product (discrete/sensor, Opto, Analog, Communications, MCU, MPU, DRAM, NAND, NOR, SRAM, etc.) by process node (≥1000nm-7nm)
* Silicon wafer shipments from 2010-2020

200mm fabs on the rise


October 11, 2016

One year after the debut of the industry’s first 200mm Fab Outlook report, SEMI has issued an October 2016 update, with the improved and expanded report forecasting 200mm fab trends out to 2020.  This extensive report features trends from 2009 to 2020, showing how 200mm fab activities and capacity have changed worldwide.  SEMI’s analysts updated information on almost 200 facilities, including new facilities and closures of existing facilities.

Examining 200mm capacity over the years, the highest level of 200mm capacity was recorded in 2007 and the lowest following this peak in 2009 (see figure). The capacity decline from 2007 to 2009 was driven by the 2008/2009 global financial crisis, which caused the closure of many facilities, and the transition of memory and MPU fabrication to 300mm fabs from 200mm.

Global_200mm_chart_700px

Since 2009, installed 200mm fab capacity has increased, and by 2020, 200mm capacity is expected to reach 5.5 million wafers per month (wpm), though still less than the 2007 peak.  According to SEMI’s data, by 2019, installed capacity will reach close to 5.38 million wpm, almost as high as capacity in 2006.  From 2015 to 2020, 200mm facilities are forecast to add 618,000 wpm net capacity. This increase is a combination of fabs adding capacity and fabs losing capacity

Two applications account for the growing demand for 200mm: mobile devices and IoT. Rising fab capacity from 2015 to 2020 will be driven by MEMS devices, Power, Foundry and Analog.  By region, the greatest increases in capacity are expected to be in China, Southeast Asia, Americas, and Taiwan. Another trend is also observed: 200mm fabs are increasing the capacity to provide process capability below 120nm. Higher capacity does not mean more fabs, but fewer, larger fabs. In fact, the number of fabs in 2020 is almost the same as the count seen in 2009.  So 2020 capacity heads toward industry highs while in comparison 2009 had the lowest levels off the 2007 peak.

The Global 200mm Fab Outlook to 2020, published by SEMI in October 2016, includes two files: a 92-page pdf file featuring trend charts, tables and summaries and an Excel file covering 2009 to 2020 detailing on quarterly basis and fab-by-fab developments.

Enormous financial and technology hurdles continue to plague the development of 450mm wafers. Ambitious goals to put 450mm wafers to use have been scaled back.  IC manufacturers are instead maximizing their manufacturing efficiency using 300mm and 200mm wafers.  IC Insights’ Global Wafer Capacity 2016-2020 report shows that worldwide capacity by wafer size was dominated by 300mm wafers in 2015 and is forecast to continue increasing through 2020 (Figure 1).

Figure 1

Figure 1

  • 300mm wafers represented 63.1% of worldwide capacity at the end of 2015 and are forecast to increase to about 68% by the end of 2020.
  • The share of the industry’s monthly wafer capacity represented by 200mm wafers is expected to drop from 28.3% in 2015 to 25.3% in 2020. But, 200mm wafer capacity is predicted to increase every year over the next several years.
  • Capacity for wafers of ≤150mm diameter is forecast to remain relatively flat during the forecast period.

The number of 300mm wafer fabrication facilities in operation is forecast to keep increasing through 2020 (Figure 2). For the most part, 300mm fabs are, and will continue to be, limited to production of high-volume, commodity-type devices like DRAMs and flash memories; image sensors and power management devices; and complex logic and microcomponent ICs with large die sizes; and by foundries, which can fill a 300mm fab by combining wafer orders from many sources.

Figure 2

Figure 2

  • The number of active volume-production 300mm fabs declined for the first time in 2013. A few fabs that were scheduled to open in 2013 were delayed until 2014. In addition, two large 300mm fabs owned by ProMOS closed in 2013.
  • At the end of 2015, there were 95 production-class IC fabs utilizing 300mm wafers (there are numerous R&D IC fabs and a few high-volume fabs around the globe that make “non-IC” products using 300mm wafers, but these are not included in the count).
  • Currently, there are eight 300mm wafer fabs scheduled to open in 2017, which would be the highest number in one year since 2014 when nine were added.
  • By the end of 2020 there are expected to be 22 more fabs in operation, bringing the total number of 300mm fabs used for IC fabrication to 117. The peak number of 300mm fabs may be somewhere around 125. For comparison, the most volume-production 200mm wafer fabs in operation was 210 (in December 2015 there were 148).

KLA-Tencor Corporation (NASDAQ:  KLAC) and Lam Research Corp. (NASDAQ:  LRCX) today announced that they have agreed to terminate their proposed merger agreement. The parties decided to it was not in the best interests of their respective stakeholders to continue pursuing the merger after the U.S. Department of Justice advised KLA-Tencor and Lam Research that it would not continue with a consent decree that the parties had been negotiating. No termination fees will be payable by either the Company or Lam Research in connection with the termination of the Merger Agreement.

“Although we are disappointed with this outcome, KLA-Tencor’s performance over the past several quarters demonstrates the Company is executing our strategies at a high level and creating compelling value for the industry and for our stockholders,” commented Rick Wallace, President and Chief Executive Officer of KLA-Tencor.

“Today our customer engagement and market leadership is strong and KLA-Tencor is delivering superior financial results. Growth and earnings momentum is expected to continue as we go forward, fueled by new products in the marketplace today, and with many more products in the pipeline,” continued Mr. Wallace. “Additionally, our collaboration over the past year with Lam Research and with our customers has affirmed the value of closer cooperation between process and process control for new, enabling solutions. For that reason, we plan to explore collaboration opportunities with Lam Research around programs identified as beneficial to our customers.”

