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Chinese panel manufacturers shipped more than one million AMOLED (active-matrix organic light-emitting diode) smartphone displays for the first time in the third quarter of 2016. While the Chinese makers only make up less than 2 percent of the AMOLED smartphone panel market in terms of shipments, hitting the one million unit mark in a quarter shows significant improvements in their manufacturing technology, according to IHS Markit (Nasdaq: INFO).

According to the IHS Markit Smartphone Display Market Tracker, total shipments of AMOLED displays for smartphones set a new record of 101 million units in third quarter 2016. While Samsung Display continues to retain its dominant position with 99.7 million units, three Chinese panel makers — EverDisplay Optronics (EDO), Tianma Micro-electronics and Govisionox Optoelectronics — shipped 1.4 million units for the quarter, representing a sharp increase from the approximate 590,000 units in the previous quarter.

“Strong demand from Chinese smartphone brands, especially OPPO and Vivo, helped boosting overall AMOLED panel demand significantly,” said Terry Yu, principal analyst of small and medium displays for IHS Markit. “Many Chinese smartphone makers, such as Meizu, Gionee, Lenovo, Huawei and even Xiaomi, are planning to adopt AMOLED panels in their devices. This gives Chinese display suppliers a great opportunity to gain more orders, improve their mass production yield rate and enhance their product reliability.”

According to IHS Markit, AMOLED display penetration among Chinese smartphone brands is expected to increase from 8 percent in 2015 to 13.6 percent in 2016. However, due to the tight supply of AMOLED panels from Samsung Display, many domestic smartphone brands are turning to local Chinese panel makers. For example, after Xiaomi and Huawei failed to secure their orders of AMOLED panels from Samsung, they struck partnerships with EDO, the leading AMOLED panel suppliers in China, with the promise of mass production and product reliability. EDO, which started operating its Shanghai-based Gen 4.5 AMOLED fab in 2014, shipped one million units of AMOLED panels in the third quarter of 2016, up from 0.2 million units in the first quarter. Similarly, Tianma and Govisionox have also developed business relationships with ZTE as its secondary supplier of AMOLED smartphone displays.

“Chinese panel makers are still too small to threaten Samsung’s dominant position, but they still play an important role as a second or third source for major smartphone brands in China,” Yu said. “Furthermore, as Samsung Display shifts its focus to the flexible OLED, Chinese panel makers are expected to expand their shares in the rigid OLED panel market.”

Chinese_AMOLED_panel_shipments

By Christian G. Dieseldorff, Industry Research & Statistics Group at SEMI 

Data from SEMI’s recently updated World Fab Forecast report reveal that 62 new Front End facilities will begin operation between 2017 and 2020.  This includes facilities and lines ranging from R&D to high volume fabs, which begin operation before high volume ramp commences.  Most of these newly operating facilities will be volume fabs; only 7 are R&Ds or Pilot facilities.

Between 2017 and 2020, China will see 26 facilities and lines beginning operation, about 42 percent of the worldwide total currently tracked by SEMI.  The majority of the facilities starting operation in 2018 are Chinese-owned companies. The peak for China in 2018 comes mainly from foundry facilities (54 percent). The Americas region follows with 10 facilities, and Taiwan with 9 facilities. See Figure 1.

Figure 1 depicts the regions in which new facilities will begin operation.

Figure 1 depicts the regions in which new facilities will begin operation.

By product type, the forecast for new facilities and lines include: 20 (32 percent) are forecast to be foundries, followed by 13 Memory (21 percent), seven LED (11 percent), six Power (10 percent) and five MEMS (8 percent). See Figure 2

Figure 2: New facilities & lines starting operation by product type from 2017 to 2020

Figure 2: New facilities & lines starting operation by product type from 2017 to 2020

Because the forecast extends several years, it includes facilities and lines of all probabilities, including rumored projects and projects which have been announced, but have a low probability of actually happening.  See Table 1.

FabForecast-table1

 

Probabilities of less than 50 percent are considered unconfirmed, while a probability of 80 to 85 percent means that the facility is currently in construction mode.  Projects with 90 percent probability are currently equipping. As the forecast gets farther out, more of the projects have lower probabilities.

