Category Archives: Wafer Level Packaging

BY DR. PHIL GARROU, Contributing Editor

The need for ever more computational power continues to grow and exaflop (1018 ) capabilities may soon become necessary. A paper by AMD on “Design and Analysis of an APU for Exascale Computing” presented at the IEEE High Performance Computing Architec- tures Conference (HPCA) gave the AMD vision for an exascale node architecture for exascale computing including low-power and high-performance CPU cores, integrated energy-efficient GPU units, in-package high-bandwidth 3D memory, die-stacking and chiplet technologies, and advanced memory systems.

Two of the building blocks for this exascale node architecture are (1) it’s chiplet-based approach that decouples performance-critical processing components like CPUs and GPUs from components that do not scale well with technology (e.g., analog components), allowing fabrication in individually optimized process technologies for cost reduction and design reuse in other market segments and (2) the use of in-package 3D memory, which is stacked directly above high- bandwidth-consuming GPUs.

The exascale heterogeneous processor (Figure 1) is an accelerated processing unit (APU) consisting of CPU and GPU compute integrated with in-package 3D DRAM. The overall structure makes use of a modular “chiplet” design, with the chiplets 3D-stacked on other “active interposer” chips. “The use of advanced packaging technologies enables a large amount of computational and memory resources to be located in a single package.” The exascale targets for memory bandwidth and energy efficiency are incredibly challenging for off-package memory solutions. Thus AMD proposes to integrate 3D-stacked DRAM into the EHP package.

In the center of the EHP are two CPU clusters, each consisting of four multi-core CPU chiplets stacked on an active interposer base die. On either side of the CPU clusters are a total of four GPU clusters, each consisting of two GPU chiplets on a respective active interposer. Upon each GPU chiplet is a 3D stack of DRAM. The DRAM is directly stacked on the GPU chiplets to maximize bandwidth. The interposers underneath the chiplets provide interconnection between the chiplets along with other functions such as external I/O interfaces, power distribution and system management. Interposers maintain high-bandwidth connectivity among themselves by utilizing wide, short distance, point-to-point paths.

Chiplets

The performance requirements require a large amount of compute and memory to be integrated into a single package. Rather than build a single, monolithic system on chip (SOC), AMD proposes to leverage advanced die-stacking technologies to decompose the EHP into smaller components consisting of active interposers and chiplets. Each chiplet houses either multiple GPU compute units or CPU cores. The chiplet approach differs from conventional multi-chip module (MCM) designs in that each individual chiplet is not a complete chip. For example, the CPU chiplet contains CPU cores and caches, but lacks memory interfaces and external I/O.

A monolithic SOC imposes a single process technology choice on all components in the system. With chiplets and interposers, each discrete piece of silicon can be optimized for its own functions. It is expected that smaller chiplets will have higher yield due to their size, and when combined with KGD testing, can be assembled into larger systems at reasonable cost.

It is expected that the decomposition (or disintegration as I prefer to call it) of the EHP into smaller pieces will enable silicon-level reuse of IP (note – this is one of the main drivers of the DARPA CHIPS program)

Yole Développement (Yole) confirms the consolidation of the advanced packaging industry, that is showing a steady growth between 2016 and 2022: +7% in revenue.

“Advanced packaging is showing a total revenue CAGR higher than the total packaging industry (3-4%), semiconductor industry (4-5%) and generally the global electronics industry (3-4%)”, comments Andrej Ivankovic, Technology & Market Analyst at Yole. “Companies are today managing production costs and enlarging their portfolio. In parallel, advanced packaging players are expanding their activities toward the emerging markets thanks to mergers & acquisitions,” he adds. Therefore, the advanced packaging industry is showing drivers including IoT, automotive industry, 5G connectivity, AR/VR, AI.

advanced packaging revenue

What are the advanced packaging market drivers and latest market dynamics? What are the emerging market segments targeted by the leaders to diversify their activities? What are the technology moves? How will the advanced packaging market affect the semiconductor industry evolution? Advanced packaging solutions could enable the development of future semiconductor products and so boost the global semiconductor industry.

