BUSINESS TRENDS
11/01/2006
SEMI: China fab capex flat in 2007
Chinese semiconductor fab capital expenditures have whipsawed over the past three years, but next year Chinese fab capex is expected to be flat, and will extend to a relatively moderate 24.5% growth in 2008, according to data from SEMI, based on a survey of major semiconductor manufacturers in China.
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Over the next two years, Chinese semiconductor fab capex is expected to exceed $9.8 billion, more than the total US capex from 2001-2005, noted SEMI. Investments in 300mm facilities and advanced process technologies (entry-level process technology at the 0.13µm node) are driving the growth-spending on 300mm equipment will account for more than 70% of total new fab equipment spending by 2008.
Fab material spending could surge 58% in 2007 due to the 300mm capacity ramp, according to Mark Ding, president of SEMI China, adding that local equipment and materials suppliers are receiving more government support and are seeking to forge alliances with local fabs.
WORLDWIDE HIGHLIGHTS
Freescale Semiconductor Inc. has been bought by a group of private investors led by The Blackstone Group for $17.6 billion, despite an 11th hour bid from the rival equity group that also purchased Philips Electronics’ semiconductor business.
Chip production fell nearly 1% in 1Q06 but rebounded 4% in 2Q, and should return to seasonal patterns with a strong 2H06 to deliver a total 12% increase in output this year, according to data from VLSI Research Inc.
Amkor Technology Inc. has joined the chipmaking alliance led by IBM, Chartered Semiconductor Manufacturing, and Samsung Electronics Co. Ltd., to qualify 90nm and 65nm flip-chip packaging and designs, and begin 45nm qualifications for next-generation semiconductor applications.
USA
Akrion Inc. has acquired SCP Global Technologies Inc. (SCP), a Boise, ID-based provider of batch immersion tools.
The Dow Chemical Co. is transferring development, manufacturing, and sales of spin-on silicon containing its “Ensemble” dielectric coatings to Brewer Science Inc., Rolla, MO.
Electroglas Inc. has abandoned its Side-Winder strip test tool after selling only two units in five years, and will narrow its focus and finances on its EG6000 300mm prober.
ASIAFOCUS
Having recently completed an accelerated ramp-up to 700,000 300mm wafers/month production capacity, Shin-Etsu Chemical Co. Ltd. is spending another ¥120 billion (US $1.02 billion) to boost its total global output to 1.0 million wafers/month by the fall of 2007.
Spansion Japan Ltd. is selling two of its older semiconductor fabs in Japan, JV1 and JV2, to Fujitsu Ltd. for approximately $150 million, to focus resources on its SP1 300mm facility in Aizu-Wakamatsu. Fujitsu will use the facilities to produce Spansion’s NOR flash memory products, and other logic LSI devices.
Samsung Electronics Co. Ltd. says it has completed a working prototype of phase-change random access memory (PRAM), using vertical diodes with the 3D transistor structure incorporated in the company’s DRAMs. Versions competitive with NOR flash are expected to be available in 2008.
Fujitsu Ltd. and Advantest Corp. plan to develop an electron beam direct-write lithography for use with Fujitsu’s 65nm and 45nm process technologies, using new e-beam exposure systems from Advantest. A prototype shuttle service is projected for fiscal 2007.
Ulvac Coating Corp. has demonstrated trial production of reusable glass molds used in C4NP (controlled collapse chip connection-new process), the wafer bumping technology developed by IBM and Süss MicroTec.
TSMC vice chairman F.C. Tseng recently suggested the foundry industry might require six months to deplete inventory backlogs, built up due to delays of Microsoft Vista and high handset inventories in China, according to the Taiwan Economic News. TSMC CEO Rick Tsai echoed similar concerns that TSMC may need to adjust inventories through 4Q06.
EUROFOCUS
Focus GmbH and German universities Bielefeld and Mainz, working under the More Moore project to develop extreme ultraviolet lithography (EUVL) technologies, claim to have built a photoemission electron microscope capable of measuring features as small as 20nm without destroying the sample. The researchers also recently were able to identify defects of 50nm hidden beneath the multilayer coating of a mask blank.
Süss MicroTec has formed a subsidiary to refurbish, sell, and service its used equipment, including spare parts.