Category Archives: Semiconductors

Over the past decades, computers have become faster and faster and hard disks and storage chips have reached enormous capacities. But this trend cannot continue forever: we are already running up against physical limits that will prevent silicon-based computer technology from attaining any impressive speed gains from this point on. Researchers are particularly optimistic that the next era of technological advancements will start with the development of novel information-processing materials and technologies that combine electrical circuits with optical ones. Using short laser pulses, a research team led by Misha Ivanov of the Max Born Institute in Berlin together with scientists from the Russian Quantum Center in Moscow have now shed light on the extremely rapid processes taking place within these novel materials. Their results have appeared in the prestigious journal Nature Photonics.

Of particular interest for modern material research in solid state physics are “strongly correlated systems”, so called for the strong interactions between the electrons in these materials. Magnets are a good example of this: the electrons in magnets align themselves in a preferred direction of spin inside the material, and it is this that produces the magnetic field. But there are other, entirely different structural orders that deserve attention. In so-called Mott insulators for example, a class of materials now being intensively researched, the electrons ought to flow freely and the materials should therefore be able to conduct electricity as well as metals. But the mutual interaction between electrons in these strongly correlated materials impedes their flow and so the materials behave as insulators instead.

By disrupting this order with a strong laser pulse, the physical properties can be made to change dramatically. This can be likened to a phase transition from solid to liquid: as ice melts, for example, rigid ice crystals transform into free-flowing water molecules. Very similarly, the electrons in a strongly correlated material become free to flow when an external laser pulse forces a phase transition in their structural order. Such phase transitions should allow us to develop entirely new switching elements for next-generation electronics that are faster and potentially more energy efficient than present-day transistors. In theory, computers could be made around a thousand times faster by “turbo-charging” their electrical components with light pulses.

The problem with studying these phase transitions is that they are extremely fast and it is therefore very difficult to “catch them in the act”. So far, scientists have had to content themselves with characterising the state of a material before and after a phase transition of this kind. Researchers Rui E. F. Silva, Olga Smirnova, and Misha Ivanov of the Berlin Max Born Institute, however, have now devised a method that will, in the truest sense, shed light on the process. Their theory involves firing extremely short, tailored laser pulses at a material – pulses that can only recently be produced in the appropriate quality given the latest developments in lasers. One then observes the material’s reaction to these pulses to see how the electrons in the material are excited into motion and, like a bell, emit resonant vibrations at specific frequencies, as harmonics of the incident light.

“By analysing this high harmonic spectrum, we can observe the change in the structural order in these strongly correlated materials ‘live’ for the first time,” says first author of the paper Rui Silva of the Max Born Institute. Laser sources capable of targetedly triggering these transitions have only been available since very recently. The laser pulses namely have to be amply strong and extremely short – on the order of femtoseconds in duration (millionths of a billionth of a second).

In some cases, it takes only a single oscillation of light to disrupt the electronic order of a material and turn an insulator into a metal-like conductor. The scientists at the Berlin Max Born Institute are among the world’s leading experts in the field of ultrashort laser pulses.

“If we want to use light to control the properties of electrons in a material, then we need to know exactly how the electrons will react to light pulses,” Ivanov explains. With the latest-generation laser sources, which allow full control over the electromagnetic field even down to a single oscillation, the newly published method will allow deep insights into the materials of the future.

Researchers from Tomsk Polytechnic University together with their international colleagues have discovered a method to modify and use the one-atom thin conductor of current and heat, graphene without destroying it. Thanks to the novel method, the researchers were able to synthesize on single-layer graphene a well-structured polymer with a strong covalent bond, which they called ‘polymer carpets’. The entire structure is highly stable; it is less prone to degradation over time that makes the study promising for the development of flexible organic electronics. Also, if a layer of molybdenum disulfide is added over the ‘nanocarpet’, the resulting structure generates current under exposure to light. The study results were published in Journal of Materials Chemistry C.

This is the scheme for obtaining a hybrid structure of 'graphene-polymer'. Credit: Tomsk Polytechnic University

This is the scheme for obtaining a hybrid structure of ‘graphene-polymer’. Credit: Tomsk Polytechnic University

Graphene is simultaneously the most durable, light and an electrically conductive carbon material. It can be used for manufacturing solar batteries, smartphone screens, thin and flexible electronics, and even in water filters since graphene films pass water molecules and stop all other compounds. Graphene should be integrated into complex structures to be used successfully. However, it is a challenge to do that. According to scientists, graphene itself is stable enough and reacts poorly with other compounds. In order to make it react with other elements, i.e. to modify it, graphene is usually at least partially destroyed. This modification degrades the properties of the materials obtained.

