450 mm Development Cost: $25 to $40 Billion

Posted on November 2, 2011 by

In the most complete, public discussion to date on the scope and character of the 450 mm wafer transition, representatives of SEMATECH, policy-makers from the European Commission, industry consortia, and technology suppliers met to discuss the implications of 450 mm transition at SEMICON Europa on October 13-14, in Dresden, Germany. Among the highlights of the 2-day session was the 450 transition price tag estimated by speakers at $25-$40 billion, much of it centered at the Global 450 Consortium (G450C), perhaps with little room for other industry consortia or non-G450C participants.

According to Tom Jefferson, 450 program manager at SEMATECH, by mid-2013 to early 2014, a complete 450 mm production line will be established in New York containing 50 different tool types. The objective of the pilot line will be to develop data to support the purchase of production-line tools and it is unlikely that non-participants in G450C will be favorably considered for 450 production lines. According to many speakers–like the case with 200 mm tools during the 300 mm transition–when 450 mm reaches production, significant 300 mm development will cease.

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We’re in a ‘normal downturn’, says Freescale CEO Beyer

Posted on October 31, 2011 by

The semiconductor market is in a downturn driven by falling demand in the US, Asia and Europe, says Rich Beyer, CEO of Freescale Semiconductor.

He believes falling GDPs (gross domestic product) in the economies of the US and European countries is now a major concern for the chip industry.

“Everyone has been worried for the last three to four months,” Beyer, told Electronics Weekly.

“We are in a normal downturn, a demand driven downturn,” said Beyer.

“Looking ahead to the fourth quarter, we expect the weakness in the semiconductor market to continue to negatively impact our business,” said Beyer.

China MEMS purchases slow to “healthy rate” in 2011

Posted on October 27, 2011 by

China will buy about 10% more micro electro mechanical systems (MEMS) in 2011 year-over-year, which is slower expansion than the 33% leap from 2009 to 2010. China’s efforts to dampen inflation are having an effect, shows data from the IHS iSuppli China Research report, which suggests that the market is “expanding at a healthy rate.”

China MEMS revenue will reach $1.6 billion in 2011, growing to $2.6 billion in 2015, a 5-year compound annual growth rate (CAGR) of 12.1%.

The 33% growth seen in 2010 was driven by an expansion of China’s manufacturing capacity for MEMS-integrating products: mobile phones, automotive electronics, and consumer electronic devices. This, combined with financial incentives from a lending-inclined Chinese government, created an expansion that is unlikely to be repeated, IHS reports.

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Fab 8 edges away from the human touch

Posted on October 24, 2011 by

GlobalFoundries has designed its Fab 8 computer chip facility in Malta to be “lights-out” — a term used to describe heavily automated factories where few humans are needed on the production floor.

Former Fab 8 General Manager Norm Armour, who recently left the company, said at a company conference in Silicon Valley at the end of August that the Fab 8 clean room — which has enough space to hold eight football fields — could be totally automated by 2015, according to press accounts.

GlobalFoundries spokesman Travis Bullard confirmed Armour’s remarks but he said the company’s employment projections shown in presentations to business and civic groups around the region were always based on a lower number of clean room employees in contact with manufacturing equipment — known as “tools” — than is found at other fabs around the world.

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Semiconductor tool orders slide below billion-dollar mark in September

Posted on October 21, 2011 by

Awaiting “stability in the overall economic outlook,” semiconductor device makers spent 40.4% less with North America-based manufacturers of semiconductor fab equipment year-over-year in September 2011. The September book-to-bill ratio published by SEMI fell to 0.75.

Worldwide bookings in September 2011 totaled $984.8 million, a 15.3% drop month-to-month, tipping below the billion mark. Year-over-year, bookings fell 40.4% ($1.65 billion in September 2010).

Worldwide billings from North American semiconductor fab tool makers in September 2011 was $1.31 billion, 9.8% less than August and 18.4% below September 2010 billings.

Bookings nearly reached the level last seen in late 2009, noted Stanley T. Myers, president and CEO of SEMI. Myers says that device makers “are investing in advanced technology,” but are waiting out macro-economic uncertainties before making broader investments.

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Polysilicon plant waste recycling

Posted on October 19, 2011 by

Polysilicon production generates waste, and recycling that waste can be advantageous. An understanding of how waste streams are created and how to remove them through recycling, will enable polysilicon manufacturing with a closed-loop design. The economics of recycling are also discussed along with the use of an ion-exchange catalyst for recycling.

Polysilicon is required by the photovoltaic (PV) industry as a raw material for the manufacture of solar cells. Semiconductor makers also use polysilicon.

Prior to 2008, a polysilicon shortage triggered new capacity startups for making both solar- and electronic-grade polysilicon. Efforts are now underway to minimize waste materials generated while reducing the production cost of polysilicon. Trichlorosilane (TCS or SiHCl₃) is utilized for most of the polysilicon produced in the world using the Siemens reactor process.

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Analyst: Chip market downturn to be brief

Posted on October 18, 2011 by

A semiconductor industry downturn that began over the summer will be short lived, reaching its bottom in February 2012, according to a market analyst.

Speaking at Dongbu HiTek Co. Ltd.’s Analog Semiconductor Leaders Forum here last week, Jim Feldhan, president of Semico Research Corp., said the semiconductor industry supply chain pulled back and started burning inventory amid deteriorating macroeconomic conditions and declining consumer spending.

Feldhan said nervous OEMs are likely to continue burning inventory through the end of 2011 and into 2012. He predicted that the market would overreact to the slowdown in business, projecting that overall industry capacity utilization would slip to under 80 percent by the end of the year, down from more than 90 percent at the beginning of 2011.

