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As the opening day of SEMICON West (July 12-14) approaches, the electronics manufacturing industry is experiencing disruptive changes, making “business as usual” a thing of the past. To help technical and business professionals navigate this fast-changing landscape, SEMICON West programming has been upgraded extensively ─ increased from 170 hours to 250 hours this year. New brand and deep programming provide insights into the latest megatrends and helps attendees identify new opportunities and refine sound strategic plans.

At this year’s expo, several new forums designed to enhance collaboration within shared communities of interest will debut. Lead by technical experts, top analysts, and leaders from some of the biggest names in electronics, the new forums are generating significant advance interest and buzz, key among them:

  • Advanced Manufacturing Forum: Twelve cutting-edge sessions — from What’s Next in MEMS and Sensors to Power Electronics and 3D Printing — will be presented by Samsung, Applied Materials, Texas Instruments, and more. Attendees will learn about new technologies on the horizon and how they impact semiconductor manufacturing.
  • Flexible Hybrid Electronics Forum: Flexible Hybrid Electronics is driving new processes and packages, providing innovative approaches for health-monitoring, wearables, soft robotics, and other next-generation products. Attendees will get details on thinned device processing, system design, reliability testing and modeling from experts at Qualcomm, PARC, and GE Global Research.
  • World of IoT Forum: Forecasters predict that IoT will soon become a $6 trillion market. The World of IoT Forum brings together leading suppliers, integrators, and solution providers at the forefront of innovations in mobility, network-connected devices, and automotive and healthcare applications, among others. Attendees will learn about the trends impacting the market, including big data and analytics, smart things, and MEMS and sensor manufacturing.

With so many disruptive trends driving the market, it is critical for industry professionals to have a clear view of the road ahead. With its vastly expanded technical and business programming, this year’s expo will deliver the strategic insights needed to survive and thrive. To learn more and to register, visit SEMICON West Forums.

Kateeva today announced that it has closed its Series E funding round with $88 million in new financing.

The Silicon Valley technology leader disrupted the flat panel display industry when it launched a breakthrough equipment solution to mass-produce flexible Organic Light Emitting Diodes (OLEDs). Flexible OLED technology gives limitless stretch to new product design innovation by liberating panel manufacturers from the constraints of glass substrates. It enables ultra-thin, feather-light displays that are bendable, roll-able, and even fold-able. Kateeva’s solution, known as the YIELDjet™ platform, leverages inkjet printing with novel innovations to perform critical steps in the OLED manufacturing process. Today, YIELDjet tools are helping to accelerate the adoption of OLED technology — a trend that’s taking the global display industry to exciting new heights.

The new Kateeva investors are: BOECybernaut VentureGP Capital ShanghaiRedview Capital, and TCL Capital, all located in China. They join existing investors that include: Samsung Venture Investment Corporation (SVIC), Sigma PartnersSpark CapitalMadrone Capital PartnersDBL PartnersNew Science Ventures, and VEECO Instruments, Inc.

The company has raised $200 million since it was founded in 2008.

New Board seats will be filled by an executive from BOE, Redview Capital, and TCL Capital respectively.

The funds will accelerate new product development. The money will also help Kateeva expand manufacturing capacity at its Silicon Valley headquarters, where production systems are being built. In addition, the funds will strengthen Kateeva’s customer satisfaction infrastructure in Asia, and support continued R&D.

The round closes as demand for flexible OLED displays soars. This year, the market for plastic and flexible OLED displays will reach $2.1 billion, says Guillaume Chansin, Ph.D., Senior Technology Analyst at research firm IDTechEx. By 2020, it will surpass $18 billion. While mobile phones and wearables are currently the two main applications, Chansin expects that the technology will be found in tablets and automotive in the coming years.

The market trajectory is due to the confluence of two trends: first, voracious demand for flexible devices made possible by the enabling advantages of OLED technology; and second, the introduction of manufacturing tools like Kateeva’s YIELDjet platform that provided a pathway to cost-effective mass-production of flexible OLEDs for the first time.

