Tag Archives: market

Moore’s Law Smells Funny

…maybe we need “Integrated Cleverness Law”

“Jazz is not dead, it just smells funny.” – Frank Zappa 1973
from Be-Bop Tango (Of The Old Jazzmen’s Church)

Marketing is about managing expectations. IC marketing must position next-generation chips as adding significant new/improved functionalities, and for over 50 years the IC fab industry has leaned on the conceptual crutch of “so-called Moore’s Law” (as Gordon Moore always refers to it) to do so. For 40 years the raw device count was a good proxy for a better IC, but since the end of Dennard Scaling the raw transistor count on a chip is no longer the primary determinant of value.

Intel’s has recently released official positions on Moore’s Law, and the main position is certainly correct:  “Advances in Semi Manufacturing Continue to Make Products Better and More Affordable,” as per the sub-headline of the blog post by Stacy Smith, executive vice president leading manufacturing, operations, and sales for Intel. Smith adds that “We have seen that it won’t end from lack of benefits, and that progress won’t be choked off by economics.” This is what has been meant by “Moore’s Law” all along.

When I interviewed Gordon Moore about all of this 20 years ago (“The Return of Cleverness” Solid State Technology, July 1997, 359), he wisely reminded us that before the industry reaches the limits of physical scaling we will be working with billions of transistors in a square centimeter of silicon. There are no ends to the possibilities of cleverly combining billions of transistors with sensors and communications technologies to add more value to our world. Intel’s recent spend of US$15B to acquire MobileEye is based on a plan to cost-effective integrate novel functionalities, not to merely make the most dense IC.

EETimes reports that at the International Symposium on Physical Design (ISPD 2017) Intel described more than a dozen technologies it is developing with universities and the SRC to transcend the limitations of CMOS. Ian Young, a senior fellow with Intel’s Technology Manufacturing Group and director of exploratory integrated circuits in components research, recently became the editor-in-chief of a new technical journal called the IEEE Journal of Exploratory Solid-State Computational Devices and Circuits, which explores these new CMOS-fab compatible processes.

Meanwhile, Intel’s Mark Bohr does an admirable job of advocating for reason when discussing the size of minimally scaled ICs. Bohr is completely correct in touting Intel’s hard-won lead in making devices smaller, and the company’s fab prowess remains unparalleled.

As I posted here three years ago in my “Moore’s Law Is Dead” blog series, our industry would be better served by retiring the now-obsolete simplification that more = better. As Moore himself says, cleverness in design and manufacturing will always allow us to make more valuable ICs. Maybe it is time to retire “Moore’s Law” and begin leveraging a term like “Integrated Cleverness Law” when telling the world that the next generation of ICs will be better.

—E.K.

CSP Market Forecast – Strong

Chip-Scale Packages (CSP) continue to be in strong demand for IC needing the smallest form-factors for applications including automotive, industrial applications to mobile phones and wearable electronics, according to leading market research firm TechSearch International. TechSearch’s latest CSP market forecast shows a 8% CAGR from 2015 to 2020, despite a slowing growth rate for smartphones.

One of the categories with the strongest growth is the quad flat no-lead (QFN) package with a CAGR of 8.6%. QFNs are a low-cost, low-profile package found in a wide range of products from automotive and power devices. An analysis of the Out-Sourced Assembly and Test (OSAT) market in China provides insight into expansion plans and market shares.

Fan-Out Wafer-Level Packages (FO-WLP) with many variations are now winning slots in many new mobile devices. New advanced packages such as JCAP’s FO-WLP are highlighted in the latest Advanced Packaging Update, along with the use of TSMC’s FO-WLP for Apple’s A10 application processor. The report also examines trends in stacked die CSPs, laminate-substrate CSPs, and package-on-package (PoP) with a market forecast for each. See:  http//www.techsearchinc.com.

—E.K.

