Worldwide highlights
05/01/2000
Market indicators stay steady course; tool bookings reach $2.3B, says Semi
Continued optimism rules the day as tool bookings reached a record $2.3 billion and front-end fab utilization remained steady in February, according to the latest figures from Semiconductor Equipment and Materials International (Semi) and market researcher VLSI Research.
Shipments of semiconductor equipment from North American producers totaled $1.6 billion, a 90% climb year-over-year; this figure holds even with January's level and is 90% higher than February 1999 shipments of $845 million, said Semi. Preliminary bookings for the month totaled $2.268 billion, a 2% increase over January's revised figure of $2.226 billion. The resulting book-to-bill ratio of 1.41 is the second highest in the history of the Semi Express report and the highest in almost five years. All figures are three-month moving averages.
Stan Myers, president of Semi, said "equipment production facilities have been running flat out as shipment levels have remained constant."
Meanwhile, in its monthly Industry Pulse Pro report, market researcher VLSI Research, San Jose, CA, reported a slight increase in world front-end capacity utilization for February 2000. The utilization figure was 94% (see figure), up from January's figure of 93.3%.
The market researcher also reported a slight decline in the February worldwide IC book-to-bill, which slipped to 0.95 from a revised 0.98 in January. In addition, worldwide semiconductor orders slipped to $12.3 billion, compared to $12.7 billion in January 2000.
 World book-to-bill (bars) and world front-end utilization (black line) for Sept. 1999 to Feb. 2000. |
However, February's sales figures are on the rise, totaling $12.5 billion, up from January's revised figure of $11.8 billion. VLSI predicts that sales will spike upward in March to the $14 billion level. This may be due to an end-of-quarter effect, as VLSI sees sales numbers settling back at the $12 billion level in April and May. -M.V.
Flat January sales follow months of rapid growth
Worldwide sales of semiconductors remained steady in January, totaling $14.8 billion in the month, according to the Semiconductor Industry Association (SIA) and the World Semiconductor Trade Statistics organization.
The report shows a slowdown in the month-to-month growth rate of chip sales; all regions were flat or showed minor growth, with the Americas seeing a slight decline of 0.5 percent. This follows several months of rapid growth in which the numbers climbed between 3-6% each month.
The month of January has traditionally been a relatively weak month for chip sales, due to holidays, post-holiday slowdowns, and the fact that it is the first month of a quarter. SIA president George Scalise noted, however, that January sales were stronger than traditional seasonal patterns.
 |
On a year-to-year basis, all regions maintained double-digit growth (see table), with Asia Pacific and Japan showing the largest gains of 45.9% and 43.2%, respectively. All figures are three-month moving averages.
The growth in the Asia Pacific region is indicative of the increased activity there, including Korea, where chipmakers are expected to outlay $4.3 billion in investments this year. That total is up from $3.1 billion in 1997 and $2.1 in 1998, according to market researcher IC Insights. -C.L.
Coming this summer: 200mm shortage?
Though the crunch isn't being felt yet, analysts and wafer suppliers are predicting a possible 200mm silicon wafer shortage to hit this summer.
German-based wafer manufacturer Wacker Siltronic, for example, expects the "squeeze to hit the industry early summer and stay with us well into 2001," said a company spokesman. "As we speak, we've received increased demand forecasts from two of our major customers. They may or may not need it for actual production, but they want to make sure it's there when they want it."
Demand for 200mm wafers is expected to grow by 11% in 2000, according to market researcher Dresdner, Kleinwort, Benson. However, numerous wafer suppliers are running at near capacity, and several suppliers were already reporting an increase in demand, particularly in February and March.
"In Japan [manufacturers] are running at near capacity and two of the companies I visited are exceeding production," said Michael Lochner, VP of business development for SOI wafer supplier Silicon Genesis, Campbell, CA. "In 1Q, many had to dip into stockpiles to fill the need, but that can't last through the 2Q-3Q."
At Wacker, capacity is currently running at 95%, but "we are full for all practical purposes," said the spokesman. "We currently ship around 400,000 wafers/month, and going up another 20% as we fill Fab S," said the Wacker spokesperson. Fab S is the company's newly built 200mm facility in Singapore.
In its report, Dresdner, Kleinwort, Benson indicated that while the market for mainstay 200mm wafers is tight, it anticipates even shorter supplies of smaller 150mm and 125mm products.
Wacker reports that its key customers are monitoring the situation and it has even received spot orders, which the company sees as an indication that some facilities have run out of wafers. "The industry is on alert mode," the spokesperson said. -M.V.
