Category Archives: Wafer Processing

SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain, today announced the hire of David Anderson as president of the SEMI Americas region.  Reporting to SEMI‘s president and CEO, the president of SEMI Americas has P&L responsibility as well as ownership of all Americas region programs and events, including SEMICON West.

David Anderson will be responsible for SEMI Americas activities in establishing industry Standards, advocacy, community development, expositions, and programs.  With broad experience in the semiconductor device industry, and leadership positions in associations, consortia, and on boards of directors, Anderson brings the diverse skills necessary to lead SEMI’s Americas region.

Anderson has past experience at Fairchild Semiconductor, National Semiconductor, the Semiconductor Industry Suppliers Association, and SEMATECH.  At SEMATECH, in addition to other industry-advancing achievements, he helped launch the global ISMI (International SEMATECH Manufacturing Initiative) effort to improve the productivity and cost performance of semiconductor manufacturing equipment and operations.

Most recently, Anderson was CEO and chairman of Novati Technologies, a specialty manufacturing fab and provider of semiconductor and related process technology development and commercialization services.  Novati’s solutions included semiconductor, MEMS, sensors, microfluidics, silicon-photonics, and novel materials. Prior to that, he held executive leadership positions for development foundries ATDF and SVTC Technologies.

“Dave’s vast experience in semiconductor equipment, as well as in a wide range of silicon devices, provides a practical understanding of the full electronics manufacturing supply chain,” said Denny McGuirk, president and CEO of SEMI.  “He has built global organizations and communities both at SEMI member companies and in SEMI partner consortia.  This will enable Dave to hit the ground running at SEMI.  Dave already has solid relationships with many of SEMI’s members in both the Americas and worldwide.  As I head toward my announced retirement, I’m confident that Dave will strengthen SEMI’s Global Executive Team and will lead the Americas organization to success in our SEMI 2020 initiative.”

Integrated circuit sales for connections to the Internet of Things are forecast to grow more than three times faster than total IC revenues during the last half of this decade, according to IC Insights’ new 2017 Integrated Circuit Market Drivers report.  ICs used to embed Internet of Things (IoT) functionality into a wide range of systems, sensors, and objects are expected to generate sales of $12.8 billion in 2016, says the new report, which becomes available this week.

Between 2015 and 2020, IoT integrated circuit sales are projected to rise by a compound annual growth rate (CAGR) of 13.3% compared to 4.3% for the entire IC market, which is projected to reach $354.7 billion in four years versus $287.1 billion last year, based on the forecast in the 492-page report.  As shown in Figure 1, strong five-year IC sales growth rates are also expected in automotive (a CAGR of 10.3%), medical electronics (a CAGR of 7.3%), digital TVs (a CAGR of 5.9%), and server computers (a CAGR of 5.4%).

Cellphone IC sales—the biggest end-use market application for integrated circuits—are expected to grow by a CAGR of 4.8% in the 2015-2020 period.  Saturation in smartphone markets and economic weakness in some developing regions are expected to curb cellphone IC market growth in the next four years after sales increased by a CAGR of 10.8% between 2010 and 2015.  Meanwhile, weak and negative IC sales growth rates are expected to continue in standard personal computers, set-top boxes, touchscreen tablets, and video game consoles.

The new 2017 IC Market Drivers report shows 2016 integrated circuit sales for IoT applications climbing nearly 19% compared to 2015 to an estimated $12.8 billion, followed by the automotive segment increasing about 12% to $22.9 billion, medical electronics rising 9% to $4.9 billion, and digital TV systems growing 4% to $12.9 billion this year.  The report estimates IC sales growth in server computers being about 3% in 2016 to $15.1 billion, cellphones being 2% to $74.2 billion, and set-top boxes being 2% to $5.7 billion.  Meanwhile, standard PC integrated circuit sales are estimated to be down 5% in 2016 to $54.6 billion while video game console IC revenues are expected to finish this year with a 4% drop to $8.9 billion and tablet IC sales are on track to decline 10% to $12.1 billion in 2016, according to IC Insights’ new report.

