Category Archives: Packaging and Testing

The success and proliferation of integrated circuits has largely hinged on the ability of IC manufacturers to continue offering more performance and functionality for the money.  Driving down the cost of ICs (on a per-function or per-performance basis) is inescapably tied to a growing arsenal of technologies and wafer-fab manufacturing disciplines as mainstream CMOS processes reach their theoretical, practical, and economic limits. Among the many levers being pulled by IC designers and manufacturers are: feature-size reductions, introduction of new materials and transistor structures, migration to larger-diameter silicon wafers, higher throughput in fab equipment, increased factory automation, three-dimensional integration of circuitry and chips, and advanced IC packaging and holistic system-driven design approaches.

For logic-oriented processes, companies are fabricating leading-edge devices such as high-performance microprocessors, low-power application processors, and other advanced logic devices using the 14nm and 10nm generations (Figure 1).  There is more variety than ever among the processes companies offer, making it challenging to compare them in a fair and useful way.  Moreover, “plus” or derivative versions of each process generation and half steps between major nodes have become regular occurrences.

For five decades, the industry has enjoyed exponential improvements in the productivity and performance of integrated circuit technology.  While the industry has continued to surmount obstacles put in front of it, the barriers are getting bigger.  Feature size reduction, wafer diameter increases, and yield improvement all have physical or statistical limits, or more commonly…economic limits.  Therefore, IC companies continue to wring every bit of productivity out of existing processes before looking to major technological advances to solve problems.

The growing design and manufacturing challenges and costs have divided the integrated circuit world into the haves and have-nots.  In the June 1999 Update to The McClean Report, IC Insights first described its “Inverted Pyramid” theory, where it was stated that the IC industry was in the early stages of a new era characterized by dramatic restructuring and change.  It was stated that the marketshare makeup in various IC product segments was becoming “top heavy,” with the shares held by top producers leaving very little room for remaining competitors. Although the Update described the emerging inverted pyramid phenomenon from a marketshare perspective, an analogous trend can be seen regarding IC process development and fabrication capabilities. The industry has evolved to the point where only a very small group of companies can develop leading-edge process technologies and fabricate leading-edge ICs.

Figure 1

Figure 1

Siemens announced it has entered into an agreement to acquire Oulu, Finland-based Sarokal Test Systems Oy, a provider of test solutions for fronthaul networks that are comprised of links between the centralized radio controllers and the radio heads (or masts) at the “edge” of a cellular network. Sarokal products are used by chipset vendors, fronthaul equipment manufacturers, and telecom operators to develop, test and verify their 4G and 5G network devices from the early design stages through implementation and field-testing.

“The planned acquisition of Sarokal reinforces our ongoing commitment to EDA and the IC industry,” said Tony Hemmelgarn, president and CEO of Siemens PLM Software. “Building on our acquisition of Mentor Graphics, we continue to make strategic investments which leverage Mentor’s existing strengths and enable Siemens to expand its offerings to the IC industry.”

Sarokal’s products are used to test transmission specifications across multiple domains. Its tester product family addresses the entire development and maintenance flow for cellular and wired transmission system testing. The technology is especially designed to detect radio frequency (RF) problems. With Sarokal’s foresight into the requirements of 5G testing, their testing models were created from the beginning for both the virtual (digitalization) environment as well as the physical testing environment.

“Sarokal has been on the forefront of the development of the 5G specification and its requirements for fronthaul networks since its inception. The 5G specification aims to greatly enhance performance for mobile broadband, network operation and Internet of Things (IoT) communication, and this requires new test methodologies,” said Harri Valasma, CEO at Sarokal. “Becoming part of Siemens and integrating our technology into the Veloce emulation platform will give us greater visibility into early customer adoption of 5G, which can help us maintain our leadership as this segment is forecasted to grow rapidly.”

“The addition of Sarokal’s one-of-a-kind fronthaul testing expertise is expected to provide our Veloce emulator customers with a unique advantage,” said Eric Selosse, vice president and general manager, Mentor Emulation Division, a Siemens business. “Sarokal’s tester technology in conjunction with Mentor’s Veloce emulation platform will enable customers to “shift left” the validation of 4G and 5G designs for accurate and timely pre- and post-silicon testing.”

