Category Archives: Semiconductors

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.

The total market for open short-range wireless (SRW) technology based ICs, such as Bluetooth, Wi-Fi, ZigBee, NFC, and GPS, is expected to reach almost 5 billion units in 2013 and grow to nearly 8 billion by 2018, according to ABI Research. This includes standalone wireless connectivity ICs, wireless connectivity combo ICs, and also platforms with integrated wireless connectivity.

“In the year where cumulative Bluetooth enabled device shipments will reach 10 billion and cumulative Wi-Fi enabled device shipments will reach 7 billion, we will also see total wireless connectivity IC shipments break through 5 billion per annum,” said Peter Cooney, practice director. “It is truly a momentous year for short-range wireless technology.”

Consumer devices such as mobile phones, laptops, media tablets, games consoles, etc. have been the major driver of SRW technology growth but as many of these devices start to peak it is newer applications such as automotive, home automation, smart energy, retail, and many more that will be the major growth drivers over the next 10 years.

SRW technologies are enabling simple, low-cost connections to be made between multitude devices and helping to make 2013 the year that the Internet of Everything (IoE) hits an inflection point and starts to become a reality. Bluetooth, Wi-Fi, and ZigBee are just a few of many technologies that will enable growth in this market, coupled with proprietary SRW, cellular, white space, and fixed communication technologies, also.

“Without interoperable short-range wireless standards the IoE will not flourish; it requires low-cost, low-power, ubiquitous technologies to create the myriad connections that will be needed,” added Cooney. “Technologies such as Bluetooth Smart (v4.0), ZigBee, and the upcoming 802.11ah standard will be key enablers for IoE.”

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.

Cortus and speciality foundry Dongbu HiTek today announced that they are teaming up to offer platform solutions. The design platforms will be based on the Dongbu HiTek 0.13µm eFlash technology and energy efficient Cortus APS3R processor and peripheral IP. Cortus S.A. licenses a range of 32-bit processor cores for embedded systems. The cores provide licensees with a scalable choice in embedded computational performance and silicon area to meet a wide variety of application needs.

“Our joint platform solution will be a compelling offering for the new wave of intelligent applications,” says Dr. T.S. Kim, VP of Technical Engineering at Dongbu HiTek. “The Cortus APS3R processor is a great complement to our flash memory technology.” He explains, “Our platform will be optimized for the microcontroller(MCU) market.”

“We are delighted to team up with Dongbu HiTek,” says Michael Chapman, CEO and President of Cortus. “Their speciality foundry expertise with embedded flash memory is ideal for many of our target applications. By developing a joint platform we will accelerate time to market for developers of microcontroller ICs.”

The Cortus family of APS processors starts with the world’s smallest 32-bit core, the APS1, and goes up to the floating point FPS6. All cores interface to Cortus’ peripherals including Ethernet 10/100 MAC, USB 2.0 Device and USB 2.0 OTG via the efficient APS bus. They also share the simple vectored interrupt structure which ensures rapid, real time interrupt response, with low software overhead.

Toshiba Corporation today announced that it has developed an intelligent vital signs sensor module: Smart healthcare Intelligent Monitor Engine and Ecosystem with Silmee, that simultaneously senses information on key vital signs, Electric Cardio Gram, pulse, body temperature and movements, and that can deliver the data to smartphones and tablet PCs with wireless technology. Toshiba has fabricated a prototype of the sensor module that is small enough to wear, and will present and demonstrate it at the International Symposium on Medical ICT 2013, to be held at Meiji University, Tokyo, Japan on March 7.

Current healthcare cloud and services make use of already developed individual healthcare devices, such as sphygmomanometers or clinical thermometers. Such services face major challenges in achieving market penetration because the equipment is too big and handling a number of pieces of equipment it too complex.

The recently developed Silmee includes a Pseudo-SoC analog front end, a 32bit ARM processor chip and a dual mode Bluetooth bare chip in a 14.5mm x 14.5mm small package. Simply adding a few devices to the module, such as an antenna, battery and sensor heads, achieves a completely wearable vital signs sensor system. Among the chips included in the module, the flexible and compact Pseudo-SoC analog front end is a very effective approach to implementing vital signs sensors, and extends recent rapid progress in vital sign sensor technologies.

Toshiba will demonstrate a very compact prototype implementation of Silmee: a 25mm x 60mm and 10 gram patch-type able to monitor all vital signs. Toshiba will contribute to the promotion of smart personal healthcare services by deploying the module and prototype terminal in a wide variety of smart healthcare service development and field trials.

Toshiba is a diversified manufacturer, solutions provider and marketer of advanced electronic and electrical products and systems.

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.”