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SEMI recently completed its annual silicon shipment forecast for the semiconductor industry. This SEMI forecast provides an outlook for the demand in silicon units for the period 2017–2019. The SEMI forecast shows polished and epitaxial silicon shipments totaling 11,448 million square inches in 2017; 11,814 million square inches in 2018; and 12,235 million square inches in 2019 (refer to table below). Total wafer shipments this year are expected to exceed the market high set in 2016 and are forecast to continue shipping at record levels in 2018 and 2019.

“Silicon shipment volumes are expected to ship at historic highs for this year and into 2019,” said Dan Tracy, senior director of Industry Research & Statistics at SEMI. “The expectation is for steady annual growth due to the proliferation of connected devices required for automotive, medical, wearables, and high-performance computing applications.”

2017 Silicon Shipment Forecast
(Millions of Square Inches, MSI)

Actual
Forecast
2015
2016
2017
2018
2019
MSI
10,269
10,577
11,448
11,814
12,235
Annual Growth
4.5%
3.0%
8.2%
3.2%
3.6%

Total Electronic Grade Silicon Slices* – Does not Include Non-Polished Wafers
Source: SEMI (www.semi.org), October 2017
*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 shipped by the wafer manufacturers to the end-users. Data do not include non-polished or reclaimed wafers.

With the prospects of large 450mm wafers going nowhere, IC manufacturers are increasing efforts to maximize fabrication plants using 300mm and 200mm diameter silicon substrates. The number of 300mm wafer production-class fabs in operation worldwide is expected to increase each year between now and 2021 to reach 123 compared to 98 in 2016, according to the forecast in IC Insights’ Global Wafer Capacity 2017-2021 report.

As shown in Figure 1, 300mm wafers represented 63.6% of worldwide IC fab capacity at the end of 2016 and are projected to reach 71.2% by the end of 2021, which translates into a compound annual growth rate (CAGR) of 8.1% in terms of silicon area for processing by plant equipment in the five-year period.

capacity install

Figure 1

The report’s count of 98 production-class 300mm fabs in use worldwide at the end of 2016 excludes numerous R&D front-end lines and a few high-volume 300mm plants that make non-IC semiconductors (such as power transistors).  Currently, there are eight 300mm wafer fabs that have opened or are scheduled to open in 2017, which is the highest number in one year since 2014 when seven were added, says the Global Wafer Capacity report.  Another nine are scheduled to open in 2018.   Virtually all these new fabs will be for DRAM, flash memory, or foundry capacity, according to the report.

Even though 300mm wafers are now the majority wafer size in use, both in terms of total surface area and in actual quantity of wafers, there is still much life remaining in 200mm fabs, the capacity report concludes.  IC production capacity on 200mm wafers is expected to increase every year through 2021, growing at a CAGR of 1.1% in terms of total available silicon area. However, the share of the IC industry’s monthly wafer capacity represented by 200mm wafers is forecast to drop from 28.4% in 2016 to 22.8% in 2021.

IC Insights believes there is still much life left in 200mm fabs because not all semiconductor devices are able to take advantage of the cost savings 300mm wafers can provide.  Fabs running 200mm wafers will continue to be profitable for many more years for the fabrication of numerous types of ICs, such as specialty memories, display drivers, microcontrollers, and RF and analog products.  In addition, 200mm fabs are also used for manufacturing MEMS-based “non-IC” products such as accelerometers, pressure sensors, and actuators, including acoustic-wave RF filtering devices and micro-mirror chips for digital projectors and displays, as well as power discrete semiconductors and some high-brightness LEDs.

SEMICON Europa 2017 will take place in Munich for the first time, co-located with productronica (14-17 November in Munich, Germany). SEMICON Europa will showcase the critical issues shaping the entire electronics manufacturing supply chain. Fourexecutive keynotes will share their thought leadership on current opportunities for Europe: Maria Marced, president, TSMC Europe; Stefan Finkbeiner, CEO, Bosch Sensortec; and Frank M. Rinderknecht, founder and CEO of Rinspeed Inc.

