Tag Archives: letter-ap-business

SEMI, the global industry association for companies that supply manufacturing technology and materials to the world’s chip makers, today reported that worldwide semiconductor manufacturing equipment billings reached US$9.52 billion in the first quarter of 2015. The billings figure is 7 percent higher than the fourth quarter of 2014 and 6 percent lower than the same quarter a year ago. The data is gathered jointly with the Semiconductor Equipment Association of Japan (SEAJ) from over 100 global equipment companies that provide data on a monthly basis.

Worldwide semiconductor equipment bookings were $9.66 billion in the first quarter of 2015. The figure is 2 percent lower than the same quarter a year ago and 3 percent lower than the bookings figure for the fourth quarter of 2014.

The quarterly billings data by region in billions of U.S. dollars, quarter-over-quarter growth and year-over-year rates by region are as follows:

Region

1Q2015

4Q2014

1Q2014

1Q15/4Q14

(Q-o-Q)

1Q15/1Q14

(Y-o-Y)

Korea

2.69

2.09

2.03

29%

33%

Taiwan

1.81

2.03

2.59

-11%

-30%

North America

1.47

1.83

1.85

-19%

-20%

Japan

1.26

1.11

0.96

13%

31%

China

1.17

0.68

1.71

73%

-32%

Europe

0.69

0.58

0.58

19%

19%

Rest of World

0.43

0.59

0.42

-27%

1%

Total

9.52

8.91

10.15

7%

-6%

Source: SEMI/SEAJ June 2015; Note: Figures may not add due to rounding.

CEA-Leti announced today during the Design Automation Conference that seven partners have joined its new FD-SOI IC development program, Silicon Impulse, launched to provide a comprehensive IC technology platform that offers IC design, advanced intellectual property, emulator and test services along with industrial multi-project wafer (MPW) shuttles.

The collaborative design platform for advanced processes includes a network of design services and facilities focused on accelerating development of products for today’s and tomorrow’s devices that require low-power use. These include energy-efficient computing systems, Ultra-Low-Power (ULP) Internet of Things (IoT) devices and robust and reliable applications in harsh environments. The platform leverages the competencies and expertise of the CEA-Leti and CEA-List institutes and Leti’s industrial partners, which comprise a wide spectrum of technical and application knowledge.

Silicon Impulse partners are major industrial players in the semiconductor ecosystem, world-class research centers and technology providers. Based on this strong foundation, Silicon Impulse will significantly reduce development time and speed industrialization, thus putting innovative companies at the cutting edge of energy-efficient system development and implementation. It will do this through a network of FD-SOI experts and access to a strong industrial supply chain.

Silicon Impulse partners:

CEA-Leti (coordinator)

CEA-List

STMicroelectronics

Dolphin Integration

CMP

Mentor Graphics

Cortus

Presto Engineering

 

In addition, CEA-Leti is planning to use its research & development license from ARM to demonstrate various energy-efficient processor implementations in FD-SOI for its IoT development platform. The FD-SOI ecosystem also includes Synopsys, with its rich portfolio of proven DesignWare IP products and EDA tools for the FD-SOI design community. Silicon Impulse is in discussion with Synopsys to join the program in order to further extend the program’s reach.

Launched by Leti in 2015, Silicon Impulse is designed to help innovative companies deal with the challenge of switching to new technologies and markets by augmenting both their knowledge of the supply chain and their skills to master the entire design process from ideas to products. To that end, Silicon Impulse will provide technical expertise, knowhow and access to advanced industrial, energy-efficient solutions to get innovators up to speed on the ecosystem of energy-efficient products by facilitating access to FD-SOI technology and manufacturing facilities.

“Leti has always concentrated on research that helps our partners adopt technology to become more competitive in their markets. Now with Silicon Impulse we provide a new service in collaboration with our industrial partners to help companies evaluate, design, prototype and launch new products,” said Marie-Noëlle Semeria, CEO of Leti. “From that foundation, Silicon Impulse will leverage the existing ecosystem to bring the full value chain from research, design solutions and industrialization services to high value-added products. This combination will concentrate through a single entry point all the necessary expertise and competencies to provide innovative companies from any sector with a one-stop-shop opportunity to build leading-edge, energy-efficient systems.”