The transaction is expected to close during the first quarter of calendar 2018, subject to receipt of regulatory approvals and other customary closing conditions. The terms of the transaction were not disclosed.

Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood.

SEMI today announced the appointment of Frank A. Shemansky, Jr., Ph.D., as executive director and chief technology officer (CTO) of the MEMS & Sensors Industry Group (SEMI-MSIG). Shemansky brings to the leadership post more than 25 years of experience in the microelectronics industry including a strong background in research and development (R&D), manufacturing, product development and technology strategy. He will direct SEMI-MSIG’s global activities, including standards, technical programs and conferences, while strengthening and expanding SEMI’s benefits to the MEMS and sensors community.

“Dr. Shemansky’s deep industry experience makes him an outstanding choice to lead and build on the success of SEMI-MSIG, a vital SEMI community,” said Ajit Manocha, president and CEO of SEMI. “We look forward to Frank drawing on his technology thought-leadership and business development acumen to bring members together to connect, collaborate and innovate with SEMI in order to help grow the MEMS and sensors markets.”

“Frank Shemansky is a strong leader and respected technologist,” said Dave Kirsch, VP/GM of EV Group North America and chair of the SEMI-MSIG Governing Council. “As SEMI-MSIG’s CTO and interim executive director, Frank has been charting our strategic course. Governing Council members are eager to tap Frank’s excellent leadership skills to take SEMI-MSIG to its next level.”

Starting his career at Motorola in semiconductor research and development, Shemansky was part of the team that brought the first commercially available MEMS transducers to market.  Shemansky has also held various management and executive level positions at companies within the MEMs and sensors industry, including Akustica, Lumedyne Technologies, Sensor Platforms, and QuickLogic. He holds seven patents, is a published author in journals ranging from Sensors and Actuators to Microsystem Technologies, and co-authored the first MEMS textbook, Sensor Technology and Devices.

With a B.S. degree in Chemical Engineering from Pennsylvania State University, Shemansky also holds an M.S. and Ph.D. in Chemical Engineering from Arizona State University. He is a recipient of the Motorola Silver Quill Award, the Motorola Scientific and Technical Society Award, and the ASU Graduate Student Research Award.

“I’m very excited to lead SEMI-MSIG,” Shemansky said. “SEMI-MSIG members are enabling and transforming everything from autonomous vehicles to healthcare to drones. SEMI provides a wealth of industry services and global connections that can increasingly facilitate the growth and prosperity of SEMI-MSIG member companies. I look forward to working with our members to bring new value to our industry.”

MagnaChip Semiconductor Corporation (NYSE: MX), a designer and manufacturer of analog and mixed-signal semiconductor platform solutions, announced today it now offers the 2nd generation of 0.13 micron BCD process technology integrated with high-density embedded Flash memory. This second-generation BCD process offers advanced features compared to previous BCD processes, which are high-density Flash memory up to 64 kilo bytes, low specific Ron of power LDMOS up to 40V, low number of photo steps and automotive grade reliability. These characteristics make the new generation of BCD process technology highly suitable for programmable PMICs, wireless power chargers, USB-C power-delivery IC products and automotive power ICs.

Traditionally, the non-volatile memories in the BCD process are low in density, below 256 bytes, for trimming purposes. However, today’s electronic devices require more complex functions and lower power consumption. As a result, there is a greater market need for high-density embedded non-volatile memory in the BCD process. This memory includes Flash memory used for power ICs, including programmable PMICs, wireless power chargers and USB-C power-delivery ICs. In some applications, high-density Flash memory up to 64 kilo bytes is used to store programming codes as well as trimming data. Until now, the drawback of implementing high-density embedded memory in other BCD processes has been that it increases the overall number of manufacturing steps.

MagnaChip was able to eliminate 8 photo steps in the second-generation BCD process from the 1st generation by process optimization. Aside from embedded non-volatile memory, the 2nd generation also achieved the improvement of power LDMOS specific Ron performance, which is well suited for high-power requirements up to 40V operation. For IoT and automotive applications, this BCD process provides 1.5V and 5V CMOS devices with very low leakage current level that enables low power consumption. Furthermore, this new BCD process has various option devices for Hall sensors, varactors, inductors, and RF CMOS devices that are useful for highly integrated IC solutions, which give smaller system size and less system cost.