USA
After exercising its warrants, Applied Materials, Santa Clara, CA, was expected to sell 1.5 million shares of ASM International stock as part of ASM's upcoming offering of 3.5 million shares. ASM issued the warrants to Applied several years ago as part of a payment to settle epitaxial- and CVD-related patent litigation between the companies. Also, Applied Materials has completed its acquisition of Etec Systems in what is valued as a $28 billion deal. The transaction was made final on March 29, when Etec's shareholders voted in favor of the merger.
With the goal of focusing more on its Integrated Clean technology and developing its role in the LCD (liquid crystal display) market, GaSonics International, San Jose, CA, is selling its vertical high-pressure (VHP) oxidation business.
The company's VHP product line accounted for 2.1% of the company's total revenues in FY99 and 9.7% in FY98. Until GaSonics finds a buyer, the company will continue to support its VHP customers.
Brooks Automation, Chelmsford, MA, said it plans to buy a software business and is eyeing a business combination with a semiconductor industry automation supplier in two separate deals roughly valued at $20.6 million. Brooks has signed letters of intent for both transactions, but officials declined to identify either company. The two transactions follow the company's six acquisitions in 1999, including the most recent purchases of AutoSimulations, Auto-Soft, and the Infab unit of Jenoptik AG.
When MKS Instruments, Andover, MA, set its sights on its newest acquisition, the company only had to look a few towns over to the newly created Compact Instruments in Woburn, MA. Though no financial terms of the agreement were released, an MKS spokesperson indicated that the deal was complete. Compact had been in the process of developing lightweight vacuum instruments. The company's first product—still being developed—is a mass spectrometer instrument small enough to be held in the hand, for which patents are pending.
Novellus Systems is expanding its two-year-old copper metallization alliance to include GaSonics International. GaSonics is the first company to join the alliance as a full member since 1998, when Novellus kicked off the project—known as the Damascus Alliance—with current partners SpeedFam-IPEC and Lam Research. Various other tool suppliers have been involved since then in efforts to provide customers with processes. As part of the alliance, GaSonics brings photoresist and residue removal capabilities to the mix. Novellus formed the open alliance two years ago, following the licensing of electroplating technology from IBM.
In a move that will help broaden its outsourcing strategy, equipment and materials distributor Metron Technology has acquired UK-based Shieldcare, an eight-year-old supplier of critical parts cleaning services. Shieldcare will operate as a wholly owned subsidiary of Metron; other terms of the agreement were not disclosed.
Pfeiffer Vacuum has doubled its customer service and support capacity through the expansion of its service and support center in Milpitas, CA. The company said customers can expect faster service response at its upgraded 23,400 ft2 facility. At its site in Asslar, Germany, Pfeiffer recently broke ground for its new "Factory 2000." The new building will house the R&D department and production facilities for turbo pumps and dry backing pumps. The company estimates it will invest DM20 million (approximately US$ 10 million) in Factory 2000 over the next two years.
Semiconductor packaging equipment firm Amkor Technology, West Chester, PA, has entered into a 10-year technology transfer agreement with Flip Chip Technologies L.L.C. (FCT), Phoenix, AZ. By using FCT's proprietary Flex-on-Cap wafer bumping and redistribution technologies, Amkor plans to manufacture advanced flip chip IC packages for performance and form factor applications. Under the terms of the agreement, Amkor will pay a licensing fee and royalties to FCT for the use of its technologies. Amkor and FCT are no strangers; Amkor currently outsources its wafer bumping and flip chip packages through FCT.
By taking a $51 million majority stake in Taiwan's Precision Semiconductor Mask Corporation (PSMC) and consolidating some of its business locations to reduce overhead costs, photomask manufacturer Photronics, Jupiter, FL, intends to position itself as a leader in the global photomask market. As part of the changes, the company plans to increase capacity utilization and manufacturing efficiencies, enhance customer service, and reduce costs. The company also will consolidate manufacturing facilities in Sunnyvale, CA, and Switzerland, resulting in a 10% cut to its workforce. Both the Sunnyvale and Switzerland sites will close; however sales and customer support staff will remain in Switzerland.
JMAR Technologies Inc., San Diego, CA, was recently awarded its fifth patent. The patent protects the company's proprietary diode-pumped solid state laser technology, which was created at its research division. The patent awarded, US Patent No. 6,016,324 titled "Short Pulse Laser System," allows JMAR 23 separate yet related claims to the new Britelight laser technology it developed as the basis for picosecond x-ray source (PXS) systems. JMAR Technolgies believes that the PXS technology will pattern new generations of ultrasmall semiconductors.