As electronic devices become increasingly integrated into everyday activities, designing for energy efficiency becomes more important than ever for all mainstream sectors of industry. Embedded systems and particularly the IoT are key enablers in the market, and new entrants (startups, SMEs, large companies) drive innovation. By enabling integration of advanced processes – 28nm FD-SOI technology today – into IoT design and helping companies develop innovative products more rapidly, Silicon Impulse will foster leading-edge technologies and facilitate their adoption for manufacturing.

With the program’s flexible format, Silicon Impulse’s involvement can be limited to architectural consulting or extended to developing and delivering the whole system or anything in between. It can help innovators with their projects from concept through production hand-off. Companies can receive architectural advice and have their products shaped from a very high level, including a feasibility study and recommendations on how to implement the system. Leti and its partners also can provide unique IP and/or technology components such as foundation IP or more complex system level IP blocks, RF, NVM, N/MEMS, 3D components and any other advanced technology to shape a unique and advanced, yet manufacturable, product. At another level, Leti and List could provide embedded software to complete the whole product.

One key goal of the Silicon Impulse platform is to provide and ease silicon access. MPW shuttles are provided to open the doors to a wider set of users and projects. The goal is to enable innovators to test their ideas, especially mixed-signal, analog or RF technologies or any new IP that would require silicon validation in FD-SOI. This also provides an affordable platform for startups and other small companies to build their prototypes and run small volumes until they receive financing and/or demonstrate market traction to build their own mask set. The first 28nm FD-SOI MPW is planned for February 2016 to be processed at STMicroelectronics’ site in Crolles, which is near Grenoble.

The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $27.6 billion for the month of April 2015, 4.8 percent higher than the April 2014 total of $26.3 billion and 0.4 percent lower than last month’s total of $27.7 billion. The Americas market posted double-digit growth compared to last year, leading all regions. 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 steady market growth for the next three years.

“Year-to-year semiconductor sales increased for the 24th straight month in April, thanks largely to continued growth in the Americas and Asia Pacific regional markets,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The global industry has posted higher sales through April than at the same point in 2014, and we expect continued growth for the rest of 2015 and beyond.”

Regionally, year-to-year sales increased in the Americas (12.2 percent), China (9.9 percent), and Asia Pacific/All Other (5.2 percent), while sales decreased compared with last year in Europe (-5.6 percent) and Japan (-10.7 percent). Compared with last month, sales were up in the Asia Pacific/All Other (2.3 percent) category, but down in Japan (-0.2 percent), China (-0.7 percent), Europe (-2.3 percent), and the Americas (-3.4 percent).

Additionally, SIA today endorsed the WSTS Spring 2015 global semiconductor sales forecast, which projects the industry’s worldwide sales will reach $347.2 billion in 2015, a 3.4 percent increase from the 2014 sales total. WSTS projects year-to-year increases for 2015 in Asia Pacific (7.0 percent) and the Americas (3.7 percent), with decreases projected for Europe (-3.6 percent) and Japan (-9.5 percent).

Beyond 2015, the industry is expected to grow at a modest pace across all regions. WSTS forecasts 3.4 percent growth globally for 2016 ($358.9 billion in total sales) and 3.0 percent growth for 2017 ($369.6 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.

April 2015
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 5.81 5.61 -3.4%
Europe 2.96 2.89 -2.3%
Japan 2.54 2.54 -0.2%
China 7.83 7.78 -0.7%
Asia Pacific/All Other 8.58 8.78 2.3%
Total 27.72 27.60 -0.4%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.00 5.61 12.2%
Europe 3.06 2.89 -5.6%
Japan 2.84 2.54 -10.7%
China 7.08 7.78 9.9%
Asia Pacific/All Other 8.35 8.78 5.2%
Total 26.34 27.60 4.8%
Three-Month-Moving Average Sales
Market Nov/Dec/Jan Feb/Mar/Apr % Change
Americas 6.51 5.61 -13.8%
Europe 2.95 2.89 -2.0%
Japan 2.62 2.54 -3.0%
China 8.07 7.78 -3.6%
Asia Pacific/All Other 8.40 8.78 4.5%
Total 28.54 27.60 -3.3%

GLOBALFOUNDRIES, a provider of advanced semiconductor manufacturing technology, today announced it has reached a critical milestone in providing a design infrastructure for its 14-nanometer (nm) FinFET process technology.

