Category Archives: Metrology

Entegris, Inc., a developer of yield-enhancing materials and solutions for highly advanced manufacturing environments, announced today the expansion of its liquid filtration/purification analytical science and research and development facility in Suwon, South Korea. As an addition to its existing Korea Technology Center (KTC) facility, the expanded lab includes advanced chemical/water analysis and material characterization capabilities, along with filtration device instrumentation. These new capabilities will allow closer collaboration with local customers to solve specific liquid filtration challenges by providing optimized solutions for their advanced processes.

“Sophisticated analysis of the interaction and compatibility between complex process chemistries and filtration devices are increasingly important as technology nodes advance. We continue to invest in these technologies  ̶  close to our customers  ̶  to optimize the performance of our filters with the unique chemical solutions our customers require,” said Entegris Vice President of Liquid Microcontamination Control, Clint Haris. “Expanding the KTC liquid filter lab allows us to increase collaboration with Korean customers and to integrate new developments into new process solutions faster.”

The expansion represents Entegris’ on-going commitment to serving the Korean semiconductor manufacturing market and its continued effort to work directly with customers on a local level to solve critical issues for advanced technology processes. Entegris is the leading provider of liquid filtration and purification technologies for the most advanced semiconductor applications.

In addition to the expanded analytical and R&D liquid filtration services, Entegris’ KTC also provides wet and dry chemistry development, chemistry formulation and pilot scale-up, on-site metrology with real-time reporting, and microcontamination and liquid filter characterization.

For more information, please visit the Entegris booth at SEMICON Korea, Hall D, Booth #5612, through Friday, January, 29th, or contact your local Entegris representative or visit www.entegris.com.

Worldwide semiconductor capital spending is projected to decline 4.7 percent in 2016, to $59.4 billion, according to Gartner, Inc. (Table 1). This is down from the 3.3 percent growth predicted in Gartner’s previous quarter’s forecast.

“The 2016 outlook for the semiconductor manufacturing equipment market reflects a bleaker outlook for end-user electronics demand and the world economic environment,” said David Christensen, senior research analyst at Gartner. “Capital investment policies of leading semiconductor vendors have remained cautious against the background of sluggish electronics demand. However, the long-term outlook shows a return to growth, although the wafer-level manufacturing equipment market is expected to enter a gentle down cycle in 2016 due to the loss of the supply and demand balance in the DRAM market.”

Table 1

Worldwide Semiconductor Capital Spending and Equipment Spending Forecast, 2014-2018 (Millions of Dollars) 

 

2014

2015

2016

2017

2018

Semiconductor Capital Spending ($M)

64,569.5

62,291.3

59,360.8

63,622.1

69,182.0

Growth (%)

11.6

-3.5

-4.7

7.2

8.7

Wafer-Level Manufacturing Equipment ($M)

33,684.1

33,713.2

32,903.2

35,699.0

39,129.1

Growth (%)

16.2

0.1

-2.4

8.5

9.6

Wafer Fab Equipment ($M)

31,953.0

31,906.5

31,097.6

33,630.3

36,689.8

Growth (%)

16.3

-0.1

-2.5

8.1

9.1

Wafer-Level Packaging and Assembly Equipment ($M)

1,731.1

1,806.7

1,805.6

2,068.7

2,439.2

Growth (%)

14.3

4.4

-0.1

14.6

17.9

Source: Gartner (January 2016)

2016 spending on wafer-level manufacturing equipment is forecast to decline 2.4 percent. Within the forecast, different segments are expected to fare differently in response to varying end-market conditions. For example, the lithography segment will grow 1.4 percent, while the etch, clean and planarization equipment markets in 2016 are expected to decline by 2.9 percent. The deposition equipment segment will improve slightly in 2016 with negative 3.2 percent growth. Beyond 2016, the market turns positive, with relatively strong growth forecast through 2018.