Professor Raul D. Rodriguez from the Research School for Chemistry & Applied Biomedical Sciences says: ‘When functionalizing graphene, you should be very careful. If you overdo it, the unique properties of graphene are lost. Therefore, we decided to follow a different path.

In graphene, there are inevitable nanodefects, for example, at the edges of graphene and wrinkles in the plane. Hydrogen atoms are often attached to such defects. It is this hydrogen that can interact with other chemicals.’

To modify graphene, the authors use a thin metal substrate on which a graphene single-layer is placed. Then graphene is covered with a solution of bromine-polystyrene molecules. The molecules interact with hydrogen and are attached to the existing defects, resulting in polyhexylthiophene (P3HT). Further exposed to light during the photocatalysis, a polymer begins to ‘grow’.

‘In the result, we obtained the samples which structure resembles ‘polymer carpets’ as we call them in the paper. Above such a ‘polymer carpet’ we place molybdenum disulfide. Due to a unique combination of materials, we obtain a ‘sandwich’ structure’ that functions like a solar battery. That is, it generates current when exposed to light. In our experiments a strong covalent bond is established between the molecules of the polymer and graphene, that is critical for the stability of the material obtained,’ notes Rodriguez.

According to the researcher, the method for graphene modification, on the one hand, enables obtaining a very sturdy compound; on the other hand, it is rather simple and cheap as affordable materials are used. The method is versatile because it makes growing very different polymers directly on graphene possible.

‘The strength of the obtained hybrid material is achieved additionally because we do not destroy graphene itself but use pre-existing defects, and a strong covalent bond to polymer molecules. This allows us to consider the study as promising for the development of thin and flexible electronics when solar batteries can be attached to clothes, and when deformed they will not break,’ the professor explains.

UnitySC, a developer of advanced inspection and metrology solutions for the semiconductor and related industries, today announced that its board of directors has appointed Kamel Ait-Mahiout as chief executive officer. He has also been elected to serve on UnitySC’s board. Following the company’s recent announcement of the acquisition of HSEB Dresden, GmbH, this appointment marks the next step of the company’s aggressive growth strategy for its process control solutions.

Ait-Mahiout joins UnitySC after serving seven years as senior vice president and general manager at Amkor Europe. During that time, he successfully restructured Amkor Europe, strategically positioning the company as a dynamic, customer-oriented, and commercially strong organization. Under his watch, Amkor Europe’s revenue grew by more than 60%, despite the region’s challenging competitive environment.

“We are pleased to welcome Kamel as Unity’s new CEO,” said Patrick Leteurtre, chairman of the board, UnitySC.  “He has demonstrated his leadership experience, operational excellence, and strategic vision in the semiconductor industry for over 20 years. Kamel’s experience managing growth businesses makes him exceptionally well-suited to lead us through our next growth phase, and position Unity as the next market leader in advanced inspection and metrology equipment.”

“It is a pivotal time to be joining UnitySC. The company has built a strong reputation for technology and market leadership, particularly in new semiconductor applications, and has significant growth potential driven by its ambitious strategy,” said Ait-Mahiout. “The combination of great in-house technologies, high-value products, growth based on a solid backlog of profitable revenue, and a group of very talented employees in a dynamic and innovative company culture is a recipe for success and makes for a very exciting CEO opportunity. I am delighted to bring my experience to guide the company through its next growth phase and make it a key player in semiconductor process control.”

Prior to Amkor, Ait-Mahiout held various roles with Kyocera Microelectronics and Tekelec Temex. In addition to a technical engineering background, he has a deep understanding of supply chain and industrial strategy. Ait-Mahiout holds a Science Master EEA, Electronic Components Option from the University of Technology in Reims, France.

Toyoda Gosei Co., Ltd. has achieved state-of-the-art high current operation1 in a vertical GaN power semiconductor developed using gallium nitride (GaN), a main material in blue LEDs.