Together with key ecosystem partners Cadence Design Systems, Mentor Graphics, and Synopsys, GLOBALFOUNDRIES has developed new digital design flows for register-transfer level (RTL) to graphic design database system (GDS) implementation. Integrated with a technology-proven process design kit (PDK) and early-access standard cell libraries, the flows create a digital design “starter kit” that provides designers with a built-in test case for out-of-the-box physical implementation testing and analysis of performance, power and area.

“GLOBALFOUNDRIES is committed to providing our customers with advanced technology platforms that include the comprehensive design infrastructure required to optimize design productivity and cycle time,” said Rick Mahoney, senior vice president of design enablement at GLOBALFOUNDRIES. “To ensure our design ecosystem delivers the highest quality experience with our 14nm FinFET technology, GLOBALFOUNDRIES has collaborated with our EDA partners to complement our in-house global design capabilities and accelerate time-to-volume of designs on complex technologies like 14nm FinFET.”

GLOBALFOUNDRIES’ digital design flows have been optimized to solve the challenges associated with the critical design rules of the 14nm technology node and includes newly introduced features such as implant-aware placement and double-patterning aware routing, In-Design DRC™ fixing and yield improvement, local/random variability aware timing, 3D FinFET extraction, and color-aware LVS/DRC sign-off.

The Synopsys-based Design Enablement Starter Kit leverages broad capabilities of its Galaxy Design Platform to deliver signed-off GLOBALFOUNDRIES’ 14LPP FinFET designs with optimized performance, power and area. Synopsys’ Design Compiler Graphical synthesis, coupled with its Formality equivalence checking solution, streamlines the flow by providing physical guidance and results that closely correlate with physical implementation. For FinFET implementation, Synopsys’ IC Compiler, IC Compiler II and IC Validator solutions provide implant- and double-patterning-aware placement and routing with In-Design color-aware physical verification. Synopsys’ StarRC extraction provides double-patterning support, with modeling for color-aware and 3-D extraction essential for 14nm designs. In addition, the industry-standard Synopsys PrimeTime sign-off solution for accurate delay calculation, timing analysis and advanced waveform propagation accurately accounts for FinFET impacts such as ultra-low voltage, increased Miller effect and resistivity, and process variation.

To enable customers to achieve the benefits of GLOBALFOUNDRIES’ 14LPP node at the design level, GLOBALFOUNDRIES and Cadence have worked together to create a digital flow for a complete RTL-to-GDSII FinFET solution. The digital flow integrates and optimizes Cadence’s front-end, back-end, physical verification, and DFM solutions for 14LPP technology. For front-end design, Cadence’s RTL Compiler synthesis flow is fine-tuned with the 14LPP library. For physical implementation, both Encounter Digital Implementation System (EDI) and Innovus Implementation System provide color-aware double-patterning technology for correct-by-construction placement and routing, and customized settings for the 14LPP design rules and library to optimize power, performance and area (PPA). In-design PVS DRC fixing and in-design litho hot-spot fixing are both available to designers to reduce design iterations and ease design closure. For signoff, the flow features fully integrated Quantus QRC Parasitic Extraction and Tempus Timing Signoff solutions. Integration within both EDI and Innovus allows Quantus and Tempus to bring advanced process modeling earlier in the P&R flow for better timing convergence and time-to-tapeout. Encounter Conformal Equivalence Checker is embedded in multiple stages in the implementation flow. Voltus power and EMIR analysis, standalone Physical Verification System physical verification and Litho Physical Analyzer litho hot-spot check are also embedded in the reference flow. The reference flow provides a guided approach to Cadence’s tool suite and the GLOBALFOUNDRIES 14LPP process to ensure designers hit the maximum PPA envelope with minimum ramp-up time.