This research is produced by Gartner’s Semiconductor Manufacturing program. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing to device and application market trends. Additional analysis on the outlook for the semiconductor market can be found at “Forecast Analysis: Semiconductor Capital Spending and Manufacturing Equipment, Worldwide, 4Q15.”

Technavio’s market research analysts estimate the semiconductor capital spending market in the US, to grow at a CAGR of around 9% between 2015 and 2019. The most prominent segment in global semiconductor industry has been memory, logic, MPU and analog, which made up almost 75% of the total semiconductor demand. Semiconductor technology is continuously growing with emergence of advanced technology, leading to increased investments in this segment.

The new market research report from Technavio provides a breakdown and analysis of the semiconductor capital spending market segments by technology.

“One of the interesting trends gaining traction in the market is the rise in China’s semiconductor industry. China’s semiconductor industry has a significant influence on the capital spending in the US semiconductor industry. Even though, there are a large number of local semiconductor components manufacturers in China, more than 80% of the semiconductor requirements in China is fulfilled by US semiconductor companies, such as Intel and Global Foundries,” said Asif Ghani, Lead Analyst, Hardware & Semiconductor, Technavio Research.

The semiconductor capital spending market in the US is driven by numerous drivers, of which, the most prominent among of all is the accelerated capex in memory and foundry segments. Collectively, memory and foundry represent close to two-third of the total semiconductor capital spending market. With such accelerated capital investments on a global scale, the outcome will have a considerable impact on the semiconductor industry worldwide.

The key vendors in the semiconductor capital spending market in the US include Global Foundries, Intel, Micron, Samsung Electronics, and SK Hynix. The competition in the semiconductor capital spending market in the US is rigid. And the main reason for such intense completion is the evolution of technology. With the pace of technological advancements in the US market, vendors are involved in substantial capital spending, hence, the market comprises of players with strong technological proficiency.

Mark Adams, President of Micron Technology

Micron Technology, Inc. today announced that President Mark Adams will resign for personal health reasons. He will remain with the company until February 1, 2016, to support the transition.

Adams joined Micron in June 2006 and has served as President since February 2012.

“Mark has been a stellar leader and contributor to Micron’s growth and success during his time with the company,” said Micron CEO Mark Durcan. “We thank him for his dedication and service and wish him the very best with his recovery and into the future.”

Micron Technology, Inc., is a global leader in advanced semiconductor systems. Micron’s portfolio of high-performance memory technologies—including DRAM, NAND and NOR Flash—is the basis for solid state drives, modules, multichip packages and other system solutions.

In 2015, Chinese state-owned, chip-design company Tsinghua Unigroup Ltd. tried unsuccessfully to buy Micron for $23 billion.

Congress took a major step in supporting U.S. manufacturing and innovation today by voting to make the federal Research and Development (R&D) tax credit permanent. SEMI has been working to make the popular tax incentive a permanent part of the tax code since the R&D credit was first established in 1981.

“SEMI members invest and average of 15 percent of their revenues back into R&D activities every year,” said SEMI president & CEO, Denny McGuirk. “Being able to count on the R&D tax credit is immensely important to our members, which are some of the most innovative companies in the world.”

In its temporary status, the credit was widely used by many SEMI member companies; however, it was often not reliable because of its temporary status. In the past 34 years, the credit had expired 17 times, and on more than one occasion, was expired for almost an entire tax year before being retroactively reinstated. By making the credit permanent, companies will now be able to plan their long term research and development projects with greater certainty.

The permanent provision for innovation-supporting tax policy was included in the wide-ranging year-end “tax extenders” bill that was then combined with the omnibus appropriations legislation to fund the government through September 2016. Included in the same legislation is an extension of the popular solar energy Investment Tax Credit (ITC). The 30 percent ITC, which was set to be reduced to 10 percent at the end of 2016, has been critical to the wide-scale deployment of solar photovoltaic panels in the U.S. With the passage of this bill, the 30 percent credit will be extended until 2019, and then gradually phased down to 10 percent at the end of 2021.

