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The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that the global semiconductor industry posted record sales totaling $335.8 billion in 2014, an increase of 9.9 percent from the 2013 total of $305.6 billion. Global sales for the month of December 2014 reached $29.1 billion, marking the strongest December on record, while December 2014 sales in the Americas increased 16 percent compared to December 2013. Fourth quarter global sales of $87.4 billion were 9.3 percent higher than the total of $79.9 billion from the fourth quarter of 2013. Total sales for the year exceeded projections from the World Semiconductor Trade Statistics (WSTS) organization’s industry forecast. All monthly sales numbers are compiled by WSTS and represent a three-month moving average.

“The global semiconductor industry posted its highest-ever sales in 2014, topping $335 billion for the first time thanks to broad and sustained growth across nearly all regions and product categories,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The industry now has achieved record sales in two consecutive years and is well-positioned for continued growth in 2015 and beyond.”

Several semiconductor product segments stood out in 2014. Logic was the largest semiconductor category by sales, reaching $91.6 billion in 2014, a 6.6 percent increase compared to 2013. Memory ($79.2 billion) and micro-ICs ($62.1 billion) – a category that includes microprocessors – rounded out the top three segments in terms of sales revenue. Memory was the fastest growing segment, increasing 18.2 percent in 2014. Within memory, DRAM performed particularly well, increasing by 34.7 percent year-over-year. Other fast-growing product segments included power transistors, which reached $11.9 billion in sales for a 16.1 percent annual increase, discretes ($20.2 billion/10.8 percent increase), and analog ($44.4 billion/10.6 percent increase).

Annual sales increased in all four regional markets for the first time since 2010. The Americas market showed particular strength, with sales increasing by 12.7 percent in 2014. Sales were also up in Asia Pacific (11.4 percent), Europe (7.4 percent), and Japan (0.1 percent), marking the first time annual sales in Japan increased since 2010.

“The U.S. market demonstrated particular strength in 2014, posting double-digit growth to lead all regions,” continued Neuffer. “With the new Congress now underway, we urge policymakers to help foster continued growth by enacting policies that promote U.S. innovation and global competitiveness.”

December 2014
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 6.53 6.73 3.1%
Europe 3.19 3.01 -5.8%
Japan 2.93 2.80 -4.6%
Asia Pacific 17.12 16.59 -3.1%
Total 29.77 29.13 -2.2%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.80 6.73 16.0%
Europe 2.96 3.01 1.6%
Japan 2.93 2.80 -4.4%
Asia Pacific 14.96 16.59 10.9%
Total 26.65 29.13 9.3%
Three-Month-Moving Average Sales
Market Jun/Jul/Aug Sep/Oct/Nov % Change
Americas 6.06 6.73 11.1%
Europe 3.21 3.01 -6.4%
Japan 3.03 2.80 -7.7%
Asia Pacific 16.93 16.59 -2.0%
Total 29.23 29.13 -0.4%

Gov. Charlie Baker today announced a $4 million dollar grant from the Massachusetts Technology Collaborative (“MassTech”) to UMass Lowell to support development of a printed and flexible electronics industry cluster, an emerging field that has the potential to become a $76 billion global market in the next decade.

The new Printed Electronics Research Collaborative (PERC) at UMass Lowell intends to position Massachusetts employers, large and small, to capitalize on the burgeoning printed and flexible electronics field, whether through direct development of products or as a piece of the supply chain. The PERC will initially focus on supporting the state’s defense cluster in printed electronics, but long-term, these technologies are expected to also have a broad range of applications in fields including health care, telecommunications and renewable energy. Printable electronics is currently a $16 billion global market and is projected to quadruple in 10 years, according to a 2014 report by IDTechEx.

“It is a privilege to announce today’s grant as another positive step forward for UMass Lowell, students and businesses across the Commonwealth. We have already seen great success stem from this partnership to fund research, support education and make new strides in innovation,” said Gov. Baker. “By connecting the incredible resources in our universities with the business community, the Commonwealth will continue to stimulate economic growth and create more good-paying jobs.”

The four-year grant award will be matched by $12 million in industry support and is being made as part of the Collaborative Research and Development Matching Grant Program, a $50 million dollar capital fund formed to support large-scale, long-term research projects that have high potential to spur innovation, cluster development and job growth in the Commonwealth. The fund was created as part of the 2012 Jobs Bill and is managed by the Innovation Institute at MassTech. Proposals are reviewed by an Investment Advisory Committee composed of executives from academia, industry, and the venture capital communities.