Power semiconductors are widely used in power converters2 such as power sources and adaptors for electronic devices. However, simultaneous achievement of both high breakdown voltage3 and low loss4 (low conduction loss and switching loss) at high levels has been difficult with conventional silicon due to its material properties.

In its power semiconductors, Toyoda Gosei uses GaN, which has material properties of high breakdown voltage and low loss, and employs a vertical device structure in which electrical current flows vertically from or to a substrate. These changes have enabled a GaN power transistor chip with operating current of over 50A, highest ever reported for vertical GaN transistors2, and high-frequency (several megahertz) operation. Some prospective applications are shown below.

Promising areas of use (examples)

Power converters
More compact & lighter weight, higher efficiency

 Power control units (PCUs) for automobiles, etc.
DC-DC converters

High frequency power sources
Higher output

 Wireless power supply

Toyoda Gosei will continue development of these power semiconductors for improved reliability, aiming to achieve practical applications in cooperation with semiconductor and electronics manufacturers.

The newly developed vertical GaN power transistors (MOSFET)5 and Schottky barrier diodes6 will be presented on panel displays at the Techno-Frontier 2018 Advanced Electronic & Mechatronic Devices and Components Exhibition, held at Makuhari Messe, Chiba, Japan from April 18 to April 20. The world’s first full vertical-GaN DC-DC converter equipped with these devices will also be demonstrated at the company’s booth (6F-11, Hall 6).

1 According to internal Toyoda Gosei survey (as of April 2018).
2 Power conversion refers to conversion between direct and alternating current, direct current transformation, alternating current frequency conversion, etc.
3 The property of withstanding the high breakdown voltage during power conversion and not allowing current flow during off operation (non-conductance).
4 Heat loss generated by electrical resistance during electric conduction or when switching on/off.
5 Semiconductor used in power on/off.
MOSFET: Metal-oxide-semiconductor field-effect-transistor.
6 Semiconductor used in converting (rectification) from alternating current to direct current. Toyoda Gosei uses a trench MOS structure, in which trenches are formed at fixed intervals in the chip surface of the diode, achieving low leakage current operation at high temperatures.

Edwards Vacuum, a manufacturer of vacuum and abatement solutions, following completion of the purchase of an eight-acre site located on NE Century Boulevard in Hillsboro, Ore., has begun the process of construction for a new Technology Innovation Center in Hillsboro. The land acquisition process was a collaborative effort between Edwards Vacuum and Avison Young.

The 75,000 square foot facility will serve as the U.K.-based company’s North American semiconductor headquarters. Edwards held a ground-breaking ceremony at the Century Boulevard site attended by company officials and local dignitaries, including Hillsboro City Mayor, Steve Callaway, and President of the Hillsboro Chamber of Commerce, Deanna Palm.

“Edwards has many options for global investment, and our community greatly appreciates Edwards and its commitment to Hillsboro,” stated Mayor Callaway. “As a city, we will continue to support Edwards employees when the new high-tech facility opens.”

Scott Balaguer, vice president & general manager, Semiconductor Division North America, stated, “Our state-of-the-art innovation center and manufacturing facility is strategically located close to some of our key accounts in the Pacific Northwest, and will enable us to work closely with them, as well as other customers in North America, on R&D and continuous improvement programs. This proximity will also enable us to provide rapid service & support, as well as serve as our regional training center.

Edwards has approximately 100 employees at its current Hillsboro locations, and with consolidation expects to double in size at the new facility, which is scheduled to open in Q2 2019.

“We are excited about opening our innovation center here in Hillsboro,” said Balaguer. “Edwards is fully committed to the Northwest Region, creating jobs and participating in the local growth, as environmentally conscious corporate stewards in the neighborhood. We anticipate continued expansion on site, as we plan to design & manufacture our integrated vacuum & abatement production solutions, as well as other world-class products in our portfolio.

Ed English, senior vice president at Avison Young, whose team worked closely with Edwards to lead the real estate strategy and implementation said, “This project spanned two years of due diligence, analysis, and negotiation that included the collaboration of half a dozen firms and experts. Edwards’ consistent mission throughout the process was made clear to all parties; they wanted to position the company to best serve their customers and support their growth.” English added, “Edwards originally planned to lease the facility, but ultimately chose to purchase it. They ‘put their money where their mouth is’, proving their definitive commitment to Hillsboro.”

