Category Archives: Wafer Processing

Cypress Semiconductor Corporation (“Cypress”) (NASDAQ: CY) today announced that Executive Chairman Ray Bingham has tendered his resignation as Executive Chairman and is stepping down from the Board of Directors. He also notified the Board that he was declining to stand for re-election at the Annual Meeting. The Board has accepted his decision. In addition, Eric Benhamou has stepped down as Lead Independent Director. He will remain on the Board. In response to these developments, the Board of Directors has appointed current independent director W. Steve Albrecht as its new Chairman. As a world-renowned expert in the field of corporate governance, the Board unanimously decided that Steve is the right person for the job. Finally, the independent members of the Cypress Board decided, given CEO Hassane El-Khoury’s superior performance, there is no longer a need for the Executive Chairman role. All of these changes are effective immediately.

“It has been a great privilege to serve as Chairman of Cypress’ Board of Directors and most recently Executive Chairman, alongside some of the smartest minds in the business, at such an important time in Cypress’ history,” said Bingham. “In the last year, we have accomplished a great deal, including removing an underperforming CEO who was no longer right for the Company, and appointing a dynamic CEO who I believe will continue to lead the Company upward and implement the successful turnaround driven by the Cypress 3.0 strategy. While it saddens me to leave the Board at such a time, I believe that the nature of this proxy contest has become a distraction to the Company and the management team’s ability to fully execute Cypress 3.0 – the strategy that is putting Cypress back on track. I wish Hassane, his team and the Board members all the best in the future and look forward to watching them accomplish great things in the months and years to come.”

“On behalf of the full Board, I want to thank Ray for his years of contributions to Cypress,” said W. Steve Albrecht, Chairman of Cypress. “His extensive experience and deep industry knowledge played an enormous part in the turnaround that started with the removal of T.J. Rodgers as CEO and member of the Board and culminated with the appointment of Hassane as the new CEO and his formulation and execution of the Cypress 3.0 strategy. The Board and I remain as committed and as focused as ever to good corporate governance, driving growth and creating value for all of our stockholders. I’m honored to take on the role and responsibility of Chairman and pledge to serve in the best interests of all Cypress’ stakeholders through my service on the Board. I am also grateful that Eric Benhamou will continue to serve on the Board. He brings a wealth of experience that is highly relevant to our new 3.0 strategy.”

Dr. Albrecht, who is a National Association of Corporate Directors (“NACD”) Board Leadership Fellow, is highly acclaimed in the corporate governance field, having chaired the audit committee and served on the nomination/governance committee of nearly every board he has served on. Dr. Albrecht also teaches the MBA corporate governance and board of directors’ class at Brigham Young University (“BYU”) and has authored a text on corporate governance and boards of directors. Albrecht has done extensive research and writing on financial reporting, business fraud, ethics and corporate governance. His research has resulted in the publication of over one hundred and twenty-five articles in professional and academic journals. He is the author or co-author of over 25 books or monographs, several of which are on fraud, integrity, financial and managerial accounting and corporate governance/boards of directors. Dr. Albrecht is also a certified public accountant, certified internal auditor and certified fraud examiner with extensive experience in controls and financial accounting matters, with a particular expertise in multinational companies.

Dr. Albrecht has served on the boards of directors of four public companies and five private companies. In addition to Cypress Semiconductor, he currently serves on the Boards of Directors of Red Hat, Inc. and SkyWest, Inc. At BYU, Dr. Albrecht is the Gunnel Endowed Professor in the Marriott School of Management and a BYU Wheatley Fellow. Prior to BYU, he taught at Stanford Universityand the University of Illinois and served as a trustee for both the Financial Accounting Foundation (which oversees the FASB) and COSO (the organization that established the internal control framework used by corporations). He has consulted with numerous corporations and has been an expert witness in 37 fraud cases, including many of the largest financial statement fraud cases in the United States. In 2006, Dr. Albrecht was named by Utah Business as one of its first class of top five corporate directors in the state of Utah. In 2013 he was included in the NACD Directorship 100, being named one of the top 50 Corporate Directors in America. Later this month, Dr. Albrecht will receive the Lifetime Outstanding Director Award in the State of Utah.