Kateeva Chairman and CEO Alain Harrus, Ph.D. noted how OLED technology first transformed the viewing experience by giving spectacular color quality and brightness to rigid displays on mobile phones. “Now, it’s giving extraordinary new shape, lightness and thinness to those products and others that have yet to be invented,” he said. “Kateeva started enabling this “freedom from glass” display innovation in 2008 when our founders began pioneering a superior mass-production equipment solution for OLEDs. Today, Kateeva tools are positioned in top OLED manufacturing fabs. Our investors were stalwart partners along the way. We’re grateful for their support, and we welcome our new investors.”

Flexible OLED is the first major application for Kateeva’s YIELDjet platform, according to President and Co-Founder Conor Madigan, Ph.D. “Next up is OLED TV,” he said. “Having mastered the technical challenges of mass-producing Thin Film Encapsulation (TFE) — the layer that gives thinness and flexibility to the OLED device, we’re now applying YIELDjet technology to help display manufacturers mass-produce the OLED RGB layer, which enables OLED TVs. The new funds will accelerate new product development, and support ongoing R&D.”

Kateeva executives will be present at Display Week 2016. The premier international symposium for the display industry will be held May 22-27 at the Moscone Convention Center in San Francisco, Calif. President and Co-Founder Conor Madigan, Ph.D. will present on Kateeva’s technology on Monday, May 23. Chairman and CEO Alain Harrus, Ph.D. will speak at the Investors Conference on Tuesday, May 24.

AMD today announced that its Board of Directors has appointed Board member John Caldwell as Chairman. Caldwell succeeds Bruce Claflin as Chairman of the Board. Claflin has been Chairman of the Board since March 2009 and will continue to serve as an AMD Board member.

“I am honored to be named chairman of AMD’s Board,” said John Caldwell. “It is an exciting time to be part of AMD as we execute on our transformative strategy — bringing innovative products to market and delivering increased value to our shareholders. On behalf of our Board of Directors, I would like to recognize Bruce Claflin for his leadership and for his continuing contribution to our company.”

Caldwell joined AMD’s Board in 2006 and has held a variety of Committee positions including most recently Compensation and Leadership Resources Committee Chair and Nominating and Corporate Governance Committee membership. Caldwell brings extensive board and executive level experience. In his career, he has served as a CEO of three technology companies and been on the board of seven public technology companies.

Chinese brands have had a significant impact on the global TV market recently, due to their aggressive pursuit of export growth. In large part because of these efforts, monthly liquid crystal display (LCD) TV unit shipments returned to positive year-over-year growth in March 2016 after three months of declines, increasing by 4.8 percent to 16.2 million units, according to IHS Inc. (NYSE: IHS), the global source of critical information and insight. Every Chinese brand experienced positive growth in March, offsetting the drop in shipments in February.

“Major global TV brands have adjusted their strategy this year to focus on profitability, avoiding severe competition in pursuit of market share,” said Ken Park, principal analyst of TV sets research for IHS Technology. “Chinese brands, in particular, have started to play a more critical role in the global TV market over the last year.”

Chinese TV brand shipments, which fell 63.5 percent month over month in February, rebounded 88.9 percent in March, from 2.4 million to 4.5 million units. In fact, Chinese brands accounted for 28 percent of all LCD TV shipments in March, an increase of 11 percentage points from the previous month.

“After cleaning up carried-over stock from the Chinese New Year holiday in February, Chinese TV brands began to restock retail inventory in March for upcoming promotional events on the Web and May Labor Day holiday sales,” Park said. “E-commerce-focused brands like LeEco, Xiaomi and newcomer FunTV have also been aggressive in increasing production and shipments in the TV market this year, leveraging their online content portals to attract new customers.”

In contrast, year-over-year South Korean TV brands’ shipments dropped 7.8 percent in March, according to the IHS TV Sets Intelligence ServiceBoth Samsung Electronics and LG Electronics recorded contraction in March, but their reported operating margins in the first quarter of 2016 increased relative to a year ago. “These two companies were able to benefit from the drop in panel prices and relatively conservative sales targets, targeting profits over absolute market share growth,” Park said.

The 50-inch and larger share of monthly LCD TV shipments increased by more than 6 percentage points in March to 22.4 percent, compared to a year earlier. During the same period, the 4K TV share grew to a record 20.9 percent of unit shipments. “Both of these factors are driving worldwide growth as consumers upgrade from older TVs,” Park said.