SEMI today announced that it has signed a memorandum of understanding to integrate the ESD (Electronic System Design) Alliance as a SEMI Strategic Association Partner this year. Under the partnership, the Redwood City, Calif.-based association and its system design ecosystem membership will join SEMI, deepening ESD Alliance’s global reach in the electronics manufacturing supply chain and enabling SEMI members to connect and directly collaborate with the semiconductor design sector.

As a SEMI Strategic Association Partner, the ESD Alliance will continue to pursue its mission representing companies in the semiconductor design ecosystem by addressing technical, marketing, economic and legislative issues affecting the entire industry. The ESD Alliance will retain its own governance and lead its overall direction and initiatives while leveraging SEMI’s robust global resources. With the addition of the ESD Alliance, SEMI adds the product design segment to the electronics manufacturing supply chain, streamlining and connecting the full ecosystem.

“Design is the very foundation of semiconductor innovation and manufacturing, and the ESD Alliance complements SEMI’s existing membership in bringing smarter, faster, more powerful, and more affordable electronic products to more people every day,” said Ajit Manocha, president and CEO of SEMI. “ESD Alliance members bring key insights to SEMI vertical application platforms such as Smart Transportation, Smart Manufacturing and Smart Data to enhance collaboration and innovation across the collective SEMI membership. We welcome ESD Alliance members to the SEMI family of Strategic Association Partners as we continue to broaden SEMI’s scope to include the full global electronics product design and manufacturing supply chain.”

“The integration of the ESD Alliance with SEMI’s event and global platforms will enable us to extend our design expertise in the worldwide electronics industry,” said Bob Smith, executive director, the ESD Alliance. “ESD Alliance members will be better able to more efficiently engage with the electronics manufacturing supply chain on technical and business issues and gain access to comprehensive global resources and platforms.”

Those resources include SEMI’s technology communities and activities in areas such as advocacy, international standards and environment, health and safety (EH&S), industry statistics, trade and regulatory initiatives.

The integration is a key step in streamlining collaboration and connection of SEMI members with the electronic system design, IP and fabless communities. Among other benefits, the integration promises to tighten the industry coordination and collaboration necessary to developing specialized artificial intelligence (AI) chips for a host of smart applications.

“The semiconductor industry has grown and matured since the EDA Consortium was formed,” said Dr. Aart de Geus, chairman and co-Chief Executive Officer of Synopsys. “Many of the previously disparate areas within the industry now overlap and it’s obvious we need to address the supply chain from manufacturing all the way through design. The ESD Alliance represents the system design ecosystem and perfectly aligns with SEMI’s vision to support the entire supply chain. As an international organization with offices around the globe, SEMI gives the ESD Alliance an opportunity to further expand its reach and grow to its full potential.”

All ESD Alliance member companies, including global leaders ARM, Cadence, Mentor, a Siemens business, and Synopsys, will join SEMI’s global membership of more than 2,000 companies while retaining the ESD Alliance’s distinct self-governed community within SEMI.

Trapping light with an optical version of a whispering gallery, researchers at the National Institute of Standards and Technology (NIST) have developed a nanoscale coating for solar cells that enables them to absorb about 20 percent more sunlight than uncoated devices. The coating, applied with a technique that could be incorporated into manufacturing, opens a new path for developing low-cost, high-efficiency solar cells with abundant, renewable and environmentally friendly materials.

This is illustration shows the nanoresonator coating, consisting of thousands of tiny glass beads, deposited on solar cells. The coating enhances both the absorption of sunlight and the amount of current produced by the solar cells. Credit: K. Dill, D. Ha, G. Holland/NIST

This is illustration shows the nanoresonator coating, consisting of thousands of tiny glass beads, deposited on solar cells. The coating enhances both the absorption of sunlight and the amount of current produced by the solar cells. Credit: K. Dill, D. Ha, G. Holland/NIST

The coating consists of thousands of tiny glass beads, only about one-hundredth the width of a human hair. When sunlight hits the coating, the light waves are steered around the nanoscale bead, similar to the way sound waves travel around a curved wall such as the dome in St. Paul’s Cathedral in London. At such curved structures, known as acoustic whispering galleries, a person standing near one part of the wall easily hears a faint sound originating at any other part of the wall.

