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INVECAS Inc. and GLOBALFOUNDRIES announced today that INVECAS will provide IP and end-to-end ASIC design services as a part of the foundry’s FDXcelerator Partner Program, an ecosystem designed to facilitate 22FDX SoC designs for tomorrow’s intelligent systems. The collaboration accelerates the adoption of FDX technology in applications spanning Internet-of-Things (IoT), mobile, RF connectivity, and networking markets.

INVECAS will work closely with GLOBALFOUNDRIES’ technology teams to develop and verify a range of intellectual property (IP) for the company’s 22FDX process. Moreover, INVECAS will offer comprehensive ASIC design services to help customers realize SoC designs with high confidence and low risk.

“Our objective is to provide silicon-proven IP solutions and system-level expertise to address the difficult issues of design complexity facing ASIC designers today,” said Dasaradha Gude, chairman and CEO, INVECAS. “We are glad to be an initial partner in GLOBALFOUNDRIES’ FDXcelerator Program, a ground-breaking initiative to enable a broad range of customers and accelerate time-to-volume for 22FDX.”

“We are pleased to expand our strategic relationship with INVECAS and welcome them as an initial member of the FDXcelerator Partner Program,” said Alain Mutricy, senior vice president of product management at GLOBALFOUNDRIES. “In addition to the comprehensive portfolio of FDX-optimized IP, our customers can now access INVECAS’ full suite of services to realize their SoC designs on time and with highest quality.”

With the recent announcement of the company’s next-generation 12FDX technology, the FDXcelerator Partner Program builds upon GLOBALFOUNDRIES’ industry-first FD-SOI roadmap, a lower-cost migration path for designers on advanced nodes. By participating in FDXcelerator and continuing to expand its IP offering to support a wider range of FDX customers, INVECAS is well positioned as a leader in the adoption and growth of the FDX platform. Moreover, the FDXcelerator Partner Program broadens the technology collaboration between the companies, including tighter interlock around quality, qualification and development methodology.

Synopsys, Inc. (Nasdaq:  SNPS) today announced that TSMC is recognizing Synopsys with three “2016 Partner of the Year” awards for Interface IP and joint development of 7-nanometer (nm) mobile and HPC design platforms. Synopsys and TSMC have been collaborating for more than 16 years, most recently to accelerate the adoption of FinFET technology for optimum power, performance and area for the 7-nm process. This is the 6th consecutive year Synopsys has received both IP and electronic design automation (EDA) accolades from TSMC.

“TSMC and Synopsys share a common goal to provide an extensive portfolio of proven IP and design tools supporting TSMC’s latest process technologies,” said Glenn Dukes, vice president of strategic alliances and professional services at Synopsys. “Our strong engineering collaboration with TSMC on its 7-nanometer FinFET process results in a proven path that designers can adopt to help achieve their time-to-market goals.”

“Through OIP collaboration, TSMC and Synopsys continue to provide our mutual customers with certified design implementation tools and high-quality IP optimized for TSMC’s leading process technologies,” said Suk Lee, TSMC senior director of the Design Infrastructure Marketing Division. “With its DesignWare IP and Galaxy Design Platform, Synopsys helps companies achieve their design goals and quickly ramp into volume production.”

North America-based manufacturers of semiconductor equipment posted $1.75 billion in orders worldwide in August 2016 (three-month average basis) and a book-to-bill ratio of 1.03, according to the August Equipment Market Data Subscription (EMDS) Book-to-Bill Report published by SEMI.  A book-to-bill of 1.03 means that $103 worth of orders were received for every $100 of product billed for the month.

SEMI reports that the three-month average of worldwide bookings in August 2016 was $1.75 billion. The bookings figure is 2.3 percent lower than the final July 2016 level of $1.80 billion, and is 5.0 percent higher than the August 2015 order level of $1.67 billion.

The three-month average of worldwide billings in August 2016 was $1.71 billion. The billings figure is approximately the same as the final July 2016 level of $1.71 billion, and is 8.4 percent higher than the August 2015 billings level of $1.58 billion.

