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The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $38.7 billion for the month of May 2018, an increase of 21.0 percent compared to the May 2017 total of $32.0 billion. Global sales in May were 3 percent higher than the April 2018 total of $37.6 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The global semiconductor market has posted consistent growth of greater than 20 percent for 14 consecutive months, and May 2018 marked the industry’s highest-ever monthly sales,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Americas led the way once again, with sales increasing by more than 30 percent compared to last year, and sales were up across all major semiconductor product categories on both a year-to-year and month-to-month basis.”

Year-to-year sales increased solidly across all regions: the Americas (31.6 percent), China (28.5 percent), Europe (18.7 percent), Japan (14.7 percent), and Asia Pacific/All Other (8.7 percent). Month-to-month sales increased more modestly across all regions: China (6.3 percent), Japan (2.6 percent), Asia Pacific/All Other (1.2 percent), the Americas (1.1 percent), and Europe (1.0 percent).

Global semiconductor industry revenue declined 3.4 percent in the first quarter of 2018 falling to $115.8 billion. Semiconductor industry performance was negatively affected by the declining sales and first-quarter seasonality in the wireless communications market. Other sectors, such as automotive and consumer semiconductors, experienced nominal market growth, according to IHS Markit (Nasdaq: INFO).

The memory category experienced the highest growth of 1.7 percent in the first quarter, reaching $39.7 billion, as demand for memory components increased in the enterprise and storage markets. In fact, DRAM pricing and shipments both increased during the quarter, as strong demand for server DRAM continued to propel the semiconductor market. However, NAND began to show signs of softening, with slight revenue declines during the quarter, mainly due to single-digit price declines. “Even with the slight revenue decline during the quarter, the NAND market still achieved its second-highest revenue quarter on record, with strong demand coming from the enterprise and client solid-state drive markets,” said Craig Stice, senior director, memory and storage, IHS Markit.

Semiconductor market share

Led by its dominant position in the memory market, Samsung Electronics led the semiconductor industry in the first quarter of 2018, with 16.1 percent of the market, followed by Intel at 13.6 percent and SK Hynix at 7.0 percent. Quarter-over-quarter market shares were relatively flat, with no change in the top-three ranking list. However, on a year-over-year basis, Samsung supplanted Intel as the leading semiconductor company, compared to the first quarter of 2017.

Analog component sales for Texas Instruments, Maxim Integrated, ON Semiconductor and other companies with a strategic focus on industrial and automotive industries managed single-digit sales increases in the first quarter. In contrast, analog component revenue declined by double digits for Qualcomm, Skyworks Solutions, Oorvo and other companies targeting the wireless industry.

Memory IC companies — Samsung Electronics, SK Hynix, Micron Technologies and Toshiba — continued to dominate the top ten semiconductor companies. Micron achieved the highest growth rate in the top ten, recording 9.8 percent growth in the first quarter, compared to the previous quarter. Qualcomm revenue fell 13.6 percent, which was the largest sequential drop, due to the weakness in the wireless communication market. Qualcomm and nVidia were the only two fabless companies remaining in the top ten.

Each year at SEMICON West, the “Best of West” awards are presented by Solid State Technology and SEMI. More than 26,000 professionals from the electronics manufacturing supply chain attend SEMICON West and the co-located Intersolar. The “Best of West” award was established to recognize new products moving the industry forward with technological developments in the electronics supply chain.

Selected from over 600 exhibitors, SEMI announced today that the following Best of West 2018 Finalists will be displaying their products on the show floor at Moscone Center from July 10-12:

  • Advantest: T5503HS2 Memory Tester— The T5503HS2 memory tester is the industry’s most productive test solution for the fastest memory devices available today as well as next-generation, super-high-speed DRAMs.  The new system’s flexibility extends the capabilities of the T5503 product family in the current “super cycle,” in which global demand for memories is skyrocketing. (South Hall Booth #1105)
  • BISTel: Dynamic Fault Detection (DFD®) – The DFD system offers full trace data coverage and eliminating the need for timely and costly modeling and set up. DFD® is also a bridge to smart factory manufacturing because it integrates seamlessly to legacy FDC systems meaning customers can access the most comprehensive, and accurate fault detection system on the market. (South Hall Booth 1811)
  • Rudolph Technologies: Dragonfly System with Truebump Technology– Rudolph’s Dragonfly System with Truebump Technology was designed to provide a complete solution for “total bump process control.” Using a unique approach, Truebump Technology combines 2D inspection and measurement information from image-based techniques with 3D data from separate high-precision and high-throughput laser-based techniques to deliver accurate and complete characterization at production-capable throughputs. (North Hall Booth #6170)