Whispering galleries for light were developed about a decade ago, but researchers have only recently explored their use in solar-cell coatings. In the experimental set up devised by a team including Dongheon Ha of NIST and the University of Maryland’s NanoCenter, the light captured by the nanoresonator coating eventually leaks out and is absorbed by an underlying solar cell made of gallium arsenide.

Using a laser as a light source to excite individual nanoresonators in the coating, the team found that the coated solar cells absorbed, on average, 20 percent more visible light than bare cells. The measurements also revealed that the coated cells produced about 20 percent more current.

The study is the first to demonstrate the efficiency of the coatings using precision nanoscale measurements, said Ha. “Although calculations had suggested the coatings would enhance the solar cells, we could not prove this was the case until we had developed the nanoscale measurement technologies that were needed,” he noted.

This work was described in a recent issue of Nanotechnology by Ha, collaborator Yohan Yoon of NIST and Maryland’s NanoCenter, and NIST physicist Nikolai Zhitenev.

The team also devised a rapid, less-costly method of applying the nanoresonator coating. Researchers had previously coated semiconductor material by dipping it in a tub of the nanoresonator solution. The dipping method takes time and coats both sides of the semiconductor even though only one side requires the treatment.

In the team’s method, droplets of the nanoresonator solution are placed on just one side of the solar cell. A wire-wound metal rod is then pulled across the cell, spreading out the solution and forming a coating made of closely packed nanoresonators. This is the first time that researchers have applied the rod method, used for more than a century to coat material in a factory setting, to a gallium arsenide solar cell.

“This is an inexpensive process and is compatible with mass production,” said Ha.

 

SEMI, the industry association representing the global manufacturing supply chain, today announced postponement of SEMICON Southeast Asia from 8-10 May 2018 to 22-24 May 2018. The postponement avoids a timing conflict with the recently announced Malaysian election planned for 9 May 2018. The venue for SEMICON Southeast Asia, the newly constructed Malaysia International Trade and Exhibition Centre (MITEC), remains unchanged

The postponement is in respect to Malaysian exhibitors and visitors to exercise their right to vote, said Ng Kai Fai, President of SEMI Southeast Asia. The decision was made in view of the election date and following discussions with SEMICON Southeast Asia stakeholders.

“We highly value and respect the country’s election process, which is very important for Malaysia and Malaysians,” Kai Fai said. “We also want to ensure that SEMICON Southeast Asia achieves its primary objective of forming connections and collaborations for exhibitors and visitors, both regionally and globally. We have received very strong support from our stakeholders and are confident and reassured that this will be the largest SEMICON Southeast Asia show to date.”

 

Worldwide PC shipments totaled 61.7 million units in the first quarter of 2018, a 1.4 percent decline from the first quarter of 2017, according to preliminary results by Gartner, Inc. The PC market experienced a 14th consecutive quarter of decline, dating back to the second quarter of 2012.

Asia/Pacific and the U.S. experienced declining shipments, while other regions saw some minimal growth, but it was not enough to drive overall growth for the PC industry. In the first quarter of 2018, PC shipments in Asia/Pacific declined 3.9 percent compared with the same period last year, while shipments in the U.S. decreased 2.9 percent.

“The major contributor to the decline came from China, where unit shipments declined 5.7 percent year over year,” said Mikako Kitagawa, principal analyst at Gartner. “This was driven by China’s business market, where some state-owned and large enterprises postponed new purchases or upgrades, awaiting new policies and officials’ reassignments after the session of the National People’s Congress in early March.

“In the first quarter of 2018, there was some inventory carryover from the fourth quarter of 2017,” Ms. Kitagawa said. “At the same time, vendors were cautious in overstocking due to the upcoming release of new models in the second quarter of 2018 with Intel’s new eighth-generation core processors.”

The top three vendors — HP, Lenovo and Dell — accounted for 56.9 percent of global PC shipments in the first quarter of 2018, compared with 54.5 percent of shipments in the first quarter of 2017 (see Table 1). Dell experienced the strongest growth rate among the top six vendors worldwide, as its shipments increased 6.5 percent.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

HP Inc.