YJ Kim, Chief Executive Officer of MagnaChip, commented, “The integration of analog-based BCD and high density non-volatile memory enables highly suitable ICs and system designs for power management solutions, wireless chargers and power ICs used in smartphones, IoT devices and automotive applications.” Mr. Kim added, “Our goal is to continue to develop specialized and innovative process technologies that meet the changing market requirements of our foundry customers.”

Market shares of top semiconductor equipment manufacturers for the full year 2017 indicate large gains by Tokyo Electron and Lam Research while top supplier Applied Materials dropped, according to the report “Global Semiconductor Equipment: Markets, Market Shares, Market Forecasts,” recently published by The Information Network, a New Tripoli-based market research company.

The chart below shows shares for the entire years of 2016 and 2017. Market shares are for equipment only, excluding service and spare parts, and have been converted for revenues of foreign companies to U.S. dollars on a quarterly exchange rate.

market shares

Market leader Applied Materials lost 1.8 share points among the top seven companies, dropping from 28.8% in 2016 to 27.0% in 2017. Gaining share are Tokyo Electron Ltd., which gained 2.1 share points while rising from 17.4% in 2016 to 19.1% in 2017, and Lam Research, which gained 1.5 share points and grew from a 19.4% share in 2016 to a 20.9% share in 2017.

In third place ASML gained 0.6 share points, growing from an 18.8% share in 2016 to a 19.4% share in 2017.

Fifth place KLA-Tencor is the dominant supplier in the process control sector (inspection and metrology) and competes against Applied Materials and Hitachi High-Technologies, as well as several other companies including Nanometrics, Nova Measuring Instruments, and Rudolph Technologies. KLA-Tencor gained market share against each of its competitors in this sector in 2017.

Much of the equipment revenue growth was attributed to strong growth in the DRAM and NAND sectors, as equipment was installed in memory manufacturers Intel, Micron Technology, Samsung Electronics, SK Hynix, Toshiba, and Western Digital. The memory sector is expected to have grown 60.1% in 2017 and another 9.3% in 2018 according to industry consortium WSTS (World Semiconductor Trade Statistics).

Following the strong growth in the semiconductor equipment market, The Information Network projects another 11% growth in 2018. for semiconductor equipment.

By Jay Chittooran, Manager, Public Policy, SEMI

International trade is one of the best tools to spur growth and create high-skill and high-paying jobs. Over 40 million American jobs rely on trade, and this is particularly true in the semiconductor supply chain. Over the past three decades, the semiconductor industry has averaged nearly double-digit growth rates in revenue and, by 2030, the semiconductor supply chain is forecast to reach $1 trillion. Trade paves the way for this growth.

Unfortunately, despite its importance to the industry, trade has been transformed from an economic issue into a political one, raising many new trade challenges to companies throughout the semiconductor industry.

GHz-ChinaChina’s investments in the industry will continue to anchor the country as a major force in the semiconductor supply chain. China’s outsized spending has spawned concern among other countries about the implications of these investments. According to SEMI’s World Fab Forecast, 20 fabs are being built in China – and construction on 14 more is rumored to begin in the near term – compared to the 10 fabs under construction in the rest of the world. China is clearly outpacing the pack.

The Trump Administration has levied intense criticism of China, citing unfair trade practices, especially related to intellectual property issues. The U.S. Trade Representative has launched a Section 301 investigation into whether China’s practice of forced technology transfer has discriminated against U.S. consumers. Even as the probe unfolds, expectations are growing that the United States will take action against China, raising fears of not only possible retaliation in time but rising animosity between two trading partners that rely deeply on each other.

A number of other open investigations also cloud the future. The Administration launched two separate Section 232 investigations into steel and aluminum industry practices by China, claiming Chinese overproduction of both items are a threat to national security. The findings from these investigations will be submitted to the President, who, in the coming weeks, will decide an appropriate response, which could include imposing tariffs and quotas.

Another high priority area is Korea. While U.S. threats to withdraw from the U.S.-Korea Free Trade Agreement (KORUS) reached a fever pitch in August, rhetoric has since tempered. Informal discussions between the countries on how best to amend the trade deal are ongoing. The number of KORUS implementation issues aside, continued engagement with Korea – instead of scrapping a comprehensive, bilateral trade deal – will be critically important for the industry.

