BUSINESS TRENDS: Analyst: MPUs recovering, DSPs still struggling
10/01/2007
After nearly a year and a half of price competition that undercut average selling prices (ASP), the microprocessor market should recover “modestly” in 2007 as PC demand now picks up, according to a report from IC Insights.
 "Comparison of microcomponent market categories. (Source:WSTS, IC Insights) |
The firm sees MPU sales growing about 4% this year to $34.5 billion, and surging 17% to $40.3 billion in 2008-projected as the next cyclical peak growth year for semis (see figure). Look for record sales of microcontrollers this year with 13% growth to >$14.0B, and another 13% next year to $15.8B.
The digital signal processor (DSP) segment, however, “remain[s] bogged down in another difficult year” in 2007, with 5% lower sales (to $7.9B) due to inventory corrections in the cell phone equipment markets, and unit volume growth half (9%) of the average annual rate over the past six years, the firm notes. Still, DSPs should upswing with the rest of the market in 2008, with 13% better sales of $8.9 billion.
Combined, the three microcomponents segments, which make up about 25% of worldwide IC sales, are seen growing at a 9% CAGR from 2006-2011 to $84.5B.
WORLDWIDE HIGHLIGHTS
Global semiconductor capital spending is projected to grow ~5% this year, entirely due to a spending splurge by Taiwan chipmakers who make up ~22% of all spending, according to Strategic Marketing Associates. Taiwan’s projected 50% increase (to $13B) offsets slumps in other geographic areas: -28% in the US, -15% in Japan, and -1% in Korea.
USA
Cadence Design Systems is acquiring Clear Shape Technologies, aiming to integrate Clear Shape’s predictive (and manufacturing/OPC/tool independent) lithography capabilities into the Cadence DFM environment.
Edwards (née BOC Edwards) has sold most of its “Kachina” semiconductor equipment parts cleaning
efurbishment assets to Applied Materials, and its stake in a separate business to a Taiwan partner, in order to focus on “profitable growth” in its core vacuum and abatement areas.
Intel says it will move its embedded NOR flash products to 65nm process technologies to maintain “price/performance balance and ensure support for extended product lifecycles,” with first samples expected in 1H08.
ASIAFOCUS
SMIC and Qimonda AG have extended their manufacturing partnership to 80nm DRAM trench at SMIC’s 300mm fab in Beijing, with an option to go down to 75nm.
China’s fabless industry should surge more than 40% this year to $2.8 billion, according to iSuppli. Notable is growth among “second-tier” players, who should follow 75% sales growth in 2006 with another 60% this year to $660M.
Air Liquide is merging its two Japanese units, Japan Air Gases Ltd. (a gases provider) and Air Liquide Japan Ltd. (which builds gas plants), to better compete with top domestic rival Taiyo Nippon Sanso Corp., notes the Nikkei daily.
Elpida Memory aims to ramp to mass production of 65nm DRAMs at its Hiroshima plant during the current fiscal year, and will then “quickly” move the technology to its Rexchip JV with Taiwan’s Powerchip, according to the Nikkei daily.
Hynix Semiconductor wants to sell off its M8 200mm DRAM line in order to shift more production to its 300mm business, but will keep its 200mm M9 line to expand NAND flash capacity, according to the Korea Times.
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Hynix is the first licensee of Innovative Silicon’s ZRAM high-density technology for DRAMs, in an “eight-figure deal” to use the technology to build memories.
TSMC wants to increase its stake in Vanguard International Semiconductor through a $168 million share purchase as part of a plan to boost its 200mm capacity, though the company says it “has no intention to merge” with Vanguard.
EUROFOCUS
The European Commission has given its approval for Neumonics, the proposed new JV entity combining flash memory assets of STMicroelectronics and Intel’s NOR assets and resources.
Analog Devices is phasing out a 150mm facility at its base in Limerick by the end of 2008, shifting production to a newer 200mm facility on the site, according to the Irish Times.
Sumitomo Precision Products Co. has offered to buy the 37% of shares in the company it does not own in Surface Technology Systems Plc, a UK-based supplier of deep silicon etch and deposition systems.