“Both the R&D Credit and the ITC are good examples of why SEMI engages with policymakers in Washington, D.C. on behalf of our members,” continued McGuirk. “SEMI, our members, and many others in the high tech community have long advocated for this change. Our collective persistence has resulted in important and meaningful support for innovation.”

SEMI is the global industry association serving the electronics manufacturing supply chains.

North America-based manufacturers of semiconductor equipment posted $1.24 billion in orders worldwide in November 2015 (three-month average basis) and a book-to-bill ratio of 0.96, according to the November EMDS Book-to-Bill Report published today by SEMI.  A book-to-bill of 0.96 means that $96 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 November 2015 was $1.24 billion. The bookings figure is 6.7 percent lower than the final October 2015 level of $1.33 billion, and is 1.7 percent higher than the November 2014 order level of $1.22 billion.

The three-month average of worldwide billings in November 2015 was $1.29 billion. The billings figure is 5.2 percent lower than the final October 2015 level of $1.36 billion, and is 8.3 percent higher than the November 2014 billings level of $1.19 billion.

“The semiconductor equipment book-to-bill ratio continued to decelerate in the fourth quarter,” said Denny McGuirk, president and CEO of SEMI.  “In light of this recent softening and with the currently strong U.S. dollar, SEMI anticipates that the total equipment market (billings) will be flat to slightly down this year vs. last year as reported in U.S. dollars.”

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
June 2015

$1,554.9

$1,517.4

0.98
July 2015

$1,556.2

$1,587.3

1.02
August 2015

$1,575.9

$1,670.1

1.06
September 2015

$1,495.0

$1,554.9

1.04
October 2015

$1,358.6

$1,325.6

0.98
November 2015 (prelim)

$1,287.9

$1,237.1

0.96

Source: SEMI (www.semi.org), December 2015

2016 bounce to modest gains


December 14, 2015

By Christian G. Dieseldorff, Industry Research & Statistics Group, SEMI

SEMI just published the latest quarterly update of its World Fab Forecast report.  While the year started with a positive outlook, the initial optimism has largely deflated, and the year will end largely flat. Fab equipment spending growth (new and used) for 2015 is expected to be 0.5 percent (US$ 35.8 billion). For 2016, spending is forecast to grow by 2.6 percent ($36.7 billion), with a possible continued upward trend.

Past trends prove again the close correlation of spending to global GDP and revenue.  The IMF predicted worldwide GDP to grow by 3.5 percent back in May, and has revised it down to only 3.1 percent.  Likewise, as of May, the year’s average revenue growth for the semiconductor industry was predicted to be in the mid- to high-single digits (according to ten leading market research firms).  Now these firms have revised their 2015 predictions to an average of just 1.3 percent.

Fab equipment spending (new, used and in-house) follows the same rollercoaster as revenue, and is now expected to grow by only 0.5 percent by the end of 2015, possibly 1 percent, according to SEMI.

Fab-Equipment-Spending

In 2015, 80 to 90 percent of fab equipment spending went to 300mm fabs, while only 10 percent was for 200mm or smaller.  SEMI’s recently published “Global 200mm Fab Outlook” provides more detail about past and future 200mm activities.

Cherish the Memory

Examining fab equipment spending by product type, Memory accounts for the largest share in 2015 and 2016. In 2015, DRAM spending was second in place but in 2016 3D Flash will, by far, outspend DRAM.

Most DRAM spending in 2015 went towards 21/20nm ramp.  In 2016, DRAM companies are expected to start risk production of 1xnm (for example, Samsung in 1H 2016; Hynix in 2H 2016; and Micron in 2016).

While 2015’s spending was dominated by DRAM, SEMI reports that 2016 will be dominated by Flash, mainly 3D-related architectures.  Capacity for 3D-NAND will continue to surge.  SEMI’s report tracks 10 major 3D producing facilities, with a capacity expansion of 47 percent in 2015 and 86 percent in 2016.