“Innovations in semiconductor manufacturing are at the heart of the value chain driving innovations enabling key future growth drivers in Mobile, Automotive, Medical, passive and intelligent computing as well as AR and VR,” stated Laith Altimime, president, SEMI Europe. SEMICON Europa programs, sessions, and speakers will illuminate this year’s theme “Empowering Innovation and Shaping the Value Chain.”  Highlights of SEMICON Europa include:

  • Fab Management Forum: Quality Challenges – Solutions for Tomorrow ─ Topics include:Future of digital vehicles and requirements for quality and availability of semiconductors with Daimler AG, an analysis of Human failure and mindset change by European School of Management and Technology (ESMT) Berlin, and how innovative sensor and analytics solutions enable new applications in the fab of tomorrow by KINEXON GmbH.
  • Advanced Packaging Conference: Electronics Packaging and Test for Future Mobility ─With Yole Développement on the dynamics of the advanced packaging ecosystem, Robert Bosch GmbH on automotive, Infineon Technologies on packaging for automotive ─ challenges and solutions, RoodMicrotec GmbH on wafer and final test in the new era of electronics, and STMicroelectronics on packaging challenges for robust miniaturization.
  •  Power Electronics Conference: From Materials to Systems,The Latest Innovations ─Covering power electronics applications for Automotive by Fraunhofer Institute for Integrated Systems and Device Technology IISB, a forecast of the next five years to reveal how technology development will shape the power electronics market by Yole Développement, and  Cambridge University on Silicon and Wide bandgap devices in power electronics.
  • New! Materials Conference: Connected World ─ New Material Challenges and Solutions ─Includes a keynote by Christophe Maleville, SOITEC, on how to better optimize performance, power budget and cost to meet applications requirements; plus presentations from Volkswagen AG on the need for new industry alliances in automotive, FUJIFILM on maximum utilization of chemically amplified resist, and Dow Chemical on the information age and connectivity enabled by advanced electronic materials. The free Webinar “Connected World: New Material Challenges and Solutions – Market Update and Outlook“ is planned on 27 September.
  • New! European Connect2Car Forum ─ A new Forum in collaboration with SAE International. Insights for automotive OEM and supplier executives, consumer electronics leaders, mobile application developers, and aftermarket entrepreneurs focusing on enhancing the driver experience and accelerating the deployment of connected and autonomous vehicle technologies.
  • New! 2017FLEX Europe “Be Flexible” ─ New collaboration between FLEX and Fraunhofer EMFT. Insights on innovative solutions for flexible and stretchable systems by Würth Elektronik GmbH,  technology and applications of chip-film patch for hybrid systems in foil by IMS CHIPS, new capabilities and applications of flexible components by E Ink Corporation, and insight on how potentials of System-in-Package technologies will affect the future by Bosch.

SEMI and Messe München Joint Press Conference will take place on 14 November at 11:00-12:00, at Messe München Press Conference Center.

Intel Corporation today announced that Andrew Wilson, CEO of Electronic Arts Inc., has been elected to Intel’s board of directors. Wilson’s election brings Intel’s board membership to 12.

“Andrew understands first-hand how technology and data create opportunity with his transformation of EA from offline packaged goods to a leader in online digital services,” said Intel Chairman Andy Bryant. “In addition to his experience leading and growing a global, technology-driven company, Andrew possesses a combination of creativity and business acumen that will further strengthen Intel’s board.”

Wilson, 43, joined Electronic Arts (“EA”) in May 2000, and has served as the company’s chief executive officer and a director of EA since September 2013. During his tenure as CEO, EA has launched groundbreaking new games and services, reached record player engagement levels across its global franchises, and transformed into one of the world’s leading digital entertainment companies. Prior to his appointment as CEO, Wilson held several leadership positions at EA, including executive vice president of EA SPORTS. He also serves as chairman of the board for the World Surf League.