Figure 1

Figure 1

SiFive, the first fabless provider of customized, open-source-enabled semiconductors, today announced the availability of its Freedom Everywhere 310 (FE310) system on a chip (SoC), the industry’s first commercially available SoC based on the free and open RISC-V instruction set architecture, along with the corresponding low-cost HiFive1 software development board. As part of this availability, SiFive also has contributed the register-transfer level (RTL) code for FE310 to the open-source community, which the company revealed today at the 5th RISC-V Workshop in Mountain View, Calif.

“We started with this revolutionary concept — that instruction sets should be free and open –  and were amazed by the incredible rippling effect this has had on the semiconductor industry because it provided a viable alternative to what was previously closed and proprietary,” said Krste Asanovic, co-founder and chief architect, SiFive. “In the few short months since we’ve announced the Freedom Platforms, we’ve seen a tremendous response to our vision of customizable SoCs. The FE310 is a major step forward in the movement toward open-source and mass customization, and SiFive is excited to bring the opportunity for innovation back into the hands of system architects.”

The FE310 is the first member of the Freedom Everywhere family of customizable SoCs designed for microcontroller, embedded, IoT and wearable applications. By contributing the FE310 RTL code to the open-source community, SiFive aims to encourage open-source development of both software support for RISC-V as well as other open hardware development. The RTL code also empowers chip designers with the ability to customize their own SoC on top of the base FE310. For system architects, developers or companies without chip design capabilities, SiFive’s “chips-as-a-service” offering can customize the FE310 to meet their unique needs.

“SiFive has achieved a significant milestone for the RISC-V ecosystem,” said Rick O’Connor, executive director of the non-profit RISC-V Foundation. “We are thrilled to see the first commercial silicon based on RISC-V standards come to market and look forward to continued technology leadership from the SiFive team.”

The FE310 features SiFive’s E31 CPU Coreplex, a 32-bit RV32IMAC core running at 320+ MHz. Additional features include a 16KB L1 Instruction Cache, a 16KB Data SRAM scratchpad, hardware multiply/divide, debug module, one-time programmable non-volatile memory (OTP), flexible clock generation with on-chip oscillators and PLLs, and a wide variety of peripherals including UARTs, QSPI, PWMs and timers. Multiple power domains and a low-power standby mode ensure a variety of applications can benefit from the FE310, which was fabricated in TSMC 180nm.

The HiFive1 is an Arduino-Compatible development board featuring the FE310.

North America-based manufacturers of semiconductor equipment posted $1.49 billion in orders worldwide in October 2016 (three-month average basis) and a book-to-bill ratio of 0.91, according to the September Equipment Market Data Subscription (EMDS) Book-to-Bill Report published today by SEMI.  A book-to-bill of 0.91 means that $91 worth of orders were received for every $100 of product billed for the month.

SEMI reports that the three-month average of worldwide bookings in October 2016 was $1.49 billion. The bookings figure is 5.1 percent lower than the final September 2016 level of $1.57 billion, and is 12.2 percent higher than the October 2015 order level of $1.33 billion.

The three-month average of worldwide billings in October 2016 was $1.63 billion. The billings figure is 9.0 percent higher than the final September 2016 level of $1.49 billion, and is 19.8 percent higher than the October 2015 billings level of $1.36 billion.

“Total equipment billings increased 9 percent in October over September, while bookings contracted 5 percent,” said Denny McGuirk, president and CEO of SEMI.  “As the result, the book-to bill ratio for October dropped below parity for the first time in 11 months, even though bookings and billings activity remains at elevated levels relative to last year.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

Billings
(3-mo. avg)

Bookings
(3-mo. avg)

Book-to-Bill

May 2016

$1,601.5

$1,750.5

1.09

June 2016

$1,715.2

$1,714.3

1.00

July 2016

$1,707.9

$1,795.4

1.05

August 2016

$1,709.0

$1,753.4

1.03

September 2016 (final)

$1,493.3

$1,567.2

1.05

October 2016 (prelim)

$1,627.5

$1,487.2

0.91

Source: SEMI (www.semi.org), November 2016

Microsemi Corporation (Nasdaq: MSCC), a leading provider of semiconductor solutions differentiated by power, security, reliability and performance, today announced it is the first field programmable gate array (FPGA) provider to offer a comprehensive software tool chain and intellectual property (IP) core for RISC-V designs. The company’s RV32IM RISC-V core is available for Microsemi’s IGLOO™2 FPGAs, SmartFusion™2 system-on-chip (SoC) FPGAs or RTG4™ FPGAs, with an Eclipse-based SoftConsole integrated development environment (IDE) hosted on a Linux platform and the Libero SoC Design Suite providing full design support.