The projects under construction, or soon to be under construction, will be key drivers in equipment spending for this industry over the next several years — with China expected to be the key spending market.

SEMI’s World Fab Forecast provides detailed information about each of these fab projects, such as milestone dates, spending, technology node, products, and capacity information. Since the last publication in August 2016, the research team has made 249 changes on 222 facilities/lines.

The World Fab Forecast Report, in Excel format, tracks spending and capacities for over 1,100 facilities including future facilities across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities.  Using a bottoms-up approach methodology, the SEMI Fab Forecast provides high-level summaries and graphs, and in-depth analyses of capital expenditures, capacities, technology and products by fab.

The SEMI Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly and packaging houses.  The SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment. Also check out the Opto/LED Fab Forecast.

Learn more about the SEMI fab databases at: www.semi.org/en/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats.

Today, SEMI updated the World Fab Forecast report revealing that 62 new Front End facilities are expected to begin operation between 2017 and 2020. The report has been the industry’s trusted data source for 24 years ─ observing and analyzing spending, capacity, and technology changes for all front-end facilities worldwide.

The 62 facilities and lines range from R&D to high-volume fabs.  Most of the newly operating facilities will be volume fabs; only seven are R&Ds or Pilot facilities.

Between 2017 and 2020, 26 facilities and lines begin operation in China, about 42 percent of the worldwide total currently tracked by SEMI.  The Americas region follows with 10 facilities, and Taiwan with 9 facilities.

Fab-Dec-2016

By product type, 32 percent are foundries, 21 percent are Memory, 11 percent LED, then Power, MEMS, Logic, Analog, and Opto, in decreasing order.

Between 2017 and 2020, the World Fab Forecast indicates that five facilities are unconfirmed, 10 are planned, 11 are announced, 26 are in construction and 10 are equipping. These numbers include facilities and lines of all probabilities, including unconfirmed projects and projects which have been announced, but may have a low probability of completion.

The projects under construction, or soon to be under construction, will be key drivers in equipment spending for this industry over the next several years — with China expected to be the key spending market.

SEMI’s World Fab Forecast provides detailed information about each of these fab projects, such as milestone dates, spending, technology node, products, and capacity information. Since the last publication in August 2016, the research team has made 249 changes on 222 facilities/lines. The report, in Excel format, tracks spending and capacities for over 1,100 facilities, using a bottoms-up approach methodology, and provides high-level summaries and graphs, with in-depth analyses of capital expenditures, capacities, technology and products by fab. The SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment, while the SEMI Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly and packaging houses; also check out the Opto/LED Fab Forecast. Learn more about the SEMI fab databases at: www.semi.org/en/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats.

SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain, today reported that worldwide sales of new semiconductor manufacturing equipment are projected to increase 8.7 percent to $39.7 billion in 2016, according to the SEMI Year-end Forecast, released today at the annual SEMICON Japan exposition.  In 2017, another 9.3 percent growth is expected, resulting in a global semiconductor equipment market totaling $43.4 billion.

The SEMI Year-end Forecast predicts that wafer processing equipment, the largest product segment by dollar value, is anticipated to increase 8.2 percent in 2016 to total $31.2 billion. The assembly and packaging equipment segment is projected to grow by 14.6 percent to $2.9 billion in 2016 while semiconductor test equipment is forecast to increase by 16.0 percent, to a total of $3.9 billion this year.

For 2016, Taiwan and South Korea are projected to remain the largest spending regions, with China joining the top three for the first time. Rest of World (essentially Southeast Asia), will lead in growth with 87.7 percent, followed by China at 36.6 percent and Taiwan at 16.8 percent.

SEMI forecasts that in 2017, equipment sales in Europe will climb the most, 51.7 percent, to a total of $2.8 billion, following a 10.0 percent contraction in 2016. In 2017, Taiwan, Korea and China are forecast to remain the top three markets, with Taiwan maintaining the top spot even with a 9.2 percent decline to total $10.2 billion. Equipment sales to Korea are forecast at $9.7 billion, while equipment sales to China are expected to reach $7.0 billion.