Despite a slightly down first quarter, the semiconductor industry achieved near record growth in the second quarter of 2017, posting a 6.1 percent growth from the previous quarter, according to IHS Markit (Nasdaq: INFO). Global revenue came in at $101.4 billion, up from $95.6 billion in the first quarter of 2017. This is the highest growth the industry has seen in the second quarter since 2014.

The memory chip market set records in the second quarter, growing 10.7 percent to a new high of $30.2 billion with DRAM and NOR flash memory leading the charge, growing 14 percent and 12.3 percent quarter-on-quarter, respectively.

“The DRAM market had another quarter of record revenues on the strength of higher prices and growth in shipments,” said Mike Howard, director for DRAM memory and storage at IHS Markit. “Anxiety about product availability in the previous third and fourth quarters weighed on the industry. This led many DRAM buyers to build inventory — putting additional pressure on the already tight market. This year is shaping up to smash all DRAM revenue records and will easily pass the $60 billion mark.”

“For NOR, the supply-demand balance has tightened raising average selling prices and revenue,” said Clifford Leimbach, senior analyst for memory and storage at IHS Markit. “This mature memory technology has been in a steady decline for many years, but some market suppliers are reducing supply or leaving the market, which has tightened supply recently, resulting in the increase of revenue.”

In terms of application, consumer electronics and data processing saw the most growth, increasing in revenue by 7.9 percent and 6.8 percent, respectively, quarter-on-quarter. A lot of this growth can be attributed to the continual growth in memory pricing, as supply still remains tight.

Industrial semiconductors showed the third highest growth rate at 6.4 percent during the same period. This growth can be attributable to multiple segments, such as commercial and military avionics, digital signage, network video surveillance, HVAC, smart meters, traction, PV inverters, LED lighting and medical electronics including cardiac equipment, hearing aids and imaging systems.

Another trend in the industrial market is increasing factory automation, which alone is driving growth for discrete power transistors, thyristors, rectifiers and power diodes. The market for these devices is expected to reach $8 billion in 2021, up from $5.7 billion in 2015.

Intel remains the number one semiconductor supplier in the world, followed by Samsung Electronics by a slight margin. IHS Markit does not include foundry operations and other non-semiconductor revenue in the semiconductor market rankings.

Among the top 20 semiconductor suppliers, Advanced Micro Devices (AMD) and nVidia achieved the highest revenue growth quarter over quarter by 24.7 percent and 14.6 percent, respectively. There was no market share movement in the top 10 semiconductor suppliers. However, seven of the 10 companies in the 11 to 20 market share slots did change market share.

top_5_semiconductor_companies

SEMI, the global industry association representing the electronics manufacturing supply chain, today reported that worldwide semiconductor manufacturing equipment billings reached US$14.1 billion for the second quarter of 2017.

Quarterly billings of US$14.1 billion represent an all-time historic record for quarterly billings, exceeding the record level set in the first quarter of this year. Billings for the most recent quarter are 8 percent higher than the first quarter of 2017 and 35 percent higher than the same quarter a year ago. Sequential regional growth was mixed for the most recent quarter with the strongest growth exhibited by Korea. Korea maintained the largest market for semiconductor equipment for the year, followed by Taiwan and China. The data are gathered jointly with the Semiconductor Equipment Association of Japan (SEAJ) from over 95 global equipment companies that provide data on a monthly basis.

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

2Q2017
1Q2017
2Q2016
2Q2017/1Q2017

(Qtr-over-Qtr)
2Q2017/2Q2016

(Year-over-Year)
Korea
4.79
3.53
1.53
36%
212%
Taiwan
2.76
3.48
2.73
-21%
1%
China
2.51
2.01
2.27
25%
11%
Japan
1.55
1.25
1.05
24%
47%
North America
1.23
1.27
1.20
-3%
3%
Europe
0.66
0.92
0.37
-29%
76%
Rest of World
0.62
0.63
1.31
-1%
-53%
Total
14.11
13.08
10.46
8%
35%

Source: SEMI (http://www.semi.org) and SEAJ (http://www.seaj.or.jp)

The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market.

