Category Archives: Semiconductors

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

Cymer, a developer of lithography light sources used by chipmakers to pattern advanced semiconductor chips, today announced the first shipment of the newly qualified XLR 800ix light source that improves performance and productivity, as well as lowers cost-of-ownership for leading-edge argon fluoride (ArF) immersion lithography systems.

Several leading semiconductor manufacturers received early access upgrades to the XLR 800ix and their performance exceeded specifications, achieving less than two femtometers total bandwidth variation in every exposure field. This is about 10 times better than existing technology used today.

As chipmakers extend the use of ArF immersion light sources with multi-patterning to the sub-10 nm technology nodes, it becomes increasingly critical to reduce variability across all processes. In partnership with chipmakers, Cymer found that lower bandwidth variation can lead to lower critical dimension (CD) variation, which improves patterning performance both within and wafer-to-wafer. The XLR 800ix introduces new bandwidth stabilization technology, enabling an eight times improvement in bandwidth measurement fidelity, which can be used to tightly control bandwidth stability.

“We are seeing a strong pull to upgrade our installed base light sources to the newest configuration because the XLR 800ix’s performance far exceeds customers’ expectations,” said David Knowles, vice president of the product development group at Cymer. “From technology improvements to application enhancements, the XLR 800ix brings together all our strengths into one platform to deliver powerful results for our customers.”

The XLR 800ix also delivers productivity and cost-of-ownership improvements, enabling a 33% increase in time between service intervals to 40 billion pulses. This is driven by Cymer’s new field-tested chamber and optics modules, which are in production in more than 250 XLR systems. These enhancements also support Cymer’s sustainability initiatives, by lowering total system power consumption by several percentage points.

Qualcomm Incorporated (NASDAQ: QCOM) (“Qualcomm”) today announced that Qualcomm River Holdings B.V., an indirect wholly owned subsidiary of Qualcomm, has reached an agreement with NXP Semiconductors N.V. (NASDAQ: NXPI) to increase to $127.50 per share its previously announced cash tender offer to purchase all outstanding shares of NXP.  The amended agreement, which was approved by the Qualcomm and NXP Boards of Directors, also lowers the minimum tender condition from 80% of NXP’s outstanding shares to 70%.

Qualcomm also announced that Qualcomm River Holdings B.V. has entered into binding agreements with nine NXP stockholders who collectively own more than 28% of NXP’s outstanding shares (excluding additional economic interests through derivatives) to tender their shares at $127.50 per share.  These stockholders include funds affiliated with Elliott Advisors (UK) Limited and Soroban Capital Partners LP.

The revised price reflects enhanced current value drivers for NXP, including:

  • NXP’s recent performance, including calendar 2017 results that exceeded Qualcomm’s transaction model on revenue, gross margin and EBIT. NXP’s non-GAAP operating income (excluding Standard Products) increased 20% from calendar 2016 to 2017.
  • Strong market dynamics and positive outlook for key segments. NXP’s Auto business has increased revenues by 11% year over year. Qualcomm has also significantly improved its own capabilities in key industry segments such as Auto ($3 billion revenue pipeline), IoT ($1 billion in FY17 sales) and Networking, further enhancing the value proposition of the combined company to its customers and stockholders.
  • High confidence in annualized cost synergies of at least $500 million resulting from insights gathered during the integration planning process.

Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated, said, “Qualcomm’s leading SoC capabilities and technology roadmap, coupled with NXP’s differentiated position in Automotive, Security and IoT, offers a compelling value proposition.  We remain highly confident in our fiscal 2019 Non-GAAP EPS target of $6.75$7.50, which includes $1.50 per share accretion from the acquisition of NXP.  With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously.  Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees and stockholders.”

Tom Horton, Presiding Director of the Qualcomm Board of Directors, said, “The acquisition of NXP will enable us to accelerate our growth strategy.  The Board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders based on NXP’s recent strong financial performance, the growth in key strategic areas such as Auto and IoT and our high confidence in management’s ability to execute upon the synergy opportunities.”