As with production tape-outs at prior nodes, the starter kit uses the Mentor Graphics Calibre tool suite for sign-off. In the case of the 14nm starter kit, the Calibre nmDRC and Calibre MultiPatterning products are used for layer decomposition, DRC verification and metal filling, while the Calibre nmLVS product is used for logic verification.

GLOBALFOUNDRIES 14nm FinFET technology is among the most advanced in the industry. The 3D FinFET devices offers the perfect answer to growing market needs, with best-in-class intrinsic performance boost over 28nm technology and a superior power footprint compared to any predecessors. These leading edge devices also provide a true cost advantage due to superior power, performance and area scaling.

GLOBALFOUNDRIES is yielding on its 14nm technology and is on schedule to support multiple product tape-outs and volume ramp in 2015.

Through GLOBALFOUNDRIES’ design partnership ecosystem, designers have access to a broad spectrum of services such as system design, embedded software design, SoC design and verification, and physical implementation. These include design flows for electronic design automation (EDA); silicon-proven IP building blocks, such as libraries; and simulation and verification design kits, i.e., process design kits (PDK) and technology files.

“The semiconductor industry is facing a new era in which device scaling and cost reduction will not continue on the path they followed for the past few decades, with Moore’s law in its foundation,” asserts Andrej Ivankovic, Technology & Market Analyst, in the Advanced Packaging and Semiconductor Manufacturing team, at Yole Développement (Yole).

Under this context, the semiconductor industry seeks further performance and functionality boosts in package level integration. Emerging packages such as fan-out wafer level packages, 2.5D/3D IC and related System-in-Package (SiP) solutions together with more conventional but upgraded flip chip BGAs aim to bridge the gap and revive the cost/performance curve. In such an environment, what is the importance of fan-in wafer level packages, the current status of the fan-in WLP industry and how will fan-in WLP market and technology evolve?

The “More than Moore” market research and strategy consulting company, Yole confirms its leadership in the advanced packaging industry with its new technology & market report entitled Fan-in Wafer Level Packaging: Market & Technology Trends report. With this new analysis, the consulting company covers a broad part of the existing and emerging advanced packaging technologies and related platforms: indeed Yole’s collection includes Fan-Out and Embedded Die: Technologies & Market Trends (Feb. 2015), Equipment & Materials for 3DIC & Wafer-Level Packaging Applications (Nov. 2014) and 3DIC & 2.5D TSV Interconnect for Advanced Packaging 2014 Business Update (Oct. 2014).

Fan-in Wafer Level Packaging: Market & Technology Trends report provides a market overview of the fan-in Wafer Level Packaging (WLP) landscape including emerging and declining applications, forecasts until 2020, supply chain analysis and main players.

Although present for more than a decade, fan-in WLP are still on an evolutionary track increasing production and attracting new applications. Current market data indicate fan-in WLP manufacturing capacities are full and more volume is required in both 200mm and 300mm wafer sizes.

Furthermore, the “Internet of Things” (IoT) promises a wide range of new applications for which fan-in WLP would be an ideal match presenting an interesting opportunity to increase the demand further.

How will the current capacities be increased, who will take lead in investments and what is the actual range of investments needed? Currently, majority of production is still done on 200mm wafers with 300mm wafer production projected to increase. An in depth analysis addressing these questions is done in Yole’s report, including competition analysis of business models (OSAT, IDM, WLP house, foundry), their market shares and prediction of future investment.

As illustrated in Yole’s non-exhaustive map of fan-in WLP manufacturers, there are many players currently active on the market: Maxim, FlipChip, Freescale for example in the US area – ipdia, NXP, nanium, STMicroelectronics, Robert Bosch in Europe – And OKI, Fujitsu, nepes, Fujikura in Asia.

The supply chain continues to develop with new companies entering this market and new business models being established. The competitive landscape is expected to increase as well as collaborations and partnerships. The specialized wafer level packaging model, focused on fan-in and fan-out packages is emerging strong and competing with traditional OSAT leaders. Some new players are rising quickly, foundry involvement is no longer a small dent and new players from China are increasing activity on the market, bringing in a new type of competition with a strong support in capital and acquisition capabilities.