TV displays will be a key theme in the coming SID Display Week 2016 Business Track, which is co-organized by IHS and the Society for Information Display. For more information, visit SID Display Week.

Revenue associated with the wireless competitive landscape continued to serve as a bright spot in the larger semiconductor market in 2015, growing almost 4 percent to over $56 billion, year over year, while total semiconductor revenue fell 2 percent to $347 billion during the same period. The wireless competitive landscape includes logic and analog semiconductors used in connectivity, mobile phones, media tablets, mobile infrastructure and other applications. However, due to slowing sales of smartphones and other wireless devices, the wireless competitive landscape faces a set of challenges that could result in similar or slower growth in 2016, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

wireless semiconductors

“Apple recently reported its fiscal second quarter results, and for the first time iPhone unit sales fell year over year, indicating the potential magnitude of the softness in the premium smartphone market,” said Brad Shaffer, senior analyst, mobile devices and networks, IHS Technology. “If the iPhone and other premium smartphones fail to gain enough traction to support growth in that market segment, it may be reflected in the underlying semiconductor market in 2016.”

According to the IHS Wireless Semiconductor Competitive Intelligence Service, the mobile handset integrated-circuit (IC) market is the largest segment in the wireless competitive landscape, comprising 62 percent of revenue in 2015 as the smartphone market continued to grow. “If unit shipments from Apple and other smartphone original equipment manufacturers continue to decline, the wireless competitive landscape could have a dragging effect on the larger semiconductor market in 2016. However, though currently too early in their lifecycles to make a material difference in the short term, emerging technologies like LTE-Advanced Pro or 4.5G could provide upside potential in the next 12 to 18 months,” Shaffer said.

Along with maturing growth rates in the smartphone market, Samsung, Apple, Huawei and other OEMs that are vertically integrated have varying degrees of internal semiconductor capabilities at their disposal — with the potential to supply their own smartphones and other OEMs as well. These internal design decisions tend to be cyclical in nature and can change from one product iteration to another, switching from internally-supplied components to third-party solutions.

“While this vertical integration has been especially evident in the premium smartphone tier, it helps to create a fiercely competitive environment in all market tiers, as it can limit the available market for third-party suppliers,” Shaffer said. “The increased competition resulting from a smaller market could impact core handset integrated-circuit prices in the entry-level and mid-range segments, with MediaTek, Spreadtrum and other suppliers vying for revenue share with market leader Qualcomm.”

The global notebook PC display market fell 23 percent year over year in the first quarter (Q1) of 2016, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. Due to the low profitability of high definition (HD) notebook PC panels, panel makers have begun to decrease production, in favor of full HD (FHD) panels. FHD panels are therefore expected to enjoy high growth through 2018 and could become mainstream in notebook PCs in three years. However, there still are many customers concerned more about price than specification upgrades. In addition to FHD resolution, some panel makers have begun promoting even higher ultra HD (UHD) resolution.

“Microsoft introduced its high resolution Surfacebook last year, which is one reason higher definition displays are now becoming the key differentiator for premium notebooks,” said Jason Hsu, senior principal analyst for display supply chain at IHS Technology.

Price erosion struck the notebook PC market hard in 2015, as PC manufacturers by and large produced low-cost notebooks to maintain market share, rather than introducing new and innovative designs. In fact, half of all notebook PCs sold in 2015 were priced below $500, and laptops costing $300 or less grew to encompass 15 percent of the total market in the fourth quarter. While PC replacement was driven in the past by specification upgrades, today’s consumers mainly use their PCs to browse the Web or check emails, so consumers have become less concerned with upgraded replacements and notebook PC sales continue to decline.

“Performance is no longer the key motivation for customers to replace older PCs,” Hsu said. “Industry players are now reviewing what might be the next driving force for laptops and finding that displays could play a larger role.”

Notebook_Display_Chart_IHS_2

While a good differentiator for premium devices, higher resolution displays also tend to lead to higher power consumption and shorter battery life, which is a dilemma for the industry. “UHD panels are mostly used in premium notebook PC models, which also usually have thinner and lighter form factors,” Hsu said. “There is therefore less room for brands to increase battery capacity these days, which is why notebook PC brands are urging panel makers to find ways to lower power consumption by higher-resolution displays.”