“The book-to-bill ratio has been at or above parity since December of last year with current monthly bookings and billings levels at $1.7 billion,” said Denny McGuirk, president and CEO of SEMI.  “Given the current data trends, North American equipment suppliers are clearly benefiting from strong investments by device manufacturers in the second half of the year.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

  Billings
(3-mo. avg)		 Bookings
(3-mo. avg)		 Book-to-Bill
March 2016  $1,197.6 $1,379.2 1.15
April 2016  $1,460.2 $1,595.4 1.09
May 2016  $1,601.5 $1,750.5 1.09
June 2016  $1,715.2 $1,714.3 1.00
July 2016 (final) $1,707.9 $1,795.4 1.05
August 2016 (prelim) $1,708.1 $1,753.9 1.03

Source: SEMI (www.semi.org), September 2016

The data contained in this release were compiled by David Powell, Inc., an independent financial services firm, without audit, from data submitted directly by the participants. SEMI and David Powell, Inc. assume no responsibility for the accuracy of the underlying data.

The data are contained in a monthly Book-to-Bill Report published by SEMI. The report tracks billings and bookings worldwide of North American-headquartered manufacturers of equipment used to manufacture semiconductor devices, not billings and bookings of the chips themselves. The Book-to-Bill report is one of three reports included with the SEMI Equipment Market Data Subscription (EMDS).

The bill of materials (BOM) for an iPhone 7 equipped with 32 gigabytes (GB) of NAND flash memory carries $219.80 in bill of materials costs, according to a preliminary estimate from IHS Markit (Nasdaq: INFO), a source in critical information, analytics and solutions.

After $5 in basic manufacturing costs are added, Apple’s total cost to manufacture the iPhone 7 rises to $224.80. The unsubsidized price for a 32GB iPhone 7 is $649. IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus. This preliminary estimated total is $36.89 higher than the final analysis of the iPhone 6S published by IHS in December 2015.

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”

Same shape. No jack.

While the overall shape and physical design of the iPhone 7 is similar to the iPhone 6S that preceded it, the new display has wider color gamut, including DCI-P3 as well as traditional sRGB, which improves the rendering of photos and videos. The device’s haptic engine, which provides the “click” feel for users, has also been improved for longer-duty cycles and better dynamic response. The home button is now static and mimics the MacBook in terms of a solid-state button design.

Apple has also eliminated the 3.5 millimeter headphone jack, allowing a larger battery and haptic motor. “Where there was an audio jack in the previous design, Apple replaced it with a symmetrical grill — not for speakers, but for the waterproof microphone, leaving more room for the larger battery and Taptic Engine,” Rassweiler said.

Increased base-model storage

Apple has increased the iPhone 7’s storage density. For the first time, the base model starts at 32 gigabytes (GB) – which is only the second time Apple has upgraded the base storage in the iPhone. From a cost perspective, the shift from 16GB/64GB/128GB iPhones to 32GB/128GB/256GB is a big jump. “Despite significant cost erosion in NAND flash over the last year, this increase in the overall memory cost definitely puts pressure on the bill of materials costs — and therefore margins — from Apple’s perspective,” Rassweiler said.

Intel returns

The Intel design win, and six years of absence that Intel had from the iPhone, is important to note. Even so, Intel still shares the processor business with Qualcomm. “Whereas Apple strives to have ‘one iPhone model for all carriers and markets,’ there are a number of different hardware permutations supporting various countries and carriers,” Rassweiler said. “Apple will likely look for ways to simplify the design moving forward, which means one supplier – whether Intel or Qualcomm – will likely dominate, as part of supplier and SKU streamlining.”

According to Wayne Lam, principal analyst of smartphone electronics, IHS Markit, “Largely left behind in the 4G LTE market, Intel has finally worked itself back into the iPhone, which is a huge win, but not one that is going to be financially significant in the near term for Intel.”

RF paths

Apple has also eliminated segmented antenna bands, which means the company is pushing all radio-frequency (RF) paths to the very ends of the phone – both on the top and bottom. The aluminum uni-body construction and design forces all RF paths into those two locations. Whereas other smartphones use a glass back and RF components with antennas mounted on the ample back spaces, Apple is restricted to just two physical antennas.  “This design limitation may force Apple to go back to an all-glass design again so that they can fit in 4x4MIMO LTE antennas and more features like wireless charging in the next iPhone iteration,” Lam said.

