Category Archives: Packaging

The photonics industry gathered in Washington, D.C., to engage in a discussion about a national photonics initiative.

More than 100 representatives from government and the photonics industry convened in Washington, D.C., on February 28 to identify focus areas for a national photonics initiative (NPI), engaging academia, industry, and government in a collaboration to address barriers to continued U.S. leadership in photonics.

Titled “Optics & Photonics: Lighting A Path for the Future,” the event was organized by SPIE, the international society for optics and photonics, in partnership with four other technical organizations. The meeting included briefings by subcommittees and industry representatives on future needs, and perspectives of technology experts from the five key optics and photonics sectors — communication, defense, health and medicine, manufacturing, and energy –on how focus ideas for the NPI.

Recommendations are expected to be released later this month.

Establishment of the NPI was a key recommendation of the groundbreaking National Academy of Sciences report “Optics & Photonics, Essential Technologies for Our Nation” released in August 2012.

Last week’s event was attended by representatives of numerous government labs and agencies, such as the Department of Energy, National Institute of Standards and Technology, DARPA, the National Science Foundation, Office of Naval Research, and NASA. Industry representatives included attendees from Corning, Agilent, Northrup-Grumman, Alacatel-Lucent, and IBM.

Speakers touched on issues such as decreasing numbers of U.S. STEM (science, technology, engineering, and mathematics) graduates for the next generation of the workforce, the increased investment by other national governments in science and technology, and the lack of a cohesive photonics R&D direction in the U.S. in the face of well-defined initiatives in several other countries.

Read more on Europe’s plans for a single semiconductor strategy

Without a cohesive policy in support of photonics advances, speakers warned, the U.S. will slip from its place of technology leadership, manufacturing will continue to shift outside the U.S., and forward progress in photonics-enabled applications in medicine, cybersecurity, broadband, bridge and highway infrastructure safety, and other areas will be impaired.

“Photonics is a critical enabler for our high-tech economy,” said Paul McManamon, one of several members of the report that produced the committee who attended last week’s event. “The Internet, MRIs and CAT scans, and space mission spin-offs such as optical blood diagnostic instruments and infrared cameras that indicate hot spots in a fire are just a few examples of photonics-enabled applications. If the U.S. wants to retain high-tech leadership and jobs, we need the National Photonics Initiative.”

Committee members Alan Willner, Tom Baer, and Edward White, also attended and participated in a panel discussion.

Along with SPIE, sponsoring organizations included the Optical Society (OSA), IEEE Photonics Society, American Physical Society, and the Laser Institute of America.

SPIE is the international society for optics and photonics, a not-for-profit organization founded in 1955 to advance light-based technologies. The Society serves nearly 225,000 constituents from approximately 150 countries, offering conferences, continuing education, books, journals, and a digital library in support of interdisciplinary information exchange, professional networking, and patent precedent. SPIE provided over $3.2 million in support of education and outreach programs in 2012.

AIXTRON SE, a provider of deposition equipment to the semiconductor industry, last week announced revenues and minimal EBIT loss for the fiscal year 2012.

A slow recovery of revenues but a virtually flat order intake throughout the year reflects a reluctant investment attitude by customers and a continuation of macroeconomic uncertainty, said AIXTRON officials. Despite an improving market consensus on the potential outlook for the back end of 2013, management is unable at this stage to offer a precise revenue and EBIT margin guidance for the year, due to the prevailing low visibility.

Management expects demand for MOCVD production equipment to potentially improve as demand for LEDs increases later in the current year. On the same timeline, management also foresees incremental equipment demand coming from non-LED emerging MOCVD applications and other technology markets, including silicon and organic semiconductor applications. Nevertheless, the exact timing of that order intake pickup is difficult to predict whilst order visibility remains so low.