Displays using oxide and low-temperature polysilicon (LTPS) panels are designed to address the need for higher resolution and low power consumption. Apple has been very aggressive in adopting oxide-substrate panels for its iMac and iPad Pro product lines, and the company is reportedly introducing oxide panels in its upcoming line of Macbooks. With Apple leading, Samsung Display and LG Display are now increasing investment in expanded oxide-panel manufacturing capacity.

While today’s LTPS capacity is mainly used for smartphone panel production, it will also be coming soon to notebook PCs and tablet panels. JDI, AUO, Tianma and other panel makers are actively promoting LTPS panels for notebook PCs, and IHS anticipates the first LTPS notebook panels to be in commercial production by 2017 or even sooner.

“With panel demand falling this year, panel makers may have to balance the pressure between fab utilization and profitability,” Hsu said. “Investing in next generation technology may not yield immediate returns while continued reliance on mature technologies may decrease ongoing profitability.”

By Rania Georgoutsakou, director of Public Policy for Europe, SEMI

In a global industry, monitoring regulatory developments across different regions can be a challenge. Add to that the additional complexity of communicating with a (global) supply chain, then consider that each company has to individually reach out to its suppliers and customers. This results in numerous communications on the same issue up and down the supply chain, and the benefits of industry collaboration within associations such as SEMI become clear.

To help companies keep up with the latest developments in the EU, here’s a list of recent and upcoming regulatory initiatives and how SEMI member companies are collectively addressing these:

  • SEMI FAQ – EU F-Gas regulation and semiconductor manufacturing equipment
  • Review of EU Machinery Directive now underway
  • EU PFOA restriction under discussion
  • 2016 EU Blue Guide is available

A SEMI webcast on EU regulatory developments (March 2016) provided a more detailed overview of these and other developments and how companies should prepare – the webcast is available to view for SEMI member companies only, please click here and select the “EU Regulation Webcast”.

Manufacturing equipment containing pre-charged chillers – new SEMI FAQ provides guidance on how to comply with EU F-Gas law

The EU F-Gas regulation that entered into force in January 2014 creates new restrictions on placing on the EU market pre-charged chillers containing certain fluorinated gases (F-gases).

A new SEMI FAQ on the EU F-Gas regulation provides guidance on what this law is about, how it impacts semiconductor manufacturing equipment and what steps companies importing affected equipment should be taking to ensure compliance.

If your company is importing semiconductor manufacturing equipment containing pre-charged chillers into the EU, then you need to make sure you can account for the f-gases in the chiller under the new F-Gas quota system that the law has established, by obtaining an ‘authorisation’ from a ‘quota holder’ and registering in the ‘EU HFC Register’.

For more details and compliance timelines, check out the SEMI FAQ.

EU Machinery Directive – review now underway – have your say!

The EU Machinery Directive sets out the basic requirements machines must satisfy in order to be placed on the EU market and is a major piece of EU law for semiconductor manufacturing equipment.

The review is part of the regular EU regulatory review process to ensure legislation is ‘fit for purpose’ and does not automatically imply that the Machinery Directive will be revised. It is being run by an external consultant and a final report is expected in April 2017.

The focus of the review will be on 9 product categories, including machines for metal working, engines and turbines, robotics and automation and will also explore whether there are discrepancies in the interpretation of the directive between various member states and to what extent it is aligned to other pieces of legislation.

SEMI is putting together a working group to contribute to review of the EU Machinery Directive. If you are a member company and want to get involved, please contact [email protected]

PFOA restriction under discussion – SEMI requests derogations for the industry

The EU is currently drafting a law to restrict the manufacture, use and placing on the market of PFOA, its salts and PFOA-related substances under EU REACH. The restriction would apply both to substances and mixtures and to articles containing these substances.

SEMI has been calling for a derogation for substances and mixtures used in photolithography processes and for articles contained in semiconductor manufacturing equipment.