“In total, over 70 fabless and IDM companies implementing their design in fan-in WLP were identified, along with over 20 fan-in WLP manufacturing companies,” details Santoh Kumar, Senior Technology & Market research analyst, Advanced Packaging and Semiconductor Manufacturing at Yole.

All details are included in Yole’s report including competitive analysis of these players.

IC Insights will release its Update to the 2015 IC Market Drivers report in June. The Update includes revisions to IC market conditions and forecasts for the 2015 2018 automotive, smartphone, personal computer and tablet markets, as well as an update to the market for the Internet of Things. This bulletin reviews IC Insights’ 2015 unit shipment forecast for total personal computing unit shipments.

Five years ago, touchscreen tablets began pouring into the personal computing marketplace, stealing growth from standard personal computers and signaling the start of what has been widely described as the “post-PC” era. Led by Apple’s iPad systems, tablet shipments overtook notebook PCs in 2013, and it appeared as if they would surpass total personal computer units (counting both desktop and portable systems) by 2016. However, that scenario no longer seems possible after tablet growth lost significant momentum in 2014 and then nearly stalled out in the first half of 2015 due to the rise in popularity of large-screen smartphones and the lack of interest in new tablets that do not add enough features or capabilities to convince existing users to buy replacements. Consequently, IC Insights has downgraded its forecast for the overall personal computing market, including much lower growth in tablets and continued weakness in standard PCs (Figure 1).

The updated forecast shows total personal computing unit shipments (desktop PCs, notebook PCs, tablets, and Internet/cloud-computing “thin-client” systems) dropping 1 percent in 2015 to 545 million. In the original forecast of the 2015 IC Market Drivers report (MD15), total personal computing system shipments were projected to rise 8 percent in 2015 to 609 million units, followed by a 10 percent increase in 2016 to 670 million. The revised outlook cuts the compound annual growth rate (CAGR) of personal computing unit shipments to 2.1 percent between 2013 and 2018. Total personal computing system shipments are now projected to reach 578 million in 2018.

Worldwide shipments of keyboard-equipped standard PCs (desktops and notebooks) peaked in 2012 at 345 million, but they are expected to decline by a CAGR of -0.5 percent in the 2013-2018 timeperiod. In the updated outlook, tablets are projected to account for 45 percent of total systems sold in 2018 (259 million units) versus the MD15’s original forecast of 57 percent (423 million) that year. Further into the future, tablets are now expected to account for about half of personal computing system shipments with the remaining units being divided between standard PCs and Internet/cloud-centric platforms.

IC Insights June Report

Figure 1

 

Additional details on the IC market for medical and wearable electronic is included in the 2015 edition of IC Insights’ IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits.  This report examines the largest, existing system opportunities for ICs and evaluates the potential for new applications that are expected to help fuel the market for ICs.

NXP Semiconductors and Stora Enso have entered into joint development of intelligent packaging solutions. The development will focus on integrating RFID (Radio frequency identification) into packages for consumer engagement and supply chain purposes. The collaboration will also focus on brand protection and the development of tamper evidence applications. These solutions will benefit both consumers and brand owners.

By using NXP RFID technology such as near field communication (NFC) and ultra-high frequency (UHF), Stora Enso smart packages can be easily tracked and traced through the entire supply chain providing full end-to-end transparency. The integrated technology is also able to detect if the smart package has been tampered with en route to the consumer and, once in the hands of the consumer, can provide additional information and interaction through (the tap of) an NFC-enabled smart phone. This visibility and insight is critical for brands and major manufacturers to ensure their products are being shipped and handled correctly. For consumers the benefits are two-fold; the smart packaging can verify the authenticity of the product and also provide care, usage and other important information via the NFC-enabled tag.

“The co-operation with NXP offers substantial business opportunities for Stora Enso. We have already worked on several concept cases with customers and partners within intelligent packaging. The co-operation with NXP will enable us to bring this development closer to market and provide faster scalability in intelligent paper and board solutions,” says Karl-Henrik Sundström, CEO, Stora Enso.