UMass Lowell Chancellor Marty Meehan and MassTech CEO Pamela Goldberg joined Gov. Baker at UMass Lowell’s Mark and Elisia Saab Emerging Technologies and Innovation Center, an 84,000-square-foot, state-of-the-art research facility where PERC will connect businesses with the expertise of UMass Lowell researchers. The MassTech grant will outfit laboratories and other research space at the Saab Center, also home to the Raytheon-UMass Lowell Research Institute, which will be among the participants in PERC. Other companies that have signed on include MicroChem of Westborough, Rogers Corp. of Burlington, SI2 Technologies of Billerica and Triton Systems of Chelmsford and more are expected, according to UMass Lowell Vice Provost for Research Julie Chen.

“Our mission is to convene industry, academia and government to catalyze economic opportunity in regions and clusters around the Commonwealth,” said Pamela Goldberg, CEO of the Massachusetts Technology Collaborative. “This project hits the mark on several fronts, including the potential to drive the development of innovative products and business growth. We are excited to partner with UMass Lowell and regional industry partners like Raytheon to expand R&D capacity and help advance this exciting new industry cluster.”

“UMass Lowell has decades of experience in partnering with businesses, large and small, to advance technologies and economic development. Not only does bringing our researchers together with innovators in industry stimulate economic growth, it offers our students unparalleled opportunities for experiential education,” Meehan told attendees, including representatives of the business and technology communities, UMass Lowell and the Lowell legislative delegation. “We are grateful to the Commonwealth for its investment in what we believe will be a model for academic and industry collaboration.”

Highlighting the importance of both public and private investment in the University of Massachusetts, today’s event also included the announcement by UMass Lowell that two of its most successful and generous alumni are making another multimillion-dollar gift to the campus and students, bringing their total commitment to the campus to nearly $10 million.

Robert and Donna Manning, Methuen natives who earned degrees at UMass Lowell, will commit an additional $4 million to the university to be used specifically for strategic initiatives in UMass Lowell’s Robert J. Manning School of Business and the School of Nursing.

The gift, combined with the MassTech grant, will strengthen the university’s North Campus Innovation District, located on University Avenue in Lowell. Made up of the Saab Center, the Manning School, the Lydon Library and nearby academic and laboratory complex, the district brings together the expertise of UMass Lowell’s engineering, science and business programs to provide ease of access for students, entrepreneurs and industry partners.

The business school was named for Rob Manning in May 2011 in recognition of the couple’s earlier multimillion-dollar commitment to the university. Since the Mannings graduated from UMass Lowell in the 1980s, they have supported capital and other initiatives at the university, including establishing the Robert and Donna Manning Endowment Fund, which supports scholarships for students majoring in nursing and business. Rob Manning began his career at MFS Investment Management shortly after receiving his UMass Lowell degree in business administration. He worked his way up from research analyst to chairman, a role he has held since 2010, overseeing billions of dollars in assets and employees in 80 countries around the world.  Donna Manning – whose career as an oncology nurse at a Boston hospital spans three decades – earned degrees in nursing and business administration at UMass Lowell.

“Donna and I received a world-class education at UMass Lowell that allowed us to become successful in our careers and our passion is to give back to future generations so they can fulfill their hopes and dreams,” said Rob Manning.

The latest commitment to UMass Lowell by the Mannings will support strategic priorities in the university’s School of Nursing and the Manning School of Business. Those include providing resources for the new dean of the business school as its new home, the Pulichino Tong Business Building, is constructed and outfitted, as well as equipping the new nursing simulation laboratory in the Health and Social Sciences Building.

“Once again, UMass Lowell is grateful to Rob and Donna Manning for their generosity and their support for the future of business and nursing education on our campus. They understand firsthand how a UMass Lowell education positions students for success after graduation and thanks to their gift, our students will be even more prepared they enter the job market,” said Meehan.

Critical Manufacturing, a supplier of integrated manufacturing execution systems (MES), introduces cmNavigo 4.0, the industry’s first comprehensive MES software with embedded finite scheduling. By tightly unifying scheduling into critical MES functions in a modern, Microsoft-based operations management system, cmNavigo 4.0 software improves on-time delivery, shortens total cycle time, and makes better use of plant resources.