Foundry Segment Holds Steady

The Foundry segment is next in terms of the largest share of fab equipment spending in 2015 and 2016.  In general, the foundry segment shows steadier, more predictable spending patterns than other device product segments. The largest foundry player, TSMC, has a strong impact on the foundry industry.  In the second half of 2015, TSMC cut 2015 capex from $10.5 billion to $8 billion, due to a flagging market.  SEMI expects a stronger fourth quarter in 2015 for equipment spending for foundry as TSMC fulfills its capital expenditure for the year and we expect an increased capex in 2016.

TSMC recently announced revenue expectation for 2016 to be in double digits and expects to increase capex for 2016 as it ramps 16nm and adds initial 10nm capacity.

It’s Only Logical (and MPU)

Coming in third place in fab equipment spending, MPU had lower spending in 2015.  Intel revised its planned capex down four times, from $10 billion to $8.7 billion then to $7.7 billion, and finally to $7.3 billion, and it decided to delay the launch of 10nm products (Cannonlake) to 2H17.  Intel still announced lofty plans for 2016 capex, around $10 billion.  Especially in 2H16, spending will pick up for anticipated 10nm activities.

Meanwhile for Logic spending has been very strong in 2015, with 90 percent growth, driven by SONY’s CMOS image sensors.  This exuberant growth, however, is expected to slow down in 1H16.

Consequence of Consolidations: the End of Wild Times?

Between 2010 and 2014, change rates for equipment spending fluctuated wildly, from +16 percent in 2011 to -16 percent in 2012, -8 percent in 2013 to 15 percent in 2014. These drastic changes have been replaced by dampened spending growth rate for 2015 and into 2016.  Multiple reasons may apply: a more mature and lower growth industry, increased caution regarding capacity ramp, or perhaps the recent frenzy of consolidations further concentrating capex spending.  SEMI’s next quarterly publication, in February 2016, will give further insight into early indicators of 2017.  Will sedate, positive spending growth continue?

The SEMI World Fab Forecast Report in Excel format, tracks spending and capacities for 1,167 facilities across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities. It uses a bottoms-up approach methodology, providing high-level summaries and graphs and in-depth analyses of capital expenditures, capacities, technology and products by fab.  Learn more about the SEMI fab databases at: www.semi.org/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats

TSMC this week submitted an application to the Investment Commission of Taiwan’s Ministry of Economic Affairs for an investment project to build a wholly-owned 12-inch wafer manufacturing facility and a design service center in Nanjing, China.

The planned capacity of the facility is 20,000 12-inch wafers per month, and would be scheduled to begin volume production of 16nm process technology in the second half of 2018. The design service center is aimed at establishing TSMC’s design ecosystem in China. TSMC will commence the investment project upon receiving the approval from the Investment Commission.

‘In view of the rapid growth of the Chinese semiconductor market, we have decided to establish a 12-inch wafer fab and a design service center in China to provide closer support to our customers there and to further expand our business opportunities,’ said TSMC Chairman Dr. Morris Chang.

The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $29.0 billion for the month of October 2015, 1.9 percent higher than the previous month’s total of $28.4 billion and 2.5 percent lower than the October 2014 total of $29.7 billion. The Americas market posted 3.9 percent growth compared to last month, leading all regions. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects slight market growth for the next three years.

“Global semiconductor sales have shown signs of stabilizing in recent months, with October marking the third straight month of month-to-month growth,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Year-to-date sales are narrowly ahead of where they were through the same time last year, and slight growth is projected for next year and beyond.”

Month-to-month sales increased across all regional markets: the Americas (3.9 percent), China (1.6 percent), Europe (1.2 percent), Japan (0.4 percent), and Asia Pacific/All Other (1.7 percent). Compared to October 2014, sales were up in China (5.7 percent), but down in the Americas (-5.6 percent), Europe (-9.4), Japan (-10.5 percent), and Asia Pacific/All Other (-2.4 percent).