Dr. Paul E. Jacobs, Chairman of the Board of Qualcomm, said, “NXP is a highly strategic and attractive acquisition for Qualcomm that enhances the value of our leading 5G technologies.  We also believe the revised agreement provides certainty for both Qualcomm and NXP stockholders.”

ASML Holding N.V. (ASML) today announces that its Supervisory Board intends to appoint Christophe Fouquet (44) as Executive Vice President to the Board of Management, subject to notification of the Annual General Meeting of Shareholders on 25 April 2018. With the addition of Christophe Fouquet, the ASML Board of Management will expand from five to six members. Christophe Fouquet will take over responsibility for the Business Line EUV (Extreme Ultraviolet) from Frits van Hout per 1 April 2018.

Frits van Hout has successfully overseen the development of the EUV business over the last 5 years, bringing it to a level where EUV is widely accepted as the next lithography platform for the semiconductor industry. From 1 April 2018, he will focus on strategy and strategic supplier relations. Within the Board of Management he will be responsible for ASML’s growth specifically as it relates to the increasing significance of strategic supplier relationships, notably in the context of EUV and High-NA EUV as well as e-beam metrology and optical systems.

Christophe Fouquet, as a new member of the Board of Management, will oversee the introduction of EUV lithography in high volume manufacturing of integrated circuits (ICs) at customer sites. As ASML will continue to make improvements in the availability of the EUV systems and the profitability of the EUV business, Christophe Fouquet will drive the roll-out and industrialization of EUV and in parallel he will oversee the development and introduction of High-NA EUV lithography over coming years. In his current role as leader of Business Line Applications, Christophe Fouquet has established the Applications business as a key pillar under ASML’s Holistic Lithography strategy, overseeing strong organic sales growth and initiating and executing successful M&A through Taiwan-based HMI. Jim Koonmen, currently managing ASML-unit Cymer Light Sources, and before that managing ASML’s computational lithography unit, will succeed Christophe Fouquet as the leader of Business Line Applications.

“We’re delighted to welcome Christophe to the Board of Management where he will bring broad and deep technology and business experience. With Frits focusing on the best possible collaboration with our key strategic suppliers, we are confident that we have a great team in place to execute our strategy, achieve our 2020 sales and profit targets and realize further growth of the company beyond 2020,” said ASML’s President and Chief Executive Officer Peter Wennink.

The ten largest semiconductor R&D spenders increased their collective expenditures to $35.9 billion in 2017, an increase of 6% compared to $34.0 billion in 2016. Intel continued to far exceed all other semiconductor companies with R&D spending that reached $13.1 billion.  In addition to representing 21.2% of its semiconductor sales last year, Intel’s R&D spending accounted for 36% of the top 10 R&D spending and about 22% of total worldwide semiconductor R&D expenditures of $58.9 billion in 2017, according to the 2018 edition of The McClean Report that was released in January 2018.  Figure 1 shows IC Insights’ ranking of the top semiconductor R&D spenders, including both semiconductor manufacturers and fabless suppliers.

Figure 1

Figure 1

Intel’s R&D expenditures increased just 3% in 2017, below its 8% average annual growth rate since 2001, according to the new report.  Still, Intel’s R&D spending exceeded the combined R&D spending of the next four companies—Qualcomm, Broadcom, Samsung, and Toshiba—listed in the ranking.

Underscoring the growing cost of developing new IC technologies, Intel’s R&D-to-sales ratio has climbed significantly over the past 20 years.  In 2017, Intel’s R&D spending as a percent of sales was 21.2%, down from an all-time high of 24.0% in 2015.  In 2010, the ratio was 16.4%, 14.5% in 2005, 16.0% in 2000, and just 9.3% in 1995.