Zhe Fei pointed to the bright and dark vertical lines running across his computer screen. This nano-image, he explained, shows the waves associated with a half-light, half-matter quasiparticle moving inside a semiconductor.

“These are waves just like water waves,” said Fei, an Iowa State University assistant professor of physics and astronomy and an associate of the U.S. Department of Energy’s Ames Laboratory. “It’s like dropping a rock on the surface of water and seeing waves. But these waves are exciton-polaritons.”

This image shows how researchers launched and studied half-light, half-matter quasiparticles called exciton-polaritons. A laser from the top left shines on the sharp tip of a nano-imaging system aimed at a flat semiconductor. The red circles inside the semiconductor are the waves associated with the quasiparticles. Image courtesy of Zhe Fei/Iowa State University

This image shows how researchers launched and studied half-light, half-matter quasiparticles called exciton-polaritons. A laser from the top left shines on the sharp tip of a nano-imaging system aimed at a flat semiconductor. The red circles inside the semiconductor are the waves associated with the quasiparticles. Image courtesy of Zhe Fei/Iowa State University

Exciton-polaritons are a combination of light and matter. Like all quasiparticles, they’re created within a solid and have physical properties such as energy and momentum. In this study, they were launched by shining a laser on the sharp tip of a nano-imaging system aimed at a thin flake of molybdenum diselenide (MoSe2), a layered semiconductor that supports excitons.

Excitons can form when light is absorbed by a semiconductor. When excitons couple strongly with photons, they create exciton-polaritons.

It’s the first time researchers have made real-space images of exciton-polaritons. Fei said past research projects have used spectroscopic studies to record exciton-polaritons as resonance peaks or dips in optical spectra. Until recent years, most studies have only observed the quasiparticles at extremely cold temperatures – down to about -450 degrees Fahrenheit.

But Fei and his research group worked at room temperature with the scanning near-field optical microscope in his campus lab to take nano-optical images of the quasiparticles.

“We are the first to show a picture of these quasiparticles and how they propagate, interfere and emit,” Fei said.

The researchers, for example, measured a propagation length of more than 12 microns – 12 millionths of a meter – for the exciton-polaritons at room temperature.

Fei said the creation of exciton-polaritons at room temperature and their propagation characteristics are significant for developing future applications for the quasiparticles. One day they could even be used to build nanophotonic circuits to replace electronic circuits for nanoscale energy or information transfer.

Fei said nanophotonic circuits with their large bandwidth could be up to 1 million times faster than current electrical circuits.

A research team led by Fei recently reported its findings in the scientific journal Nature Photonics. The paper’s first author is Fengrui Hu, an Iowa State postdoctoral research associate in physics and astronomy. Additional co-authors are Yilong Luan, an Iowa State doctoral student in physics and astronomy; Marie Scott, a recently graduated undergraduate at the University of Washington; Jiaqiang Yan and David Mandrus of Oak Ridge National Laboratory and the University of Tennessee; and Xiaodong Xu of the University of Washington.

The researchers’ work was supported by funds from Iowa State and the Ames Laboratory to launch Fei’s research program. The W.M. Keck Foundation of Los Angeles also partially supported the nano-optical imaging for the project.

The researchers also learned that by changing the thickness of the MoSe2 semiconductor, they could manipulate the properties of the exciton-polaritons.

Fei, who has been studying quasiparticles in graphene and other 2-D materials since his graduate school days at University of California San Diego, said his earlier work opened the doors for studies of exciton-polaritons.

“We need to explore further the physics of exciton-polaritons and how these quasiparticles can be manipulated,” he said.

That could lead to new devices such as polariton transistors, Fei said. And that could one day lead to breakthroughs in photonic and quantum technologies.