Congratulations to each of the Finalists. The Best of West Award winner will be announced during SEMICON West (www.semiconwest.org) on Wednesday, July 11, 2018.

About SEMI

SEMI® connects over 2,000 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Association Partners, defined communities within SEMI focused on specific technologies. Since 1970, SEMI has built connections that have helped its members prosper, create new markets, and address common industry challenges together. SEMI maintains offices in Bangalore, Berlin, Brussels, Grenoble, Hsinchu, Seoul, Shanghai, Silicon Valley (Milpitas, Calif.), Singapore, Tokyo, and Washington, D.C.  For more information, visit www.semi.org and follow SEMI on LinkedIn and Twitter.

About Extension Media

Extension Media is a publisher of over 20 business-to-business magazines (including Solid State Technology), resource catalogs, newsletters and web sites that address high-technology industry platforms and emerging technologies such as chip design, embedded systems, software and infrastructure, intellectual property, architectures, operating systems and industry standards. Extension Media publications serve several markets including Electronics, Software/IT and Mobile/Wireless. Extension Media is a privately held company based in San Francisco, Calif. For more information, visit www.extensionmedia.com

IC Insights recently released its Update to its 2018 IC Market Drivers Report.  The Update includes IC Insights’ latest outlooks on the smartphone, automotive, PC/tablet and Internet of Things (IoT) markets.

The Update shows a final 2017 ranking of the top smartphone leaders in terms of unit shipments.  As shown in Figure 1, 9 of the top 12 smartphone suppliers were headquartered in China.  Two South Korean companies (Samsung and LG) and one U.S. supplier (Apple) were the other leaders.

Figure 1

Samsung and Apple dominated the smartphone market from 2015 through 2017.  In total, these two companies shipped 526 million smartphones and held a combined 35% share of the total smartphone market in 2016. Moreover, these two companies shipped over one-half billion smartphones (533 million) in 2017 with their combined smartphone unit marketshare increasing one point to 36%.

Samsung’s total smartphone unit sales were up by 2% in 2017 to 317 million units, slightly outpacing the total smartphone market that grew by 1%.  Meanwhile, orders for new Apple iPhones fell 7% in 2016, much worse than the 4% growth rate exhibited for the worldwide smartphone market.  However, Apple rebounded somewhat in 2017 with its total smartphone unit shipments being flat last year.

It appears that the up-and-coming Chinese producers like Huawei, OPPO, Vivo, and Xiaomi are giving a serious challenge to Samsung and Apple for smartphone marketshare.  It should be noted, however, that Samsung and Apple still hold a commanding share of the high-end smartphone segment—that is, smartphones priced more than $200.

The number four and five ranked smartphone suppliers on the list are owned by the same China-based parent company—BBK Electronics.  Combined handset unit shipments from these two companies were 213.1 million in 2017, just 2.7 million less than second-ranked Apple.

Overall, there was very little middle ground with regard to smartphone shipment growth rates among the top 12 suppliers in 2017.  As shown, four of the top 12 companies registered double-digit unit growth while the other eight companies logged 2% or less increases and four of those displayed a double-digit decline.  Three Chinese smartphone suppliers (Xiaomi, OPPO, and Vivo) saw their shipments surge at least 24% in 2017.  Xiaomi displayed the highest growth rate of any of the top-12 smartphone suppliers (73%). Meanwhile, another three Chinese suppliers (LeEco/Coolpad, ZTE, and TCL) saw their smartphone shipments fall by more than 20% last year.

