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The growing popularity of smartwatches, fitness monitors and other wearable applications is driving up shipments of the displays used in these devices, from 34 million units in 2015 to 39 million in 2016. Nearly six out of 10 displays used in wearable devices in 2015 were active-matrix organic light-emitting diode (AMOLED) panels used in smartwatches, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

“Smartwatch manufacturers are increasingly turning to AMOLED displays because they are thinner, lighter, have high color-performance and consume less power than other types of displays,” said Jerry Kang, principal analyst for IHS Technology. “This trend will continue in 2016, since flexible AMOLED display free-form design process enables narrower form factors and even folding bezels.”

Apple, Samsung Electronics, LG Electronics, and Microsoft have all adopted flexible AMOLED displays for their smartwatches. Supported by this widespread adoption by leading manufacturers, unit shipments of flexible AMOLED displays for smartwatches are expected to increase from 23 million units in 2016 to 80 million in 2024.

Smartwatches are expected to continue to lead the wearable display market in the coming years. Unit shipments are forecast to grow at a compound annual growth rate of 22 percent from 2015 and reach 118 million units in 2024, according to the IHS Wearable Display Market & Technology Report. Even with this growth, total unit shipments of smartwatch displays will only equal 5 percent of smartphone display shipments in 2024.

Wearable_Display_Shipments

Applied Materials, Inc. today announced that Dr. Robert Visser has received a 2016 Special Recognition Award from the Society of Information Display, an industry organization comprised of the top scientists, engineers, corporate researchers and business people of the display field. The award is for his “pioneering research and commercialization of new display technologies related to OLEDs*, LCD* materials and barrier films, including encapsulation technologies for OLED and flexible displays.” Dr. Visser is senior director of advanced chemistry and materials for the Advanced Technology Group at Applied Materials, where he is responsible for creating business opportunities in new and adjacent markets related to displays and roll-to-roll barrier films, as well as developing novel chemistries for semiconductor manufacturing. 

“Robert contributed to turning the concept of flexible displays into a reality by helping establish the principles for successful encapsulation of highly sensitive devices, such as OLED displays,” said Dr. Om Nalamasu, senior vice president and CTO of Applied Materials. “Robert continues to be a critical source of insight and expertise on display materials, and I congratulate him on this well-deserved award.”

Dr. Visser’s work in the display industry spans more than three decades. Most recently at Applied, he helped the display group develop new thin-film encapsulation systems that enable the volume production of high-resolution, thin and lightweight flexible OLED displays for mobile products and TVs. He also works closely with the Roll-to-Roll Coating Products Division to design new equipment for depositing barrier films that can be used throughout the world for a wide variety of flexible packaging and labeling applications. 

Prior to joining Applied, Dr. Visser was CTO of Vitex Systems, where he led a multi-disciplinary team to demonstrate and refine multi-layer barrier technology for use in OLED displays. This work eventually became the basis on which many of today’s plastic, curved OLED displays are built. Dr. Visser began his career at Philips Research, where he led several research teams and helped create the PolyLED business serving as the group’s CEO and CTO. Under his leadership, the group launched one of the first OLED displays on the market in 2002. Also during this time he worked with other researchers and members of academia to make significant improvements in performance and yield of early OLED display manufacturing.

Dr. Visser holds a master’s degree in theoretical organic chemistry and physics, and a Ph.D. in physical and organic chemistry, both from Leiden University, Netherlands. He has numerous patents and publications to his name.

Over 600 electronics professionals are expected to attend the 15th annual Flexible and Printed Electronics Conference and Exhibition (2016FLEX) at the Monterey Marriott February 29-March 3.  The event is organized by FlexTech, a SEMI Strategic Association Partner.  2016FLEX features market and technical presentations, short courses, poster sessions, exhibits and networking, focused on flexible, printed, hybrid devices, including new materials, processes, equipment, devices and products.