Microsemi’s new RV32IM RISC-V core, developed in collaboration with SiFive, enables customers to design with an open instruction set architecture (ISA), enabling complete portability and a more secure processor architecture governed by a permissive BSD license. RISC-V is a new ISA which is now a standard open architecture under the governance of the RISC-V Foundation. RISC-V offers a compelling soft processor solution for Microsemi’s low power, reliable, secure FPGAs. The RV32IM RISC-V core unleashes a new generation of innovation for embedded designers. Now engineers can rely on an open ISA, without being tied to a single vendor and leverage open source tools and hardware. Never before has a processor allowed designers to inspect, modify, adapt, collaborate and migrate their design to the best platform for their product.  Microsemi’s low power FPGAs with proven security and embedded flash are a natural fit for this new paradigm.

“Our IGLOO2, SmartFusion2 and RTG4 devices are the ideal FPGAs to build RISC-V core onto, as we offer up to 50 percent lower power consumption with proven security for customers’ IP,” said Venki Narayanan, senior director of software and systems engineering for Microsemi’s SoC Products Group. “RISC-V is a great fit for implementing clean-slate processor capabilities for security, trust and reliability which are central to Microsemi’s solutions. We will continue our leadership position in this technology by further investing in this architecture to ensure customers have long-term roadmap support.”

Customers seeking to develop customized devices can now initiate their design into a Microsemi FPGA and bring their solution to market quicker. The combination of Microsemi’s IGLOO2 FPGA, SmartFusion2 SoC FPGA or RTG4 FPGA and its Libero SoC Design Suite create an ideal platform to target a RISC-V core for many embedded applications and is easy to implement with regard to size and power. The lower power and security of Microsemi’s FPGA families provides a sound architecture for customers seeking to protect their IP and ensure long-term support for their designs in the industrial, defense, security and medical markets. The Libero SoC Design Suite allows designers to implement their designs and efficiently pack the FPGA logic elements (LEs), yielding a cost-effective solution. The Eclipse-based SoftConsole IDE running on Linux allows users to compile and debug their source code. The IP core and software platforms are the first comprehensive RISC-V solution for FPGAs.

The new RV32IM RISC-V core is especially compelling for applications such as safety and security, as the register transfer level (RTL) source code is available for inspection. For example, customers can verify the security of the processor themselves, which is not possible with other processors, as they have closed architectures. In safety-critical applications, as customers can run multiple RISC-V cores to ensure if one fails there is a redundant core to take over.

“We are very excited Microsemi is releasing a RISC-V intellectual property core for its IGLOO2, SmartFusion2 and RTG4 FPGAs,” said Rick O’Connor, executive director of the RISC-V Foundation. “The complete Linux-based toolchain that the company is providing will enable a broad range of customers to develop RISC-V cores in Microsemi FPGAs. I applaud Microsemi’s leadership in introducing this comprehensive RISC-V platform and the foundation looks forward to working with the company to explore future advancements.”

Through Microsemi’s early involvement in the creation of the RISC-V Foundation, the company has an established leadership role in the emerging standard and ecosystem and is working closely with the nonprofit to ensure the ISA becomes an industry standard for a wide variety of computing devices. Ted Speers, head of product architecture and planning for Microsemi’s SoC business unit, was appointed to the inaugural board of directors of the RISC-V Foundation in July 2016, and Ted Marena, director of SoC FPGA marketing, was recently elected as vice-chair of the RISC-V Marketing Committee.

Product Availability

Microsemi’s comprehensive software and IP core for RISC-V designs is available now. For more information, visit http://www.microsemi.com/products/fpga-soc/soc-processors/risc-v or contact [email protected].