Combined, the nine leading smartphone suppliers based in China shipped 626 million smartphones in 2017, an 11% increase from 565 million smartphones that these nine companies shipped in 2016. The top nine Chinese smartphone suppliers together held a 42% share of the worldwide smartphone market in 2017, up four points from the 38% share these companies held in 2016 and eight points better than the 34% combined share these companies held in 2015.

IC Insights projects smartphone shipments in 2018 will rise 2%, to 1.53 billion units.  Moreover, smartphone unit shipments are forecast to grow at low single-digit annual rates through 2021.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, this week released the following statement regarding the Trump Administration’s announcement on tariffs on products imported from China.

“While the U.S. semiconductor industry shares the Trump Administration’s concerns about China’s forced technology transfer and intellectual property (IP) practices, the proposed imposition of tariffs on semiconductors from China, most of which are actually researched, designed, and manufactured in the U.S., is counterproductive and fails to address the serious IP and industrial policy issues in China. We look forward to working with the Administration to explain why imposing tariffs on our products would be harmful to our competitiveness and does not address our challenges with China.”

SIA seeks to strengthen U.S. leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration and other key industry stakeholders to encourage policies and regulations that fuel innovation, propel business and drive international competition. Learn more at www.semiconductors.org.

The semiconductor industry is nearing a third consecutive year of record equipment spending with projected growth of 14 percent (YOY) in 2018 and 9 percent in 2019, a mark that would extend the streak to a historic fourth consecutive growth year, according to the latest update of the World Fab Forecast report published by SEMI. Over the semiconductor industry’s 71-year history, only once before – in the mid 1990s – has the industry logged four consecutive years of equipment spending growth.

Korea and China are leading the growth, with Samsung dominating global spending and ascendant China on a fast, steep rise, surging ahead of all other markets. See Figure 1.

Figure 1 equipment spending by region (includes new and refurbished)

While Samsung is expected to reduce equipment investments in 2018, the company still accounts for a dominant 70 percent of all investment in Korea. At the same time, SK Hynix is increasing its equipment spending in Korea.

China’s equipment spending is forecast to increase 65 percent in 2018 and 57 percent in 2019.  Notably, 58 percent of investments in China in 2018 and 56 percent in 2019 stem from companies with headquarters in other regions such as Intel, SK Hynix, TSMC, Samsung, and GLOBALFOUNDRIES. Domestic, Chinese-owned companies – backed by large government initiatives – are building a considerable number of new fabs that will start equipping in 2018. The companies are expected to double their equipment investments in 2018 and again in 2019.

Other regions are also ramping up investments. Japan is increasing equipment spending by 60 percent in 2018, with the largest increases by Toshiba, Sony, Renesas and Micron.

The Europe and Mideastern region will boost investments by 12 percent in 2018, with Intel, GLOBALFOUNDRIES, Infineon and STMicroelectronics the largest contributors.

Southeast Asia will boost investments by more than 30 percent in 2018, although total spending is proportionately smaller than in other regions owing to its size. The main contributors are Micron, Infineon and GLOBALFOUNDRIES, though companies including OSRAM and ams are also increasing investments.

The SEMI World Fab Forecast, which also includes information on other companies, covers data and predictions through the end of 2019, including milestones, detailed investments by quarter, product types, technology nodes and capacities down to fab and project level.

Learn more about the SEMI fab databases at:

www.semi.org/en/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $37.6 billion for the month of April 2018, an increase of 20.2 percent from the April 2017 total of $31.3 billion and 1.4 percent more than last month’s total of $37.1 billion. Monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a newly released WSTS industry forecast projects annual global market growth of 12.4 percent in 2018 and 4.4 percent in 2019.

“The global semiconductor industry has posted consistently strong sales so far in 2018, and the global market has now experienced year-to-year growth of greater than 20 percent for 13 consecutive months,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Although boosted in part by impressive growth in the memory market, sales of non-memory products also grew by double digits in April on a year-to-year basis, and all major regional markets posted double-digit year-to-year gains. The global market is projected to experience significant annual growth this year, with more modest growth expected next year.”