Lastly, negotiations to modernize the North American Free Trade Agreement (NAFTA) will continue this year. The United States wants to conclude talks by the end of March, but with the deadline fast approaching and the promise of resolution waning, tensions are running high. Notably, the outcome of the NAFTA talks will inform and set the tone for other trade action.

What’s more, a number of other actions on trade will take place this year. As we wrote recently, Congress has moved to reform the Committee on Foreign Investment in the United States (CFIUS), a government body designed to review sales and transfer of ownership of U.S. companies to foreign entities. Efforts have also started to revise the export control regime – a key component to improving global market access and making international trade more equitable.

SEMI will continue its work on behalf of its members around the globe to open up new markets and lessen the burden of regulations on cross-border trade and commerce. In addition, SEMI will continue to educate policymakers on the critical importance of unobstructed trade in continuing to push the rapid advance of semiconductors and the emerging technologies they enable into the future. If you are interested in more information on trade, or how to be involved in SEMI’s public policy program, please contact Jay Chittooran, Manager, Public Policy, at [email protected].

Year End Wow!


January 24, 2018

By Walt Custer, Custer Consulting Group

Strong year-end 2017 electronic equipment sales

2017 ended on a high note from an end market perspective thanks to:

  • Geographically broad economic strength and new products
  • Record high December electronic equipment production and shipments in China/Taiwan
  • Peak electronic equipment production in the Eurozone in November
  • A 4Q upturn in U.S. bookings and shipments of electronic equipment

Custer1-World-Electronic-Equipment-Monthly-Shipments

Based upon preliminary data, mobile phones including the Apple iPhone X were major contributors to the fourth-quarter 2017 strength in Asia/Pacific. Foxconn registered all-time record sales in December.

By comparison, personal computer sales were flat when adjusted for normal seasonality.

Early information indicates that December global equipment revenues were up almost 24 percent over December 2016 and up 3 percent sequentially over November 2017.

Resilient semiconductor supply chain

Semiconductors and SEMI equipment have a strong growth in this current business cycle (Chart 2), mainly due to strong memory demand and price increases for chips, and also robust capital equipment spending to increase memory chip capacity.

Custer2-World-Semiconductor-SEMI-Equipement-Shipments

 

By November this sales growth appeared to be plateauing (but at record levels).

On a 3/12 basis (Chart 3) world growth was:

Semiconductors +21.5% November
SEMI equipment +28.4% November
Taiwan Chip Foundries +6.1% December
Electronic Equipment +4.9% September

Custer3-Supply-Chain-Dynamics
Despite a likely moderation of the current SEMI equipment and chip growth rates, this current business cycle has been robust and prolonged. End market electronic equipment demand remains strong and new volume markets are emerging. However SEMI equipment and semiconductor sales are much more volatile than electronic equipment, so the current landscape could change quickly.

Looking forward

The global PMI is an excellent short-term leading indicator. It was at an all-time record high in December, pointing to an unseasonably strong first quarter of 2018. Keep watching the business cycles for any signs of abrupt change. Currently we are on a high plateau but conditions could change quickly.

Custer4-Purchasing-Managers-Index

Originally published on the SEMI blog.

Technavio market research analysts forecast the global reset IC market to grow at a CAGR of close to 12% during the forecast period, according to their latest report.

The report further segments the global reset IC market by end-user (consumer electronics, telecommunication, automotive, industrial, and healthcare), by type (1-5 V, 5-12 V, and above 10 V), and by geography (the Americas, APAC, and EMEA).

Technavio analysts highlight the following three market drivers that are contributing to the growth of the global reset IC market:

  • Growth of smart grid technology
  • Increasing need for external brownout protection
  • Growth of IoT

Growth of smart grid technology

Due to their reliability and real-time information, smart grids have become an important trend in the energy industry. A smart grid is an electricity supply network integrated with digital communications technology to detect and react to local changes in the consumption of electricity and it is equipped with computational intelligence and network capabilities.

According to a senior analyst at Technavio for embedded systems research, “Smart grids are developed to improved operations and the maintenance of electric grids by allowing smooth exchange of data between various components. Transmission lines, generators, transformers, smart meters, smart appliances, and energy-efficient devices are components of a smart grid.”

