BUSINESS TRENDS
12/01/2006
Equipment capex outlook narrowed for 2006, next year looks better
Gartner Inc.’s October forecast projected $54.56 billion in semiconductor capital spending this year, representing 15.1% growth, slightly below its July forecast. For 2007, the firm’s improved outlook calls for flat capital spending instead of a 3.3% decline, with a rebound in 2008, two years of contraction in 2009 and 2010, and another rebound in 2011.
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The Stamford, CT-based firm sees wafer fab equipment revenues rising 24.6% this year, thanks to high utilization rates-total in the low-90% range, and 97% for leading-edge capacity). However, these rates are expected to drop in 2007 (though still at around 90%) as new capacity comes online and customers absorb their shipments from 2006.
Rising chip inventories and memory oversupply remain the top concerns-memory spending is still out of whack, at ~43% of revenues-but there’s still a relatively tight supply/demand balance, according to research VP Dean Freeman. Equipment investments for backend operations seem to be more volatile in Gartner’s newer forecast. ATE demand remains robust, fueled by demand for memory and system-in-package testers, but has seen generally weaker orders in the latter half of 2006.
WORLDWIDE HIGHLIGHTS
For the first nine months of 2006, tool orders were 48% higher than the same period in 2005 (to $55.7 billion), more than twice the rate of billings growth (22% to $46.9 billion), according to VLSI Research. The firm predicts >20% equipment revenue growth in 2006, thanks to 8%-9% chip industry growth and a healthy macroeconomic outlook.
The Common Platform alliance of IBM, Chartered Semiconductor Manufacturing, and Samsung Electronics Co. Ltd. say they have produced system-on-chip (SoC) products with 90nm process technologies for Qualcomm Inc., for use in mobile telecommunications devices.
MEMC Electronic Materials Inc. will supply solar-grade solar wafers to Taiwan’s Gintech Energy Corp. over a 10-year period beginning in 2H07. The deal is expected to generate $2.5-$3.0 billion in revenues, and includes a 10% equity investment option.
USA
Novellus Systems Inc., San Jose, CA, has signed a nonexclusive licensing deal with Surplus Process Equipment Corp. (SPEC), to refurbish certain legacy and discontinued Novellus systems, including some non-300mm equipment from the GaSonics line.
Vishay Intertechnology Inc., Malvern, PA, is acquiring International Rectifier’s power control systems business for approximately $290 million, to expand its high-power, high-voltage discrete semiconductors offerings.
Lam Research Corp., Fremont, CA, has acquired the silicon growing and fabrication assets of Bullen Ultrasonics, Eaton, OH, which supplies parts for Lam’s dielectric etch chambers, for ~$175 million in cash.
Kulicke & Soffa Industries Inc. is entering the die bonder market with a $30 million purchase of Alphasem, a subsidiary of Dover Technologies International Inc.
MKS Instruments Inc., Wilmington, MA, has acquired privately held Novx Corp., a San Jose-based supplier of electrostatic charge process monitoring equipment.
ASIAFOCUS
Amkor has opened its new 300mm wafer bump factory in Singapore, with initial capacity of 8000 wafers/month, and ultimately ramping to 30,000 wafers/month.
Synova, a maker of water jet-guided laser technology, and Sugino Machine Ltd. are creating a 50/50 JV to provide manufacturing, development, sales, and support to Japanese customers, starting in January 2007.
Toshiba Corp. is mulling a possible management buyout of its wafer subsidiary, Toshiba Ceramics Co. Ltd., to an investment business backed by Unison Capital Group and Carlyle Group.
Automation and control technology firm Omron Corp. has agreed to acquire a 200mm CMOS semiconductor factory in Japan from Yasu Semiconductor Corp., a consolidated subsidiary of Seiko Epson.
EUROFOCUS
ASML Holding NV says it has received the first order from an unidentified customer for a pre-production EUV system, following shipments of two alpha tools earlier this year to IMEC and Albany Nanotech.
IMEC and ASML claim that they have proven that double-patterning 193nm immersion lithography (NA = 1.2) can be a viable interim solution-at least technically, not cost-wise-for flash and logic manufacturing at the 32nm node.