Yole’s advanced packaging team releases this month its Status of the Advanced Packaging Industry report. Under this 2017 edition, analysts propose an overview the industry, its disruptions and opportunities. They analyze the latest technology trends and forecasts. Yole’s team also reviews the supply chain and offers a detailed description and analysis of leading company strategies, especially the shifting business models. Yole’s report includes a technical roadmap, showing an analysis per advanced packaging platform along with an analysis of future production and developments in the timeframe 2017-2022.

Andrej Ivankovic from Yole, author of this technology & market report, will present a closer look at the ASE Tech Forum @ Nijmegen. ASE’s conference takes place on June 28, in Van der Valk Hotel, Nijmegen, The Netherlands. During one day, ASE invites you to explore key areas of its IC , SiP and MEMS packaging portfolio, developed in alignment with emerging applications. Innovative technologies, such as FO , FC and 3D, will be detailed as well as opportunities of collaboration: Full program & registration.

“We are very pleased to welcome our network at the ASE Tech Forum @ Nijmegen on June 28”, asserts Jean-Marc Yannou, Technical Director at ASE Europe. ASE is developing a unique one-day program to present our innovative portfolio and including networking times and technology demonstrations. We are looking forward to welcome the advanced packaging companies and get relevant discussions and debates”.

“The fastest growing advanced packaging platform is FO with 36% followed by 2.5D/3D TSV with 28%”,announces Andrej Ivankovic from Yole. “Therefore FO platforms and 2.5D/3D TSV solutions are expected to exceed respectively US$3 billion and US$ 1.3 billion by 2022.”

The FC platform is by far the largest, accounting for 81% of advanced packaging revenue with US$19.6 billion in 2017, however a lower 5% revenue growth indicates that penetration of primarily FO packages will decrease FC market share to 74% by 2022. The revenue forecast translates to an advanced packaging wafer forecast of 8% and a 9% unit count, CAGR during the period 2016-2022. Advanced packages will continue to dominantly address high-end logic and memory in computing and telecom, with further penetration in analog and RF in high-end consumer/mobile segments, while eyeing opportunities in growing automotive and industrial segments.

The shifts in the semiconductor supply chain are results of preparations for future uncertainty, and search for other value flows. Several mergers and acquisitions have been made in attempt to offer a more complete and diversified portfolio, while keeping control of costs and potential losses. Furthermore, in search of additional revenue, new business models are appearing or expanding.

AI is driving the development of 3D TSV and heterogeneous integration technologies. With its new 3D TSV & 2.5D business update report, Yole Développement (Yole), part of Yole Group of Companies investigates the advanced packaging industry and takes a closer look on the AI impact on this market.

“3D integration is clearly offering today unequalled performances suiting exactly the pressing needs of AI applications,” commented Emilie Jolivet, Technology & Market Analyst at Yole.

Initially developed for niche markets including MEMS devices and memories for datacenters, 3D integration is entering in a new era. The world population increase, the exploding smartphones market, the development of new functionalities such as voice/image recognition… all these parameters directly contribute to the development of AI and deep learning solutions, all based on 3D integration technologies. AI is not a concept anymore but a reality that is skyrocketing the development of disruptive advanced packaging technologies.

This year, the “More than Moore” market research and strategy consulting company is moving a step forwards the applications side. Its advanced packaging & semiconductor manufacturing team investigates the industry evolution, taking into account promising sectors such as deep learning, the end-users’ needs and required specifications for final systems. Yole’s analysts combine their advanced packaging expertise and their knowledge of the different industries to perform up-to-date and innovative reports. The 3D TSV & 2.5D business update report is a good example, with a strong focus on the high-performance sector.

Why do we need 3D TSV solutions, especially in high performance applications?

According to Yole, benefits are numerous and are part of the major issues initially identified by the industrial companies. Bandwidth, latency and power consumption are the key words of these innovations… Emilie Jolivet from Yole details some below:

  •  When two chips or more are integrated on an interposer, distance between logic and memory is shortened which enables lower latency and lower power consumption.
•  DRAM, based on a 3D TSV solution, is offering an unequalled bandwidth performance because of the ability of TSV solution to connect several layers of the device.
•  Artificial intelligence and specifically deep learning mostly intensively using memory and computing also need 3D TSV approaches. Both applications are driving the demand of interposer and 3D memory cubes.

