World News
08/01/2006
BUSINESS TRENDS
SIA hikes 2006 forecast, smoothes outlook for 2007-2008
Citing stronger than expected growth in several key end-markets, notably cell phones, the Semiconductor Industry Association (SIA) has brightened its semiannual forecast for the semiconductor industry.
The SIA now projects 2006 chip sales will be ~$249.60 billion, a 9.8% increase from 2005, vs. the group’s 7.9% forecast issued in November. The SIA is generally holding to its longer-term forecast: 11% growth in 2007 to about $277 billion, followed by 12% growth in 2008 and a slowdown of 4% growth in 2009. The projected CAGR of 9.2% during the 2006-2009 period would be a “very remarkable” achievement for an industry this size, stated SIA president George Scalise.
 |
Consumer demand for electronic devices continues to be remarkably strong, with cell phones (particularly 3G devices) the fastest growing end-user segment, and now the No. 2 chip-consumption market behind PCs. Other segments showing double-digit growth include PCs, digital cameras, digital TVs, and MP3 players.
WORLDWIDE HIGHLIGHTS
STATS ChipPAC Ltd. and China Resources Logic Ltd. have agreed to set up a JV for assembly and test services in Wuxi, China. The deal lets STATS ChipPAC offload its lower-end leadframe package families, and focus on more leading-edge technologies such as system-in-package, flip-chip, and 3D.
The World Trade Organization (WTO) will step in to settle a dispute between Japan and South Korea over tariffs levied on exports of Hynix Semiconductor’s DRAM memory chips. The US and European Union imposed similar duties last year.
USA
Advanced Micro Devices Inc. (AMD) plans to build a greenfield 300mm/32nm semiconductor manufacturing facility in the Luther Forest Technology Campus in upstate New York. Total investments could reach up to $5.0 billion, with $1 billion in incentives from the state. Construction could start as soon as July 2007, with operations starting between 2010-2014. When completed, the facility will increase AMD’s capacity by nearly 50% over projected 2008 levels.
Texas Instruments says its forthcoming 45nm chipmaking process will be built with 193nm immersion lithography and an ultralow-k dielectric (k = 2.5), and incorporate the company’s first use of silicon germanium in strain techniques. TI also is considering using fully silicided (FUSI) polysilicon, or a combination of metal plus a silicide, to utilize a dual work function metal gate, and avoid moving to new and complex high-k materials.
ASIAFOCUS
An investment company associated with the Hubei provincial government is building a new 300mm chipmaking facility, to be operated (but not owned) by Semiconductor Manufacturing International Corp. (SMIC). Initial production is scheduled for 1H08, doubling to 25,000 wafers/month by 2009.
The China Semiconductor Industry Association (CSIA) has officially joined the World Semiconductor Council (WSC), following an open invitation issued by the WSC in May.
In a move to jointly move up the chain in the $8.3 billion silicon wafer market, Sumitomo Mitsubishi Silicon Corp. (SUMCO) has agreed to acqwuire a 51% ownership in rival Japanese wafer maker Komatsu Electronic Metals Co. Ltd., for approximately 36.9 billion yen (US $321.8 million).
Spansion Inc. plans to spend $1.2 billion over the next three years on a new 300mm production line at its plant in Fukushima Prefecture, northern Japan, according to local media reports. The new line, set to begin operation in 2H07, will initially utilize 65nm processes, and incorporate 45nm processes by mid-2008.
A planning group formed by Hitachi, Toshiba, and Renesas Technology Corp. has determined that a joint 300mm/65nm chipmaking operation is not currently feasible. Meanwhile, Toshiba, Fujitsu Ltd., NEC Electronics Corp., and Renesas reportedly have agreed to develop ≤45nm process technologies for large-scale integration (LSI) chips, with standards definitions ready by year’s end.
EUROFOCUS
Intel Corp. has officially inaugurated its upgraded Fab 24-2 plant in Leixlip, Ireland. The site is the company’s fourth 300mm facility and third to achieve 65nm production.
Robert Bosch plans to invest 550 million euros (about US $694 million) on a new 200mm/0.18µm semiconductor plant in Reutlingen, Germany, to produce mainly “smart power process” automotive chips.
Soitec has acquired CEA-Leti spinoff TraciT Technologies, a developer of thin-film layer transfer technology for MEMS and power circuits, to target new markets such as wafer-level packaging.