The following results are given in terms of market size in billions of U.S. dollars:

2016-year-end

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $30.5 billion for the month of October 2016, an increase of 3.4 percent from last month’s total of $29.5 billion and 5.1 percent higher than the October 2015 total of $29.0 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects roughly flat annual semiconductor sales in 2016, followed by slight market growth in 2017 and 2018.

“The global semiconductor market has rebounded in recent months, with October marking the largest year-to-year sales increase since March 2015,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales increased compared to last month across all regional markets and nearly every major semiconductor product category. Meanwhile, the latest industry forecast has been revised upward and now calls for flat annual sales in 2016 and small increases in 2017 and 2018. All told, the industry is well-positioned for a strong close to 2016.

Regionally, year-to-year sales increased in China (14.0 percent), Japan (7.2 percent), Asia Pacific/All Other (1.9 percent), and the Americas (0.1 percent), but decreased in Europe (-3.0 percent). Compared with last month, sales were up across all regional markets: the Americas (6.5 percent), China (3.2 percent), Japan (3.0 percent), Europe (2.2 percent), and Asia Pacific/All Other (2.0 percent).

Additionally, SIA today endorsed the WSTS Autumn 2016 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $335.0 billion in 2016, a 0.1 percent decrease from the 2015 sales total. WSTS projects a year-to-year increase in Japan (3.2 percent) and Asia Pacific (2.5 percent), with decreases expected in Europe (-4.9 percent) and the Americas (-6.5 percent). Among major semiconductor product categories, WSTS forecasts growth in 2016 for sensors (22.6 percent), discretes (4.2 percent), analog (4.8 percent) and MOS micro ICs (2.3 percent), which include microprocessors and microcontrollers.

Beyond 2016, the semiconductor market is expected to grow at a modest pace across all regions. WSTS forecasts 3.3 percent growth globally for 2017 ($346.1 billion in total sales) and 2.3 percent growth for 2018 ($354.0 billion). WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

Leti CEO Marie Semeria today delivered a sweeping, optimistic assessment of a rapidly evolving world where “hyperconnectivity” and the Internet of Things – guided by a “human-centered research approach and symbiotic development strategies” – herald profound changes in the way individuals relate to each other and to the physical world.

Her keynote presentation during the opening session of IEDM 2016, one of the high-tech industry’s most prestigious annual events, was based on her invited paper, “Symbiotic Low-Power, Smart and Secure Technologies in the Age of Hyperconnectivity”.

Marie Semeria, Leti CEO

Marie Semeria, Leti CEO

Semeria presented a comprehensive view of ubiquitous connectivity’s vast potential to bring positive change for individuals, society, companies and governments. She envisions a world in which a human-centered research approach combined with symbiotic development strategies “along different technological axes will foster key innovations that address societal challenges with strong impact.”

IoT at ‘Epicenter of the Revolution’

“The vertiginous pace of technological progress has made civilization enter the age of hyperconnectivity, dramatically changing the way people live, interact, share information, work, travel, take care of their health (and) purchase goods,” she notes. “Enabled by the convergence of miniaturization, wireless connectivity, increased data-storage capacity and data analytics, the Internet of Things (IoT) has become the epicenter of a profound social, business and political revolution.”

The IoT, with billions of easy-access and low-cost connected devices, “has transformed the world into a truly global village, enabling people and machines to interact in a symbiotic way – anytime, anywhere – with both the physical and cyber worlds,” she notes. “A new economy has emerged, as new product-as-a-service business models have been enabled by smart, connected products, creating substitutes for product ownership.”

In R&D strategies where technologies are developed symbiotically, the technologies’ associated innovation potential strongly increases. “Leti masters hardware and software technologies that gather, filter, process, store, transfer and analyze information in an efficient way. What is crucial today is not to consider these technologies as independent from one another,” Semeria says.

In her paper, Semeria also addresses the many global challenges that predate the hyperconnectivity era, such as climate change, poverty, diminishing natural resources and pollution, and the major challenges that rapid technological advancements have enabled. These include the negative side effects of cyber-technologies, ranging from “digital addiction” of some young people to cyber attacks on systems and threats to personal data and privacy.

