Global semiconductor assembly and test services market to rise 12.5% per year: report

New product developments will drive the market growth

The global semiconductor assembly and test services market is predicted to grow at a combined annual growth rate (CAGR) of 12.5% during the period between 2011-2015, according to a report by TechNavio.

The increase in new product development has led to the market growth and the cyclical nature of the semiconductor industry could pose a challenge for the market growth.

The global semiconductor assembly and test services (SATS) market, highly dependent on the semiconductor industry, has also encountered a requirement for shorter product cycles.

TechNavio hardware team analyst said in order to ensure that semiconductor manufacturers continue to outsource their assembly and test services, Semiconductor Assembly and Test Services (SATS) providers are offering comprehensive applications.

 

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Sony to invest US$996 million into CMOS imaging production

Sony sees an opportunity in CMOS image sensors and is investing serious cash into them to prove it.

The company today announced that it plans to invest about 80 billion yen (US$996 million) into the Sony Semiconductor Corp.’s Nagasaki Technology Center. The funds will start flowing in the first half of the fiscal year that ends March 31, 2013 and will be cut off in the first half of its next fiscal year.

Sony’s investment is designed to increase total production capacity for CCD and CMOS image sensors to approximately 60,000 wafers per month by the end of September 2013. The company didn’t say how many wafers are produced at this point.

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MediaTek to Buy Chip Design Rival MStar for $3.8 Billion

MediaTek Inc. (2454) agreed to buy MStar Semiconductor Inc. (3697) in a stock and cash deal that values the smaller rival at $3.8 billion, and end competition between the two Taiwanese designers of chips used in televisions and phones.

MediaTek plans to acquire up to 48 percent of MStar in a tender offer before a full merger expected to close early next year, the two Hsinchu, Taiwan-based companies said in a statement today. MStar shareholders would get 0.794 of a new MediaTek share plus NT$1 ($0.03) in cash for each stock held, a 20 percent premium to today’s closing price, they said.

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Applied Materials Names Gary Dickerson as President

Applied Materials, Inc. (Nasdaq: AMAT), the global leader in providing manufacturing solutions for the semiconductor, display and solar industries, today announced the appointment of Gary Dickerson as president of the company, effective June 19, 2012.

Mr. Dickerson brings more than 30 years of semiconductor industry experience, including recently as the chief executive officer of Varian Semiconductor Equipment Associates, Inc., which Applied Materials acquired in 2011.  In his role as president of Applied Materials, Gary will report directly to Mike Splinter, chairman and chief executive officer, and will be responsible for the day-to-day operation and performance of the company’s four business units: the Silicon Systems Group, Energy and Environmental Solutions, Display and Applied Global Services.

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Applied Materials Still Looks Cheap After Factoring In Downside Risks

Applied Materials provides manufacturing equipment, services and software to manufacturers of semiconductor wafers and chips. With a slowdown in the overall semiconductor market, the company’s revenues took a 4% hit last year as major manufacturers including Intel and Samsung cut their capital expenditure. However, with a revival in sight and strong company fundamentals we are positive on the long term outlook of the company.

Silicon wafer fab equipment and related services account for 84% of our price estimate of $14.83. Since our valuation for Applied stands at a premium of around 40% to the current market price, let’s take a look at some likely trends in the semiconductor equipment market that might negatively impact our valuation for the company.

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The semiconductor industry struggles to control water use

Intel, the semiconductor manufacturer, recently released its 2011 sustainability report and the news, in terms of water, wasn’t good. They’ve failed to meet their water reduction goal: While water use per chip is down 6% from 2010, it’s up 12% from 2007, the baseline year. The new goal is to achieve 2010 per chip water use by 2020; they’ve given themselves a higher bar and double the time to reach it.

Further, total water use in 2011 was up 11% from 2007, from 7.5 to 8.3b gallons, a trend attributed to the ‘increasing complexity of manufacturing processes.’ And this is despite the fact that the company has spent over $100m since 1998 on water efficiency efforts.

Intel isn’t the only big company in the water intensive semiconductor industry to show disappointing water reduction results. IBM, renown for their impressive water efficiency work at their Burlington, VT plant, where advanced analytics and infrastructure upgrades reduced water use 27%, and their foray into the smart water business, reported that their total water use in 2010 was up 3% over 2009.

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TSMC Chairman Morris Chang: Semiconductor Growth to Be Driven by Tablet PCs

Optimistic about growth potential of tablet PCs, Morris Chang, chairman of Taiwan Semiconductor Manufacturing Co., the world’s largest semiconductor foundry by output, projects the global market for such products to significantly expand at an annual compound growth rate of 34% from 2011 through 2016, which will help to fuel his industry in the years to come.

Chang reiterated his optimism about market outlook this year, stressing that the global semiconductor industry is expected to see output value surge 2% in the year from 2011, based on the forecast that hot-selling smartphones and tablet PCs will continue to lead the global trends for consumer electronic devices.

With semiconductor components increasingly used in electronic devices, Chang indicated that Taiwanese IC designers are very likely to achieve bigger market shares, along with IDM (integrated device manufacturers) to increasingly outsource production. In light of the upcoming booms, he believes that IC designers and manufacturers will lead the growth of the overall semiconductor industry in the coming years.

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Demand for automotive semiconductors feeds growth of Infineon Technologies

Semiconductors aren’t just for Silicon Valley.

Infineon Technologies, a subsidiary of a 26,000-person German corporation with the same name, plans to move its Livonia engineering and testing operation next door to a new 46,000-square-foot facility.