Dan Rose departs material realm

Daniel J. Rose, Ph.D. November 7, 1937 – September 20, 2016

Daniel J. Rose, Ph.D.
November 7, 1937 – September 20, 2016

With sadness I post that Daniel J. Rose, Ph.D.—founder of Rose Associates—passed away on September 20, 2016, due to complications of Alzheimer’s disease. Dan Rose received a Ph.D. in materials engineering from the University of British Columbia, and subsequently spent five years managing packaging manufacturing operations at Fairchild Semiconductor. He worked with and become friends with industry luminaries such as Intel’s founder Robert Noyce, and National Semiconductor’s founder Charlie Sporck.

In February of 1970, he founded Rose Associates, which initially provided engineering and manufacturing support to the semiconductor industry, establishing factories in the US and assembly plants in the Far East. In 1977, Rose Associates began conducting market research in electronic materials. In January of 1985, Rose Associates began publishing the Electronic Materials Report (EMR) monthly newsletter, and In 1986 held its first annual Electronic Materials Conference.

Dan Tracy, Ph.D.— SEMI Senior Director, Industry Research & Statistics—was one of Rose’s associates who joined the trade organization in 2000 when it acquired Rose Associates’ business. Tracy wrote a wonderfully heartfelt remembrance as a LinkedIn Pulse article (https://www.linkedin.com/pulse/dr-daniel-j-rose-phd-dan-tracy?trk=hb_ntf_MEGAPHONE_ARTICLE_POST).

—E.K.

Dow Kills CIGS Solar Shingles

The mega-merger between Dow and DuPont has already shaken out an under-performing product line:  Powerhouse(TM) solar singles. As reported at PVTech, over 100 jobs in Milpitas, California and in Midland, Michigan will be lost along with the production line that assembles the copper-indium-gallium-sulfide (CIGS) cells into thin-film Building-Integrated PhotoVoltaic (BIPV) rooftop shingles. BIPV markets are very slow to grow due to inherent risk-aversion in considering new building materials, and it has been difficult to cobble together sufficient consumer demand for upgrades to existing roofs to support a profitable business. Dow had offered a 20-year product warranty and optional financing to try to move the market.

(Source: Dow)

(Source: Dow)

“We’re looking at this one product that could generate $5 billion in revenue by 2015 and $10 billion by 2020,” Jane Palmieri, managing director of Dow Solar Solutions, told Reuters in a 2009 interview. Dow had used CIGS cells from Global Solar for a first-generation of the product line, and then acquired NuvoSun in 2013 to own it’s own thin-film CIGS manufacturing technology in anticipation of booming demand for large solar shingles with integrated internal electronics and easy rooftop installation.

When comparing the benefits of different PV product offerings, one factor dominates the decision:  all PV installations are area-constrained, and rooftops are extreme examples. The cost of the panel hardware is typically only ~25% of the complete installed system, with Balance Of System (BOS) costs for electronics and installation and financing and permits and non-recurring engineering (NRE). CIGS BIPV may cost less than silicon BIPV, but reduced conversion efficiency means less power can be produced from the roof and when you “do the math” it is always more profitable to use the most efficient PV possible.

Eric Wesoff at GreenTechMedia reported on the status of the thin-film CIGS PV segment of the industry last August when TSMC finally decided to cut losses and shutdown it’s CIGS pilot line. Wesoff reports that over US$2B in Venture Capital investments in CIGS companies has been written-off in the last decade, and that Solar Frontier is the only company selling market competitive CIGS panels with profit.

It is worth noting that the market for solar shingles had been poisoned by pathetic products from UniSolar leaving a severely negative impression on consumers. UniSolar was part of the Energy Conversion Devices portfolio of shell-companies that went bankrupt in 2012, and the UniSolar solar shingles had 6-8% cell efficiency using amorphous-silicon (a-Si) and no integration with electronics such that a hole had to be drilled through the roof for each shingle to connect to a micro-inverter (leading to extreme installation costs and an inherently leaky roof). So unfortunately, Dow faced a severe up-hill-battle in the roofing market to fight against a negative impression of all solar shingles.

—E.K.