“2012 proved to be an exceptionally challenging year for AIXTRON, largely due to the severe and extended macroeconomic headwinds that the whole world has been suffering from,” said Paul Hyland, President and Chief Executive Officer of AIXTRON. “Our original expectation that 2012 would develop into a transitory year with the prospect of a significantly better second half has evidently not materialized.

However, the ongoing, albeit low level of demand seen in the second half of 2012 and into 2013, has AIXTRON’s management believing they have reached the bottom of the current cycle. Officials from AIXTRON say it is reasonable to expect to see further market recovery at some point during 2013, driven by increasing demand for LED manufacturing equipment.

AIXTRON also believes they will see an increased demand for the equipment for non-LED applications. AIXTRON management plans to focus now on cost control and cash flow, while continuing R&D investments into future market opportunities.

Aptina announced yesterday that it has established a strategic partnership with LFoundry to continue the manufacture of CMOS image sensors in Avezzano, Italy following LFoundry’s purchase of Micron’s semiconductor fabrication facility.

Aptina’s sensors built in the Avezzano facility enable both manufacturers and end users to bring to market differentiated products in a wide variety of imaging applications including smart phones, automobiles, tablets, televisions, gaming platforms, sports cameras, medical equipment and digital cameras.

Following the closing of LFoundry’s recently announced purchase of Micron Technology Italia Srl., and its semiconductor fabrication facility in Avezzano, Italy, LFoundry will assume responsibility for continuing the manufacturing of silicon wafers for Aptina from Micron. Micron has been manufacturing imaging sensors for Aptina in the Avezzano facility for over five years. This transaction will include the assignment to LFoundry of Micron’s four-year wafer supply agreement with Aptina.

“We look forward to our continued relationship with the Avezzano facility, and building on our relationship with LFoundry,” said Tony Alvarez, Chief Operating Officer at Aptina. “We have a long and successful history with the Avezzano facility and have shipped to our customers over 1 billion image sensors manufactured at this location. We are confident that LFoundry will build on this legacy to assure the continued reliable supply of high quality and high performance products for our customers.”

Aptina has an established relationship with the Avezzano manufacturing team, creating processes and ensuring quality wafer manufacturing for Aptina’s customers. With LFoundry’s acquisition of the Avezzano plant, the supply chain will continue to be maintained and enhanced.

“The acquisition of the Avezzano, Italy facility promotes a strategic win for LFoundry, and the Avezzano facility. We look forward to helping Aptina to produce industry leading CMOS imaging solutions,” said LFoundry CEO Günther Ernst.

Micron remains a co-owner of Aptina and has said that it is committed to supporting a smooth transition of the ownership of the Avezzano facility to ensure success for all parties.

 

Industry consolidation to just three big DRAM suppliers and a reduction in capital expenditures among these manufacturers helped propel DRAM average selling prices (ASPs) up 13% year over year in January, which contributed to a 19.9% jump in the total memory market and a 6.2% increase for the total IC market in January 2013.  The strengthening memory segment also helped boost year-over-year semiconductor sales by 6.2%.  These surprising numbers were positive news for an IC market that, like most other industries, continues to be weighed down by uncertainties regarding the health and direction of the global economy.

DRAM, NAND flash sales indicate a promising year

Significant reductions in capital equipment spending among DRAM manufacturers are expected to stabilize prices at a minimum, but more likely will help drive prices further upward throughout the balance of the year.

Capex budgets are also being trimmed for NAND flash (though not nearly as much as DRAM), and that, along with ongoing unit demand, has put upward pressure on ASPs for these memory devices as well. NAND flash ASPs increased 37% year over year in January.

IC Insights shows monthly DRAM sales were down sequentially (January 2013 over December 2012), but not by as much as the past 10-year average.  On a year-over-year basis, the DRAM market outperformed the past 10-year average as well.  Since 2003, the January DRAM market has averaged year-over-year growth of 18.7%, but in 2013, DRAM sales beat that mark by growing 21.0%. Meanwhile, January year-over-year sales of NAND flash jumped 23.4%, which was 4.4 points less than it has averaged over the past 10 years.  January total IC sales achieved year-over year growth of 6.2%, also slightly lower than the past 10-year average.