Modem moved

The baseband thin modem has been moved next to the A10 processor. Prior to the iPhone 7, the thin modem was always on the other side of the SIM card receptacle. “This is a subtle change but likely shows us where Apple wants to take this,” Lam said, “eventually putting the thin modem right on the apps processor package or even integrating it into the A-series processor.”

Officially water resistant

iPhone 7 is now officially rated as water resistant. “We also saw evidence of this water proofing design evolution in the earlier iPhone 6S, which included additional gasketing around critical connectors, as well as the use of WiFi antenna at the end of the primary speaker box,”Lam said. “Doing so pushes the antennas near the only other opening, for better reception and transmission.”

Jet-black polished case

Jet black polish is a new option on 128GB and 256GB models. “This is a new feature that produces a whole new look for the iPhone,” Lam said. “It is a lower yielding, time-intensive manufacturing step that adds cost, as well as considerable value, pushing the retail price higher for those requesting this option.”

Antenna speaker design

The antenna speaker design on the iPhone 7 came from the WiFi antenna packed into the speakers of Apple’s MacBook.  “Apple likes to reuse these unique designs throughout their product lines,” Lam said. In a first for the iPhone series, the headset speaker now doubles as a stereo speaker.

Upgraded camera

While not as groundbreaking as the two optical paths in the iPhone 7 Plus, the iPhone 7 camera has now been upgraded to optical image stabilization (OIS), for better low light performance.

Improved battery life

The battery has been increased to 1960mAhr capacity from 1715mAh in the previous iPhone 6s.  This change is consistent with Apple’s claims of improved battery life.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, announced worldwide sales of semiconductors reached $27.1 billion for the month of July 2016, an increase of 2.6 percent compared to the previous month’s total of $26.4 billion. July marked the global market’s largest month-to-month sales increase since September 2013, though sales were down 2.8 percent compared to the July 2015 total of $27.9 billion. Underscoring the welcome uptick, month-to-month sales increased in all regional markets for the first time since October 2015. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The modest increase in global semiconductor sales in July was the global market’s largest month-to-month growth in nearly three years, an encouraging sign of potentially stronger sales during the remainder of 2016 and beyond,” said John Neuffer, president and CEO, Semiconductor Industry Association. “After months of lagging sales, the Americas region was a bright spot in July, posting 3.3 percent growth to lead all regional markets. Meanwhile, most major semiconductor product categories saw increased sales in July compared to the previous month, with DRAM leading the way with 7.1 percent growth.”

In addition to the month-to-month growth in the Americas, sales also increased in China (3.2 percent), Japan (3.1 percent), Asia Pacific/All Other (1.8 percent), and Europe (0.7 percent). Year-to-year sales increased in China (4.7 percent), but dropped in Japan (-1.1 percent), Europe (-4.9 percent), Asia Pacific/All Other (-6.8 percent), and the Americas (-7.5 percent).

“As Congress returns to Washington this week, we urge policymakers to work together to advance initiatives that promote growth and innovation in the semiconductor industry and throughout the U.S. economy,” Neuffer said. “One such measure is the Trans-Pacific Partnership (TPP), a landmark agreement that would tear down barriers to trade with Pacific-Rim countries. Congress should do what’s right for U.S. businesses, consumers, and our economy and approve the TPP.”

To find out how to purchase the WSTS Subscription Package, which includes comprehensive monthly semiconductor sales data and detailed WSTS Forecasts, please visit http://www.semiconductors.org/industry_statistics/wsts_subscription_package/.

July 2016 GSR table and graph

Global growth in the number of “things” connected to the Internet continues to significantly outpace the addition of human users to the World Wide Web. New connections to the “Internet of Things” are now increasing by more than 6x the number of people being added to the “Internet of Humans” each year. Despite the increasing number of connections, IC Insights has trimmed back its semiconductor forecast for Internet of Things system functions over the next four years by about $1.9 billion, mostly because of lower sales projections for connected cities applications (such as smart electric meters and infrastructure). Total IoT semiconductor sales are still expected to rise 19% in 2016 to $18.4 billion, as shown in Figure 1, but the updated forecast first presented in the Update to the 2016 IC Market Drivers Report reduces the market’s compound annual growth rate between 2014 and 2019 to 19.9% compared to the original CAGR of 21.1%. Semiconductor sales for IoT system functions are now expected to reach $29.6 billion in 2019 versus the previous projection of $31.1 billion in the final year of the forecast.