Qualcomm—the industry’s largest fabless IC supplier—was again ranked as second-largest R&D spender, a position it first achieved in 2012.  Qualcomm’s semiconductor-related R&D spending was down 4% in 2017, after a 7% drop in 2016, and it was close to being passed up by third place Broadcom and fourth placed Samsung, whose R&D spending increased 4% and 19%, respectively.

Despite increasing its R&D expenditures by 19% in 2017, Samsung had the lowest investment-intensity level among the top-10 R&D spenders with research and development funding at 5.2% of sales last year.  Samsung’s 49% increase in semiconductor revenue in 2017 (driven by strong growth in DRAM and NAND flash memory) lowered its R&D as a percent of sales ratio from 6.5% in 2016.  Micron Technology’s revenues surged 77% in 2017, but its research and development expenditures grew 8%, resulting in an R&D/sales ratio of 7.5% compared to 12.5% in 2016.  Similarly, SK Hynix’s sales climbed 79% in 2017, while its research and development spending increased 14% in the year, which resulted in an R&D/sakes ratio of 6.5% versus 10.2% in 2016.

Fifth-ranked Toshiba and sixth-ranked Taiwan Semiconductor Manufacturing Co. (TSMC) each allocated about the same amount for R&D spending in 2017.  Toshiba’s R&D spending was down 7% while TSMC had one of the largest increases in R&D spending among the top 10 companies shown in the figure. TSMC’s R&D expenditures grew by 20% as the foundry raced rivals Samsung and GlobalFoundries in launching new process technologies, while its sales rose 9% to $32.2 billion in the year.

Rounding out the top-10 list were MediaTek, Micron, Nvidia, which moved from 11th place in 2016 to 9th position to displace NXP in the 2017 ranking, and SK Hynix.  Collectively, the top-10 R&D spenders increased their outlays by 6% in 2017, two points more than the 4% R&D increase for the entire semiconductor industry.  Combined R&D spending by the top 10 exceeded total spending by the rest of the semiconductor companies ($35.9 billion versus $23.0 billion) in 2017.

A total of 18 semiconductor suppliers allocated more than more than $1.0 billion for R&D spending 2017.  The other eight manufacturers were NXP, TI ST, AMD, Renesas, Sony, Analog Devices, and GlobalFoundries.

US demand for semiconductor machinery is forecast to reach $7.4 billion in 2021, according to Semiconductor Machinery: United States, a report recently released by Freedonia Focus Reports. Growth in demand for wafer processing equipment will account for the majority of value increases. Ongoing expansion in global production of mobile electronics will support demand for smaller, faster, and more energy-efficient logic integrated circuits, as well as the increasingly advanced wafer processing machinery required for production. Specifically, rising adoption of lithography equipment that utilizes extreme ultraviolet (EUV) technology will spur gains.

Semiconductor assembly machinery demand is forecast to grow the fastest among the product segments. Intensifying production of increasingly compact electronic systems for use in mobile devices will drive demand for more sophisticated semiconductor assembly equipment. For example, semiconductor device manufacturers such as integrated device manufacturers, outsourced semiconductor assembly and test providers, and foundries will require systems capable of mounting ever-smaller semiconductors.

These and other key insights are featured in Semiconductor Machinery: United States. This report forecasts to 2021 US semiconductor machinery demand and shipments in nominal US dollars at the manufacturer level. Total demand is segmented by product in terms of:

  • wafer processing
  • testing
  • assembly

To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2006 to 2016.

More information about the report is available at https://www.freedoniafocusreports.com/Semiconductor-Machinery-United-States-FF75028/

By Emmy Yi, SEMI Taiwan

 

Since Apple unveiled iPhone X with face-recognition functionality in early November 2017, interest in 3D sensing technology has reached fever pitch and attracted huge investments across the related supply chains. The global market for 3D depth sensing is estimated at US$1.5 billion in 2017 and will grow at a CAGR of 209 percent to US$14 billion in 2020, Trendforce estimates. This trend pushes up demand for Vertical Cavity Surface Emitting Laser (VCSEL), a key component for 3D depth sensing technology. SEMI estimates that the global VCSEL market will grow at a CAGR of 17.3 percent between 2016 and 2022, and the total value of the market is expected to reach US$1 billion by 2022.