AI and deep learning, both part of the high performance applications segment are might be the most impressive applications. However, datacenter networking, AR/VR and autonomous driving are not so far behind. Industrial companies progressively penetrate these market segments by developing dedicated approaches:

  •  Both 3D IC leaders, TSMC and Globalfoundries are involved in the development of new solutions focused on 3D SoC.
•  Samsung introduced its interposer solutions in 2017, SPIL is developing its own 2.5D solutions
•  STMicroelectronics is working on 3D interconnections and interposers for various applications including silicon photonics, data centers.

In addition, companies like Intel, Nvidia are completely re-thinking their growth strategy: “Major IC companies which missed the smartphone business clearly don’t want to miss the AI revolution,” commented Emilie Jolivet from Yole. From their side, investors are part of the playground. Therefore, they all re-align their strategy to have product portfolio for serving AI/deep learning needs. Datacenters, cloud computing, AI, autonomous driving are becoming key words for venture capitalists.

Yole’s analysts are convinced of the added value of 3D integration technologies. AI and deep learning are new applications to consider but not only. AR/VR will be also part of the 3D integration future. And the latest announcement from AMD regarding its new Radeon Pro Vega graphic card dedicated to Apple’s new iMac Pro is another step towards the computing applications™.

A detailed description of the 3D TSV and 2.5D Business Update – Market and Technology Trends 2017 is available on i-micronews.com, advanced packaging reports section.

The Semiconductor Industry Association (SIA) today welcomed a new $75 million initiative outlined in the President’s fiscal year 2018 budget proposal and funded through the Defense Advanced Research Projects Agency (DARPA) that would bolster long-term semiconductor research. The public-private “electronics resurgence” initiative would advance research to progress beyond the limits of traditional scaling and catalyze next-generation semiconductor materials, designs, and architectures. The program would combine with DARPA’s other microelectronics R&D initiatives for a total of more than $200 million devoted to semiconductor and related technology research in the coming fiscal year, an amount that will be supplemented by significant industry investments.

“Semiconductors, the brains of modern electronics, are fundamental to America’s economic, technological, and military infrastructure,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Advances in semiconductor technology reverberate throughout society, making technology more affordable and accessible to consumers and boosting U.S. innovation, productivity, and economic growth. DARPA’s new initiative would strengthen long-range semiconductor research, enhance semiconductor technology’s positive impacts on our country, and bolster national security. The semiconductor industry has a long record of partnering with our government to advance early-stage research. This new, forward-looking program is yet another important example of this ongoing collaboration, and we are committed to working with the Administration and Congress to ensure its enactment.”

The new DARPA initiative is expected to focus on the development of new materials for use in electronics devices, nontraditional architectural approaches, and innovative circuit designs, among other research areas. In addition to fostering advancements in semiconductor technologies used for national security, the ripple effect from this research will be felt across the full range of semiconductor applications: communications, computing, health care, transportation, clean energy, and countless others.

As one of America’s top exporters and advanced manufacturers, the U.S. semiconductor industry is a key contributor to our country’s strength. Our industry supports more than one million jobs in America, accounts for nearly half of the world’s chip sales, and is the world’s most innovative sector. And the United States is home to almost half of U.S. semiconductor companies’ manufacturing base, across 21 states.

“Our industry’s continued strength, and the myriad benefits it provides to our country, are directly attributable to large and sustained investments in research,” said Neuffer. “Recognizing this, the U.S. semiconductor industry plows about one-fifth of its annual sales back into research and development, among the most of any industry. The new DARPA initiative marks a major commitment to furthering semiconductor technology and keeping America at the head of the class in innovation.”

Neuffer also noted SIA’s longstanding support for basic scientific research funded through other federal agencies such as the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the Department of Energy (DOE) Office of Science. He expressed the semiconductor industry’s eagerness to work with the Administration and Congress to enact a budget that prioritizes the strategic importance of research investments to America’s economic and national security and technological leadership.