It is also worth noting that sequentially, the total semiconductor market (including optoelectronics, sensors/actuators, and discrete components) decreased 12% from December 2012 to January 2013. However, that decrease was far less than the -19% average sequential decrease the semiconductor market has experienced each January between 1999 and 2012.

January IC sales numbers were encouraging and represented a good start to the year.  Further growth in the 2013 IC market is highly dependent on electronic systems growth, which in turn is highly dependent on a healthy global economy.  A healthy U.S. economy is extremely important to the health of the global economy as it represents 24% of worldwide GDP.  The U.S economy is forecast to show slightly better GDP growth in 2013 (2.4%) compared to 2012 (2.2%) and IC Insights’ forecast for global GDP growth remains at 3.2% for 2013.

Following a healthy expansion in 2012, the growth of the global automotive semiconductor market will decelerate slightly this year because of a slowdown in the aftermarket and portable navigation device (PND) segments.

Total semiconductor revenue in 2013 derived from automotive infotainment will reach $6.67 billion, up 3% from $6.48 billion, according to an IHS Automotive Market Tracker Report from information and analytics provider IHS. Growth this year will be lower than last year’s approximately 4% increase, but an acceleration is expected next year and beyond, with revenue growth of 3 to 7% each year during the next five years. By 2018, automotive infotainment semiconductor revenue worldwide will amount to $8.54 billion, as shown in the figure below.

Driving into the future

“Despite relatively soft growth this year, the automotive infotainment semiconductor market is set for continued expansion well into the future—fueled by major technology improvements that not only increase the functionality of cars but also improve the overall driving experience,” said Luca DeAmbroggi, senior analyst for automotive infotainment at IHS. “The muted growth this year is the result of decreased revenue in the aftermarket sector, where sales are depressed because cars are being sold with more complete infotainment features and systems, reducing the need for consumers to make upgrades. The progress of the market also is being slowed by a continuing decline in the PND segment, as motorists increasingly turn away from dedicated navigation devices and toward smartphone-based solutions.”

The drop in aftermarket and PND sales will eat into gains made in semiconductor sales to OEMs, which will rise a projected 6% from 2012 to $4.5 billion this year.

However, some signals of inventory burnout started in the fourth quarter of 2012 also are expected to dampen semiconductor production revenue in the first half 2013.

No dip in the road for automotive infotainment

Despite the reduced speed ahead, the automotive infotainment market overall remains immune to a downturn, unlike other markets that have been negatively affected by global economic uncertainties. The importance of automotive infotainment continues to increase as consumers clamor for built-in connectivity and telematics in cars, which now have become a major selling point of new vehicles. Used either alone or with mobile devices like smartphones and tablets, the infotainment systems in cars then allow occupants to access information, safety features and entertainment options at will, paving the way for a more seamless interaction with the outside world.

In the long run, however, technology changes in cars will not just be associated with new features and hardware integration into the vehicle, but will also be influenced by new hardware strategies.

For instance, automotive infotainment systems are quickly developing toward a PC-like architectural approach in which more functionality is dependent on a powerful main central unit, IHS Automotive believes. This means that software will acquire greater importance as a differentiator among brands seeking to make their infotainment products and features stand out. Applications previously implemented via hardware will be reconfigured instead into simpler programs reliant on a heavily centralized unit marked by strong processing power and memory capabilities.

Infotainment for the masses

On a semiconductor level, growth will be fostered not just by the implementation of more infotainment features into a vehicle, but also by broader technology diffusion among various vehicle segments—trickling from high-end luxury rides all the way down to entry-level pieces. Government regulations and mandates, including those relating to electronic stability control or tire-pressure monitoring, will also help boost semiconductor growth.