Regionally, year-to-year sales increased in the Americas (34.1 percent), China (22.1 percent), Europe(21.4 percent), Japan (14.6 percent), and Asia Pacific/All Other (10.2 percent). Compared with last month, sales were up in China (3.2 percent), Japan (2.7 percent), Europe (1.4 percent), and the Americas (0.8 percent), but down slightly in Asia Pacific/All Other (-0.8 percent).

Additionally, SIA today endorsed the WSTS Spring 2018 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $463.4 billion in 2018. This would mark the industry’s highest-ever annual sales, a 12.4 percent increase from the 2017 sales total. WSTS projects year-to-year increases across all regional markets for 2018: the Americas (14.0 percent), Europe (13.4 percent), Asia Pacific (including China) (12.3 percent), and Japan (8.6 percent). In 2019, growth in the semiconductor market is expected to moderate, with sales increases of between 4-5 percent expected across each of the regions. 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.

For comprehensive monthly semiconductor sales data and detailed WSTS Forecasts, consider purchasing the WSTS Subscription Package. For information about the global semiconductor industry and market, check out SIA’s free 2018 Factbook.

Apr 2018

Billions

Month-to-Month Sales                              

Market

Last Month

Current Month

% Change

Americas

8.10

8.16

0.8%

Europe

3.58

3.63

1.4%

Japan

3.21

3.30

2.7%

China

11.98

12.36

3.2%

Asia Pacific/All Other

10.23

10.15

-0.8%

Total

37.09

37.59

1.4%

Year-to-Year Sales

Market

Last Year

Current Month

% Change

Americas

6.08

8.16

34.1%

Europe

2.99

3.63

21.4%

Japan

2.88

3.30

14.6%

China

10.12

12.36

22.1%

Asia Pacific/All Other

9.21

10.15

10.2%

Total

31.28

37.59

20.2%

Three-Month-Moving Average Sales

Market

Nov/Dec/Jan

Feb/Mar/Apr

% Change

Americas

8.63

8.16

-5.5%

Europe

3.40

3.63

6.6%

Japan

3.21

3.30

2.8%

China

12.01

12.36

2.9%

Asia Pacific/All Other

10.35

10.15

-1.9%

Total

37.60

37.59

0.0%

Applied Materials, Inc. today announced a breakthrough in materials engineering that accelerates chip performance in the big data and AI era.

In the past, classic Moore’s Law scaling of a small number of easy-to-integrate materials simultaneously improved chip performance, power and area/cost (PPAC). Today, materials such as tungsten and copper are no longer scalable beyond the 10nm foundry node because their electrical performance has reached physical limits for transistor contacts and local interconnects. This has created a major bottleneck in achieving the full performance potential of FinFET transistors. Cobalt removes this bottleneck but also requires a change in process system strategy. As the industry scales structures to extreme dimensions, the materials behave differently and must be systematically engineered at the atomic scale, often under vacuum.

To enable the use of cobalt as a new conducting material in the transistor contact and interconnect, Applied has combined several materials engineering steps – pre-clean, PVD, ALD and CVD – on the Endura® platform. Moreover, Applied has defined an integrated cobalt suite that includes anneal on the Producer® platform, planarization on the Reflexion® LK Prime CMP platform and e-beam inspection on the PROVision™ platform. Customers can use this proven, Integrated Materials Solution to speed time-to-market and increase chip performance at the 7nm foundry node and beyond.

“Five years ago, Applied anticipated an inflection in the transistor contact and interconnect, and we began developing an alternative materials solution that could take us beyond the 10nm node,” said Dr. Prabu Raja, senior vice president of Applied’s Semiconductor Products Group. “Applied brought together its experts in chemistry, physics, engineering and data science to explore the broad portfolio of Applied’s technologies and create a breakthrough Integrated Materials Solution for the industry. As we enter the big data and AI era, there will be more of these inflections, and we are excited to be having earlier and deeper collaborations with our customers to accelerate their roadmaps and enable devices we never dreamed possible.”

While challenging to integrate, cobalt brings significant benefits to chips and chip making: lower resistance and variability at small dimensions; improved gapfill at very fine dimensions; and improved reliability. Applied’s integrated cobalt suite is now shipping to foundry/logic customers worldwide.

Applied Materials, Inc. (Nasdaq:AMAT) is a leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world.