“As margins in global high-technology manufacturing shrink, many manufacturers are finding that their legacy MES systems don’t have the flexibility and functionality to meet the demands of today’s volatile markets. The new scheduling, quality control, warehouse management, and shift handoff capabilities we are announcing today reflect our commitment to provide the most modern and unified MES solution available,” said Francisco Almada-Lobo, CEO, Critical Manufacturing. “This new functionality will help manufacturers improve cost control, better manage inventory, and boost productivity of advanced, discrete production operations.”

New Scheduling Functionality Optimizes Production to Meet Customer Demand

cmNavigo 4.0 scheduling models plant floor resources and defines the role of each in fulfilling a mix of orders in an optimal near-term time frame, driven by customer demand. Schedules can be weighted around multiple production criteria and key performance indicators, such as minimizing delivery delays, maximizing machine loads, and reducing cycle times.

Built on Microsoft application development layers, the new scheduling application integrates with more than 30 extensible MES applications. These provide visibility and traceability, operational efficiency, quality management, factory integration, operations intelligence, and factory management.  The modern architecture empowers operations managers to configure and extend models and define workflows without the need for programming.

Integrating scheduling and other MES functionality so tightly avoids duplication of master data, allows real-time updates across different areas of the plant floor, and eliminates the need to maintain separate interfaces. Other new cmNavigo integrated applications announced today deliver the following capabilities:

  • Lot-based sampling enables automated calendar or time-based sampling of production.
  • Document management provides visualization, control, and approval of shop-floor, operations-related documents.
  • Warehouse management synchronizes exchange of information and material between the warehouse and the plant floor.
  • Durables-tracking  simplifies tracking of durable components such as boards, fixtures, tooling and masks, supporting recipe management, maintenance, exception handling, and data collection.
  • shift logbook enhances both performance and safety by regulating exchange of critical information between shifts.

The new scheduling, sampling, factory management, tracking and logbook features of the software combine to address a wide range of MES needs in semiconductor manufacturingelectronics manufacturing, and medical device manufacturing and other manufacturing industries that might have both high mix and high volume lines. cmNavigo 4.0 software is available now for implementation throughout the world. Critical Manufacturing delivers its solutions through highly acclaimed service teams, skilled in extracting maximum value from complex operations. Expertise covers advanced information technology, business intelligence, migration from legacy MES systems, and greenfield installations.

There will also be a free webcast featuring a case history of an IC substrate manufacturer who is now implementing the new software. The webcast will take place on February 19th at 4:00 GMT (11:00 AM EST).  Register at http://www.criticalmanufacturing.com/en/webinar_201502 or at www.criticalmanufacturing.com.

By Dr. Adam He, director of Industry Research and Consulting, SEMI China

In June 2014, the State Council of China issued the “National Guideline for the Development and Promotion of the IC Industry,” to support the domestic semiconductor industry. The document addresses development targets, approaches, and measures. It has echoed strongly across the semiconductor industry and attracted global attention due to the ambitious development targets and sizeable support for a national IC industry investment fund.

What’s new?

(1) The Ambitious Development Target

According to the Guideline, the China IC industry revenue should reach RMB350 billion in 2015, and maintain a CAGR of more than 20 percent through 2020. In other words, 2020 revenues are expected to reach US$143 billion, which is 3.5 times that of the US$40.5 billion in 2013. (Note: China IC Industrial revenue refers to the total IC companies’ sales revenue within China, including IC design companies, foundries, IDMs and OSAT companies.)

SEMI--Adam He--for China article

 

Technical and product targets in each segment of the IC industry are clearly defined in the Guideline. The major targets of each segment are listed below.

  • IC manufacturing: mass production for 32/38 nm process shall be realized by 2015 and 16/14 nm process shall be realized by 2020.
  • IC design: certain key technologies (e.g. mobile smart terminal, network communication) shall approach international first-tier level by 2015, and other strategic technologies shall achieve international leading edge by 2020.
  • IC packaging and test: revenue from mid-end to high-end technologies shall be more than 30% of total revenue by 2015, and key technologies shall achieve international leading edge by 2020.
  • Material: 12-inch silicon wafers produced in China shall be ready for use in device production by 2015, and enter global supply chain by 2020.
  • Equipment: 65-45nm key equipment manufactured in China shall be used into production line by 2015, and enter global supply chain by 2020.

(2) National IC Industry Investment Fund Establishment

The manner of industry support has markedly changed from previous policies. The new policy will be adopted with a market-based approach and implemented through national IC industry investment funds to support industry development.