Security Is a Crucial Component

“The hyperconnected society presents challenges which will require collective learning and adaptation, by both the main actors and the users, to develop the literacy and regulatory frameworks that will recreate and sustain the right balance between accountability and freedom for all agents, people and corporations,” Semeria says.

“Hypersecurity is a crucial component needed to counteract the surge in cyber attacks, which affect our modern societies, critically dependent on cyber-infrastructures (banking, communication, business, etc.). Security and unobtrusive surveillance technologies are being developed to provide and maintain peaceful everyday lives.”

Citizen Concerns

Data breaches and unapproved use of private information have raised widespread concerns about privacy. “Information is sometimes exchanged for commercial or national security purposes, leading citizens to perceive a loss of control, freedom and privacy,” Semeria notes. “The hyperconnected society presents challenges which will require collective learning and adaptation, by both the main actors and the users, to develop the literacy and regulatory frameworks that will recreate and sustain the right balance between accountability and freedom for all agents, people and corporations.”

The hyperconnectivity value chain, which includes sensing, communication, computing and storage, energy harvesting, security and services, depends on key building blocks ranging from sensors to communication networks, including 5G, which is expected to provide a full-scale IoT that offers immersive services regardless of geography and time zones. Leti has strategic programs in each of the value chain fields and participates in the core of Europe’s 5G innovation initiatives.

A Major Role for RTOs

Semeria points out that research and technology organizations (RTOs) like Leti are playing a vital role in the twin pursuits of making the IoT and networks both more efficient and more secure. In the 50 years since its founding, Leti has shaped its strategy to tackle the main challenges presented by the evolution of society and the economic and industrial sectors.

RTOs “are ideally positioned to address and harmonize growing individual, private needs and global societal challenges, because they are neither embedded public administration organizations nor industrial corporate labs guided by private interests,” Semeria notes.

Biomimicry’s Natural Role

In addition to partnerships with companies on specific solutions to make them more competitive and its participation in EU research programs with broader strategic impact, Leti pursues multiple lines of inquiry with an eye on technologies for the future. These include bio-mimicry, which aims to adapt for commercial use the sensing efficiencies that insects have developed over billions of years of evolution.

“Bio-inspired ideas, which are currently experiencing an exponential growth, represent an area with very high hopes,” Semeria says.

Within a highly competitive landscape due to a strong price pressure, most of the LED companies are looking for business opportunities and adopt different strategies of development. Vertical integration, product, application and activity diversification. New relays of growth are required for LED players to survive.

From a packaging point of view, more and more packaged LED manufacturers selected the vertical integration strategy to move towards the module level and add more and more value in their LED components.

Under the new report titled LED Packaging 2016: Market, Technology and Industry Landscape report, Yole Développement (Yole) reviews the LED industry and market status. The “More than Moore” market research and strategy consulting company Yole, details process flows and related technologies in LED packaging. Yole proposes also a comprehensive analysis of the cost reduction and its impact at the LED packaging level.

According to Yole’s analysts, the packaged LED market represented a revenue of nearly US$15.7 billion in 2015. This industry should grow to a size of nearly US$18.2 billion by 2020.

led packaging revenue

Following the overcapacity caused by the recent LED TV crisis and the entry of Chinese players, industry consolidation was expected to decrease competition and stabilize price erosion. This eventually happened in China during 2014 and 2015, but with unforeseen effects on the overall industry. Indeed, several smaller players went bankrupt and many midsize players have since been acquired, leading to a situation where dozens of companies are having “going-out-of business” sales. This has triggered strong price decline and, naturally, other LED players had no choice but to match the price trend initiated by the Chinese industry.

ASP for low and mid power LEDs declined 30% – 40% in the second half of 2015. In parallel ASP for high power LEDs, though less affected, still declined 20% – 30%. Globally, 2015 was a rough year for the LED industry, with packaged LED revenue declining for the first time ever: from US$15.1 billion in 2014 to US$15 billion in 2015.