IC Insights recently released its Update to its 2017 IC Market Drivers Report.  The Update includes IC Insights’ latest outlooks on the smartphone, automotive, PC/tablet and Internet of Things markets.

In the Update, IC Insights scaled back its total semiconductor sales forecast for system functions related to the Internet of Things in 2020 by about $920 million, mostly because of lower revenue projections for connected cities applications (such as smart electric meters and infrastructure supported by government budgets).  The updated forecast still shows total 2017 sales of IoT semiconductors rising about 16.2% to $21.3 billion (with final revenues in 2016 being slightly lowered to $18.3 billion from the previous estimate of $18.4 billion), but the expected compound annual growth rate between 2015 and 2020 has been reduced to 14.9% versus the CAGR of 15.6% in IC Insights’ original projection from December 2016. Total semiconductor sales for IoT system functions are now expected to reach $31.1 billion in 2020 (Figure 1) versus the previous projection of $32.0 billion in the final year of the forecast.

Figure 1

Figure 1

IC Insights’ revised outlook for IoT semiconductor sales by end-use market categories shows that semiconductor revenues for connected cities applications are projected to grow by a CAGR of 8.9% between 2015 and 2020 (down from 9.7% in IC Insights’ original forecast).  Meanwhile, the IoT semiconductor market for wearable systems is expected to show a CAGR of 17.1% (versus 18.8% in the previous projection).  The lower growth projection in chip sales for connected cities systems is a result of anticipated belt tightening in government spending around the world and the slowing of smart meter installations now that the initial wave of deployments has ended in many countries.  Slower growth in semiconductor sales for wearable systems is primarily related to IC Insights’ reduced forecast for smartwatch shipments through 2020.

The updated outlook nudges up semiconductor growth in the industrial Internet category to a CAGR of 24.1% (compared to 24.0% in the December 2016 forecast) and slightly lowers the annual rate of increase in connected homes and connected vehicles to CAGRs of 21.3% and 32.9%, respectively (from 22.7% and 33.1% in the original 2017 report).

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $31.3 billion for the month of April 2017, an increase of 20.9 percent from the April 2016 total of $25.9 billion and 1.3 percent more than last month’s total of $30.9 billion. April marked the global market’s largest year-to-year growth since September 2010. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects annual global market growth of 11.5 percent in 2017 and 2.7 percent in 2018, followed by a slight decrease of 0.2 percent in 2019.

GSR graph 2_med

 

“The global semiconductor market has grown at an impressive rate through the beginning of 2017, culminating with April’s year-to-year growth of 21 percent, the global market’s largest increase in nearly seven years,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Although driven in part by tremendous growth in the memory market, sales of non-memory products also grew by double digits in April, and all major regional markets posted substantial year-to-year gains. The global market is projected to experience significant annual growth this year, with slower growth expected next year and roughly flat sales in 2019.”

Regionally, year-to-year sales increased in China (30.0 percent), the Americas (26.9 percent), Asia Pacific/All Other (14.1 percent), Europe (12.7 percent), and Japan (12.0 percent). Compared with last month, sales were up slightly across all regions: Asia Pacific/All Other (2.0 percent), the Americas (1.8 percent), Japan (1.4 percent), China (0.7 percent), and Europe (0.5 percent).

Additionally, SIA today endorsed the WSTS Spring 2017 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $377.8 billion in 2017. This would mark the industry’s highest-ever annual sales, an 11.5 percent increase from the 2016 sales total. WSTS projects year-to-year increases across all regional markets for 2017: Asia Pacific (12.4 percent), the Americas (12.2 percent), Europe (8.7 percent), and Japan (6.6 percent). Beyond 2017, growth in the semiconductor market is expected to slow across all regions. WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

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.

 

SEMI today reported that worldwide semiconductor manufacturing equipment billings reached US$13.1 billion for the first quarter of 2017. The quarter ended very strong, with March billings reaching $5.6 billion, an all-time monthly record.