As of December 16, 2014, the latest information indicates that ordinary share-raising for a national IC industry investment fund has been completed and RMB 98.72 billion (US$ 15.9 billion) has been raised. Preferred shares amounting to RMB 40 billion (US$ 6.5 billion) will be further issued in the first quarter of 2015, accumulating to more than RMB130 billion (US$ 21 billion).

Meanwhile, local IC industry investment funds have been established by the cities of Beijing, Shanghai, Wuhan, and Hefei. Of these, Beijing took the lead in establishing a fund in June 2014, totaling RMB 30 billion (US$ 4.8 billion). It is structured as a “fund of funds” and two sub-funds. One sub-fund, supporting for IC manufacturing and semiconductor equipment, is managed by CGP Investment (the “fund of funds” is also managed by CGP); the other sub-fund, supporting IC design and packaging, is managed by Hua Capital.  In addition, the Shanghai IC industry fund, named Shanghai Summitview Capital IC information industry merger fund, totaling RMB10 billion (US$ 1.6 billion) was established in November 2014.

The total government funds are estimated to reach to US$100 billion with the implementation of local industry funds.

What will happen?

It is anticipated that the new policies will exert a significant influence on the semiconductor ecosystem in China.

China’s semiconductor industry will be dramatically expanded given the scale of industry equity funds that are leveraged by government investments. The existing semiconductor industry in China is estimated to have more than 10 percent of global fab capacity and more than 20 percent of global packaging capacity. The new investments will contribute to a powerful expansion in China-based capacity and create a stronger and more globally prominent semiconductor industry in China.

Secondly, the investment and merger activity in the semiconductor industry in China has been very dynamic and will continue to be so with the new investment funds. These newly established national and local IC industry investment funds will not only directly focus on the Fab and IC design companies, but also stimulate the IC industry merger and acquisition activity in and outside of China. For example, shortly after its establishment, Hua Capital (the investment company of IC design and packaging sub-fund of Beijing IC industry fund) proposed to buy Omnivision with Shanghai Pudong Science and Technology Investment Co. Ltd.

In addition, the new policies will also promote marketization development and global cooperation beyond previously implemented investment activities. In the 1990s, the Chinese government established two semiconductor production lines directly through National Engineering Project 908 and 909. In the beginning of the 21st century, SMIC was co-established by state-owned enterprises and an entrepreneurial team. Now, relying on the new capital, the Chinese government is going to support the industry development through equity funds, which is in line with the marketization reform philosophy of the new government and places investors and entrepreneurs at center stage in implementing industry growth. Experienced investors and entrepreneurs with international vision will lead China’s semiconductor industry to a broader global cooperation.

How should international companies respond?

China IC industry investment funds will likely drive market share gains for China players and also more buyout offers from China. Therefore, it is increasingly critical for international companies to consider their strategy and cooperation objectives with China’s semiconductor industry in the light of a huge application market and a dynamic industry ecosystem.

The first step is to better understand China. Companies need to recognize that China is not only the largest semiconductor market — and not just a manufacturing base with a cost advantage. The most important point is that China’s economy and semiconductor industry is changing dramatically, and this will affect the global semiconductor industry ecosystem. Second, China is a diversified economic body, with the developed metropolitan areas such as Shanghai, Beijing and Shenzhen, and the to-be-developed middle and west regions.  Each of these regions will offer specific opportunities for companies in the semiconductor supply chain.

To participate in China’s industry ecosystem, it is essential to establish connections with the stakeholders in China, such as government, customers, suppliers, and even competitors, and to seek opportunities in cooperation and development through mutual understanding and engagement.

During SEMICON China 2015 (March 17-19), SEMI China will host the Tech Investment Forum-China 2015 on March 18. The Tech Investment Forum has already become an important platform between investment and pan-semiconductor industry in China. This year, Mr. Wenwu Ding, the CEO of China National IC Investment Fund will give a keynote speech. There will also be a session where startup companies can pitch to venture investors for project funding.

SEMI China’s Industry Research and Consulting team provides market research, supply chain surveys, investment site evaluations, and partner matching services (visit www.semi.org.cn/marketinfor/exclusive.aspx) or visit the SEMI Industry Research and Statistics website at www.semi.org/en/MarketInfo.

The SEMI Industry Strategy Symposium (ISS) opened yesterday with the theme “Riding the Wave of Silicon Magic.” The sold-out conference of the industry’s C-level executives highlighted favorable forecasts in the year’s first strategic outlook for the global microelectronics manufacturing industry.  The underlying drivers for growth and the next wave emerging from the Internet of Things (IoT) were discussed from several perspectives.