 

Mentor, a Siemens business, today announced that it has launched the Mentor OSAT (outsourced assembly and test) Alliance program to help drive ecosystem capabilities in support of new high-density advanced packaging (HDAP) technologies like 2.5D IC, 3D IC and fan-out wafer-level packaging (FOWLP) for customer integrated circuit (IC) designs. By launching this program, Mentor will work with OSATs to provide fabless companies with design kits, certified tools, and best practices to aid in smoother adoption of these new packaging solutions that require a much tighter link between chip and package design. Mentor also announced Amkor Technology, Inc. as its first OSAT Alliance member.

Through the Mentor OSAT Alliance, members work with Mentor to create certified design kits to help customers speed up IC and advanced package development with Mentor’s Tanner L-Edit AMS design cockpit, Calibre IC physical verification platform, HyperLynx SI/PI and HyperLynx full-wave 3D tools, Xpedition Substrate Integrator and Xpedition Package Designer tools, and Mentor’s newly announced Xpedition HDAP flow.

“Mentor’s customers are pioneering technologies at the heart of IoT, autonomous driving and next-generation wired and wireless networks,” said Joe Sawicki, vice president and general manager of the Design to Silicon Division at Mentor. “Many of these companies are designing ICs that use advanced packaging from OSATs to achieve their design goals. Like the Mentor Foundry Alliance program did for accelerating foundry design kit creation, the Mentor OSAT Alliance program will help our mutual customers use Mentor’s world-class EDA portfolio to more easily implement ICs with advanced packaging technologies.”

Members of the Mentor OSAT Alliance will receive software, training, and reference flow best practices from Mentor, in addition to the opportunity for co-marketing mutual offerings.

“The next generation of IC packaging will require increased heterogeneous die integration, incorporating reduced size, weight, and improved performance and reliability,” said Ron Huemoeller, corporate vice president, research and development at Amkor. “Amkor’s Silicon Wafer Integrated Fan-out Technology (SWIFT™) package technology is designed to provide increased I/O and circuit density within a significantly reduced footprint and profile for single and multi-die applications. Being an integral part of the Mentor OSAT Alliance program will allow us to fast-track PDK development and delivery, and enable our customers to design more efficiently and predictably.”

With alliance programs for both foundries and OSATs, Mentor continues to enable the semiconductor ecosystem. The OSAT Alliance program will drive global design and supply chain adoption of these emerging advanced packaging technologies.

IC Insights recently released its May Update to the 2017 McClean Report. This Update included IC Insights’ latest 2017 IC market forecast, a discussion of the 1Q17 semiconductor industry market results, a review of the IC market by electronic system type, a look at the top-25 1Q17 semiconductor suppliers, and an update of the capital spending forecast by company.

Figure 1 shows the “Billion-Dollar Club” list from 2007 through IC Insights’ forecast in 2017. In total, there are 15 companies that are forecast to have semiconductor capital expenditures of ≥$1.0 billion in 2017, up from 11 in 2016 and only 8 in 2013. Infineon and Renesas are expected to move into the major spending ranking this year as each company is aggressively targeting the fast rising automotive semiconductor market. Other companies expected to be added to the ranking this year include Nanya and ST. Moreover, IC Insights believes that a few Chinese companies are likely to break into the “major spenders” ranking over the next couple of years as they ramp up their new fabs. The 15 companies listed, which include four pure-play foundries, are forecast to represent 83% of total worldwide semiconductor industry capital spending in 2017, the highest percentage over the timeperiod shown.

This year, four companies—Intel, Samsung, GlobalFoundries, and SK Hynix— are expected to represent the bulk of the increase in spending. Samsung is forecast to spend $3,200 million more in capital outlays this year than in 2016, Intel $2,375 million more, GlobalFoundries $865 million more, and SK Hynix an additional $812 million. Combined, these four companies are expected to increase their spending by $7,252 million in 2017, or about 90% of the total $8,021 million net jump in total semiconductor industry capital expenditures forecast for this year.