About Microsemi’s IGLOO2 FPGAs and SmartFusion2 SoC FPGAs

Microsemi’s IGLOO2 FPGAs and SmartFusion2 SoC FPGAs deliver more resources in low density devices, with the lowest power, proven security and exceptional reliability. The devices offer 30-50 percent more power efficiency and are ideal for general purpose functions such as Gigabit Ethernet or dual PCI Express control planes, bridging functions, input/output (I/O) expansion and conversion, video/image processing, system management and secure connectivity. Microsemi FPGAs and SoC FPGAs are used by customers in in communications, industrial, medical, defense and aviation markets. PCIe Gen 2 connectivity starts at just 10K LEs. SmartFusion2 SoC FPGAs offer a 166MHz ARM Cortex-M3 processor with up to 512KB of embedded flash and a complete peripheral set. IGLOO2 FPGAs offer a high performance memory subsystem with up to 512KB embedded flash, 2 x 32 KB embedded static random-access memory (SRAM), two direct memory access (DMA) engines and two double date rate (DDR) controllers. Microsemi also offers a broad range of military, automotive and space grade FPGAs and SoC FPGAs. For more information visit: http://www.microsemi.com/products/fpga-soc/soc-fpga/smartfusion2 and http://www.microsemi.com/products/fpga-soc/fpga/igloo2-fpga.

About Microsemi’s RTG4 FPGAs

RTG4 FPGAs bring new capabilities to the market and combine a wealth of features with the highest quality and reliability to meet the increasing demands of modern satellite payloads. The devices feature reprogrammable flash configuration, making prototyping easier for customers. RTG4’s reprogrammable flash technology offers complete immunity to radiation-induced configuration upsets in the harshest radiation environments, without the configuration scrubbing required with SRAM FPGA technology. RTG4 supports space applications requiring up to 150,000 logic elements and up to 300 MHz of system performance. RTG4 is Microsemi’s latest development in a long history of radiation-tolerant FPGAs that are found in many NASA and international space programs. For more information, visit http://www.microsemi.com/products/fpga-soc/radtolerant-fpgas/rtg4.

About Microsemi

Microsemi Corporation (Nasdaq: MSCC) offers a comprehensive portfolio of semiconductor and system solutions for aerospace & defense, communications, data center and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and synchronization devices and precise time solutions, setting the world’s standard for time; voice processing devices; RF solutions; discrete components; enterprise storage and communication solutions, security technologies and scalable anti-tamper products; Ethernet solutions; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. Microsemi is headquartered in Aliso Viejo, California and has approximately 4,800 employees globally. Learn more at www.microsemi.com.

Microsemi and the Microsemi logo are registered trademarks or service marks of Microsemi Corporation and/or its affiliates. Third-party trademarks and service marks mentioned herein are the property of their respective owners.

 

Electronics manufacturing executives will examine growth prospects, global industry developments and technology strategy at the SEMI Industry Strategy Symposium (ISS) 2017 to be held January 8-11 at the Ritz-Carlton, Half Moon Bay.  ISS 2017, designed as the year’s earliest indicator of emerging trends, provides critical perspective and market insight to executives responsible for corporate strategy and key relationships in the electronics manufacturing supply chain. The annual symposium brings together leading analysts, researchers, economists, and technologists to provide fresh insights on the forces shaping the semiconductor industry. The elite event offers insight into new growth opportunities, potential partners, and vital intelligence to help navigate the industry’s rapidly changing playing field.

ISS 2017 highlights include:

  • Market Perspective: Where’s the growth? Hear what experts are saying at Google, IBM Research, and the Consumer Technology Association.
  • Economic Trends: Will an expanding Internet of Things (IoT) ecosystem drive demand for investments in cloud storage, security, and new devices? Get insider perspectives from Gartner, Linx Consulting, and VLSI Research.
  • Technology: Will EUV lithography finally arrive, or will the industry double-down on multiple patterning? Get insights from executives at imec, SanDisk, Applied Materials, and more.
  • Global Forces: Consolidation and China’s will to establish a homegrown semiconductor supply chain are redrawing the map. Hear from Philips Healthcare, International Business Strategies, and McKinsey & Co.

Plus, powerful first-of-the-year keynotes by:

  • GLOBALFOUNDRIES─ Gary Patton, CTO and senior VP of Worldwide R&D
  • Intel─ Diane Bryant, executive VP and GM of the Data Center Group
  • Applied Materials ─Om Nalamasu, CTO
  • Philips Healthcare─ Diego Olego, senior VP and Chief Strategy & Innovation Officer

The challenges are many, the investments enormous, and the pressure to show profitability and growth is greater than ever. SEMI ISS 2017 will give industry professionals the perspective needed to succeed in today’s turbulent business climate. To learn more and to register, visit www.semi.org/en/ISS.