Opening keynoter Scott McGregor, president and CEO of Broadcom, traced the history of the industry’s more than 50 years of exponential improvements in silicon speed, power and design since Moore’s Law in 1965.  McGregor sees the next wave of Silicon Magic as a $15 trillion opportunity that will provide ubiquitous, nonstop, seamless high-speed connectivity.  Still, McGregor believes that three key issues challenge the industry’s growth.   First, patent reform, as patents are the foundation of the innovation economy and the global patent system does not meet today’s industry realities. Second, interoperability and standards, as IoT is raising the stakes for data privacy and security.  Finally, STEM education, as in the future, all businesses will be tech businesses.

In the Economic Trends session, presenters took on both macroeconomic and detailed industy-specific forecasts:

  • Nariman Behravesh, senior economist at IHS, presented the macroeconomic view of 2015 and the global implications brought on by the sharp drop in oil prices.  IHS predicted that the U.S. will grow in the 2.5-3.0 percent range in 2015 while other regions will be mixed: the European recovery will be slow, Japan’s economy will regain weak momentum, and China growth will continue to slow, but remain stronger than most. 
  • Mario Morales, VP at IDC, presented the 2015 semiconductor outlook. IDC saw the semiconductor market grow 7 percent in 2014 and projects 3.8 percent growth in 2015. Market growth will be led largely by automotive and industrial segments. 
  • Andrea Lati, principle analyst for VLSI Research, presented the 2015 semiconductor equipment outlook.  VLSI saw semiconductor equipment sales coming in at 17 percent growth in 2014 and forecasts 8 percent growth in 2015. VLSI noted the top 7 chipmakers accounted for 71 percent of spending in 2014 (vs. 56 percent in 2010). VLSI sees the consolidation driving an industry that has smaller cyclic peaks and is settling into a moderated two-year cycle cadence with fewer players having less incentive to individually make a market share grab.” 

Several presenters discussed the Internet of Things (IoT) and offered that the IoT provides an unprecedented growth opportunity — and understanding just what IoT is, at this stage, a challenge.  The lively session featured Frank Jones, VP and GM at Intel, David Ashley, VP of Customer Value Chain Management at Cisco Systems, Shawn DuBravac, chief economist and director of research at the Consumer Electronics Association (CEA), and Martin Reynolds, managing VP and fellow at Gartner.

Among the insights in the IoT session, Jones stressed that with all the IoT hype, it’s critical to demonstrate business value. Working with partners, he cited emerging IoT examples such as: saving 43 percent in time with an integrated “Smart Parking Solution” and improvements to Intel’s own factories with fab personnel defining a process step predictive maintenance tool (sensors and analytics) that saved $9 million per year.  Ashley made the point that with $19 trillion for the IoE at stake, the supply chain, including economic trends (labor wage inflation, government policy, shrinking life cycles) and ecosystem (supplier consolidation, visibility, consumer-driven technology) need to be addressed.  DuBravac focused on how everyday objects are becoming smarter and more connected and said that the key to technology should be what is meaningful as opposed to what is possible.

Days 2 and 3 at ISS will delve deeper into the underpinnings of the industry.  Technology and manufacturing insights will be discussed with presentations from:  TSMC, Altera, XMC, Intel, Honeywell, Micron, imec, ASE, IBM, Lux Research, Illumina, Cypress, Boing, and McKinsey.  A “Silicon Magic” panel will wrap up the conference with Intel, Lam Research, JSR, TSMC, and Qualcomm. The SEMI Industry Strategy Symposium (ISS) examines global economic, technology, market, business and geo-political developments influencing the semiconductor industry.

The Internet of Everything, cloud computing/big data and 3-D printing are the three technologies most likely to transform the world during the next five years, according to IHS Technology.

“We know that technology has the capability to change the world: from the Gutenberg printing press to the steam engine to the microchip,” said Ian Weightman, vice president, research & operations, IHS Technology. “But how can we determine which technologies are likely to have the greatest potential to transform the future of the human race? What is the process to distinguish among the innovations that will have limited impact and those that will be remembered as milestones on the path of progress? How can you tell the difference between the VHS and Betamax of tomorrow’s technologies?”

“To answer these questions, IHS Technology gathered its leading experts representing the technology supply chain from electronic components to finished products across applications markets ranging from consumer, media, and telecom; to industrial, medical, and power. These experts were asked to nominate and vote for their top 10 most impactful technologies over the next five years.”