The Technical Conference will highlight over 120 presentations selected from U.S. and international submittals. Application experts will cover health monitors, asset monitors, advanced sensors, displays, advanced lighting, energy harvesting, and communications products, from organizations, including AU Optronics, Eastman Kodak, Flex International, GE, IBM Research, Interlink Electronics, PARC, SRI, Stanford, U.S. Department of Defense (DoD), and many more.

Manufacturing and materials experts will cover popular topics include integration of ICs on flexible, stretchable substrates, barrier coatings for components, OLED developments, biometric collection and analysis, power generation, roll-to-roll coating, testing and reliability measurement devices and new materials for interconnections.  2016FLEX includes presentations from American Semiconductor, Applied Materials, DuPont, ENrG, Sun-Tec, SmartKem, and many more.

The conference begins Monday, February 29 with five, three-hour Short Courses:

  • Introducing Printed Electronics – All the Basics and More!
  • Technology-Readiness Level (TRL) and Manufacturing Readiness Levels  (MRL) Assessment: Assessing DoD’s products and processes; also insight about how to move from level to level
  • Flexible Hybrid Electronics
  • Fusion of Fashion and Function: Textiles as a Platform
  • 3D Printing on Plastics – Developments & Trends

FlexTech will present the 2016 FLEXI awards to leaders in the flexible hybrid electronics community at the Industry Dinner on Wednesday, March 2.  Awards are given to the Most Innovative Product, Most Significant R&D Activity, Leadership in Education, and Industry Leadership, a new category this year for individuals who have contributed their talents and time in growing the sector.  Student poster awards will also be presented.

2016FLEX is also the first event that NextFlex, America’s Flexible Hybrid Electronics Manufacturing Institute, is participating in.  NextFlex will give an update during the Roadmap Session and have official meetings with its technology working groups.

For more information or to arrange for interviews before or during the event, please contact Heidi Hoffman, FlexTech at 408.943.7954, or at [email protected].  To register, visit 2016FLEX.com.

Worldwide silicon wafer area shipments increased 3 percent in 2015 when compared to 2014 area shipments according to the SEMI Silicon Manufacturers Group (SMG) in its year-end analysis of the silicon wafer industry. However, worldwide silicon revenues decreased by 6 percent in 2015 compared to 2014.

Silicon wafer area shipments in 2015 totaled 10,434 million square inches (MSI), up from the previous market high of 10,098 million square inches shipped during 2014. Revenues totaled $7.2 billion down from $7.6 billion posted in 2014. “Semiconductor silicon shipment levels remained strong throughout most of the year, resulting in record volume shipments,” said Dr. Volker Braetsch, chairman SEMI SMG and senior vice oresident of Siltronic AG. “The strength in shipments was not enough to compensate headwinds from further price decline and some exchange rate impact; silicon revenues for the year decreased yet again and are significantly below their market high set in 2007.”

Annual Silicon* Industry Trends

2007

2008

2009

2010

2011

2012

2013

2014

2015
Area Shipments (MSI)

8,661

8,137

6,707

9,370

9,043

9,031

9,067

10,098

10,434
Revenues ($B)

12.1

11.4

6.7

9.7

9.9

8.7

7.5

7.6

7.2

*Shipments are for semiconductor applications only and do not include solar applications

Silicon wafers are the fundamental building material for semiconductors, which in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin round disks are produced in various diameters (from one inch to 12 inches) and serve as the substrate material on which most semiconductor devices or “chips” are fabricated.

All data cited in this release is inclusive of polished silicon wafers, including virgin test wafers and epitaxial silicon wafers, as well as non-polished silicon wafers shipped by the wafer manufacturers to the end-users.

The Silicon Manufacturers Group acts as an independent special interest group within SEMI and is open to SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi, etc.). The purpose of the group is to facilitate collective efforts on issues related to the silicon industry including the development of market information and statistics about the silicon industry and the semiconductor market.

Orbotech Ltd. today announced that, Nippon Mektron Mektec, a maker of flexible printed circuit boards (FPCBs), is deploying Orbotech direct imaging (DI) and automated optical inspection (AOI) systems in multiple factories. These systems will significantly improve current and future smartphone manufacturing by facilitating the creation of flex inspections and high-throughput production capability.