SEMI has collected and submitted evidence to substantiate members’ recommendations for:

  • a derogation period of at least 10 years for semiconductor manufacturing equipment, to allow equipment manufacturers to communicate with their the supply chain, identify components potentially containing restricted substances, source substitute parts that are tested and validated and requalify the equipment.
  • non-time-limited derogation for spare parts for legacy semiconductor manufacturing equipment, i.e. equipment that was already on the EU market before the restriction entered into force and before the derogation for semiconductor manufacturing equipment expires.
  • non-time-limited derogation for second-hand semiconductor manufacturing equipment, to ensure that companies can still import used equipment from outside the EU or from another EU member state.

SEMI has also voiced its concerns around the proposed concentration limits and the non-availability today of standardized practicable analytical methods that can be applied to a variety of materials to test whether an article would comply with the restriction.

The EU proposed restriction will be published in the next month and the final decision on the restriction is expected by the end of 2016.

Product regulatory compliance in the EU – 2016 Blue Guide now published

The Blue Guide provides guidance on how to implement EU product rules, including for example the EU Machinery and EMC Directives. A 2016 revised version is now available to download – click here.

The Blue Guide addresses:

  • what constitutes placing a product on the EU market
  • obligations of the various actors in the supply chain (manufacturer, importer, authorized representative etc.)
  • product requirements
  • conformity assessment
  • accreditation
  • market surveillance carried out in the EU

For an overview of SEMI’s advocacy work in Europe, please click here.

To find out more and get involved, please contact [email protected]

Join us for the 10th SEMI Brussels Forum – the industry’s major annual event bringing together company executives and decision-makers to discuss opportunities for the micro/nano-electronics industry in Europe: www.semi.org/BrusselsForum

Positive growth returned to India’s liquid crystal display (LCD) TV market in the fourth quarter (Q4) of 2015, after the industry posted declines in the second quarter (Q2) and no growth in the third quarter (Q3). With more Indians transitioning from cathode-ray tube (CRT) TVs to LCD, the overall consumer LCD TV market in India grew 18 percent in Q4 2015 to reach 2.6 million units, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

Other emerging nations did not fare as well as India in Q4 last year, based on the latest information from the IHS TV Sets Intelligence Service. Ukraine’s LCD TV market fell by two thirds (66 percent) in Q4 2015, and Russia’s market dropped by half (48 percent). Brazil did not decline as precipitously, but still posted an 18 percent decline.

“Compared to other emerging nations, India is still early in the process of transitioning from CRT to LCD, so there is a lot of room left for market growth,” said Hisakazu Torii, senior director of consumer device research for IHS Technology. “While India is not immune from currency devaluations, the country also has a stronger demand base than others.”

While unit sales are on the rise, India posted a smaller average screen size of 31.7 inches, because the average size of homes in India tends to be smaller than other countries and households are upgrading from very small 20-inch-class CRT TVs. By way of comparison, China and the United States boast the largest average screen size of 44 inches and 43 inches, respectively, for TVs shipped in the fourth quarter of 2015.

MagnaChip Semiconductor Corporation (“MagnaChip”) (NYSE:  MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products, today announced that its cumulative shipment of display driver ICs for organic light-emitting diode (OLED) TVs has surpassed the 6 million cumulative unit mark since initial shipments began in 2013.

The OLED Display driver IC is a critical semiconductor component transmitting both digital and analog signals to an OLED panel which in turn creates and displays an image. OLED displays require a significantly higher level of device and panel development technology as well as enhanced manufacturing processes beyond what is required for generic flat panel LCD displays. MagnaChip has been supplying its display driver ICs to top-tier OLED TV makers since 2013 and will continue to enhance its OLED product performance and portfolio of products to address the needs of customers in this expanding market.

Market research firm IHS Inc., has projected that the global OLED TV market will record double-digit unit growth into 2020 and beyond while demand for flat panel LCD TVs will remain flat.

OLED TV market forecast (million units)  

2015

2016

2017

2018

2019

2020

0.5

1.4

2.9

4.6

7.9

12.0

* Source: IHS Inc. OLED TV shipment forecast

“MagnaChip has been a leader in the development and manufacture of OLED display drivers from the beginning and is well positioned to participate in the growth of this expanding market,” said YJ Kim, MagnaChip’s CEO. “We will continue to strengthen our technology and deliver differentiated and high-quality products in order to meet the growing needs of our global custom