The top three technologies were: 3-D printing in third place; cloud computing/big data at No. 2; and the Internet of Everything coming out on top.

Manufacturing moves to next dimension with 3-D printing

Also called additive manufacturing, 3-D printing encourages design innovation by facilitating the creation of new structures and shapes, and allows limitless product complexity without additional production costs. It also greatly speeds up time to market by making the idea-to-prototype cycle much shorter.

Total revenue for the 3-D printing industry is forecast to grow by nearly 40 percent annually through 2020, when the aggregated market size is expected to exceed $35.0 billion, up from $5.6 billion in 2014.

Cloud computing/big data brings metamorphosis to computing and consumer markets

The cloud has become a ubiquitous description for on-demand provisioning of data, storage, computing power and services that are touching nearly every consumer and enterprise across the globe. Together with data analytics and mobile broadband, the cloud and big data are poised to reshape almost every facet of the consumer digital lifestyle experience and dramatically impact enterprise information technology (IT) strategies, while creating new opportunities and challenges for the various nodes in the entire information, communications and technology (ICT) value chain.

The cloud is transformational in the business landscape, changing the way enterprises interact with their suppliers, customers and developers.

The big data and data analytics segment is a separate but related transformational technology that harnesses the power of the cloud to analyze data for disparate sources to uncover hidden patterns, enable predictive analysis and achieve huge efficiencies in performance.

IHS forecasts that global enterprise IT spending on cloud-based architectures will double to approximately $230 billion in 2017, up from about $115 billion in 2012.

The Internet of Things becomes the Internet of Everything

The world is in the early stages of the Internet of Things (IoT)—a technological evolution that is based on the way that Internet-connected devices can be used to enhance communication, automate complex industrial processes and generate a wealth of information. To provide some context on the magnitude of this evolution, more than 80 billion Internet-connected devices are projected to be in use in 2024, up from less than 20 billion in 2014, as presented in the attached figure.

While the IoT concept is still relatively new, it is already transforming into a broader model: the Internet of Everything (IoE). The metamorphosis covers not just the number of devices but envisages a complete departure from the way these devices have used the Internet in the past.

Most of the connected devices in place today largely require direct human interaction and are used for the consumption of content and entertainment. The majority of the more than 80 billion future connections will be employed to monitor and control systems, machines and objects—including lights, thermostats, window locks and under-the-hood automotive electronics.

Other transformative technologies identified by IHS Technology analysts were:

  • Artificial intelligence
  • Biometrics
  • Flexible displays
  • Sensors
  • Advanced user interfaces
  • Graphene
  • Energy storage and advanced battery technologies

2015-01-12_Connectable_Devices

With new cost-sensitive semiconductor devices driving capacity demand, 200mm wafer size and currently existing (legacy) fabs are seeing a renaissance,  SEMI completed a thorough study of the secondary fab equipment market to identify the market size and to capture key trends and issues impacting this industry segment. SEMI interviewed and surveyed integrated device makers (IDMs) and foundries. Companies were asked to provide information pertaining to the acquisition of previously installed tools for 150mm, 200mm, and 300mm manufacturing. The SEMI Secondary Fab Equipment Report is new, unique coverage for the industry. The report contains 26 pages and 29 figures and charts. The target audience is expected to be companies serving the secondary fab equipment supply chain, IDMs and foundries, and other industry analysts who need data to benchmark and analyze this market.

The semiconductor industry is maturing where annual double-digit fab capacity additions are less frequent, and the industry is spending in the range of $30 billion per year in new fab equipment. Investment in “legacy” fabs is important in manufacturing semiconductor products, including the emerging Internet of Things (IoT) class of devices and sensors, and remains a sizeable portion of the industries manufacturing base:

  • 150mm and 200mm fab capacity represent approximately 40 percent of the total installed fab capacity
  • 200mm fab capacity is on the rise, led by foundries that are increasing 200mm capacity by about 7 percent through to 2016 compared to 2012 levels
  • New applications related to mobility, sensing, and IoT are expected to provide opportunities for manufacturers with 200mm fabs

Out of the total US$ 27 billion spent in 2013 on fab equipment and US$ 31 billion spent on fab equipment  in 2014, secondary fab equipment represents approximately 5 percent of the total, or US$ 1.5 billion, annually. For 2014, 200mm fab investments by leading foundries and IDMs resulted in a 45 percent increase in spending for secondary 200mm equipment. Foundries are estimated to represent half of the 200mm equipment spending in 2014.