Qualcomm Incorporated (NASDAQ: QCOM)  today announced that its subsidiary, Qualcomm Technologies, Inc. (QTI),  and Samsung Electronics Co., Ltd., have extended their decade-long strategic foundry collaboration to manufacture Qualcomm Technologies’ latest Snapdragon premium processor, Qualcomm Snapdragon 835, with Samsung’s 10-nanometer (nm) FinFET process technology.

The decision to use Samsung’s cutting edge process in the next generation premium processor highlights Qualcomm Technologies’ continued dedication in being the technology leader in mobile platforms.

“We are excited to continue working together with Samsung in developing products that lead the mobile industry,” said Keith Kressin, senior vice president, product management, Qualcomm Technologies. Inc. “Using the new 10nm process node is expected to allow our premium tier Snapdragon 835 processor to deliver greater power efficiency and increase performance while also allowing us to add a number of new capabilities that can improve the user experience of tomorrow’s mobile devices.”

In October, Samsung announced they are the first in the industry to enter mass production of 10nm FinFET technology. Compared to its 14nm FinFET predecessors, Samsung’s 10nm technology allows up to a 30% increase in area efficiency with 27% higher performance or up to 40% lower power consumption. Using 10nm FinFET, the Snapdragon 835 processor will offer a smaller chip footprint, giving OEMs more usable space inside upcoming products to support larger batteries or slimmer designs. Process improvements, combined with a more advanced chip design, are expected to bring significant improvements in battery life.

“We are pleased to have the opportunity to work closely with Qualcomm Technologies in producing the Snapdragon 835 using our 10nm FinFET technology,” said Jong Shik Yoon, executive vice president and head of foundry business, Samsung. “This collaboration is an important milestone for our foundry business as it signifies confidence in Samsung’s leading chip process technology.”

Snapdragon 835 is in production now and expected to ship in commercial devices in the first half of 2017. Snapdragon 835 follows the Snapdragon 820/21 processor, which has over 200 designs in development.

United Microelectronics Corporation (UMC) (NYSE: UMC; TWSE: 2303), a global semiconductor foundry, today celebrated the grand opening of United Semi, UMC’s 12-inch joint venture wafer fab in Xiamen China. The fab, which was completed in record time, realized volume production for customer products merely 20 months after groundbreaking in March of 2015. Pilot production yields for communication ICs at the fab have already exceeded 99% on the company’s 40nm process. Zhuang Jiahan, city mayor of Xiamen, delivered the keynote speech for today’s event.

Po-Wen Yen, CEO of UMC, said “Owing to the tireless teamwork of our suppliers, facilities management and engineering teams, we have realized successive, noteworthy milestones since United Semi broke ground in March, 2015. We achieved cleanroom readiness and equipment move-in within a year, and pilot run verification to mass production in only 8 months. With United Semi being able to leverage UMC’s technology expertise and over 35 years of proven manufacturing experience, we believe this new fab is the best choice for IC designers in China and worldwide who wish to manufacture their products locally in order to serve China’s vast electronics market, while also mitigating geographic risk. We are excited for the future of United Semi as today’s grand opening kicks off the next growth stage for UMC.”

United Semi is a 3-way joint venture foundry company between UMC, Xiamen Municipal People’s Government and Fujian Electronics & Information Group. Its fab, Fab 12X, is southern China’s first 300mm foundry facility. The fab will utilize UMC’s mass production 55nm and 40nm technologies, with a maximum design capacity of 50,000 wafers per month. The main advantage for choosing Xiamen as the fab location is its short distance from Taiwan, allowing seamless support from UMC’s Taiwan headquarters. Furthermore, Xiamen has a well-established infrastructure to supply ample local engineering talent and logistical support. United Semi complements UMC’s Hejian fab in Suzhou, China, which provides 8” foundry services for local and international customers.

Siemens and Mentor Graphics (NASDAQ: MENT) today announced that they have entered into a merger agreement under which Siemens will acquire Mentor for an enterprise value of $4.5 billion. Mentor’s Board of Directors approved and declared advisable the merger agreement, and Mentor’s Board of Directors recommends the approval and adoption of the merger agreement by the holders of shares of Mentor common stock.

“Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age. It’s a perfect portfolio fit to further expand our digital leadership and set the pace in the industry,” said Joe Kaeser, President and CEO of Siemens AG.

“With Mentor, we’re acquiring an established technology leader with a talented employee base that will allow us to supplement our world-class industrial software portfolio. It will complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems,” said Klaus Helmrich, member of the Managing Board of Siemens.

Mentor is headquartered in Wilsonville, Oregon, U.S., and has employees in 32 countries worldwide. In its fiscal year ended January 31, 2016, Mentor had over 5,700 employees and generated revenue of approximately $1.2 billion with an adjusted operating margin of 20.2%. Siemens expects these attractive margins to continue in the future and contribute significantly to the Product Lifecycle Management (PLM) software business of Siemens Digital Factory (DF) Division, which Mentor will join. Mentor serves a large, diverse customer base of marquee systems companies and IC/semiconductors companies with over 14,000 global accounts across communications, computer, consumer electronics, semiconductor, networking, aerospace, multimedia, and transportation industries. Mentor is viewed as a global leader in strategic industry segments including IC design, test and manufacturing; electronic systems design and analysis; and emerging markets including automotive electronics.

“Combining Mentor’s technology leadership and deep customer relationships with Siemens’ global scale and resources will better enable us to serve the growing needs of our customers, and unlock additional significant opportunities for our employees,” said Walden C. Rhines, chairman and CEO of Mentor. “Siemens is an ideal partner with financial depth and stability, and their resources and additional investment will allow us to innovate even faster and accelerate our vision of creating top-to-bottom automated design solutions for electronic systems. We are excited to join the Siemens family, as it is clear they share the same values and focus on customer success, and are pleased that this transaction provides immediate and certain value to our stockholders.”

Siemens expects to achieve synergies through a combination of revenue growth and anticipated margin expansion, with a total EBIT impact of over €100 million within 4 years from closing the transaction. Additionally, the transaction is expected to be EPS accretive within three years from closing. Closing of the transaction is subject to customary closing conditions and is expected in Q2 of calendar 2017. Mentor will be part of the PLM software business of Siemens’ DF Division. DF is the industry leader in automation technology and a leading provider of PLM software.

“By adding Mentor’s electronic design automation solutions and talented experts to our team, we’re greatly enhancing our core competencies for product design that creates a very precise digital twin of any smart product and production line,” noted Helmrich.

Shares in Mentor Graphics jumped 18.5 percent to $36.37 in early U.S. trading, while Siemens was 1.1 percent higher by 1435 GMT.

The deal will boost its software revenue by about a third from 3.3 billion euros, to around 6 percent of group revenue.

Deutsche Bank and JP Morgan advised Siemens on the transaction, which is expected to close in the second quarter of 2017. Bank of America advised Mentor Graphics.

IC Insights will release the 2017 edition of its IC Market Drivers Report later this month.  The newly updated report reviews many of the end-use system applications that are presently impacting the IC market and are forecast to help propel it through 2020.

Total smartphone shipments are forecast to grow by 4% in 2016 to 1,490 million units after jumping by 13% to 1,430 million in 2015.  Moreover, smartphone shipments are forecast to grow by 5% in 2017, reaching 1,565 million units.  Overall, smartphone unit shipments are now forecast to grow at single-digit annual rates through 2020.

Smartphones accounted for over 50% of total quarterly cellphone shipments for the first time ever in 1Q13 (Figure 1).  Smartphone shipments fell to 340 million units in 1Q16 yet still represented 80% of total cellphones shipped that quarter, the same penetration as in 4Q15.  In 4Q16, it is expected that smartphone shipments will surge to a new record high of 437 million and represent 84% of all cellphones shipped that quarter.  On an annual basis, smartphones first surpassed the 50% penetration level in 2013 (54%) and are forecast to represent 97% of total cellphone shipments in 2020.

In contrast to smartphones, total cellphone handset shipments are forecast to decline by 2% in 2016 and are expected to drop by 1% in 2017 (Figure 2).  As shown, non-smartphone cellphone sales dropped by 30% in 2015 and are forecast to fall by another 22% this year.  Moreover, IC Insights expects the 2017 non-smartphone cellphone unit shipment decline to be steeper than 2016’s drop with a decline of 26%.

Figure 1

Figure 1

Figure 2

Figure 2