This SEMI 3D Depth Sensing & VCSEL Technology Seminar attracted more than 600 industry experts.

This SEMI 3D Depth Sensing & VCSEL Technology Seminar attracted more than 600 industry experts.

In light of the significant market growth potential and business opportunities, SEMI Taiwan recently organized the 3D Depth Sensing & VCSEL Technology Seminar, where industry experts from Qualcomm, Lumentum, Himax, Vertilite and IQE gathered to explore the technology trends and potentials from different perspectives. Following are the key takeaways from the Forum:

Not just iPhoneX! Expect a boom in 3D depth sensing

The real-time and depth cue feature of the 3D sensor is essential to enable the next-generation computer vision (CV) applications. Improvements in 3D recognition, machine learning, and 3D image segmentation promise to stoke significant growth across a wide range of applications including long-range automotive LiDAR, short-distance AR/VR devices, facial recognition in the low-light environment inside a car and more.

SEMI_Member_Forum_2_450px

Improvements in component R&D, algorithm writing, and supply chain integration will further expand the 3D sensing market.

Why VCSELs?

Structured light and time of flight (TOF) are currently the two key approaches to 3D sensing, and VCSEL is the core light source for both technologies. VCSEL’s advantages of small footprint, low cost, low power consumption, circular beam shape, optical efficiency, wavelength stability over temperature and high modulating rate are all indispensable for 3D sensing to flourish. In the longer term, improvements in component R&D, algorithm writing, and supply chain integration will further expand the 3D sensing market.

Optimistic about the proliferation of 3D sensing applications, The SEMI Taiwan Power and Compound Semiconductor Committee plans to organize a special interest group to better respond to technology evolution and rising applications of the emerging optoelectronic semiconductor and to drive innovations and development of the industry. SEMICON Taiwan 2018 will also include a theme pavilion and a series of events to enable more communications and collaborations. To learn more, please contact Emmy Yi, SEMI Taiwan, at [email protected] or +886.3.560.1777 #205.

A silicon-based quantum computing device could be closer than ever due to a new experimental device that demonstrates the potential to use light as a messenger to connect quantum bits of information — known as qubits — that are not immediately adjacent to each other. The feat is a step toward making quantum computing devices from silicon, the same material used in today’s smartphones and computers.

In a step forward for quantum computing in silicon -- the same material used in today's computers -- researchers successfully coupled a single electron's spin, represented by the dot on the left, to light, represented as a wave passing over the electron, which is trapped in a double-welled silicon chamber known as a quantum dot. The goal is to use light to carry quantum information to other locations on a futuristic quantum computing chip. Credit: Image courtesy of Emily Edwards, University of Maryland.

In a step forward for quantum computing in silicon — the same material used in today’s computers — researchers successfully coupled a single electron’s spin, represented by the dot on the left, to light, represented as a wave passing over the electron, which is trapped in a double-welled silicon chamber known as a quantum dot. The goal is to use light to carry quantum information to other locations on a futuristic quantum computing chip. Credit: Image courtesy of Emily Edwards, University of Maryland.

The research, published in the journal Nature, was led by researchers at Princeton University in collaboration with colleagues at the University of Konstanz in Germany and the Joint Quantum Institute, which is a partnership of the University of Maryland and the National Institute of Standards and Technology.

The team created qubits from single electrons trapped in silicon chambers known as double quantum dots. By applying a magnetic field, they showed they could transfer quantum information, encoded in the electron property known as spin, to a particle of light, or photon, opening the possibility of transmitting the quantum information.