“Our RFID technology in combination with Stora Enso’s packaging solutions creates additional value to both consumers and brand owners by providing information and insights along the complete supply chain,” said Ruediger Stroh EVP & GM Security & Connectivity, NXP Semiconductors. “The ability of the RFID tag to detect when a package has been compromised and also provide additional product information via NFC truly enables a unique, smart, engaging brand experience and is another example of how security can be broadly implemented to protect our everyday lives.”

North America-based manufacturers of semiconductor equipment posted $1.57 billion in orders worldwide in April 2015 (three-month average basis) and a book-to-bill ratio of 1.04, according to the April EMDS Book-to-Bill Report published today by SEMI.   A book-to-bill of 1.04 means that $104 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in April 2015 was $1.57 billion. The bookings figure is 12.9 percent higher than the final March 2015 level of $1.39 billion, and is 9.0 percent higher than the April 2014 order level of $1.44 billion.

The three-month average of worldwide billings in April 2015 was $1.51 billion. The billings figure is 19.3 percent higher than the final March 2015 level of $1.27 billion, and is 7.6 percent higher than the April 2014 billings level of $1.40 billion.

“Both bookings and billings trends have improved, with the ratio remaining above parity over the past four months,” said Denny McGuirk, president and CEO of SEMI.  “Orders are higher than last year’s numbers, and current spending is on target with 2015 capex plans.”

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

November 2014 

$1,189.4

$1,216.8

1.02

December 2014 

$1,395.9

$1,381.5

0.99

January 2015 

$1,279.1

$1,325.6

1.04

February 2015 

$1,280.1

$1,313.7

1.03

March 2015 (final)

$1,265.6

$1,392.7

1.10

April 2015 (prelim)

$1,510.3

$1,572.2

1.04

Source: SEMI (www.semi.org)May 2015

Samtec, Inc., a supplier of high-speed interconnects, microelectronics, and micro-optical solutions, is pleased to announce its entrance in the Silicon Photonics Program of the IRT Nanoelec, headed by CEA-Leti. Samtec is joining CNRS, STMicroelectronics, Mentor Graphics and CEA-Leti to develop and industrialize optical communications solutions using silicon photonics technology for addressing data centers and high-performance computing applications.

Officials from all parties expressed their enthusiasm. “We are thrilled with the opportunity to join the Silicon Photonics Program of the IRT Consortium,” said Marc Verdiell, CTO of the Samtec Optical Group. “Samtec brings its vast experience in optical transceiver technology, and advanced optical packaging and support to this program. This technology will strengthen Samtec’s expertise in high data rate applications from 28 Gbps, to 56 Gbps, and beyond, as well as allow further photonics integration for higher density, higher bandwidth, and lower cost per Gb optical interconnects.”

Verdiell adds, “This technology can be used to enhance Samtec’s active optical products such as FireFly. FireFly Micro Flyover System gives designers a choice of using either micro footprint high-performance active optical engines or lower-cost copper interconnects. This allows the designer to upgrade from electrical to optical using the same interconnect system. With a 28 Gbps system in development, the currently released optical FireFly is a x12, 14 Gbps per channel, unidirectional or bidirectional transceiver system. It has the highest 14 Gbps bandwidth density available with an aggregate 168 Gbps.”

The IRT Nanoelec Silicon Photonics Program was launched in 2012. It brings together, under one roof, the expertise, tools and equipment needed for the development of silicon photonics technology and associated solutions for optical communications. Mentor Graphics, STMicroelectronics, CNRS and CEA-Leti were the core members of the consortium.

“The participation of the new partner Samtec within the Silicon Photonics Program is highly valuable, as Samtec will bring strong and complementary skills in optical and high-speed electrical packaging to our current consortium,” said Sylvie Menezo, director of the program. “The consortium is now gathering research institutes counted among the pioneers in silicon photonics and major industrial players over the complete value chain (silicon foundry, EDA, packaging). This is a key factor for success in developing innovative and cost-effective solutions.”

IC Insights will release its May Update to the 2015 McClean Report later this month.  This Update includes a discussion of the history and evolution of IC industry cycles, an update of the capital spending forecast by company, and a look at the top 25 1Q15 semiconductor suppliers (the top 20 1Q15 semiconductor suppliers are covered in this research bulletin).