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IEF: Japan can rise again, says exec

Posted on October 12, 2011 by

The Japanese semiconductor industry, which has been in decline for more than 20 years, needs to select key technology areas and refocus to rise again, Junshi (JJ) Yamaguchi, former chairman of chip company Renesas Electronics Corp, told the International Electronics Forum.

Yamaguchi, who now serves as special advisor to Renesas and as chairman of the Japan Semiconductor Industry Association, indicated that the tragedy of the great Japanese earthquake and tsunami of March 2011 could yet prove to be a turning point for the country and its remaining chip manufacturers.

He opened his presentation by painting a picture of the decline of the Japanese chip industry as a percentage of the global output. This went from 51 percent in 1988 to 44 percent in 1994 to 29 percent in 1998 and to just 20 percent in 2010, he said.

Yamaguchi explained the key events that prompted the decline.

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Fab Equipment Spending up 23% in 2011

Posted on October 10, 2011 by

The SEMI World Fab Forecast indicates that capital expenditure will increase to $41.1 billion in 2011, the highest on record. This new prediction is revised downwards to a 23% increase (from 31% increase predicted in May 2011), as some companies have adjusted plans due to broader economic conditions. Although 2012 spending will decline, the total for 2012 may still be the second highest on record.

“Changes in the global economy affect the semiconductor industry. Economic developments in recent months decreased consumer confidence and spending, and the semiconductor industry has reacted to this slowdown,” said Christian Gregor Dieseldorff, senior analyst of fab information in the SEMI Industry Research and Statistics group.

In 2011, SEMI counts 223 facilities spending on equipment. Of these, 77 projects are for LED dedicated facilities. Next year, 190 facilities will start or continue equipping, with 72 LED projects.

The highest spending in 2011 occurs in the Americas with about $10 billion, followed by Taiwan with about $9 billion. The Americas region last led spending in 2002. Although Intel spends the most, another key reason for America’s lead is Samsung’s spending of about $2.5 to $3 billion in their Austin fab, dubbed the “S2-line.” In 2012, Korea is predicted to step ahead of the Americas, with over $10 billion in fab equipment spending, followed by Taiwan at $9.2 billion.

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SEMICON West 2011 Wrap-Up, and the Plans for Next Year

Posted on September 9, 2011 by

Karen Savala, the president of SEMI North America, sat down with MySemiconDaily to share her perspective on the recent San Francisco show. Here are her comments on what worked, what didn’t, and what SEMI is planning for SEMICON West 2012.

“SEMICON West was a good – maybe even a great – show. We look at metrics like number of exhibitors, and number of visitors, and those looked good, but we pay serious attention to what exhibitors say during and after the show, and what attendees say during and after the show. These comments tell us how we’re really doing, and the comments for SEMICON West 2011 were very good.”

“Two items stand out as being the highlights of the show. The first item is the slate of keynote speeches. We had amazingly good attendance at the keynotes this year, and the presenters – Tien Wu of ASE, Rama Shukla of Intel, and Luc van den Hove of IMEC – each offered outstanding views of the industry. They looked at the strategic big pictures and the tactical challenges of today, so everyone who attended learned something helpful.”

“The second highlight was the TechXpots, especially the technical content from the speakers. Exhibitors and attendees were happy with these opportunities to delve into leading-edge topics, and the presentations were very well attended. Many people may not realize that SEMI committees like the Chemical and Gas Manufacturers’ Group, or the Packaging team guide the TechXpot topics and content. These industry experts and peers choose meaningful presentations for the TechXpots, and that level of informed attention results in the high quality content we have at the show.”

“And one last highlight – the 450mm Wafer Transition Forum session on Thursday was standing-room only. Everyone who attended was seriously interested in the issue, and there was solid information and analysis in the presentations. This was very well-received. Jonathan Davis, the president of the SEMI Global Semiconductor Business, wrote up a review of the Forum, and everyone should read that.”

“One thing that was different this year was that we resumed the VIP reception on the evening before the show opened. This has always been popular, but interest waned last year so we postponed it. We brought it back for SEMICON West 2011, and people were thrilled to have the opportunity to meet with suppliers and customers before the show opened.”

“Another big difference – and this was a bit of a gamble for us – was the Happy Hour on the show floor. Exhibitors were delighted with the opportunity to meet customers in a more relaxed environment, and this recalled some of the fun that characterized SEMICON West shows from past years. Companies that sponsored the events were happy, and this event is definitely on the list to return to the show for next year.”

“We’re already planning for SEMICON West 2012. We’ll definitely have three Tech Zones – Extreme Electronics, Secondary Equipment and Services, and a Materials zone. The Extreme Electronics zone was full of MEMS, LED, and flexible / printed electronics companies that use semi manufacturing equipment. The Secondary Equipment and Services zone showed that there’s a lot of 200mm equipment being used for semi manufacturing and for other products and technologies, and the Materials zone gave materials companies an opportunity to present leading-edge advances. These all worked very well in 2011, and we’ll continue them for 2012.”

“The last item is the same as the first thing I mentioned – feedback. Based on attendee and exhibitor feedback from previous years, we streamlined the 2011 registration process to get people onto the show floor quickly. We added opportunities for more networking activities, because people told us that’s the reason they come to this show. While the manufacturing has moved, mostly to Asia, many of the strategic and tactical decision-makers in the industry are still here in the U.S., and they want a place to meet customers and suppliers. We listen carefully to the feedback. That’s how I know that SEMICON West 2011 was a great show, and that’s how we’ll make SEMICON West 2012 even better.”