Quarterly billings of US$13.1 billion also represent the first time quarterly billings exceeded the record quarterly high set in the third quarter of 2000 ($13.0 billion). Billings for the most recent quarter are 14 percent higher than the fourth quarter of 2016 and 58 percent higher than the same quarter a year ago. The data is gathered jointly with the Semiconductor Equipment Association of Japan (SEAJ) from over 95 global equipment companies that provide data on a monthly basis.

The quarterly billings data by region in billions of U.S. dollars, quarter-over-quarter growth and year-over-year rates by region are as follows:

 
1Q2017
4Q2016
1Q2016
1Q2017/4Q2016
(Qtr-over-Qtr)
1Q2017/1Q2016
(Year-over-Year)
Korea
3.53
2.39
1.68
48%
110%
Taiwan
3.48
4.15
1.89
-16%
84%
China
2.01
1.15
1.60
74%
25%
North America
1.27
1.24
1.01
3%
26%
Japan
1.25
1.05
1.24
19%
1%
Europe
0.92
0.93
0.35
-1%
160%
Rest of World
0.63
0.60
0.51
4%
23%
Total
13.08
11.52
8.28
14%
58%

Source: SEMI (www.semi.org) and SEAJ, June 2017

The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports: the monthly SEMI Billings Report, which offers a perspective of the trends in the equipment market; the monthly Worldwide Semiconductor Equipment Market Statistics (WWSEMS), a detailed report of semiconductor equipment bookings and billings for seven regions and 24 market segments; and the SEMI Semiconductor Equipment Forecast, which provides an outlook for the semiconductor equipment market.

 

The latest update to the World Fab Forecast report, published on May 31, 2017 by SEMI, reveals record spending for fab construction and fab equipment. Korea, Taiwan, and China all see large investments, and spending in Europe will also increase significantly. In 2017, over US$49 billion will be spent on equipment alone, a record for the semiconductor industry.  Spending on new fab construction is projected to reach over $8 billion, the second largest year on record.  Records will shatter again in 2018, when equipment spending will pass $54 billion, and new fab construction spending is forecast at an all-time high of $10 billion. See Figure.

Figure 1

Figure 1

SEMI reports that these unprecedented high numbers are not only driven by a handful of well-known, established companies, but also by several new Chinese companies entering the scene with large budgets. An increase in overall fab spending (construction and equipment together) of 54 percent year-over-year (YoY) in China is expected.  Total spending rises from $3.5 billion in 2016 to $5.4 billion in 2017, and then to $8.6 billion in 2018, another 60 percent year-over-year (YoY).

Some of these China-based companies are well known, such as Hua Li Microelectronics or SMIC (top investors in 2017 and 2018), though newcomers in the arena, including Yangtze Memory Technology, Fujian Jin Hua Semiconductor, Tsinghua Unigroup, Tacoma Semiconductor, and Hefei Chang Xin Memory, add to the spending surge.

The SEMI World Fab Forecast breaks down fab equipment spending by region. Korea leads both years of our forecast period, with spending of $14.6 billion in 2017 and $15.1 billion in 2018.  In 2017, Taiwan is projected to be the second largest spending region on equipment, but China will take over second place in 2018 as it equips the many new fabs being built in 2016 and 2017.  Americas is in fourth place, projected to spend $5.2 billion in 2017 and $5.5 billion in 2018.  Japan will come in fifth, spending $5.1 billion in 2017 and $5.3 billion in 2018.  Although the Europe/Mideast region is in sixth place with relatively modest investments of $3.8 billion in 2017, this represents remarkable growth for the region, 71 percent more than in 2016; and the region will bump spending another 20 percent in 2018 (to $4.6 billion).

This exciting growth cycle could continue well beyond 2018.  Record fab construction spending of $10 billion for 2018 means new fabs will need to be equipped at least a year down the road, leading to high expectations for good business beyond the current two-year forecast period.

Since the last publication on February 28, the SEMI Industry Research & Statistics team has made 279 changes on 244 facilities/lines. In that time frame, 24 new facilities were added and 4 fab projects were closed.