“Flex” PCB manufacturing, which is required to accommodate the rapidly expanding mobile phone market, will be supported by Orbotech’s Nuvogo DI systems, with DI for patterning and solder mask applications, as well as Orbotech’s AOI systems for inspection. Nippon Mektron has worked closely with Orbotech’s local support teams to ensure consistent product performance and quick production ramp up throughout their factories in Japan, Thailand, China and Taiwan.

“From mobile phones and tablets to wearables and sophisticated automotive electronics, today’s electronics manufacturers are constantly being challenged to simplify designs, provide flexible packaging solutions and support ever-smaller devices,” said Yair Alcobi, President, Orbotech Asia East. “Through this very close collaboration, we are pleased to support Nippon Mektron’s current and future product performance requirements for flex PCB manufacturing processes and enable them to offer innovative and market-ready solutions.”

According to industry analyst firm Prismark Partners’ January 2016 Printed Circuit Report, the 2015/2014 year-on-year value growth estimate for flex PCBs increased by 6.2 percent in dollar value worldwide, which can be attributed to demand for smart and connected electronics and the need for high-speed communications in small and lightweight packages.

By Deborah Geiger, SEMI

The application that world’s largest contract chipmaker TSMC submitted to set up a 12-inch wafer plant in China will likely be green-lighted before Chinese New Year’s rolls around on February 8, according to the China Post on January 26.

The recent Solid State Technology article  “China Semiconductor Acquisitions Surge, SEMICON China Brings the New Market into Focus“ (SEMI) on January 26 discusses semiconductor equipment spending in 2016 ─  expected to be $5.3 billion, 9 percent above 2015 spending. In 2016, total spending on semiconductor materials in China will be $6.2 billion. Programs such as “Build China’s IC Manufacturing Ecosystem” and “Tech Investment Forum-China 2016” will be offered at the upcoming SEMICON China.

The Shanghai Integrated Circuit Investment Fund (SICIF) announced a plan to invest 20 billion yuan (about $3 billion) in foundry SMIC and two other China chip manufacturers, according to Peter Clarke from the EE Times.

The Taiwan minister of economic affairs, John Deng, says Taiwan’s chip designers “are keen to accept investment from China, but the higher reaches of the semiconductor industry remain off limits.”  In the article “Minister Deng says Chip Designers Need China” by Cheng Ting-Fang and Debby Wu of the Nikkei Asian Review, Deng says that he intends to lobby the new parliament to get the ban lifted.

The article in the Economist “Chips on their Shoulders: China Wants to become a Superpower in Semiconductors” on January 23 discusses how China wants to become a superpower in semiconductors and is planning on spending “colossal sums” to achieve this.

Solid State Technology‘s Ed Korczynski writes about “Imagining China’s IC Fab Industry in 2035“ on January 22, noting that China has been investing in technology to reach global competitiveness for many decades. Intel’s Fab68 in Dalian began production of logic chips in 2010, Samsung’s Fab in Xian began production of V-NAND chips in 2014, and TSMC announced it is seeking approval to build a wholly-owned 300mm foundry in Nanjing.  How and why is the pace escalating?

The Nikkei Asian Review article on “U.S. Opposition Scuppers Philips’ $3.3B Sale of Lumileds to Chinese Buyers” by Jennifer Lo on January 22 talks about how Royal Philips had to scrap a $3.3 billion deal to sell its lighting components units to a consortium of Chinese buyers due to opposition by U.S. regulators over national security concerns.

EE Times Silicon Valley Bureau chief Rick Merritt reports from the SEMI Industry Strategy Symposium (ISS) in an article primarily on SMIC on January 20. Merritt postulates that China’s Big Fund is like the Powerball lottery, “A lot of money is at stake so everybody wants to play, but no one knows how to win.” Some say that $100 billion in government and private funds are available.

For a more comprehensive list of articles related to the China market and the semiconductor industry, visit China Market Central which helps you navigate the unfolding China market dynamics — China policy and market developments.