Healthy growth to occur in various infotainment segments

Within the automotive infotainment market, PNDs will be the only segment to decline in the coming years. Shipments of the once-popular devices will fall from 33.6 million units last year to 24.0 million by 2018. Meanwhile, the combined market this year for PND-related analog and logic application-specific standard product (ASSP) integrated circuits will be down 18 percent on the year to less than $330 million.

In contrast to PNDs, growth is forecast to take place in various other automotive infotainment segments, including in-dash navigation systems, connectivity in head units, telematics, and both satellite and terrestrial digital radio.

In-dash navigation systems, for instance, will enjoy increased penetration worldwide in vehicle head units, deepening from 19% last year to more than 32 percent in 2018. Total in-dash silicon revenues in 2013 will reach $290 million, up from $274 million in 2012.

For connectivity systems in head units—a major trend in infotainment—Bluetooth and USB remain the de facto standard for wired and wireless connectivity given a 35% attach rate for each in 2012.

Increased momentum will likewise be found in other technologies aiming to cover high-definition applications, such as High-Definition Multimedia Interface (HDMI) and Mobile High-Definition Link (MHL).

Telematics on the rise

In telematics, General Motors’ OnStar and other similar systems continue to have the most mature and widespread market presence. OnStar-type embedded systems hauled in revenue of $480 million last year, with takings by 2018 expected to reach $1.8 billion. Telematics will grow quickly in Europe in the next couple of years as regulations become effective, making features like eCall mandatory in vehicles for summoning help during emergencies.

Automotive OEMs will also lend increasing support to satellite and terrestrial digital radio systems, such as HD Radio in North America and Digital Audio Broadcasting in Europe. In particular, automotive silicon revenue from terrestrial digital radio formats will rise sharply within a span of six years, climbing from $55 million in 2012 to more than $140 million by 2018.

Diodes Incorporated today announced that it has completed its acquisition of BCD Semiconductor Manufacturing Limited in an all cash deal, valued at approximately $151 million. Under the terms previously announced, each ordinary share, par value $0.001 per share, of BCD has been converted into the right to receive cash. Each ADS represents six Shares and has been converted into the right to receive $8.00 in cash, without interest.

“As we have worked with the BCD team over the past several weeks,” Dr. Keh-Shew Lu, Diodes’ President and CEO, said, “we have come to appreciate more fully the integrity, dedication and work ethic of their management team and the depth and value inherent in the BCD product portfolio. We have recognized that our companies’ cultures are very compatible, and have been able to create a rapid integration plan that will allow us to accelerate the profitable business opportunity of the combined organization.”

“We have been very pleased with the aggressive approach Diodes has taken to allow us to close this transaction so expediently,” said Mr. Chieh Chang, BCD’s CEO. “I am optimistic about the opportunity that merging with Diodes offers to our customers, partners, and employees. The BCD management team and I look forward to being part of this dynamic and growing company.”

Diodes Incorporate is a global manufacturer and supplier of application-specific standard products within the broad discrete, logic and analog semiconductor markets.

eMemory announced today that the accumulated number of customers’ wafers incorporating eMemory’s eNVM SIPs have now surpassed 5 million production mark. eMemory’s eNVM SIPs support a broad range of process platforms including logic, HV, SiGe, RF, and mixed signal throughout 0.5 microns to 40nm technology. They are widely found in mainstream consumer electronic products, such as smart phones and tablet PCs. Due to the increasing demand for hand-held smart devices, the growth in wafer production is expected to remain steady.

The sale of eMemory wafer has enjoyed double-digit growth for several years in a row. In 2012 alone, it saw growth in excess of 36% with over 1.5 million in wafer sales–a new company record. The significant increase in growth has been driven primarily by developments in its popular application areas such as power management ICs, display driver ICs and MEMS sensors. This momentum in growth in wafer production is expected to be accelerated with its additional applications in Full HD Display Driver ICs (DDI), Touch-Panel Controller ICs (TPC) and 2.4GHz RFICs this coming year. In the near future, eMemory will enter more innovative areas of applications, including Battery Gauge ICs, Near-Field Communication (NFC) ICs, CMOS-Image Sensor (CIS) ICs, single-chip Touch Display Driver Integration (TDDI) ICs and Programmable-Gamma (P-Gamma) ICs. This effort will further energize the momentum in growth, with further increased efficiency in broadening the application of SIP platform.