Increasing need for external brownout protection

Restriction or reduction in the availability of electrical power in an area or locality is known as brownout. Voltage is limited or regulated in a brownout, unlike a blackout where the supply of voltage is completely removed for a period of time. Voltage overload on power grid and aging electrical system are some of the causes of brownouts. A reset IC sometimes integrates a brownout detector (BOD). It helps in preventing a reset if the voltage drops unexpectedly for a short duration of time.

Growth of IoT

The significant growth of IoT proved to be a major driver for the global reset IC market. IOT is a system of interrelated computing devices, machines, objects, and people, which are provided with unique identifiers. Without the need for any human-to-human or human-to-computer interaction, IoT allows the transfer of data over a network. IoT is also driving the demand for connected devices, which has significantly increased the bandwidth requirements. Vendors in the market are working together to satisfy the need for connecting several products, including gateways, home appliances, entertainment systems for smart homes, by a common networking standard that provides interoperability with a wide range of smart devices.

IoT will drive the need for enabler technologies which will have an impact on semiconductor foundries. An enabler technology can be classified as an invention, product, or technology which can provide a radical change in a user or an application. IoT shows great potential in several applications, which will drive the market.

Worldwide PC shipments totaled 71.6 million units in the fourth quarter of 2017, a 2 percent decline from the fourth quarter of 2016, according to preliminary results by Gartner, Inc. For the year, 2017 PC shipments surpassed 262.5 million units, a 2.8 percent decline from 2016. It was the 13th consecutive quarter of declining global PC shipments, as well as the sixth year of annual declines. However, Gartner analysts said there were some signs for optimism.

“In the fourth quarter of 2017, there was PC shipment growth in Asia/Pacific, Japan and Latin America. There was only a moderate shipment decline in EMEA,” said Mikako Kitagawa, principal analyst at Gartner. “However, the U.S. market saw a steep decline, which offset the generally positive results in other regions.

“The fourth quarter results confirmed again that PCs are no longer popular holiday gift items. This does not mean that PCs will disappear from households,” Kitagawa said. “Rather, the PC will become a more specialized, purpose-driven device. PC buyers will look for quality and functionality rather than looking for the lowest price, which will increase PC average selling prices (ASPs) and improve profitability in the long run. However, until this point is reached, the market will have to go through the shrinking phase caused by fewer PC users.”

HP Inc. moved into the No. 1 position in the fourth quarter of 2017, as its shipments grew 6.6 percent, and its market share totaled 22.5 percent (see Table 1). The company showed year-over-year growth in all regions, including the challenging U.S. market. For the fourth consecutive quarter, Lenovo experienced a decline in shipments. Lenovo had moderate growth in EMEA and Asia/Pacific, but shipments declined in North America.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 4Q17 (Thousands of Units)

Company

4Q17 Shipments

4Q17 Market Share (%)

4Q16 Shipments

4Q16 Market Share (%)

4Q17-4Q16 Growth (%)

HP Inc.

16,076

22.5

15,084

20.7

6.6

Lenovo

15,742

22.0

15,857

21.7

-0.7

Dell

10,841

15.2

10,767

14.7

0.7

Apple

5,449

7.6

5,374

7.4

1.4

Asus

4,731

6.6

5,336

7.3

-11.3

Acer Group

4,726

6.6

4,998

6.8

-5.4

Others

13,990

19.6

15,599

21.4

-10.3

Total

71,556

100.0

73,015

100.0

-2.0

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels.
Source: Gartner (January 2018)

Dell’s shipments grew slightly in the fourth quarter of 2017. Dell did well in EMEA, Asia/Pacific and Latin America, but it had weak results in North America. Generally, Dell has put a higher priority on profitability over market share.

Steep PC shipment decline in the U.S.

In the U.S., PC shipments surpassed 15.2 million units in the fourth quarter of 2017, an 8 percent decline from the fourth quarter of 2016 (see Table 2). Four of the top five vendors experienced a decline in U.S. PC shipments in the fourth quarter of 2017. HP Inc. was the only vendor to increase shipments in the quarter. The decline was attributed to weak consumer demand despite holiday season sales.