Emcore Corp.'s Electronic Materials Division, Somerset, NJ, has completed phase one of its expansion project. The expansion will allow Emcore to double its 100mm and 150mm wafer capabilities. In the expansion, Emcore added an additional 2000 ft2 of space, which will accommodate six more TurboDisc epitaxial wafer platforms. Emcore said it is expanding the Somerset fabrication facility to meet increased demand for its GaInP HBT and pHEMT products. Phase two of the project is currently under way. Once completed, it will allow Emcore to double its capacity.
In an ongoing effort to stay competitive, Delphi Automotive Systems plans to spend $63 million to upgrade its 15-year old 5-in. wafer line in Kokomo, IN, to accommodate 200mm wafers. The company produces just under one million chips/day at the Kokomo site, where wafer output runs at roughly 7000 5-in. wafers/week. Following the conversion, Delphi expects to run an additional 1600 200mm wafers/week, said Jeff Owens, general director of engineering for Delphi.
The big cap-ex picture, with detail
 |
By now, it's no surprise to see capital spending forecasts trending upward for the year, but it's interesting to note the spending patterns by the leading capital spenders (listed here by region). In every region, the biggest spenders will spend more this year than last, but some companies, including Fujitsu and Toshiba, will not spend as much as they did in the 1997 boom year.
A couple of notes to keep in mind: TSMC's spending for 2000 includes the recent acquisitions of Acer Semiconductor Manufacturing and WSMC, as well as affiliate operations, including those in Camas, WA. Hyundai's spending in 2000 reflects its acquisition of LG Semicon. Overall, the research team at Morgan Stanley Dean Witter expects worldwide 2000 spending to be up 30% over 1999 at $45.5 billion.
JAPAN
Tool orders from Japan producers reach $1.3B in January, but SEAJ says sales dipped
Orders for semiconductor equipment from Japanese producers reached 139.9 billion yen (about US$1.33 billion) in January, rising roughly 4.5% from the previous month, according to the latest figures from the Semiconductor Equipment Association of Japan (SEAJ).
The monthly order figure is the highest since the beginning of the fiscal year in April 1999, and is attributed to stronger capital spending levels from chipmakers worldwide. On a year-over-year basis, the figure is 135.4% higher than the 59.4 billion yen reported in January 1999.
However, sales of chipmaking equipment dipped more than 28% month-to-month in January, leveling off at 87.7 billion yen, the SEAJ said. The figure is still 111.1% above year-ago sales of 41.5 billion yen. All figures include exports.
Within Japan, both orders and sales of semiconductor equipment (including imports) remained relatively steady in the month. Sales totaled 50.6 billion yen, up 109.4% from last year but down slightly from December's 50.7 billion yen, the SEAJ report said. Domestic orders rose 46.4% year-over-year to 60.7 billion yen, but as was the case with the sales figure, the bookings were down from December's 68.6 billion yen. -C.L.
Sharp Corp. is reportedly selling its photomask division to photomask supplier Toppan Printing, according to press reports by the Nihon Keizai Shimbun newspaper. The move is the latest transition in a series of changes in the photomask sector. Last year, Toppan and Sony entered into a joint development agreement for advanced photomasks, while Hitachi sold its photomask operation to Toppan rival DaiNippon Printing.
Mitsubishi Electric and Toppan Printing, both of Tokyo, have agreed to jointly develop photomasks for 0.13µm and below devices. In the deal, Mitsubishi will cease internal production of photomasks, opting instead to hand over its existing photomask technology and photomask manufacturing equipment to Toppan, which will manufacture the masks. Mitsubishi says the deal will allow it to focus resources on core manufacturing areas. For Toppan, the deal further bolsters its photomask capabilities and is similar to other agreements the company has set with Sony and Sharp Corp.
ASIA PACIFIC
Following a lengthy evaluation process, Silterra Malaysia Sdn. Bhd., has chosen ASM Lithography, Veldhoven, Netherlands, as its lithography supplier. ASML will equip the company's new semiconductor facility, which is scheduled to be operational by the first quarter of 2001. Separately, the company placed a multimillion dollar order with Brooks Automation, Chelmsford, MA. The order includes almost the entire suite of Brooks' software products.
The planned 300mm joint venture between Hitachi and Taiwan foundry UMC has officially been launched under the name "Trecenti Technologies." Trecenti is the Latin word for 300. The new company is 60% owned by Hitachi and 40% owned by UMC. Hitachi's Toshio Nohara has been named president. Pilot production of 300mm wafers for 0.18µm system-on-chip devices will begin in January 2001.