"2012 has been a great year for eMemory’s SIP products,” eMemory President Rich Shen pointed out. “Not only did we break wafer production records, but also we saw more than 37% growth in income from our royalty over the previous year. These achievements are the result of eMemory’s long-term dedication to eNVM SIPs and technical development, as well as our mastery of our SIP production lines and process platforms. Our outstanding sales record is a true testimony of the high level of confidence and support we have received from the clients."

eMemory’s NeoBit OTP technology in 55nm has entered into the pilot-production phase, while other OTP and MTP solutions in advanced modes such as 40nm, 28nm and 20nm are currently in the development and verification phase. eMemory offers diversified SIP production lines to meet with the product needs for having different endurance and density. eMemory’s superior technology and SIPs help customers effectively to reduce the time and costs incurred in developing products, making it the best choice for customers in looking for a partner in eNVM.

Fab equipment spending for Front End facilities is expected to be flat in 2013, remaining around $31.7 billion, increasing to $39.3 billion in 2014 — a 24% increase. The SEMI World Fab Forecast also reveals that in 2013 increases for fab equipment spending will vary by technology node and that fab construction spending will increase an overall 6.7% with major spending in China. The report tracks equipment spending at over 180 facilities in 2013. 

More than 262 updates have been made since the last publication of the SEMI World Fab Forecast. Updates are based on announced spending plans, including major changes for TSMC, Samsung, Intel, SK Hynix, Globalfoundries, UMC, and for some Japanese facilities and LED facilities.  Despite these adjustments, the overall forecast for equipment spending for 2013 has remained about the same. Depending on macro-economic risk factors, possible scenarios project a range of -3% to +3% change rate for fab equipment spending in 2013; in other words, hovering around flat.

Though the overall outlook has improved some, fewer players in the market can afford the rising costs for research and development and upgrading facilities as the amount of money needed to upgrade facilities at the leading edge technologies is immense.  The World Fab Forecast report shows increases for fab equipment spending, varying by technology node.  Fab equipment spending for 17nm and below is expected to kick off in 2013 and increase by a factor of 2.4 to about $25 billion from 2013 to 2014.

Fab construction spending is now expected to increase 6.7% with construction spending to reach almost $6 billion. In 2014, however, construction project spending is expected to contract by about 18%. Construction spending is led by TSMC, with seven different projects for the year; followed by Intel. Fab construction spending in China will increase by a factor of four due to Samsung’s Mega fab in Xian.

Capacity is now forecasted to expand by just 2.8% for this year and to improve to 5.4% growth in 2014.  Excluding 2009, the years 2012 and 2013 show the lowest growth rate for new capacity over the past ten years.   However, pent-up demand is expected for some product types because capacity additions have been cut to minimum levels while chip demand keeps increasing. Capacity additions and equipment spending are expected to pick up in the second half of 2013. In 2014, at least 5% in new capacity will be added and fab equipment spending will increase by 2%. The World Fab Forecast gives detailed capacity information by industry segment and by individual company and fab.

Since the last fab database publication at the end November 2012 SEMI’s worldwide dedicated analysis team has made 262 updates to more than 210 facilities (including Opto/LED fabs) in the database. The latest edition of the World Fab Forecast lists 1,146 facilities (including 310 Opto/LED facilities), with 58 facilities starting production this year and in the near future.