Driven by rising demand for semiconductors designed for automotive applications, Infineon signed a 10-year lease with Farmington Hills property developer Northern Equities Group to move into the new facility at 19401 Victor Parkway.

The company expects to move from its current leased offices at 19111 Victor Parkway in January. Construction is under way.

“Anyplace that needs an electronic system in the car, you need an integrated circuit to manage the system itself,” Infineon Vice President Shawn Slusser said.

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SEMICON West Mobilizes with New App for iPhone, iPad, and Android

Mobile Access for Information, Directions, Meetings, and More

SEMICON West has introduced a new mobile app for attendees, bringing virtually all of the show content to iPhones, iPads, and Android devices. 

The SEMICON West mobile app, sponsored by Applied Materials, acts as a portable guide to the event, with access to complete exhibitor listings, floor plans, program schedules, speakers, and local information. App users can save specific exhibitors and sessions to their personal show planner and locate their selected exhibits on the integrated floor maps. Users looking to find out the latest news and information coming from the show can check out the “Buzz” channel, which will feature updates about special events as well as content highlights from each of the TechXPOT stages.

Unlike a mobile website, the SEMICON West app stores all information locally on a user’s device; an Internet connection is needed only to download the app and sync to any content updates. Visitors using Blackberry or Symbian devices can access the same app content via the SEMICON West mobile website using a live Internet connection. 

The new app is available now from the iTunes Store and Google Play.

SEMICON West 2012 Newsletter – June 12, 2012

SEMICON West 2012 – Where the Industry Plans the Future

The global semiconductor industry is perhaps the most challenging, exciting, demanding, and innovative environment in the world. The industry constantly redefines the leading edge of semiconductor research, technology, and manufacturing as companies race to keep pace with Moore’s Law.

This year’s competitive drivers are mobile devices, ubiquitous computing, and the communications infrastructure that supports billions of human and machine interactions. The technologies needed to keep moving forward – new device architectures, new materials, EUV lithography, 3D ICs, 450mm wafers, and more – will be in the spotlight at the SEMICON West 2012 exhibition.

The semiconductor industry has shifted and changed over the years, but SEMICON West remains a bellwether of new technology developments for semiconductor design and manufacturing. Technologists, executives, journalists, and other industry experts return to San Francisco each summer to connect with the latest technologies and trends driving Moore’s Law and enabling next-generation microelectronics.

Another semiconductor industry constant is the need for human connections. SEMICON West enables the face-to-face interactions that attendees use to renew friendships, make new contacts, and discuss new ideas and best-practices techniques. There are plenty of activities and events around the exhibition that support the sharing and the synergy that can lead to innovation and opportunity.

SEMICON West 2012, which opens its doors July 10-12 at San Francisco’s Moscone Center, offers visitors the opportunity to engage with technology companies, see new products, and gain insights into the technologies moving microelectronics manufacturing. 

Technology Trends on the Show Floor: Exploring the TechXPOTs at SEMICON West

Since their debut in 2006, TechXPOT (“tech spot”) stages have become a familiar fixture on the SEMICON West show floor. Each of the three TechXPOT stages offers visitors a full schedule of free technical sessions and “mini conferences” addressing critical microelectronics manufacturing topics and challenges.

TechXPOT North (located in North Hall), is primarily dedicated to sessions addressing packaging, test, and other final manufacturing issues.

Tuesday, July 10    

Contemporary Packaging: Achieving Cost Advantage Through Innovation

Hosted by the Advanced Packaging Committee, SEMI Americas

10:30am-12:30pm

Semiconductor Test: Adding Value through Yield and Better Data Management

1:30pm-4:00pm

Wednesday, July 11    

Highlights of International Test Conference

10:30am-12:30pm

The 2.5 & 3D Packaging Landscape for 2015 & Beyond

Hosted by the Advanced Packaging Committee, SEMI Americas

1:00pm-3:30pm

 

Thursday, July 12

MEMS and Sensor Packaging

Hosted by the Advanced Packaging Committee, SEMI Americas

10:30am-12:30pm

ITRS Back End of Line Technologies

1:00pm-3:30pm

The TechXPOT South (South Hall) schedule covers front end manufacturing equipment, materials, and process topics and some of the industry’s most critically anticipated technology developments including the 450mm wafer transition and EUV lithography.

Tuesday, July 10

Enabling Sub-22nm with New Materials and Processes

10:30am-12:30pm

A Look to the Next Generation of Electronic Materials

Hosted by the Chemical & Gases Manufacturer Group (CGMG) of SEMI

1:30pm-3:30pm

Wednesday, July 11

Lithography: Extending Double-patterning, Industrializing EUV and Complementary Technologies

10:30am-12:50pm

Secondary Market Challenges and Future

1:30pm-3:30pm

Thursday, July 12

SEMICON West 450mm Supply Chain Forum

10:30am-12:00pm

ITRS Front End of Line Technologies

1:00pm-3:30pm

The Extreme Electronics TechXPOT (located in South Hall) is the place to discover trends and opportunities in emerging and adjacent technology markets including LEDs, MEMS, and plastic electronics.

Tuesday, July 10

Taking MEMS to the Next Level:  Transitioning to a Profitable High Volume Business

Morning session: 10:30am-12:30pm

Afternoon session: 1:30pm-3:30pm

Wednesday, July 11

Enabling the Next generation of HB LEDs

Morning session: 10:30am-12:30pm

Afternoon session: 1:30pm-3:30pm

Thursday, July 12

Practical Plastic Electronics: Bringing Disruptive Flexible and Organic Materials into Volume Electronics Manufacturing

10:30am-1:00pm

ITRS CrossCut Technologies

2:00pm-3:30pm