Consumer demand and government mandates for electronic systems that improve vehicle performance, that add comfort and convenience, and that warn, detect, and take corrective measures to keep drivers safe and alert are being added to new cars each year. This system growth, along with rising prices for memory components within them, are expected to raise the automotive IC market 18.5% this year to a new record high of $32.3 billion, surpassing the previous record of $27.2 billion set last year (Figure 1), according to IC Insights’ soon to be released Update to the 2018 IC Market Drivers report.  If the forecast holds, it would mark the third consecutive year of double-digit growth for the automotive IC market.

Figure 1

Over the past several years, the global automotive IC market has experienced some extraordinary swings in growth. After increasing 11.5% in 2014, the automotive IC market declined 2.5% in 2015, but then rebounded with solid 10.6% growth in 2016. It is worth noting that the sales decline experienced in 2015 was primarily the result of falling ASPs across all the key automotive IC product categories—microcontrollers, analog ICs, DRAM, flash, and general- and special-purpose logic ICs, which offset steady unit growth for automotive ICs that year.

IC Insights’ recently updated automotive IC market forecast shows the automotive IC market growing to $43.6 billion in 2021, which represents a compound annual growth rate (CAGR) of 12.5% from 2017 to 2021, highest among the six major end-use applications (Figure 2).

Figure 2

Collectively, automotive ICs are forecast to account for only about 7.5% of the total IC market in 2018, although that share is forecast to increase to 9.3% in 2021.  Analog ICs—both general-purpose analog and application-specific automotive analog—are expected to account for 45% of the 2018 automotive IC market, with MCUs capturing 23% share. There are many suppliers of automotive analog devices but a rash of acquisitions among them in recent years has reduced the number of larger manufacturers. Some of the acquisitions that have impacted the automotive analog market include NXP, which acquired Freescale in 2015 and is now itself in the process of being acquired by Qualcomm; Analog Devices, which acquired Linear Technology in March 2017; and Renesas, which acquired Intersil.

Memory devices employ a wide range of packaging technology from wire-bond leadframe and BGA to TSV.

BY SANTOSH KUMAR, Yole Développement, Lyon-Villeurbanne, France

The memory market is going through a strong growth phase. The total memory market grew by >50% YoY to more than US$125 billion in 2017 from US$79.4 billion in 2016. [1] RAM and NAND dominate the market, representing almost 95 % of standalone memory sales. There is a supply/demand mismatch in the market which is impacting on the ASP of memory devices, and as a result the large memory IDMs are reaping record profits. The memory industry has consolidated with the top five players – Samsung, SKHynix, Micron, Toshiba and Western Digital – accounting for 90% of the market.

The demand for memory is coming from all sectors but the mobile and computing (mainly servers) market is showing particularly strong growth. On average, the DRAM memory capacity per smartphone will rise more than threefold to reach around 6GB by 2022. DRAM cost per smartphone represents >10% of the bill of materials of the phone and is expected to increase further. The NAND capacity per smartphone will increase more than fivefold to reach >150GB by 2022. For servers, the DRAM capacity per unit will increase to a whopping 0.5TB by 2022, and the NAND capacity per SSD for the enterprise market will be in excess of 5TB by 2022. The growth in these markets is led by applications like deep learning, big-data, networking, AR/ VR, and autonomous driving. The automotive market, which traditionally used low density (low-MB) memory, will see the adoption of DRAM memory led by the emerging trend of autonomous driving and in-vehicle infotainment. The NOR flash memory market also saw a resurgence and is expected to grow at an impressive 16% CAGR to reach ~US$4.4 billion by 2022, due to its application in new areas such as AMOLED displays, touch display driver ICs and industrial IoTs.

On the supply side, the consolidation of players, the difficulty in migrating to advanced nodes due to technical challenges, and the need for higher investment to migrate from 2D to 3D NAND, has led to shortfall in both DRAM & NAND flash supply. DRAM players want to retain high ASPs (& high profitability) to justify the huge capex investment for advanced node migration and as such are not inclined to increase capacity. Entry of Chinese memory players will ease the supply side constraint, but it’ll not happen before 2020.