Figure 1

Figure 1

The most significant changes in the new outlook are that semiconductor revenues for connected cities applications are projected to grow by a CAGR of 12.9% between 2014 and 2019 (down from 15.5% in the original forecast) while the connected vehicles segment is expected to rise by a CAGR of 36.7% (up from 31.2% in the previous projection). IoT semiconductor sales for connected cities are now forecast to reach $15.7 billion in 2019 while the chip market for connected vehicle functions is expected to be $1.7 billion in 2019, up from the previous forecast of $1.4 billion.

For 2016, revenues of IoT semiconductors used in connected cities applications are expected to rise 15% to about $11.4 billion while the connected vehicle category is projected to climb 66% to $787 million this year.

Sales of IoT semiconductors for wearable systems have also increased slightly in the forecast period compared to the original projection.  Sales of semiconductors for wearable IoT systems are now expected to grow 22% to about $2.2 billion in 2016 after surging 421% in 2015 to nearly $1.8 billion following Apple’s entry into the smartwatch market in 2Q15.  The semiconductor market for wearable IoT applications is expected to be nearly $3.9 billion in 2019.  Meanwhile, the forecast for IoT semiconductors in connected homes and the Industrial Internet categories remains unchanged.  The connected homes segment is still expected to grow 26% in 2016 to about $545 million, and the Industrial Internet chip market is forecast to increase 22% to nearly $3.5 billion.  The semiconductor forecast for IoT connections in the Industrial Internet is still expected to grow by a CAGR of 25.7% to nearly $7.3 billion in 2019 from $2.3 billion in 2014.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced more than a dozen semiconductor industry icons, leaders, and founders will come together at the annual SIA Award Dinner on Thursday, Nov. 10 in San Jose to celebrate the 25th anniversary of the Robert N. Noyce Award, the industry’s highest honor. Former Noyce Award recipients who will attend the event include Dr. Craig Barrett, Dr. Morris Chang, John Daane, Federico Faggin, Ted Hoff, Dr. John E. Kelly III, Stanley Mazor, Jim Morgan, Jerry Sanders, George Scalise, Mike Splinter, Ray Stata, Rich Templeton, and Pat Weber. The evening’s program will include a conversation with former Noyce recipients about the industry’s storied past and its tremendous promise for the future.

SIA previously announced Martin van den Brink, president and chief technology officer at ASML Holding and renowned pioneer in semiconductor manufacturing technology, will receive the 2016 Noyce Award. SIA presents the Noyce Award annually in recognition of a leader who has made outstanding contributions to the semiconductor industry in technology or public policy.

“Recipients of the Noyce Award represent the finest our industry has to offer, individuals who have shaped the trajectory of semiconductor technology and spurred groundbreaking innovations,” said John Neuffer, president and CEO, Semiconductor Industry Association. “This year we are privileged to present the 2016 Noyce Award to Martin van den Brink, a man whose career accomplishments have fundamentally transformed semiconductor manufacturing, and to do so with many former Noyce winners on hand. We look forward to this unique opportunity to celebrate the semiconductor industry alongside these legends in our industry and true trailblazers of modern technology.”

For information about the SIA Award Dinner, including tickets and sponsorship opportunities, please visit www.semiconductors.org.

SEMI announced today that the deadline for presenters to submit an abstract for the annual SEMI Advanced Semiconductor Manufacturing Conference (ASMC) is October 17.  ASMC, which takes place May 15-18, 2017 in Saratoga Springs, New York, will feature technical presentations of more than 90+ peer-reviewed manuscripts covering critical process technologies and fab productivity. This year’s event features keynotes, a panel discussion, networking events, technical sessions on advanced semiconductor manufacturing, as well as educational tutorials.

ASMC, in its 28th year, continues to fill a critical need in our industry and provides a venue for industry professionals to network, learn and share knowledge on new and best-method semiconductor manufacturing practices and concepts.  Selected speakers have the opportunity to present in front of IC manufacturers, equipment manufacturers, materials suppliers, chief technology officers, operations managers, process engineers, product managers and academia. In addition to publication in the ASMC proceedings, select papers will be invited to participate in a special section of ASMC 2017 to be featured in IEEE Transactions on Semiconductor Manufacturing. Technical abstracts are due October 17, 2016. 