This decrease was emphasized by lower-than anticipated demand in the LED backlight and LED lighting markets. Moreover, strong evolution in currency exchange rates due to the US dollar’s rise contributed to many players’ declining revenue.

2016 has seen the industry begin recovering, and packaged LED ASPs have mostly stabilized for highly-commoditized stock keeping units like the low-power 2835 and mid-power 5630.

Higher power grades for lighting applications are seeing increasing demand, but also stiffer competition, which likely will lead to a significant ASP drop as competition intensifies.

“Thus we expect the packaged LED market to show moderate growth in the coming years, reaching US$18.5 billion in 2021 (CAGR 2016 – 2021: +3.4%)”, explains Pars Mukish, Business Unit Manager at Yole. 

LED packaging market is still a strong opportunity for materials suppliers. Indeed, LED packaging requires specific materials in agreement with application requirements.

Regarding packaging substrates, the high power density of devices induces the use of ceramic substrates, a market that will grow from nearly US$684 million in 2015 to US$813 million in 2021, according to Yole’s LED packaging report.

Encapsulant/optic materials will follow the same trend: Yole’s analysts announce US$400 million in 2015 and US$526 million in 2021. This market segment is driven mostly by the increased use of silicone material offering better reliability/lifetime than traditional epoxy material.

In parallel, with major YAG IP expiring from 2017, the phosphor market will face strong commoditization and price pressure. Consequently, market will only grow from nearly US$339 million in 2015 to US$346 million in 2021.

The LED packaging report (2016 edition) provides a comprehensive overview of all LED packaging aspects. Each step of the packaging process flow including equipment and materials used is described, along with associated trends. Associated technological breakthroughs are also analysed.

Siemens and Mentor Graphics (NASDAQ: MENT) today announced that they have entered into a merger agreement under which Siemens will acquire Mentor for an enterprise value of $4.5 billion. Mentor’s Board of Directors approved and declared advisable the merger agreement, and Mentor’s Board of Directors recommends the approval and adoption of the merger agreement by the holders of shares of Mentor common stock.

“Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age. It’s a perfect portfolio fit to further expand our digital leadership and set the pace in the industry,” said Joe Kaeser, President and CEO of Siemens AG.

“With Mentor, we’re acquiring an established technology leader with a talented employee base that will allow us to supplement our world-class industrial software portfolio. It will complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems,” said Klaus Helmrich, member of the Managing Board of Siemens.

Mentor is headquartered in Wilsonville, Oregon, U.S., and has employees in 32 countries worldwide. In its fiscal year ended January 31, 2016, Mentor had over 5,700 employees and generated revenue of approximately $1.2 billion with an adjusted operating margin of 20.2%. Siemens expects these attractive margins to continue in the future and contribute significantly to the Product Lifecycle Management (PLM) software business of Siemens Digital Factory (DF) Division, which Mentor will join. Mentor serves a large, diverse customer base of marquee systems companies and IC/semiconductors companies with over 14,000 global accounts across communications, computer, consumer electronics, semiconductor, networking, aerospace, multimedia, and transportation industries. Mentor is viewed as a global leader in strategic industry segments including IC design, test and manufacturing; electronic systems design and analysis; and emerging markets including automotive electronics.

“Combining Mentor’s technology leadership and deep customer relationships with Siemens’ global scale and resources will better enable us to serve the growing needs of our customers, and unlock additional significant opportunities for our employees,” said Walden C. Rhines, chairman and CEO of Mentor. “Siemens is an ideal partner with financial depth and stability, and their resources and additional investment will allow us to innovate even faster and accelerate our vision of creating top-to-bottom automated design solutions for electronic systems. We are excited to join the Siemens family, as it is clear they share the same values and focus on customer success, and are pleased that this transaction provides immediate and certain value to our stockholders.”

Siemens expects to achieve synergies through a combination of revenue growth and anticipated margin expansion, with a total EBIT impact of over €100 million within 4 years from closing the transaction. Additionally, the transaction is expected to be EPS accretive within three years from closing. Closing of the transaction is subject to customary closing conditions and is expected in Q2 of calendar 2017. Mentor will be part of the PLM software business of Siemens’ DF Division. DF is the industry leader in automation technology and a leading provider of PLM software.