Memory device packaging

There are many variations of memory device packaging. This implies a wide range of packaging technology from the low pin count SOP package to the high pin-count TSV, all depending upon the specific product requirements such as density, performance, cost, etc. We have broadly identified five packaging platforms for memory devices: viz lead frame, wire-bond BGA, flip-chip BGA, WLCSP and TSV, even though in each platform there are many varia- tions and different nomenclature in industry.

The total memory package market is expected to grow at 4.6% CAGR2016-2022 to reach ~US$26 billion by 2022. [1] Wire-bond BGA accounted for more than 80% of the packaging market in dollar terms in 2016. Flip-chips, however, started making inroads in the DRAM memory packaging market and is expected to grow at ~20% CAGR in the next five years to account for more than 10% of the memorypackagingmarket.Currentlytheflip-chipmarket is only around 6% of the total memory packaging market. Flip-chip growth is led by its increased adoption in the DRAM PC/server segment fueled by a high bandwidth requirement.

Currently Samsung has already converted >90% of its DRAM packaging line. SK Hynix have started the conversion and other players will also adopt it in future. At Yole Développement (Yole), we believe that all DDR5 memory for PC/servers will move to flip-chip.

TSV is employed in high bandwidth memory devices requiring high bandwidth with low latency memory chips for high performance computing in various applications. In 2016 the TSV market was <1% of the total memory market. However, it is expected to grow by >30% CAGR to reach ~8% of memory packaging in dollar terms. WLSCP packaging is used in NOR flash and niche memory devices (EEPROMs/EPROM/ROM). It is expected to grow at >10% CAGR, but in terms of value will remain <1% of the market by 2022.

In mobile applications, memory packaging will mainly remain on the wire-bond BGA platform but will start to move into the multi-chip package (ePoP) for high end smartphones.

The main requirement of NAND flash devices is high storage density at low cost. NANDs are stacked using wire bonding to provide high density in a single package. The NAND packaging market is expected to reach ~ US$ 10 billion by 2022. NAND flash packaging will remain on the wire bond BGA platform and will not migrate to flip-chip. Toshiba, however, will start using TSV packaging in NAND devices to increase the data transfer rate for high end applications. Following Toshiba, we believe Samsung and SKHynix will also bring TSV packaged NAND devices into the market.

OSATs account for <20% of the memory packaging business

The total memory packaging market is estimated to have been ~US$20 billion in 2016. There are many OSATs involved in the memory packaging business, and >80% of the packaging (by value) is still done internally by OSATs. The majority of these are small OSATs and have only low-end packaging capability. Global memory IDMs have much experience in packaging, accumulated over years, and have their own internal large capacity. Therefore, there is limited opportunity for OSATs to make inroads into the packaging activity of IDMs. Many Chinese players, however, are entering the memory market with more than US$50 billion investment committed. [1] These new entrants do not have experience in memory assembly / packaging, unlike global IDMs, and they will outsource major packaging activities to OSATs. The flip-chip business for memory packaging will increase to 13% of the total market to reach US$3.5 billion in 2022. This is an opportunity for low-end memory OSATs to invest in flip-chip bumping and assembly capacity. Otherwise they will lose business to the big OSATs with advanced packaging capability.

Conclusion

The memory industry is going through a golden phase with strong demand coming from all sectors, particularly from the mobile and computing (mainly servers) markets.

Memory devices employ a wide range of packaging technology from wire-bond leadframe and BGA to TSV. Wire-bond BGA still accounts for the bulk of the memory packaging market. However, flip-chip technology will start making inroads in DRAM memory packaging and will grow at 20% CAGR (by revenue) over the next five years, accounting for ~13% of the total memory packaging market by 2022. The memory packaging market is mainly controlled by IDMs. OSATs have limited opportunity to impact IDM packaging activity. Many Chinese players, however, are entering the memory business and, unlike global IDMs, these new players lack experience in memory assembly/packaging and they outsource most of their packaging activity to OSATs.

SANTOSH KUMAR is a Senior Technology and Market Research Analyst at Yole Développement in France.

References

1. Memory Packaging Market and Technology Report 2017, Yole Développement