In developing the report, SEMI interviewed and surveyed IDMs and foundries. Direct spending input was obtained from 28 companies, and estimates were made for another 12 companies based on known capex plans, quarterly financial statements and transcripts, and capacity investment trends tracked by the SEMI World Fab Forecast database. The focus of the new report is on secondary fab equipment spending; secondary test equipment and assembly and packaging equipment were not included in this study. To order the report, visit www.semi.org/en/node/53676. For information on all SEMI Market research reports, visit www.semi.org/en/MarketInfo. For information on SEMI, visit www.semi.org

SEMI today announced a “Call for Papers” for SEMICON West, North America’s premier microelectronics event, to be held July 14-16 at the Moscone Center in San Francisco, Calif. The “Call for Papers” includes the Semiconductor Technology Symposium and the popular TechXPOT programs. Presentation abstracts are due March 20, 2015.

SEMICON West 2015 will be attended by nearly 27,000 semiconductor and related microelectronics industry professionals and feature more than 60 hours of technical sessions, led by the most informed and influential experts in the world. For 2015, SEMICON West will feature two “Generation Next” Pavilions — a new concept in topic-based engagement, which will connect exhibits, technical sessions, and networking events to current, critical industry topics, engaging exhibitors and visitors in an immersive exhibition experience.  In addition, the “standing-room only” success of the SEMICON West TechXPOT programs prompted the creation of the Semiconductor Technology Symposium (STS) at the 2014 event.

In 2015, the STS program continues with programs on leading-edge chip manufacturing held in a classroom setting with reserved seating adjacent to the show floor in the North Hall of Moscone Center. STS will offer technology trends, developments and new technology information in the areas of advanced materials and processing, lithography, metrology, 450mm, advanced packaging, and 3D-IC.  Test Vision 2020, the leading semiconductor test conference focusing on ATE and high-volume manufacturing, is part of the STS program in Moscone Center.

TechXPOT programs in the Moscone Center North and South Halls will continue focusing on special topics in semiconductor manufacturing, and adjacent and related microelectronics technologies.

For the Semiconductor Technology Symposium and for TechXPOT sessions, SEMI is soliciting technical presentations in the following areas:

  • Advanced lithography/Advanced films
  • Advanced materials and processes
  • Contamination control for advanced materials
  • New and advanced metrology solutions
  • Interconnect challenges at sub-10nm
  • Substrates: Materials research beyond Silicon
  • Other process implications for manufacturing next-generation transistors
  • Accelerating and improving yield
  • Silicon Photonics
  • Disruptive compound semiconductor technologies
  • Manufacturing advanced power semiconductors
  • Improving Yield on Non-Planar ICs
  • Failure analysis
  • Advanced packaging
  • Design for packaging
  • Semiconductor test
  • Design for test
  • Application Level Testing
  • Technologies for Emerging Markets & Applications
  • What’s next in MEMS?
  • How manufacturing of IoT devices will impact IC fabrication
  • How IoT and 3D printing will be used in IC manufacturing in the future
  • Printed and flexible electronics
  • Packaging of MEMS and Sensors
  • SiP for Power and RF
  • Heterogeneous Integration for SiP and Modules

“There are many exciting challenges facing the industry today,” said Karen Savala, President of SEMI Americas. “We are pleased that SEMICON West continues to serve as the premier forum where industry leaders share their insight on these issues.”

SEMICON West 2015 “Call for Participants”:  Prospective presenters are invited to submit abstracts (maximum 500 words) on key industry issues and topics in the areas listed above for consideration. Presentations should focus on the latest developments and innovations in these technology areas, inclusive of supporting data. Submissions may be made online from the “Call for Participants” website at: www.semiconwest.org/Participate/SPCFP. The deadline is March 20.

“Generation Next” Pavilions (Advanced Substrate Engineering; Packaging): These two new Generation Next Pavilions will be held in conjunction with technical sessions (STS and TechXPOTs) at SEMICON West — addressing critical issues, challenges, and opportunities. For more information about exhibiting opportunities within these new Pavilions, contact Nick Antonopoulos at [email protected] or +1.408.943.6986.

Silicon Innovation Forum (SIF) “Call for Startups”:  SEMI will host its 3rd Annual Silicon Innovation Forum at SEMICON West 2015 and is now accepting early applications to participate. The Silicon Innovation Forum (SIF) provides a stage for new and emerging innovators, industry leaders, strategic investors, and venture capitalists to discuss the needs and requirements of the industry’s innovation engine. Participants will gain insights into technology, capital, partnership, and collaboration strategies necessary for mutual success. For more information, please email Ray Morgan, director of Outreach at [email protected].  SIF application: 2015 SIF Showcase Request for Participation. The deadline is March 20.