After the initial announcement of the proposed merger, which was expected to close mid-year 2016, analysts voiced concern over whether the deal would be approved. Robert Maire of Semiconductor Advisors wrote: “We think this is going to be the obvious biggest issue after the failed AMAT & TEL merger.  We think there will likely be opposition in the semi industry but probably less so than we heard the screaming related to AMAT/TEL.”

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $28.0 billion for the month of August 2016, an increase of 3.5 percent compared to the previous month’s total of $27.1 billion and an uptick of 0.5 percent over the August 2015 total of $27.9 billion. August marked the market’s largest month-to-month growth since May 2013 and its first year-to-year growth since June 2015. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Following months of sluggish global semiconductor sales, the global market recently has shown signs of a rebound, punctuated by solid growth in August,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Americas market was particularly encouraging, topping 6 percent month-to-month growth for the first time in nearly three years to lead all regional markets. China also stood out, posting by far the strongest year-to-year growth of all regions in August. All told, global sales are still behind last year’s pace, but appear to be on the right track as 2017 draws closer.”

Month-to-month sales increased across all regions: the Americas (6.3 percent), Japan (4.8 percent), China (3.1 percent), Asia Pacific/All Other (2.7 percent), and Europe (0.7 percent). Year-to-year sales increased in China (7.1 percent) and Japan (2.2 percent), but fell in Asia Pacific/All Other (-2.7 percent), the Americas (-3.1 percent), and Europe (-3.3 percent).

 

August 2016

Billions

Month-to-Month Sales                               

Market

Last Month

Current Month

% Change

Americas

5.10

5.43

6.3%

Europe

2.70

2.71

0.7%

Japan

2.60

2.73

4.8%

China

8.56

8.82

3.1%

Asia Pacific/All Other

8.12

8.34

2.7%

Total

27.08

28.03

3.5%

Year-to-Year Sales                          

Market

Last Year

Current Month

% Change

Americas

5.60

5.43

-3.1%

Europe

2.81

2.71

-3.3%

Japan

2.67

2.73

2.2%

China

8.23

8.82

7.1%

Asia Pacific/All Other

8.57

8.34

-2.7%

Total

27.88

28.03

0.5%

Three-Month-Moving Average Sales

Market

Mar/Apr/May

Jun/Jul/Aug

% Change

Americas

4.79

5.43

13.2%

Europe

2.63

2.71

3.3%

Japan

2.55

2.73

6.9%

China

8.09

8.82

9.0%

Asia Pacific/All Other

8.00

8.34

4.2%

Total

26.07

28.03

7.5%

Today, SEMI announced an exceptional lineup of keynotes at SEMICON Japan’s “SuperTHEATER” focusing on innovation and insights into the future of the electronics supply chain. SEMICON Japan 2016, the largest exhibition in Japan for electronics manufacturing, will take place at Tokyo Big Sight in Tokyo on December 14-16. Registration for the exhibition and programs is now open.

Japan’s semiconductor fab equipment capital expenditure (front-end facilities, both new and used including discretes and LED) is forecast to increase 12 percent (to US$5.0 billion) in 2017, according to the August SEMI World Fab Forecast report.

On December 14, keynotes will focus on the future:

  • Semiconductor Executive Forum – “The Creation of New Business Opportunities” keynotes:
    • Toshiba: Yasuo Naruke, corporate senior executive VP, on “Toshiba Storage Business Strategy; Utilizing Big Data to Win Productivity”
    • TSMC: Jack Sun, VP of R&D and CTO, on “New Frontiers of Semiconductor Innovation”
    • Murata Manufacturing: Hiroshi Iwatsubo, executive VP, on “Business Strategy and Technology Trends”
  • Opening Keynotes – “Into the Future” keynotes:
    • IBM Research:  Dario Gil, VP, Science and Solutions, on “The Cognitive Era and the New Frontiers of Information Technology”
    • University of Tsukuba: Yoichi Ochiai, media artist and assistant professor, Digital Nature Group, on “The Age of Enchantment”

The SEMI Market Forum, also on December 14, with the theme “Outlook and Growth Opportunities in the Electronics Manufacturing Supply Chain” will offer presentations from IHS Markit, VLSI Research Inc., and SEMI.

Highlights on December 15 include Industrial IoT Forum, Autonomous & Connected Car Forum, and U.S. Commercial Service IT Forum. The Technology Trend Forum on December 16 focuses on “The Tokyo 2020 Olympics: Innovation for All.” In addition, SEMICON Japan features forums on Manufacturing Innovation and IoT Innovation.

Attendees at SEMICON Japan will explore the key technologies and business models necessary to grow in the coming years. The SuperTHEATER offers nine keynote forums, all with simultaneous English-Japanese translation, with global top executives.

Platinum sponsors of SEMICON Japan include Disco Corporation, Screen Semiconductor Solutions Co., Ltd. and Tokyo Electron Limited. Gold sponsors include: Advantest Corporation, Applied Materials, Inc., ASE Group, Daihen Corporation, Ebara Corporation, Fasford Technology Co., Ltd., Hitachi High-Technologies Corporation, JSR Corporation, Lam Research Corporation, Nikon Corporation, Tokyo Seimitsu Co., Ltd. and VAT Ltd.

For more information and to register for SEMICON Japan, visit www.semiconjapan.org/en/