“By adding Mentor’s electronic design automation solutions and talented experts to our team, we’re greatly enhancing our core competencies for product design that creates a very precise digital twin of any smart product and production line,” noted Helmrich.

Shares in Mentor Graphics jumped 18.5 percent to $36.37 in early U.S. trading, while Siemens was 1.1 percent higher by 1435 GMT.

The deal will boost its software revenue by about a third from 3.3 billion euros, to around 6 percent of group revenue.

Deutsche Bank and JP Morgan advised Siemens on the transaction, which is expected to close in the second quarter of 2017. Bank of America advised Mentor Graphics.

Researchers at the Fraunhofer Institute for Solar Energy Systems ISE together with the Austrian company EV Group (EVG) have successfully manufactured a silicon-based multi-junction solar cell with two contacts and an efficiency exceeding the theoretical limit of silicon solar cells. For this achievement, the researchers used a “direct wafer bonding” process to transfer a few micrometers of III-V semiconductor material to silicon, a well-known process in the microelectronics industry. After plasma activation, the subcell surfaces are bonded together in vacuum by applying pressure. The atoms on the surface of the III-V subcell form bonds with the silicon atoms, creating a monolithic device. The efficiency achieved by the researchers presents a first-time result for this type of fully integrated silicon-based multi-junction solar cell. The complexity of its inner structure is not evident from its outer appearance: the cell has a simple front and rear contact just as a conventional silicon solar cell and therefore can be integrated into photovoltaic modules in the same manner.

Wafer-bonded III-V / Si multi-junction solar cell with 30.2 percent efficiency ©Fraunhofer ISE/A. Wekkeli

Wafer-bonded III-V / Si multi-junction solar cell with 30.2 percent efficiency ©Fraunhofer ISE/A. Wekkeli

“We are working on methods to surpass the theoretical limits of silicon solar cells,” says Dr. Frank Dimroth, department head at Fraunhofer ISE. “It is our long-standing experience with silicon and III-V technologies that has enabled us to reach this milestone today.” A conversion efficiency of 30.2 percent for the III-V / Si multi-junction solar cell of 4 cm² was measured at Fraunhofer ISE’s calibration laboratory. In comparison, the highest efficiency measured to date for a pure silicon solar cell is 26.3 percent, and the theoretical efficiency limit is 29.4 percent.

The III-V / Si multi-junction solar cell consists of a sequence of subcells stacked on top of each other. So-called “tunnel diodes” internally connect the three subcells made of gallium-indium-phosphide (GaInP), gallium-arsenide (GaAs) and silicon (Si), which span the absorption range of the sun’s spectrum. The GaInP top cell absorbs radiation between 300 and 670 nm. The middle GaAs subcell absorbs radiation between 500 and 890 nm and the bottom Si subcell between 650 and 1180 nm, respectively. The III-V layers are first epitaxially deposited on a GaAs substrate and then bonded to a silicon solar cell structure. Subsequently the GaAs substrate is removed, and a front and rear contact as well as an antireflection coating are applied.

“Key to the success was to find a manufacturing process for silicon solar cells that produces a smooth and highly doped surface which is suitable for wafer bonding as well as accounts for the different needs of silicon and the applied III-V semiconductors,” explains Dr. Jan Benick, team leader at Fraunhofer ISE.

“In developing the process, we relied on our decades of research experience in the development of highest efficiency silicon solar cells.” Institute Director Prof. Eicke Weber expresses his delight: “I am pleased that Fraunhofer ISE has so convincingly succeeded in breaking through the glass ceiling of 30 percent efficiency with its fully integrated silicon-based solar cell with two contacts. With this achievement, we have opened the door for further efficiency improvements for cells based on the long-proven silicon material.”