The SEMI World Fab Forecast uses a bottom-up approach methodology, providing high-level summaries and graphs; and in-depth analyses of capital expenditures, capacities, technology and products by fab. Additionally, the database provides forecasts for the next 18 months by quarter. These tools are invaluable for understanding how the semiconductor manufacturing will look in 2013 and 2014, and learning more about capex for construction projects, fab equipping, technology levels, and products.

SEMI’s Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly and packaging houses.  The SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment.

wafer bonding and packagingEV Group (EVG), a supplier of wafer bonding and lithography equipment for the MEMS, nanotechnology and semiconductor markets, today announced that it is developing equipment and process technology to enable covalent bonds at room temperature. This technology will be available on a new equipment platform, called EVG580 ComBond, which will include process modules that are designed to perform surface preparation processes on both semiconductor materials and metals. EVG built on its decades of experience with plasma activated wafer bonding to create a novel process through which the treated surfaces form strong bonds at room temperature instantaneously without the need for annealing.

"In response to market needs for more sophisticated integration processes for combining materials with different coefficients of thermal expansion, we have developed a revolutionary process technology that enables the formation of bond interfaces between heterogeneous materials at room temperature," stated Markus Wimplinger, corporate technology development and IP director for EV Group. "Our expertise in wafer bonding process technology will allow us to provide different variants of the new process according to the requirements of different substrate materials and applications."

EV Group’s new process solutions will enable covalent combinations of compound semiconductors, other engineered substrates and heterogeneous materials integration for applications such as silicon photonics, high mobility transistors, high-performance/low-power logic devices and novel RF devices. The process technology and equipment that enables this room temperature covalent wafer bonding will be applied to EVG’s wafer bonding solutions for MEMS wafer-level packaging as well as to the integration of MEMS and CMOS devices.

Equipment systems based on a 200-mm modular platform, tailored for the specific needs of the new processes, will be available in 2013.

Peregrine Semiconductor Corporation (NASDAQ: PSMI), a fabless provider of high-performance radio frequency integrated circuits (RFICs), yesterday announced plans to collaborate with Murata Manufacturing Company on a multisource arrangement for RF switches and other components based on Peregrine’s proprietary UltraCMOS technology. Under the proposed collaboration agreement, Murata would be granted a license to design and manufacture RF switches and other switch-related components utilizing Peregrine’s technology and intellectual property (IP). The parties expect this agreement to result in an expanded source of supply for these critical RF components, and to assure global OEMs broad access to RF CMOS products.

ultra cmos process for high performance RFThe UltraCMOS process is a patented Silicon-on-Sapphire technology (SOS). The UltraCMOS process is the industry’s first and only commercially qualified use of Ultra-Thin-Silicon (UTSi) on sapphire substrates, enabling the combination of high-performance RF, mixed-signal, passive elements, nonvolatile memory and digital functions on a single device. This integration provides significant performance advantages over other mixed-signal processes such as GaAs, SiGe, BiCMOS and bulk silicon CMOS in applications where RF performance, low power and integration are paramount.

Murata is a supplier of RF front-end modules for the global mobile wireless marketplace. RF front-end modules are products that incorporate RF switches and tuning devices with SAW filters, passive components, and advanced packaging techniques.

“Global OEM customers of both Peregrine and Murata have for some time requested that the companies implement an independent source of supply for the critical switching elements that are widely utilized in today’s smart phones and other wireless-communications products,” said Jim Cable, Peregrine’s President and CEO. “This agreement marks the first license of Peregrine’s core switch-based intellectual property to a third party and we look forward to entering into this collaborative arrangement with Murata.”

Regarding yesterday’s announcement, Norio Nakajima, Murata’s Vice President, Communication Business Unit, said, “Peregrine has fundamental IP in CMOS-based switches and tuning products with its UltraCMOS technology. This IP licensing arrangement solidifies our existing relationship and future collaboration with Peregrine. We believe that the combination of Murata’s filter and packaging technology with Peregrine’s UltraCMOS switch and tuning technology is a formidable RF front-end solution.”