“This is a breakout year for silicon spin qubits,” said Jason Petta, professor of physics at Princeton. “This work expands our efforts in a whole new direction, because it takes you out of living in a two-dimensional landscape, where you can only do nearest-neighbor coupling, and into a world of all-to-all connectivity,” he said. “That creates flexibility in how we make our devices.”

Quantum devices offer computational possibilities that are not possible with today’s computers, such as factoring large numbers and simulating chemical reactions. Unlike conventional computers, the devices operate according to the quantum mechanical laws that govern very small structures such as single atoms and sub-atomic particles. Major technology firms are already building quantum computers based on superconducting qubits and other approaches.

“This result provides a path to scaling up to more complex systems following the recipe of the semiconductor industry,” said Guido Burkard, professor of physics at the University of Konstanz, who provided guidance on theoretical aspects in collaboration with Monica Benito, a postdoctoral researcher. “That is the vision, and this is a very important step.”

Jacob Taylor, a member of the team and a fellow at the Joint Quantum Institute, likened the light to a wire that can connect spin qubits. “If you want to make a quantum computing device using these trapped electrons, how do you send information around on the chip? You need the quantum computing equivalent of a wire.”

Silicon spin qubits are more resilient than competing qubit technologies to outside disturbances such as heat and vibrations, which disrupt inherently fragile quantum states. The simple act of reading out the results of a quantum calculation can destroy the quantum state, a phenomenon known as “quantum demolition.”

The researchers theorize that the current approach may avoid this problem because it uses light to probe the state of the quantum system. Light is already used as a messenger to bring cable and internet signals into homes via fiber optic cables, and it is also being used to connect superconducting qubit systems, but this is one of the first applications in silicon spin qubits.

In these qubits, information is represented by the electron’s spin, which can point up or down. For example, a spin pointing up could represent a 0 and a spin pointing down could represent a 1. Conventional computers, in contrast, use the electron’s charge to encode information.

Connecting silicon-based qubits so that they can talk to each other without destroying their information has been a challenge for the field. Although the Princeton-led team successfully coupled two neighboring electron spins separated by only 100 nanometers (100 billionths of a meter), as published in Science in December 2017, coupling spin to light, which would enable long-distance spin-spin coupling, has remained a challenge until now.

In the current study, the team solved the problem of long-distance communication by coupling the qubit’s information — that is, whether the spin points up or down — to a particle of light, or photon, which is trapped above the qubit in the chamber. The photon’s wave-like nature allows it to oscillate above the qubit like an undulating cloud.

Graduate student Xiao Mi and colleagues figured out how to link the information about the spin’s direction to the photon, so that the light can pick up a message, such as “spin points up,” from the qubit. “The strong coupling of a single spin to a single photon is an extraordinarily difficult task akin to a perfectly choreographed dance,” Mi said. “The interaction between the participants — spin, charge and photon — needs to be precisely engineered and protected from environmental noise, which has not been possible until now.” The team at Princeton included postdoctoral fellow Stefan Putz and graduate student David Zajac.

The advance was made possible by tapping into light’s electromagnetic wave properties. Light consists of oscillating electric and magnetic fields, and the researchers succeeded in coupling the light’s electric field to the electron’s spin state.

The researchers did so by building on team’s finding published in December 2016 in the journal Science that demonstrated coupling between a single electron charge and a single particle of light.

To coax the qubit to transmit its spin state to the photon, the researchers place the electron spin in a large magnetic field gradient such that the electron spin has a different orientation depending on which side of the quantum dot it occupies. The magnetic field gradient, combined with the charge coupling demonstrated by the group in 2016, couples the qubit’s spin direction to the photon’s electric field.

Ideally, the photon will then deliver the message to another qubit located within the chamber. Another possibility is that the photon’s message could be carried through wires to a device that reads out the message. The researchers are working on these next steps in the process.