Additionally, SIA endorsed the WSTS Autumn 2015 global semiconductor sales forecast, which projects the industry’s worldwide sales will reach $336.4 billion in 2015, a 0.2 percent increase from the 2014 sales total. WSTS projects year-to-year increases for 2015 in Asia Pacific (3.9 percent), with decreases projected for the Americas (-0.6 percent), Europe (-8.2 percent), and Japan (-10.3 percent).

Beyond 2015, the global market is expected to grow at a modest pace. WSTS forecasts 1.4 percent growth globally for 2016 ($341.0 billion in total sales) and 3.1 percent growth for 2017 ($351.6 billion). WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

October 2015

Billions

Month-to-Month Sales                               

Market

Last Month

Current Month

% Change

Americas

5.82

6.05

3.9%

Europe

2.87

2.90

1.2%

Japan

2.69

2.70

0.4%

China

8.45

8.58

1.6%

Asia Pacific/All Other

8.58

8.72

1.7%

Total

28.41

28.96

1.9%

Year-to-Year Sales                          

Market

Last Year

Current Month

% Change

Americas

6.41

6.05

-5.6%

Europe

3.21

2.90

-9.4%

Japan

3.01

2.70

-10.5%

China

8.12

8.58

5.7%

Asia Pacific/All Other

8.94

8.72

-2.4%

Total

29.68

28.96

-2.5%

Three-Month-Moving Average Sales

Market

May/Jun/Jul

Aug/Sept/Oct

% Change

Americas

5.51

6.05

9.7%

Europe

2.83

2.90

2.5%

Japan

2.63

2.70

2.3%

China

8.18

8.58

5.0%

Asia Pacific/All Other

8.71

8.72

0.2%

Total

27.87

28.96

3.9%

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced the SIA Board of Directors has elected Dr. Necip Sayiner, President, CEO and Director of Intersil, as its 2016 Chair and Tunç Doluca, President and CEO of Maxim Integrated, as its 2016 Vice Chair.

“We are thrilled to welcome Necip Sayiner as SIA’s 2016 Chair,” said John Neuffer, SIA President and CEO. “Necip has a proven record of leadership, a strong technical background, and a firm command of the challenges facing our industry – attributes that will serve him well as SIA Chair in the year ahead.”

Dr. Sayiner joined Intersil as President, CEO and Director in March 2013. Prior to joining Intersil, he served as President, CEO and Director of Silicon Laboratories from September 2005 to April 2012. Sayiner held various other leadership positions at Agere Systems Inc., which included Executive Vice President and General Manager, Enterprise and Networking Division from August 2004 to September 2005; and Vice President and General Manager, Networking ICs Division from March 2002 to August 2004. Dr. Sayiner holds a B.S. in Electrical Engineering and Physics from Bosphorus University in Turkey, an M.S. in Engineering from Southern Illinois University, and a Ph.D. in Electrical Engineering from the University of Pennsylvania.

“The semiconductor industry is the foundation of the U.S. tech sector and an important element of a healthy economy,” said Sayiner. “I look forward to helping advance policies in the year ahead that strengthen our industry by promoting innovation, growth, and open markets.”

Tunç Doluca joined Maxim in 1984 as a Member of Technical Staff and was named the company’s Vice President of R&D in 1993. In 2007, Tunç became the second CEO in the company’s history. During his tenure as CEO, Maxim reorganized product development around end markets and completed nine strategic acquisitions. He oversaw the transition of Maxim’s manufacturing to a more flexible hybrid production model and improved overall manufacturing execution. Tunç was born in Ankara, Turkey, and he holds a BSEE degree from Iowa State University and an MSEE degree from the University of California, Santa Barbara.

“For more than 30 years, Tunç Doluca has been an outstanding leader for Maxim and a devoted champion for our industry,” said Neuffer. “We look forward to putting his skills and experience to use as 2016 SIA Vice Chair.”

“I’m excited to take on a leadership role for SIA in support of the U.S. semiconductor industry,” said Doluca. “We face tremendous opportunities and unprecedented challenges in the coming year, and I look forward to getting to work to help move our industry forward.”