“The III-V / Si multi-junction solar cell is an impressive demonstration of the possibilities of our ComBond® cluster for resistance-free bonding of different semiconductors without the use of adhesives,” says Markus Wimplinger, Corporate Technology Development and IP Director at EV Group. “Since 2012, we have been working closely with Fraunhofer ISE on this development and today are proud of our team’s excellent achievements.” The direct wafer-bonding process is already used in the microelectronics industry to manufacture computer chips.

On the way to the industrial manufacturing of III-V / Si multi-junction solar cells, the costs of the III-V epitaxy and the connecting technology with silicon must be reduced. There are still great challenges to overcome in this area, which the Fraunhofer ISE researchers intend to solve through future investigations. Fraunhofer ISE’s new Center for High Efficiency Solar Cells, presently being constructed in Freiburg, will provide them with the perfect setting for developing next-generation III-V and silicon solar cell technologies. The ultimate objective is to make high efficiency solar PV modules with efficiencies of over 30 percent possible in the future.

The young researcher Dr. Romain Cariou carried out research on this project at Fraunhofer ISE with the support of a Marie Curie Postdoctoral Fellowship. Funding was provided by the EU project HISTORIC. The work at EVG was supported by the Austrian Ministry for Technology.

Qualcomm’s proposed acquisition of NXP Semiconductors marks the latest deal in a wave of industry consolidation that includes increasingly expensive transactions with greater focus on expanding scope rather than economies of scale, according to Fitch Ratings. Fitch believes consolidation in the chip industry will continue through the intermediate term within the context of cheap financing and tepid demand in more mature semiconductor markets.

While the NXP deal is expensive (and the largest ever) at $47 billion, including nearly $8 billion of net debt at NXP, Qualcomm will be able to tax-efficiently use offshore cash to fund a material amount of the all-cash transaction, given NXP’s Dutch incorporation. Fitch estimates Qualcomm will use approximately $28 billion of its $31 billion of total available cash at June 26, 2016 (more than $28 billion is located outside the U.S.) of offshore cash as of June 26, 2016 (versus $31 billion of total cash) and $11 billion of new debt, resulting in a Fitch estimated total leverage (total debt to operating EBITDA) of roughly 3.2x at closing. Despite the high price tag, Fitch believes the 4.6x revenue purchase multiples is in line with averages paid in large transactions completed over the last year, which Fitch estimates was roughly 5x revenues.

The Qualcomm deal with NXP is the latest example of chip companies acquiring capabilities within growth markets, particularly automotive and internet of things (IoT), as traditional semiconductor PC and smartphone markets mature. Qualcomm expects the acquisition will increase its addressable market by 40%, driven by increasing semiconductor content per car in automotive markets, exponential growth of connected devices in IoT markets and growing adoption of credit card security technologies.

Avago Technologies’ Feb. 2, 2016 acquisition of Broadcom for $37 billion focused on leveraging Broadcom’s leading wi-fi technology for the IoT market. Qualcomm’s August 2016 $2.4 billion acquisition of CSR plc strengthened Qualcomm’s nascent automotive and IoT offerings with significant semiconductor and software capabilities. Intel’s December 2015 acquisition of Altera Inc. for $16.7 billion acquisition of Altera diversified Intel away from personal computers by combining Altera’s field-programmable gate arrays with Intel’s low power processors for IoT applications. Even NXP’s December 2015 $12 billion acquisition of Freescale Semiconductor focused on expanding already strong capabilities and share in automotive and IoT markets.

Qualcomm has been in strategic review mode over the past few years amid growth concerns reflecting intensifying competition in the maturing smart phone market from the likes of Intel and a less robust long-term outlook for licensing revenue in China, where most smartphone unit growth is expected. The acquisition of NXP meaningfully diversifies Qualcomm’s end market exposure, reducing wireless handset exposure to below 50% of mobile products sales from 61% currently, and provides a top line growth catalyst, as well as earnings growth beyond significant share repurchases.

Fitch believes deal integration may be complicated by NXP’s ongoing integration of Freescale, which was structured largely as a merger of equals, and lack of technology overlap, given Qualcomm’s system-on-a-chip for mobile devices and telecom equipment focus and NXP’s focus on mixed-signal semiconductors and microprocessors and microcontrollers.