With demand for notebook PCs stagnating due to the economic downturn and the rise of tablet PCs, notebook brands and panel makers are increasingly turning to higher display resolutions to increase consumer enthusiasm. Worldwide notebook panel demand fell 12 percent year over year in 2015 to reach 176 million units, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. With notebook inventory piling up, brands and panel makers are hoping that upgrading the display resolution of their product lines will spur more demand growth. Full high-definition (FHD) panels will comprise 20 percent of the notebook market in the first quarter (Q1) of 2016, growing to 30 percent in Q3 2016.

“Panel makers for notebook PC brands remain conservative in their 2016 outlook, and they are looking for economical ways to increase sales and reduce backlogged inventory,” said Linda Lin, senior analyst of display research for IHS Technology. “After panel prices crashed to the break-even point in the fourth quarter of 2015, lowering prices to increase panel demand is no longer an option, so upgrading features is the only option left.”

According to the IHS Large Area Display Market Tracker, resolution upgrades are simple for consumers to recognize. Also, lower panel prices now mean the upgrades can be made more easily and affordably, for notebook PCs. In fact, the panel cost gap between high-definition (HD) displays and FHD displays narrowed to just $10 dollars in 2015. “Increasing resolutions above the FHD level is the next trend to watch for in notebook display products,” Lin said.

Samsung Display and LG Display are both leaders in promoting FHD resolution notebook displays with in-plane switch (IPS), wide-view angle and low-color shift technology. “These two leading South Korean panel makers are promoting their FHD IPS displays, targeting the high-end notebook PC segment, so that they can more efficiently manage the panel price gap between FHD IPS and general specification panels,” Lin said.

By Heidi Hoffman, FlexTech Alliance, a SEMI Strategic Alliance Partner

Flexible and printed electronics applications are becoming real. Forecasters are predicting a nearly $30 billion market for internet-connected devices in a combined industry and consumer sector.  Of those, healthcare is the strongest flexible, hybrid electronics (FHE) segment, where performance is of the highest value and reliability is life-and-death critical.  The savings to be realized from these devices and more successful self-treatment will potentially in part make up for the shortages in doctors, nurses and care-givers as people live much longer lives and encounter more health problems than before.

Demand is high for increasing the manufacturability of all of these products — lowering the per unit price and increasing value to the customer– and is the reason the U.S. Government is putting its muscle (and funds) into advanced manufacturing of FHE with NextFlex – America’s Flexible Hybrid Electronics Manufacturing Institute.

NextFlex was announced last August, and has since released its first project call asking for proposals on advanced manufacturing methodologies for health monitoring and structural health monitoring.  The products will incorporate a hybrid approach where commercial-off-the-shelf signal processing electronics are integrated onto the flexible substrate that allows for the fabrication of fully functional, mechanically flexible, sensor systems. The intelligence on small, flexible silicon can be incorporated onto flexible substrates for more conformable electronics and eliminate big, bulky, boxy electronics that are far from comfortably worn.

Over 70 organizations submitted pre-proposals to NextFlex with a wide range of projects designed to advance FHE manufacturing know-how.  Much of the work in sight will be presented at the NextFlex/FlexTech/SEMI event ─ 2016FLEX ─ designed to survey recent developments in printed electronics and hear how FHE is developing cost effective solutions for manufacturing advanced products and systems. Specific development programs will be discussed on how and when FHE can and should be used in a variety of commercial and military applications.  The 2016 FLEX technical conference will also feature presentations on the current state of FHE from a manufacturing perspective, including methods for integrating electronics with sensors onto flexible substrates.

Read more about 2016FLEX at www.2016FLEX.com.  The event brings together 600+ of the industry’s technology leaders to present and explore the latest products, processes, materials and equipment in the flexible and printed electronics ecosystem.