Several steps are still needed before making a silicon-based quantum computer, Petta said. Everyday computers process billions of bits, and although qubits are more computationally powerful, most experts agree that 50 or more qubits are needed to achieve quantum supremacy, where quantum computers would start to outshine their classical counterparts.

Daniel Loss, a professor of physics at the University of Basel in Switzerland who is familiar with the work but not directly involved, said: “The work by Professor Petta and collaborators is one of the most exciting breakthroughs in the field of spin qubits in recent years. I have been following Jason’s work for many years and I’m deeply impressed by the standards he has set for the field, and once again so with this latest experiment to appear in Nature. It is a big milestone in the quest of building a truly powerful quantum computer as it opens up a pathway for cramming hundreds of millions of qubits on a square-inch chip. These are very exciting developments for the field ¬– and beyond.”

The latest market research report by Technavio on the global semiconductor IP market predicts a CAGR of close to 10% during the period 2018-2022.

The report segments the global semiconductor IP market by application (healthcare, networking, industrial automation, automotive, consumer electronics, and mobile computing devices), by end-user (fabless semiconductor companies, IDMs, and foundries), and by geography (North America, APAC, and Europe). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.

Here are some key findings of the global semiconductor IP market, according to Technavio hardware and semiconductor researchers:

  • Complex chip designs and use of multi-core technologies: a major market driver
  • Proliferation of wireless technologies: emerging market trend
  • North America dominated the global semiconductor IP market with 47% share in 2016

Complex chip designs and use of multi-core technologies: a major market driver

Nowadays, the electronic device manufacturers develop products that have better functionalities while offering power-packed performances as compared to their earlier products. This is driving the semiconductor chip manufacturers to ensure that their IC designs are capable of and reliable for offer maximum use in terms of performance, which is propelling the product development process in the semiconductor industry.

Players in the market are competing against each other based on timely delivery of offerings while ensuring high performing and multi-functional devices. Semiconductor manufacturers are incorporating new and complex architecture and designs of semiconductor ICs to deliver high-end multi-functional products. For example, 3D ICs are compact, consume less power, and are more efficient in performance. They have a complex electronic circuit design and manufacturing process. Such complexity tends to hamper the overall productivity of the industry.

 

Proliferation of wireless technologies: emerging market trend

In the last 25 years, IoT has evolved a great deal. Internet Protocol version 6 (IPv6) that was in the development phase since 1990 is replacing Internet Protocol version 4 (IPv4). This allows many hosts to connect to the Internet and increases the data traffic that can be transmitted.

The popularity of mobile computing devices has helped the network traffic to grow at an exponential rate. This led to the continued deployment of next-generation wireless standards such as 4G and 5G, and wireless technologies such as Bluetooth low energy (BLE), Wi-Fi, ZigBee, and Z-Wave across the globe. Such wireless standards and wireless technologies offer a wireless connection that is equivalent to broadband connections that have resulted in an increase in the number of users accessing the Internet from anywhere and at any time.

According to a senior analyst at Technavio for research on semiconductor equipment, “At present, ZigBee is one of the three leading wireless technology used for connected devices such as connected bulbs, remote controls, smart meters, smart thermostats, and set-top boxes. High-bandwidth and content-rich applications such as audio, video, gaming, and Internet use the Wi-Fi technology. BLE is used for low power applications and is primarily used to connect wearables to smartphones. ZigBee is a low power version of Wi-Fi which is appropriate for smart home applications such as lighting, remote controls, security, and thermostats.”

Global market opportunities

In terms of regional dominance, North America led the global semiconductor IP market, followed by APAC and Europe in 2017. However, APAC is expected to grow at a faster rate due to increased prevalence of orthopedic surgical procedures. The emerging economies like China and Taiwan contributed to the growth of this market in APAC.

The market share of North America is expected to decrease during the forecast period due to factors such as strong governmental policies against exports from the governments of South Korea, Japan, China, and India, who want to become completely self-sufficient in the semiconductor industry.

 

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.