With a 31% increase, the DRAM/SRAM segment is expected to display the largest percentage increase in capital expenditures of the major products types listed this year. With DRAM ASPs surging since the third quarter of 2016, DRAM manufacturers are once again stepping up spending for this segment.

Capital spending for flash memory in 2016 ($14.6 billion) was significantly higher than spending allocated for DRAM ($8.5 billion). Overall, IC Insights believes that essentially all of the spending for flash memory in 2016 and 2017 was and will be dedicated to 3D NAND flash memory process technology as opposed to planar flash memory. A big jump in NAND flash capital spending in 2017 is expected to come from Samsung as it ramps its 3D NAND production in its giant new fab in Pyeongtaek, South Korea.

Figure 1

Figure 1

Amkor Technology, Inc. (Nasdaq: AMKR) today announced that it has completed the acquisition of NANIUM S.A., a provider of wafer-level fan-out (WLFO) semiconductor packaging solutions.

In its press release, Amkor said that the acquisition of NANIUM will strengthen its position in the fast growing market of wafer-level packaging for smartphones, tablets and other applications. NANIUM has developed a high-yielding, reliable WLFO technology, and has successfully ramped that technology to high volume production.

“Amkor is a leader in wafer-level CSP and high-density integrated fan-out technologies,” said Steve Kelley, Amkor’s president and chief executive officer. “With the acquisition of NANIUM, we will have an equally compelling value proposition in the low-density fan-out area. NANIUM is widely viewed as the fan-out technology leader as well as a very capable manufacturer, having shipped more than one billion WLFO packages utilizing a state-of-the-art 300mm wafer-level packaging production line.”

NANIUM employs approximately 650 people and is based in Porto, Portugal.

By Lung Chu, President of SEMI China

Lung250As China embarks on the Made in China 2025 plan with electronics and semiconductor technology as one of the Top 10 focus areas, China’s semiconductor industry has an unprecedented growth opportunity.  However, besides the huge investment required, China IC industry is faced with strong competition in terms of technology, products, talent, and supply chain access from many leading global layers in an increasingly interconnected world and a highly global semiconductor market.

To be successful, it is critical that China’s semiconductor industry speed up its integration into the global industry supply chain. The goal is to achieve sustainable growth through “win-win” collaboration with global partners and leveraging industry platforms to become a significant player and partner in the international semiconductor manufacturing industry ecosystem.

China semiconductor industry growth

In recent years, many new 12-inch fab projects have been announced, started construction, or in ramp-up stage in China, including UMC in Xiamen, PSC in Hefei, TSMC in Nanjing, YMTC in Wuhan and Nanjing, as well as GLOBALFOUNDRIES in Chengdu.  Many China-based foundries are adding 12-inch capacity including SMIC fabs in Shanghai, Beijing and Shenzhen, and HLMC in Shanghai area. The production capacity of these ~20 new fabs is expected to come online in the next three to five years.

SEMI has seen active interest in several local cities in attracting global and China-based companies to set up semiconductor fabrication facilities.  The strong trend for expansion and investment shows no signs of slowdown in China. The current investment fever in semiconductors in China is a balancing act ─ it will lead both to the development of a regional industry supply chain and the demand for capital investment in China. However, as with any expansion bubble, new production capacity in some mature nodes might create overcapacity and raises questions of sustainability paired with the severe shortage of skilled workers/engineers and uncertainty of future fund availability for continuing operations and investment.

Rise of China

China’s expansion in semiconductor manufacturing should be viewed through a global context.  SEMI advocates for free trade and open markets, international cooperation for intellectual property (IP) rights protection, industry Standards, and environmental protection. SEMI promotes the global electronics manufacturing supply chain and works to positively influence the growth and prosperity of its members.

In 2016, before stepping down, the U.S. Obama administration delivered a report from the Council of Advisors on Science and Technology. Part of the report addressed the rise of China’s semiconductor industry and recommended the United States should improve its environment for development of the semiconductor and high-tech industry and continue to invest in advanced technologies.