12,856

20.8

12,505

20.0

2.8

Lenovo

12,346

20.0

12,305

19.7

0.3

Dell

9,883

16.0

9,277

14.8

6.5

Apple

4,264

6.9

4,199

6.7

1.5

Asus

3,900

6.3

4,458

7.1

-12.5

Acer Group

3,828

6.2

4,189

6.7

-8.6

Others

14,609

23.7

15,637

25.0

6.6

Total

61,686

100.0

62,569

100.0

-1.4

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. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

HP Inc.’s worldwide PC shipments increased 2.8 percent in the first quarter of 2018 versus the same period last year. In EMEA, HP Inc. recorded double-digit growth in both desktop and mobile PCs. This was contrasted with a small decline in other regions. HP Inc. was adversely impacted by declining demand in the U.S., which generally accounts for one-third of its total shipments.

Lenovo’s global PC shipments remained flat in the first quarter of 2018. Lenovo achieved 6 percent growth in EMEA and double-digit shipment growth in Latin America. However, in Asia/Pacific (its largest market), PC shipments declined 4 percent.

After record holiday sales for consumer and gaming products in the fourth quarter of 2017, Dell continued to perform well in the first quarter of 2018. With double-digit shipment increases in EMEA, North America and Latin America, Dell grew in all regions except Asia/Pacific. Desktop and mobile PCs grew in equal measures, showing Dell’s strength in the business segment.

Rising ASPs

The average selling prices (ASPs) of PCs continue to rise. Acknowledging deceleration in the smartphone market, and uncertainty in PC replacement demand, component companies remain cautious about expanding their production capabilities. Therefore, persistent component shortages and a rising bill of materials continue to create an environment conductive to higher prices.

“In contrast to other DRAM-related price spikes, PC vendors are not reacting by reducing DRAM content. Rather they have passed the cost increase to consumers,” Ms. Kitagawa said. “With fewer people buying new machines, manufacturers need to get the highest profit margin from each sale. To do that, they are raising the selling points and focusing on customer experience or perception of value.”

Regional Overview

In the U.S., PC shipments totaled 11.8 million units in the first quarter of 2018, a 2.9 percent decrease from the first quarter of 2017. Dell moved into the No. 1 position in the U.S. based on shipments, as its market share increased to 29.1 percent. HP Inc. moved into the No. 2 position as its shipments declined 4.8 percent, and its market share totaled 28.4 percent in the first quarter of 2018 (see Table 2).

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

Dell

3,440

29.1

3,198

26.2

7.6

HP Inc.

3,363

28.4

3,532

29.0

-4.8

Lenovo

1,632

13.8

1,714

14.1

-4.8

Apple

1,491

12.6

1,484

12.2

0.5

Acer Group

321

2.7

429

3.5

-25.1

Others

1,586

13.4

1,836

15.1

-13.6

Total

11,833

100.0

12,193

100.0

-2.9

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. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

PC shipments in EMEA totaled 18.6 million units in the first quarter of 2018, a 1.7 percent increase year over year. Enterprise shipments increased as many Windows 10 projects that were put on hold in 2017 began to be implemented. The fast approach of the compliance deadline for the General Data Protection Regulation (GDPR) in Europe, as well as earlier reports of cybersecurity breaches, made security a strong priority in the hardware refresh cycle among enterprises. Eurasia continued to be a bright spot for EMEA, as several countries, such as Russia, Ukraine and Kazakhstan, saw strong demand in the first quarter of 2018.

PC shipments in Asia/Pacific totaled 21.9 million units in the first quarter of 2018, a 3.9 percent decline from the first quarter of 2017. As previously mentioned, the PC market in China drove the decline in Asia/Pacific. There is no significant sign of strong upgrading to the special version of Windows 10 from the Chinese government institutions. Consumer demand was weak as most buyers already took advantage of the aggressive promotions offered in the fourth quarter of 2017.

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.

 

By Emir Demircan, Senior Manager Advocacy and Public Policy, SEMI Europe

With its leading research and development hubs, materials and equipment companies and chipmakers, the EU is in a strategic position in the global electronics value chain to support the growth of emerging applications such as autonomous driving, internet of things, artificial intelligence and deep learning. Underpinning the European electronics industry’s competitive muscle requires a new EU-wide strategy aimed at strengthening the value chain and connecting various players. Specializing and investing in key application segments, such as automotive where the EU enjoys a central place at global level, is crucial to help European electronics industry hold its ground.  In parallel, Europe’s production capabilities need bolstered, requiring effective use of Important Projects of Common European Interest (IPCEI).