This year SEMI (www.semi.org) is including two new technology areas (3D/TSV/Interposer; Fabless Experience). SEMI is soliciting technical abstracts in these key technology areas:

  • Packaging and Through Silicon Via (3D/TSV)
  • Fabless Experience (FE)
  • Advanced Equipment Processes and Materials (AEPM)
  • Advanced Metrology
  • Advanced Patterning / Design for Manufacturability (AP/DFM)
  • Advanced Process Control (APC)
  • Contamination Free Manufacturing (CFM)
  • Defect Inspection and Reduction (DI)
  • Data Management and Data Mining Tools (DM)
  • Discrete Power Devices (DP)
  • Equipment Reliability and Productivity Enhancements (ER)
  • Enabling Technologies and Innovative Devices (ET/ID)
  • Factory Automation (FA)
  • Green Factory (GF)
  • Industrial Engineering (IE)
  • Lean Manufacturing (LM)
  • MOL and Junction Interfaces (MJ)
  • Smart Manufacturing (SM)
  • Yield Methodologies (YM)

Complete descriptions of each topic and author kit can be accessed at http://www.semi.org/en/node/38316.  If you would like to learn more about the conference and the selection process, please contact Margaret Kindling at [email protected] or call 1.202.393.5552.

Papers co-authored between device manufacturers, equipment or materials suppliers, and/or academic institutions that demonstrate innovative, practical solutions for advancing semiconductor manufacturing are highly encouraged.  To submit an abstract, click here.

Technical abstracts are due October 17, 2016.  To learn more about the SEMI Advanced Semiconductor Manufacturing Conference, visit http://www.semi.org/en/asmc2017.

Littelfuse, Inc., (NASDAQ:LFUS) today announced it has entered into definitive agreements to acquire the product portfolio of transient voltage suppression (“TVS”) diodes, switching thyristors and insulated gate bipolar transistors (“IGBT”) for automotive ignition applications from ON Semiconductor Corporation for a combined purchase price of $104 million. This portfolio has annualized sales of approximately $55 million. The transactions are expected to close in late August, 2016.

“The acquisition of this portfolio aligns with our strategy to expand in power semiconductor applications as well as increase our presence in the automotive electronics market,” said Ian Highley, senior vice president and general manager, semiconductor products and chief technology officer for Littelfuse. “These products have strong synergies with our existing circuit protection business, will strengthen our channel partnerships and customer engagement, and expand our power semiconductor portfolio.”

Littelfuse also plans to invest approximately $30 million in its semiconductor fabrication locations to enhance its production capabilities, add significant capacity to its China fabrication facility and transfer the production of the acquired portfolio. The transfers will occur over the next few years, as the company works with customers on their timing and requirements. The expected productivity gains from this investment will drive long term profitable growth across the company’s semiconductor business.

“Once we complete the transfer of these products, we expect this acquisition to have EBITDA margins of more than 30 percent,” added Meenal Sethna, executive vice president and chief financial officer. “Including amortization, interest and integration expenses, we expect the earnings per diluted share impact of this acquisition to be neutral in 2016, and accretive in 2017 and beyond.”

ARM and Intel Custom Foundry this week at the Intel Developer Forum in San Francisco an agreement to accelerate the development and implementation of ARM SoCs on Intel’s 10nm process. In their joint press releases, Intel and ARM said that the agreement will enable Intel Custom Foundry to use its upcoming 10nm FinFET platform for fabricating chip designs based on ARM’s Artisan Physical IP.

“The initial POP IP will be for two future advanced ARM Cortex-A processor cores designed for mobile computing applications in either ARM big.LITTLE or stand-alone configurations,” according to ARM’s press release. Intel’s release says that LG will be using the process to “produce a world-class mobile platform based on Intel Custom Foundry’s 10nm design platform.”

The Intel-ARM partnership could provide new foundry options for chipmakers like Qualcomm — and potentially Apple — beyond current industry bigwigs Samsung and Taiwan Semiconductor Manufacturing Co. (TSMC).

Chips based on Intel’s 10nm process are expected at some point in 2017.