The top 20 worldwide semiconductor (IC and O S D—optoelectronic, sensor, and discrete) sales ranking for 1Q15 is shown in Figure 1.  It includes seven suppliers headquartered in the U.S., four in Japan, three in Taiwan, three in Europe, two in South Korea, and one in Singapore, a relatively broad representation of geographic regions.

The top-20 ranking includes three pure-play foundries (TSMC, GlobalFoundries, and UMC) and four fabless companies.  It is interesting to note that the top four semiconductor suppliers all have different business models. Intel is essentially a pure-play IDM, Samsung a vertically integrated IC supplier, TSMC a pure-play foundry, and Qualcomm a fabless company.

IC Insights includes foundries in the top 20 semiconductor supplier ranking since it has always viewed the ranking as a top supplier list, not a marketshare ranking, and realizes that in some cases the semiconductor sales are double counted.  With many of our clients being vendors to the semiconductor industry (supplying equipment, chemicals, gases, etc.), excluding large IC manufacturers like the foundries would leave significant “holes” in the list of top semiconductor suppliers.  As shown in the listing, the foundries and fabless companies are identified.  In the April Update to The McClean Report, marketshare rankings of IC suppliers by product type were presented and foundries were excluded from these listings.

It should be noted that not all foundry sales should be excluded when attempting to create marketshare data. For example, although Samsung had a large amount of foundry sales in 1Q15, some of its foundry sales were to Apple.  Since Apple does not resell these devices, counting these foundry sales as Samsung IC sales does not introduce double counting.

Figure 1

Figure 1

Overall, the top-20 list shown in Figure 1 is provided as a guideline to identify which companies are the leading semiconductor suppliers, whether they are IDMs, fabless companies, or foundries.

In total, the top 20 semiconductor companies’ sales increased by 9 percent in 1Q15/1Q14 (6 percent excluding the foundries), three points greater than the total worldwide semiconductor industry growth rate.  Although, in total, the top-20 1Q15 semiconductor companies registered a 9 percent increase, there were six companies that displayed >20 percent 1Q15/1Q14 growth.  Nine companies had sales of at least $2.0 billion in 1Q15.  As shown, it took just over $1.1 billion in quarterly sales just to make it into the 1Q15 top-20 semiconductor supplier ranking.

There were two new entrants into the top 20 ranking in 1Q15—Japan-based Sharp and Taiwan-based pure-play foundry UMC, which replaced U.S.-based AMD and Nvidia.  AMD had a particularly rough 1Q15 and saw its sales drop 26 percent year-over-year.  It currently appears that AMD’s 2013 restructuring and new strategy programs to focus on non-PC end-use segments have yet to pay off for the company (in addition to its sales decline, AMD lost $180 million in 1Q15 after losing $403 million in 2014).

Although Intel’s sales were flat in 1Q15, and it believes its 2015 sales will be flat with 2014, it remained firmly in control of the number one spot.  There were, however, some significant changes in the remainder of the top 10 ranking.

SK Hynix continued its ascent up the semiconductor company rankings that started a few years ago and moved into 5th place in 1Q15, displacing Micron.  With Qualcomm’s sales hitting a soft patch and SK Hynix continuing to gain share in the memory market, IC Insights believes that the company could move past Qualcomm into the fourth spot when the full-year sales totals for this year are tallied.

While MediaTek’s growth has slowed somewhat from its torrid pace over the past few years, the company posted a year-over-year sales increase of 12 percent to move into the top 10.  IC Insights believes that MediaTek will remain in this position in the full-year 2015 ranking.

Although Sharp as a whole is having a difficult time, its semiconductor group, which represents only about 14 percent of the company’s corporate sales, posted a whopping 62 percent growth rate (an 88 percent increase in yen), the best 1Q15 sales increase of any top-20 semiconductor supplier.  This sales surge was almost entirely due to the company’s success in the CMOS image sensor market.

As would be expected, given the possible acquisitions and mergers that could occur this year (e.g., NXP/Freescale, GlobalFoundries/IBM’s IC group, etc.), as well as any new ones that may develop, the top 20 semiconductor ranking is likely to undergo a tremendous amount of upheaval over the next couple of years as the semiconductor industry continues along its path to maturity.