On research, development and innovation (RD&I), the upcoming Framework Programme 9 (FP9) must provide unprecedented collaboration and funding opportunities to Europe’s electronics players. Concerning small and medium enterprises (SMEs) and startups, it is vital that EU policies are aligned with global trends and small and young companies benefit from a business-friendly regulatory framework. And as an overarching action, building a younger, bigger and more diverse talent pipeline is paramount for Europe to innovate in the digital economy.

Laith Altimime, President at SEMI Europe, opening speech at ISS Europe 2018

Laith Altimime, President at SEMI Europe, opening speech at ISS Europe 2018

These were the clarion messages that emerged from the Industry Strategy Symposium (ISS) Europe organized by SEMI in March, an event that brought together more than 100 industry, research and government representatives for in-depth discussions on strategies and innovations for Europe to compete globally. Here are the key takeaways:

1) Build a strong electronics value chain with a focus on emerging demands

In recent years the EU has focused on beefing up semiconductor production in Europe within the 2020-25 window, starting with the EU 10|100|20 Electronic Strategy of 2013. The strategy aims to secure about 20 percent of global semiconductor manufacturing by 2020 with the help of € 10 billion in public and private funding and € 100 billion investment from the industry. Today, Europe is not nearly on track to achieving this target. Supply-side policies have done little to help grow the EU semiconductor industry. Now is the time to change our thinking.

To nourish the electronics industry in Europe, we need to shift our focus to demand. Semiconductors are a key-enabling technology for autonomous driving, wearables, healthcare, virtual and augmented reality (VR/AR), artificial intelligence (AI) and all other internet of things (IoT) and big data applications. To become a world leader in the data economy and energize its semiconductor industry, Europe needs to start by better understanding the evolution of data technologies and their requirements from electronics players, then design and implement an EU-wide strategy focused on strengthening collaboration within the value chain.

2) Specialize and invest in Europe’s strengths that are enabled by electronics

Jens Knut Fabrowsky, Executive VP Automotive Electronics at Bosch

Jens Knut Fabrowsky, Executive VP Automotive Electronics at Bosch

Fueled by increasing demand for smaller, faster and more reliable products with greater power, the global electronics industry has developed a sophisticated global value chain. Europe brings to this ecosystem leading equipment and materials businesses, world-class R&D and education organizations, and key microelectronics hubs throughout Europe that are home to multinationals headquartered both in and outside of the EU. Nevertheless, global competition is growing ever fiercer in the sectors where the European microelectronics industry is most competitive: automotive, energy, healthcare and industrial automation. In the future, Europe is likely to be more challenged between the disruptive business models of North America and the manufacturing capacity of East Asia. The European electronics industry must re-evaluate its strengths and set a strategic direction.

Make no mistake: Europe is in a strong position to advance its microelectronics industry. The EU already boasts leading industries that rely on advances made by electronics design and manufacturing. Take the automotive industry – crucial to Europe’s prosperity. Accounting for 4 percent of the EU GDP and providing 12 million jobs in Europe, according to the European Commission, the EU automotive industry exerts an important multiplier effect in the economy. Automotive is essential to both upstream and downstream industries such as electronics – a level of importance not lost on the EU’s GEAR 2030 Group. Since the 1980s, automotive industry components have increasingly migrated from mechanical to electrochemical and electronics.

Today, electronic components represent close to a third of the cost of an automobile, a proportion that will grow to as high as 50 percent by 2030 with the rise of autonomous and connected vehicles. Automotive experts anticipate that over the next five to 10 years, new cars will feature at least some basic automated driving and data exchange capabilities as electronics deepen their penetration into the automotive value chain. Europe’s leadership position and competitive edge in automotive are under threat by competitors across the world as they invest heavily in information and communications technologies (ICT) and electronics for autonomous driving and connected vehicles. Investing in next-generation cars will help the European electronics industry retain its strong competitive position, as will investments in other key application areas such as healthcare, energy and industrial automation where Europe is a global power.

3) Make better use of Important Projects of Common European Interest (IPCEI)

Microelectronics is capital-intensive, with a state-of-the-art fab easily costing billions of euros. That’s why countries around the world are making heavy government-backed investments to build domestic fabs. For instance, China’s “Made in China 2025” initiative, which establishes an Integrated Circuit Fund to support the development of the electronics industry, calls for 150 billion USD in funding to replace imported semiconductors with homegrown devices. In 2014, the European Commission adopted new rules to IPCEI, giving Member States a tool for financing large, strategically important transnational projects. IPCEI should help Member States fill funding gaps to overcome market failures and reinvigorate projects that otherwise would not have taken off. To fully benefit from the IPCEI, the industry requires Member States involved in a specific IPCEI to work in parallel and at the same pace and faster approvals of state-supported manufacturing projects.