For insight into semiconductor manufacturing in 2017 and 2018 with details about capex for construction projects, fab equipping, technology levels, and products, visit the SEMI Fab Database webpage and order the SEMI World Fab Forecast Report. The report, in Excel format, tracks spending and capacities for over 1,100 facilities including over 60 future facilities, across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities.

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

By Walt Custer, Custer Consulting Group, and Dan Tracy, SEMI

SEMI’s year-to-date worldwide semiconductor equipment billings year-to-date through March show a 59.6 percent gain to the same period last year.

Understanding volatility in the electronic equipment supply chain can be valuable in forecasting future business activity.  A useful way to compare relevant electronic industry data series is by using 3/12 growth rates.  The 3/12 growth is the ratio of three months of data, compared to the same three months a year earlier.

Chart 1 compares the 3/12 growth rates of four data series:

  • World semiconductor equipment shipments (SEMI; www.semi.org)
  • Taiwan chip foundry sales (company composite maintained by Custer Consulting Group)
  • World semiconductor shipments (SIA, www.semiconductors.org & WSTS, www.wsts.org)
  • World electronic equipment sales (composite of 238 global OEMS maintained by Custer Consulting Group).

supply-chain-dynamics

Highlights

  • Semiconductor capital equipment sales are by far the most volatile of the four series in Chart 1, followed by foundry sales.
  • Foundry sales are a good leading indicator for semiconductor equipment shipments ─ leading SEMI equipment by 3-4 months on a 3/12 growth basis.
  • Foundry growth peaked in November 2016.
  • SEMI equipment growth appears to have peaked in February 2017.
  • Semiconductor shipments may have peaked in March 2017. March semiconductor revenues were up 18.5 percent in 1Q’17 vs 1Q’16 and, although still very strong, their rate of growth appears to have plateaued.

Note that 3/12 values greater than 1.0 indicate growth.  Declining 3/12 values (but greater than 1.0) indicate growth but at a slower rate.  Values below 1.0 indicate contraction.

Based upon Chart 1, semiconductor equipment 3/12 growth will likely reach zero in August or September of this year. Considering the unstable world geopolitical situation, uncertainty clearly exists.

SEMI members can access member-only market data and information at www.semi.org/en/free-market-data-semi-members.

Custer Consulting Group (www.custerconsulting.com) provides market research, business analyses and forecasts for the electronic equipment and solar/photovoltaic supply chains including semiconductors, printed circuit boards & other passive components, photovoltaic cells & modules, EMS, ODM & related assembly activities and materials & process equipment.

EV Group (EVG), a supplier of wafer bonding and lithography equipment for the MEMS, nanotechnology and semiconductor markets, today announced that it is expanding production capacity at its corporate headquarters in St. Florian am Inn, Austria. Representing a 20 million Euro investment, the expansion will include the construction of a new building that provides additional production and test capacity for EVG equipment that meets the high cleanliness requirements of the semiconductor industry, as well as that allows for a significant expansion of warehouse space.

EV Group headquarters in St. Florien, Austria, including construction site for additional production and test capacity.

EV Group headquarters in St. Florien, Austria, including construction site for additional production and test capacity.

“With the new building adjacent to our existing manufacturing facilities, we will first and foremost create additional test rooms for the final assembly, software installation and quality assurance of our equipment and the technical source inspection by our customers,” stated Dr. Werner Thallner, executive operations and financial director at EV Group. “This enables us to act on the significant increase in demand for our solutions in both existing and new markets, and pursue our mid- and long-term growth targets at the same time.”

From left to right: Paul Lindner, Erich Thallner, Aya Maria Thallner, Hermann Waltl and Dr. Werner Thallner (EV Group Executive Board)

From left to right: Paul Lindner, Erich Thallner, Aya Maria Thallner, Hermann Waltl and Dr. Werner Thallner (EV Group Executive Board)

The new building to expand production capacity is set to open before the end of this calendar year.