“U.S. consumer confidence was high in the fourth quarter of 2017, but that did not influence PC demand. U.S. holiday sales were filled with popular products, such as voice-enabled speakers, and newly released smartphones,” Kitagawa said. “PCs simply could not compete against these gift items during the holiday season. We did see some consistent growth of gaming and high-end PCs.”

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 4Q17 (Thousands of Units)

Company

4Q17 Shipments

4Q17 Market Share (%)

4Q16 Shipments

4Q16 Market Share (%)

4Q17-4Q16 Growth (%)

HP Inc.

5,130

33.7

5,049

30.5

1.6

Dell

3,691

24.3

4,209

25.4

-12.3

Apple

1,972

13.0

2,003

12.1

-1.6

Lenovo

1,792

11.8

2,344

14.2

-23.6

Acer Group

587

3.9

661

4.0

-11.2

Others

2,042

13.4

2,276

13.8

-10.3

Total

15,214

100.0

16,543

100.0

-8.0

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels.
Source: Gartner (January 2018)

PC shipments in EMEA totaled 21.8 million units in the fourth quarter of 2017, a 1.4 percent decline year over year. PC demand in the U.K. was still ailing and unit shipments into Germany were weaker than expected. PC revenue is expected to be up year over year in Western Europe. The rise in ASPs is due to currency fluctuations, the need for vendors to offset rising component costs, and a product-mix shift toward higher-value items, such as gaming systems and high-performing notebooks.

The Asia/Pacific PC market totaled 25 million units in the fourth quarter of 2017, a 0.6 percent increase from the fourth quarter of 2016. The consumer market stabilized with fourth-quarter online promotions in many countries, which drove demand for gaming PCs and thin and light notebooks. China experienced its first positive PC shipment growth since the first quarter of 2012. The success of the 11.11 shopping festival and the continuing demand for PCs in the commercial market drove the China PC market to 1.1 percent growth in the quarter.

PC market consolidation in 2017

For the year, worldwide PC shipments totaled 262.5 million units in 2017, a 2.8 percent decrease from 2016 (see Table 3). As the PC industry continues to consolidate, the top four vendors in 2017 accounted for 64 percent of global PC shipments. In 2011, the top four vendors accounted for 45 percent of PC shipments.

“The top vendors have taken advantage of their volume operations to lower production costs, pushing small to midsize vendors out of the market,” Kitagawa said.

Table 3
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2017 (Thousands of Units)

Company

2017

Shipments

2017 Market

Share (%)

2016

Shipments

2016 Market Share (%)

2017-2016 Growth (%)

HP Inc.

55,162

21.0

52,734

19.5

4.6

Lenovo

54,714

20.8

55,951

20.7

-2.2

Dell

39,871

15.2

39,421

14.6

1.1

Apple

19,299

7.4

18,546

6.9

4.1

Asus

17,967

6.8

20,496

7.6

-12.3

Acer Group

17,088

6.5

18,274

6.8

-6.5

Others

58,435

22.3

64,683

23.9

-9.7

Total

262,537

100.0

270,106

100.0

-2.8

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels.
Source: Gartner (January 2018)

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe.

 

United Microelectronics Corporation (NYSE:UMC; TWSE:2303) (“UMC”), a global semiconductor foundry, today announced that the company has filed a patent infringement lawsuit against Micron Semiconductor (Xi’an) Co., Ltd. and Micron Semiconductor (Shanghai) Co., Ltd. in the Fuzhou Intermediate People’s Court of the People’s Republic of China (PRC). The lawsuit covers three areas that allegedly infringe upon UMC’s patent rights in China, including specific memory applications that relate to DDR4, SSD and memory used in graphics cards.

In the complaint, UMC has requested the court to order the defendant(s) to stop manufacturing, processing, importing, selling and intending to sell the allegedly infringing products, destroy all inventory and related molds and tools and demand that Micron compensate the company for a total amount of RMB 270 million in damages.

UMC has devoted a great deal of resources and manpower to researching and developing semiconductor manufacturing technology. Its achievements can be applied to logic chips or memory chips (DRAM), and the company has applied for patents in various countries while continuing to monitor these patents as market conditions evolve. After conducting an in-depth review, UMC found that Micron’s products sold in mainland China did indeed infringe upon the patent rights of the company, and thus patent infringement litigation has been pursued in order to obtain fair judgment.