4) Use FP9 to strengthen Europe’s RD&I capabilities

Panel Discussion on growing Europe in the global value chain. (L-R) Bryan Rice, GLOBALFOUNDRIES; James Robson, Applied Materials Europe; Joe De Boeck, imec; Leo Clancy, IDA Ireland; James O’Riordan, S3; Colette Maloney, European Commission; Moderator: Andreas Wild

Panel Discussion on growing Europe in the global value chain. (L-R) Bryan Rice, GLOBALFOUNDRIES; James Robson, Applied Materials Europe; Joe De Boeck, imec; Leo Clancy, IDA Ireland; James O’Riordan, S3; Colette Maloney, European Commission; Moderator: Andreas Wild

A top EU priority in recent years has been to enhance Europe’s position as a world leader in the digital economy. Fulfilling this mission requires an innovative electronics industry in Europe. To this end, FP9 should encourage greater collaboration between large and small companies to leverage their complementary strengths – the dynamism, agility and innovation of smaller companies and the ability of larger companies to mature and scale new product ideas on the strength of their extensive private funding instruments and testing and demonstration facilities. Also, future EU-funded research actions should prioritize electronics projects involving players across the value chain, starting with materials and equipment providers and spanning chipmakers, system integrators and players from emerging “smart” verticals such as automotive, medical technology and energy. FP9 should also play the pivotal role of setting clear objectives, increasing investments, and easing rules for funding. These measures would help expand the European electronics ecosystem, accelerate R&D results and defray the rising costs of developing cutting-edge solutions key to the growth of emerging industry verticals.

5) Support high-tech SMEs, entrepreneurship and startups to become globally competitive

European SMEs, the backbone of EU’s manufacturing, are already strong players in the global economy, making outsize contributions to Europe’s innovation. Yet more of Europe’s small and young businesses with limited resources are challenged in Europe’s regulatory labyrinth. Only by improving the European regulatory environment in a way that supports young and small businesses can Europe fulfill its vision of a dynamic electronics ecosystem and digital economy. Access to finance must also be easier, particularly as underinvested startups struggle under a European venture capital apparatus that is smaller and more fragmented than those in North America and Asia. Early-stage funding instruments such as bank loans are essential for young businesses but they often face barriers to finance due to the sophistication of their proposed business models that are difficult to be understood and supported by banks.

One answer is to better familiarize Europe’s financial sector with industrial SMEs and startups so they can co-develop financial tools that support the growth of small and young businesses. Also, the narrow European definition of SME with staff headcount limited to 250 block innovative companies from access to financial tools exclusively provided to SMEs. By contrast, the United States defines SMEs as businesses with as many as 500 employees, placing their EU counterparts at distinct funding disadvantage. EU should ensure that its SME policy is aligned with global trends and industry needs.

6) Create a bigger and more diverse talent pipeline with a hybrid skills set 

Europe’s world-class education and research capabilities help supply the electronics industry with skilled workforce. Yet the blistering pace of technology innovation calls for rapidly evolving skills sets, a trend that has led to worker shortages at electronics companies and left the sector fighting to diversify its workforce and strengthen its talent pipeline. The deepening penetration of electronics in AI, IoT, AR/VR, high-performance computing (HPC), cybersecurity and smart verticals is giving rise to a new set of skills that blend production technologies, software and data analytics. As more technologies converge, the gap between university education and business needs continues to widen.

One solution is work-based learning – allowing students to build job skills in a setting related to their career pathway. Encouraging higher female participation in STEM education programs at the high school and university levels is also a must to overcome the traditionally low number of females entering high technology. To build on its reputation as “a place to work” in the eyes of the international job seekers, Europe also needs a more flexible immigration framework to attract skilled labour to high-tech jobs.

Save the Date: Industry leaders, research and government representatives will meet again next year at the ISS Europe organized by SEMI on 28-30 April 2019 in Milan, Italy. More details regarding the event will be published soon on www.semi.org/eu.