Tessera Inc., San Jose, CA, announced that it intends to sell its pilot and pre-production manufacturing facility in Singapore. Once sold, the company will focus more on its chip-scale packaging technology.
Semiconductor packaging and test services provider Amkor Technology Inc., West Chester, PA, has plans to add wafer bumping capabilities to its Korean facility by the end of 2000. The bumping capabilities added to the facility will support both large and small die size applications, future pitch requirements, and lead-based and lead-free interconnect solutions.
EUROPE
SOI manufacturer SOITEC (Silicon-On-Insulator Technologies), France, reported that its consolidated sales of SOI wafers for the first nine months increased 127.7% over the same period a year ago. Shipments of 200mm wafers have increased more than eight times in the past year. The company says the increased sales figure is a result of growing acceptance of SOI.
It seems the fate of the shuttered North Tyneside fab in the UK may soon be decided. European press reports say Siemens expects the plant to be active again in the near future. In its prospectus filing for its recent initial public offering, Infineon said it was eyeing a joint venture and planned to acquire existing production facilities, and indicated that the North Tyneside plant was a possibility. The North Tyneside fab, which had been producing DRAMs, closed in 1998 after being in operation for only 15 months. At the time, company officials said the decision to close the North Tyneside fab came as part of an effort to "get out of the 16Mb business as quickly as possible. We think all 16Mb DRAM manufacturers are making losses. And so were we." About 1100 employees were affected by the closure.
SEMY Engineering, Phoenix, AZ, has signed an agreement with TELTEC to be its distributor in Europe. SEMY, a wholly owned subsidiary of Semitool Inc., noted that the agreement will allow the company to deliver its Production-Proven APC Solutions to its customers in Europe. TELTEC is located throughout Europe and its offices are staffed with technical sales personnel and support engineers.
A new 300mm wafer agreement between German-based Wacker Siltronic and wafer distributor WaferNet Inc., San Jose, CA, will allow Germany-based Wacker to focus on supplying chipmakers with the larger wafers while letting WaferNet service the equipment sector. Under the terms of the agreement, Wacker will supply particle-, furnace-, and mechanical-grade 300mm wafers to WaferNet, which will then sell the wafers to equipment manufacturers for 300mm tool development and evaluation. By using WaferNet to distribute its 300mm wafers, Wacker believes that equipment manufacturers won't have to wait as long for test wafers.
SICO Carnica Group, Bad Bleiberg, Austria, opened a new synthetic quartz glass production line in April. SICO Produktions-und Handeslgesellschaft mbH will produce a quartz glass in high purity. This glass will be a good material for excimer-laser-grade fused silica with low fluorescence.
In an effort to strengthen its position in the semiconductor market, The Oerlikon-Buhrle Group (OBH), Zurich, Switz-erland, plans to merge newly acquired Plasma-Therm Inc. with its BPS Semi-conductor Division. In January, OBH announced its intentions to acquire Plasma-Therm. Under the terms of the agreement, OBH purchased all of Plasma-Therm's common stock for a price of $12.50/share or a total of $150 million. Over the past year, OBH has transformed itself from a diverse consortium of businesses to a company that is focused on high-technology business. At Semicon Europa, OBH announced plans to change its name to Unaxis, pending approval of the shareholders.
The SEZ Group, Austria, will be working with Ashland Specialty Chemical Co. to develop chemistries for polymer cleaning at or below 0.18µm. SEZ officials said the goal of the agreement is to develop treatments using its spin-on processing techniques. The two companies hope to produce chemistries that will reduce process times for the removal of polymer. The alliance will be in effect for at least one year.
Million-dollar moth
A customer-service representative at KLA-Tencor Corp., San Jose, CA, won the top prize on the prime-time game show "Who Wants to Be a Millionaire?" by correctly guessing that the moth was the insect that most likely coined the phrase "computer bug." Joe Trela won $1 million on a March airing of the show by answering the question: "What insect shorted out an early supercomputer and inspired the term 'computer bug'?" It is generally accepted that researcher Grace Hopper found the first computer bug—a moth—crushed in the jaws of a relay of the Mark II supercomputer back in 1945, although some reports state the reference was used prior to that with a similar meaning.
High-throughput e-beam stepper lithography
 |
An electron-beam lithography system is being designed to fabricate 100nm feature sizes at 40, 200mm wafers/hr using complementary stencil reticles in production. The twist is projecting and demagnifying reticle patterns while scanning the reticle and wafer, very similar to optical exposure lithography tools. For more information on this joint project by Nikon and IBM, see "High-throughput e-beam stepper lithography" by Kazuya Okamoto et al., on p. 118, and the SPIE report, starting on p. 51.