Each country will evaluate their own course as the China market expands. However, the rise of the semiconductor industry in China need not be viewed simply as a threat to the world; instead, it is a significant growth driver and business opportunity for global suppliers.  IC chips top the list of all Chinese bulk imports in terms of dollar value. China desires to develop its IC chip industry to better fulfill its inherent demand. China currently has low market share and limited technical capability in four major areas identified in the China National IC Development Guideline: IC design, manufacturing, package/testing, and equipment/material.

China is clear about its intentions with regard to growing its own semiconductor supply chain. In the short term, heavy dependency on foreign suppliers (especially equipment and material) is inevitable.  Going forward, cooperation with foreign semiconductor suppliers/partners with an open-minded and “win-win” attitude is an imperative strategy in solving the development bottleneck issues concerning equipment/materials and other key areas in China’s semiconductor industry.

SEMI China focuses on member value

China is the world’s largest manufacturing base for electronics products, as well as the world’s largest market for demand of IC chips. Now, as China’s semiconductor industry experiences a transformation in development, SEMI China is working to provide more value to its local and global members as the industry is rapidly changing. SEMI China promotes Chinese enterprises for industry growth and prosperity, and helps outstanding local companies advance in the international market. SEMI China is also using its global, specialized, and localized industry association platform to promote the development of the semiconductor industry in China.

SEMI China has 11 industry committees and is committed to SEMI global values and the China region. All the SEMI China committees have the strong connections needed to communicate and collaborate not only with China’s semiconductor industry, but with the global ecosystem.

SEMI, the global trade association that advances the growth and prosperity of electronics manufacturing, was the world’s first semiconductor industry group, established in 1970. It has witnessed the flourishing development of the semiconductor industry over the last 47 years and continues to be devoted to promoting the healthy development of the industry. SEMI is keeping pace with the industry and offering specialized and global platform services to the entire industry ecosystem. In the last two years, SEMI became a strategic partner with both FlexTech Alliance and the MEMS & Sensors Industry Group (MSIG). In the future, SEMI is also providing association services for the Fab Owner Association (FOA) to continue expanding collaboration along the electronics manufacturing supply chain. The intent is to include a wider span of the interdependent electronics manufacturing supply chain and the key adjacent opportunities that drive global growth opportunities.

SEMICON China is an industry event platform organized in partnership with major chip manufacturers, packaging and testing companies in China, and suppliers of equipment and materials worldwide. The world’s leaders come to discuss global industry trends, cutting-edge technologies and market opportunities on the same stage, as well as the development of global and Chinese semiconductor industries. This year, the importance of SEMICON China was validated ─ with over 69,000 attendees and a record number of exhibitors ─ the largest SEMICON show ever.

Global competition in semiconductor manufacturing has long been a part of the environment with growth starting in the U.S. and spreading to Europe, Japan, Korea, Taiwan, Southeast Asia, and China. Global competition has resulted in new innovations and a global march to the demanding cadence of Moore’s Law. Compared to other countries, China’s semiconductor industry is relatively weak and the barriers to entry for leading-node production remain challenging. Despite this, China is moving forward ─ with a focus to increase domestic semiconductor chip demand. The Chinese M&A wave is another growth driver for the industry. I hope that going forward we can all embrace the industry’s growth, and not fear China’s advancement.

 

Worldwide semiconductor revenue totaled $343.5 billion in 2016, a 2.6 percent increase from 2015 revenue of $334.9 billion, according to final results by Gartner, Inc. The top 25 semiconductor vendors’ combined revenue increased 10.5 percent, a significantly better performance than the overall industry’s growth; however, most of this growth resulted from merger and acquisition (M&A) activity.

“The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half,” said James Hines research director at Gartner. “Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements.”