About SEMICON West

SEMICON West is the flagship annual event for the global microelectronics industry, showcasing the people, products, and technologies driving the design and manufacture of advanced microelectronics. SEMICON West attracts the world’s leading technology companies serving the microelectronics supply chain and the largest audience of influential buyers, industry leaders, decision-makers, technologists, analysts, and media of any industry event in North America. SEMICON West 2015 is projected to bring together more than 27,000 international attendees, more than 700 global companies, and feature more than 60 hours of technical, business, and networking programs. For more information, visit www.semiconwest.org.

UCT announces new CEO


January 5, 2015

Ultra Clean Holdings, Inc. today announced that Mr. James Scholhamer has accepted an offer to become UCT’s Chief Executive Officer, effective Monday, January 19, 2015. Mr. Scholhamer will also join UCT’s Board of Directors effective as of his first day of employment.  UCT’s current Chairman and Chief Executive Officer, Clarence Granger, has decided to retire as an officer of the company, effective Monday, January 19th.  Mr. Granger will remain UCT’s non-executive Chairman of the Board of Directors.

Mr. Scholhamer has had an eight-year tenure at Applied Materials, Inc., and has most recently been Corporate Vice President and General Manager, leading the Equipment Products Group and Display Services Group of Applied Materials’ Global Service Division.  Prior to joining Applied Materials, Mr. Scholhamer was Chief Operating Officer, Chief Technology Officer and Executive Vice President of Applied Films Corporation, which was acquired by Applied Materials in 2006.  Mr. Scholhamer holds a bachelor degree in Materials Science and Engineering from the University of Michigan, Ann Arbor.

“After almost two decades with the company and twelve years as CEO, it is time for me to transfer the company’s helm to a new generation of leadership. I am very excited that we have found someone of Jim’s caliber to take on this role,” said Mr. Granger.  “I am confident that we are well positioned for the next phase of the company’s growth, and I look forward to supporting Jim and the company in my role as Chairman.”

“I am very excited to lead UCT as we write the next chapter of the company’s history,” said Scholhamer.  “I want to thank Clarence, the Board, the management team, and all the employees who have worked so hard and so long to nurture and grow a world class organization.  I’m looking forward to building on that foundation by working with the team to take advantage of our potential, create growth opportunities for those employees, and generate attractive returns for our shareholders.”

“Our Board of Directors is confident that Jim will make significant, long-term positive contributions to the Company,” said UCT Director David ibnAle, Chairman of the Nominating and Governance Committee. “We are extremely grateful for Clarence Granger’s contributions to UCT during his tenure as CEO.  Clarence has been the company’s only CEO during its twelve years as an independent company, and he has grown the company successfully across some very challenging cycles and market environments.”

Ultra Clean Holdings, Inc. is a developer and supplier of critical systems and subsystems for the semiconductor capital equipment, flat panel display, medical, energy and research industries.

North America-based manufacturers of semiconductor equipment posted $1.22 billion in orders worldwide in November 2014 (three-month average basis) and a book-to-bill ratio of 1.02, according to the November EMDS Book-to-Bill Report published today by SEMI.   A book-to-bill of 1.02 means that $102 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in November 2014 was $1.22 billion. The bookings figure is 10.4 percent higher than the final October 2014 level of $1.10 billion, and is 1.7 percent lower than the November 2013 order level of $1.24 billion.

The three-month average of worldwide billings in November 2014 was $1.19 billion. The billings figure is 0.5 percent higher than the final October 2014 level of $1.18 billion, and is 6.8 percent higher than the November 2013 billings level of $1.11 billion.

“”With the rise in bookings, the book-to-bill ratio climbed above parity in November,”” said SEMI president and CEO Denny McGuirk. “”2014 has been a solid growth year for the semiconductor equipment market, and we expect the foundry and memory sector to continue leading investments in 2015.””

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

June 2014 

$1,327.5

$1,455.0

1.10

July 2014 

$1,319.1

$1,417.1

1.07

August 2014 

$1,293.4

$1,346.1

1.04

September 2014 

$1,256.5

$1,186.2

0.94

October 2014 (final)

$1,184.2

$1,102.3

0.93

November 2014 (prelim)

$1,189.8

$1,217.1

1.02

Source: SEMI, December 2014