SEMICON Japan 2015, an exhibition in Asia for semiconductor manufacturing and related processing technology, opens tomorrow at Tokyo Big Sight. The exposition and conference offers the latest in technology and innovations for the microelectronics industry, including emerging opportunities in the new World of IoT (Internet of Things). SEMICON Japan (December 16-18) registration is now open for both the exhibition and conference programs.

Japan is uniquely positioned to support the IoT revolution with its large 200mm fab capacity, diverse product mix and leadership in markets such as MCUs, automotive, power devices, sensors and LEDs. SEMICON Japan 2015 connects the players and companies enabling the world of IoT by facilitating communications and partnerships across the microelectronics industry.

Highlights at SEMICON Japan include:

  • The SuperTHEATER at Tokyo Big Sight will offer the Opening Ceremony at 9:40 a.m. Wednesday, and nine forums in three days featuring speakers from: Amazon, Cisco Systems, Fujitsu, Google,Hitachi, IBM, Intel, KLA-Tencor, Micron Technology, Microsoft, Nissan Motors, Rakuten, Renesas Electronics, Sony, Tata Consultancy Services, Toshiba, TSMC, and more.
  • Held in conjunction with SEMICON Japan, WORLD OF IOT, a “show-within-a-show”, offers a platform where semiconductor manufacturing technology intersects with IoT applications. The 65 exhibitors include Amazon Web Services, Dassault Systems, Fujitsu, Hitachi, IBM Research-Tokyo, Intel, Siemens, Tesla Motors, Toshiba Healthcare, Toyota Motors, and more.
  • Two theme pavilions – Sustainable Manufacturing Pavilion, providing solutions focused on sustainability for 200mm technologies, and Manufacturing Innovation Pavilion, showcasing innovations for developing higher performing, faster and lower-cost semiconductor devices – are adjacent in East Hall 1.
  • Showcasing startup pitch presentations and exhibits from early-stage companies, the INNOVATION VILLAGE connects 13 emerging companies with investors and prospective technology partners.

Osamu Nakamura, president of SEMI Japan, said “With the building momentum from the IoT revolution, the Japan semiconductor industry is poised to take advantage of growth within the Japan supply chain. I welcome all of you from the global semiconductor industry to learn about the innovations that will support this growth as you visit the exhibition and participate in the conferences at SEMICON Japan.”

For more information on SEMICON Japan, visit www.semiconjapan.org/en/.

NXP Semiconductors N.V. and Freescale Semiconductor, Ltd. announced the completion of the merger pursuant to the terms of the previously announced merger agreement from March 2015. The merger has created a high performance mixed signal semiconductor industry leader, with combined revenue of over $10 billion. The merged entity will continue operations as NXP Semiconductors N.V. and has become the market leader in automotive semiconductor solutions and in general purpose microcontroller (MCU) products.

“Through this merger we have created an industry powerhouse focused on the high growth opportunities in the Smarter World, capitalizing on the emerging opportunities offered by the accelerating demand for connectivity, processing and security. Today’s formation of the new NXP is a transformative step on our journey to become the industry leader in high performance mixed signal solutions,” said Rick Clemmer, NXP Chief Executive Officer. “This merger enables us to deliver more complete solutions to our customers as we are emerging as the leader in the Secure Connections – and the supporting infrastructure – for the Smarter World domain. As a result, we reiterate today that we fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, allowing us to continue creating significant value for NXP’s shareholders.”

As previously announced, the transaction is expected to be accretive to NXP non-GAAP earnings in 2016, and NXP anticipates achieving cost savings of $200 million in 2016 with a clear path to $500 million of annual cost synergies.

NXP also today announced the closing of the divestiture of its RF Power business to Jianguang Asset Management Co. Ltd (“JAC Capital”), after receiving official confirmation that JAC Capital has deposited the required funds at its bank in China to pay the purchase price. The cash proceeds for the sale will be received later this month following the required regulatory filings for cross-border transfers of funds from China. NXP has obtained bridge financing until the funds are received.

Related news: 

NXP-Freescale merger to result in world’s eighth largest chip maker

Freescale and NXP agree to $40 Billion merger

Historic era of consolidation for chip makers