Intel retained its No. 1 position as the largest semiconductor manufacturer and grew its semiconductor revenue 4.6 percent in 2016 (see Table 1). Samsung Electronics continued to maintain the No. 2 spot with 11.7 percent market share.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2016 (Millions of Dollars)

2015 Rank

2016 Rank

Vendor

2016 Revenue

2016
Market Share (%)

2015 Revenue

2015-2016 Growth (%)

1

1

Intel

54,091

15.7

51,690

4.6

2

2

Samsung Electronics

40,104

11.7

37,852

5.9

4

3

Qualcomm

15,415

4.5

16,079

-4.1

3

4

SK hynix

14,700

4.3

16,374

-10.2

17

5

Broadcom Ltd. (formerly Avago)

13,223

3.8

4,543

191.1

5

6

Micron Technology

12,950

3.8

13,816

-6.3

6

7

Texas Instruments

11,901

3.5

11,635

2.3

7

8

Toshiba

9,918

2.9

9,162

8.3

12

9

NXP Semiconductors

9,306

2.7

6,517

42.8

10

10

Media Tek

8,725

2.5

6,704

30.1

Others

153,181

44.6

160,562

-4.6

Total Market

343,514

100.0

334,934

2.6

Source: Gartner (May 2017)

Consolidation continued to play a major role in the market share rankings, with several large companies growing through acquisitions. Merger and acquisition activity among the major vendors in 2016 included Avago Technologies’ acquisition of Broadcom Corp. to become Broadcom Ltd., On Semiconductor’s acquisition of Fairchild Semiconductor, and Western Digital’s acquisition of SanDisk. The largest mover in the top 25 was Broadcom Ltd., which moved up 12 places in the market share ranking.

“The combined revenue of the top 25 semiconductor vendors increased by 10.5 percent during 2016 and accounted for a 74.9 percent share, outperforming the rest of the market, which saw a 15.6 percent revenue decline,” said Mr. Hines. “However, these results are skewed by the large amount of M&A activity during 2015 and 2016. If we adjust for this M&A activity by adding the revenue of each acquired company to the revenue of the acquirer for both 2015 and 2016 where necessary, then the top 25 vendors would have experienced a 1.9 percent revenue increase, and the rest of the market would have increased by 4.6 percent.”

Rudolph Technologies, Inc. (NYSE: RTEC) announced today that two of the industry’s leading suppliers of advanced packaging services have purchased multiple Firefly Inspection Systems. The Firefly System, with Rudolph’s patented Clearfind Technology, can detect defects that are almost impossible to find using conventional imaging techniques – helping to significantly reduce yield-robbing failures in both the front- and back-end of the semiconductor manufacturing process.

“Advanced packaging is rapidly becoming a critical differentiator for mobile and Internet of Things (IoT) device manufacturers with growth in multiple technology segments. This includes fan-out wafer level packaging, which Yole Développement estimates will have a compound annual growth rate as high as 50 percent over the next three years. We are excited to enable this rapid growth in advanced packaging through reduced cost and improved reliability of next generation technologies with our new Firefly inspection solution,” said Mike Goodrich, vice president and general manager of Rudolph’s Process Control Group. “The Firefly System provides a unique combination of defect sensitivity and substrate flexibility, in a single platform, which helps our customers reduce their capital investment requirements. By including our automatic defect classification TrueADC software and yield management Discover software, these systems will deliver a complete solution for process control and quick yield learning at critical steps in advanced packaging processes.”

Mike Plisinski, chief executive officer added, “Rudolph collaborates extensively with customers early in the development cycle in order to gain a deeper understanding of their specific challenges. In doing so, we are able to leverage Rudolph’s broad technology portfolio and experience to provide a more comprehensive solution to our customers. In recent years, Rudolph has made a conscious effort to cultivate strategic relationships across our customer base to transform our focus from supplying equipment to being a process control solution partner.”

Two manufacturing service providers, a foundry and an outsourced assembly and test (OSAT) facility, have placed orders for multiple Firefly Systems for fan-out and wafer-level chip scale packaging (WLCSP) applications. The Firefly System’s Clearfind Technology, which can see critical defects that may otherwise escape detection, was an important consideration in all cases. Such defects, including un-etch metal residues that can be obscured by graininess and low-contrast organic residues, are becoming increasingly important as vias and redistribution line (RDL) features continue to shrink. A total of seven systems have been ordered, all of which will ship this year.