The latest update to the World Fab Forecast report, published on September 5, 2017 by SEMI, again reveals record spending for fab equipment. Out of the 296 Front End facilities and lines tracked by SEMI, the report shows 30 facilities and lines with over $500 million in fab equipment spending.  2017 fab equipment spending (new and refurbished) is expected to increase by 37 percent, reaching a new annual spending record of about US$55 billion. The SEMI World Fab Forecast also forecasts that in 2018, fab equipment spending will increase even more, another 5 percent, for another record high of about $58 billion. The last record spending was in 2011 with about $40 billion. The spending in 2017 is now expected to top that by about $15 billion.

fab equipment spending

Figure 1: Fab equipment spending (new and refurbished) for Front End facilities

Examining 2017 spending by region, SEMI reports that the largest equipment spending region is Korea, which increases to about $19.5 billion in spending for 2017 from the $8.5 billion reported in 2016. This represents 130 percent growth year-over-year. In 2018, the World Fab Forecast report predicts that Korea will remain the largest spending region, while China will move up to second place with $12.5 billion (66 percent growth YoY) in equipment spending. Double-digit growth is also projected for Americas, Japan, and Europe/Mideast, while other regions growth is projected to remain below 10 percent.

The World Fab Forecast report estimates that Samsung is expected to more than double its fab equipment spending in 2017, to $16-$17 billion for Front End equipment, with another $15 billion in spending for 2018. Other memory companies are also forecast to make major spending increases, accounting for a total of $30 billion in memory-related spending for the year. Other market segments, such as Foundry ($17.8 billion), MPU ($3 billion), Logic ($1.8 billion), and Discrete with Power and LED ($1.8 billion), will also invest huge amounts on equipment. These same product segments also dominate spending into 2018.

In both 2017 and 2018, Samsung will drive the largest level in fab spending the industry has ever seen. While a single company can dominate spending trends, SEMI’s World Fab Forecast report also shows that a single region, China, can surge ahead and significantly impact spending. Worldwide, the World Fab Forecast tracks 62 active construction projects in 2017 and 42 projects for 2018, with many of these in China.

For insight into semiconductor manufacturing in 2017 and 2018 with more details about capex for construction projects, fab equipping, technology levels, and products, visit the SEMI Fab Database webpage (www.semi.org/en/MarketInfo/FabDatabase) and order the SEMI World Fab Forecast Report. The report, in Excel format, tracks spending and capacities for over 1,200 facilities including over 80 future facilities, across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities.

FlexTech, a SEMI strategic association partner, will host a one-day Flexible Hybrid Electronics and Sensors Automotive Industry workshop in Detroit, Michigan on September 13, 2017 to explore how FHE adds functionality, decreases weight and impacts design. Automotive and electronics industry leaders will gather to discuss the market demands and challenges with automotive technology and present disruptive changes brought by flexible hybrid electronics (FHE) and sensors.

The forum will breakdown the topic into four key areas: OEM applications; market analysis and forecasts; challenges to integration; and solutions for Tier 2 and Tier 3 suppliers. Speakers include representatives from SBD Automotive, Fiat-Chrysler Group LLC, Velodyne LiDAR, Lumitex, Alpha Micron, NextFlex, Auburn University, Universal Instruments, Interlink Electronics, Georgia Institute of Technology, DuPont Photovoltaics & Advanced Materials and more.

“This forum is an excellent opportunity to discover the possibilities of flexible electronic systems incorporating advanced semiconductors, MEMS, and sensors, which will provide lightweight, sensor networks that conform, curve, and possibly more.  New automotive applications in this area will enable wholly new approaches for the in-cabin driving experience,” said Dr. Melissa Grupen-Shemansky, CTO for Flexible Electronics & Advanced Packaging at SEMI | FlexTech.

Company tours to Ford and a networking dinner are scheduled for September 12, 2017. For more information on the forum and how to register visit the event websiteat www.semi/org/en/FHE-forum-summary.

Taiwan is the world’s largest consumer of semiconductor materials for the seventh consecutive year, bringing new opportunities in this increasingly critical sector.  SEMICON Taiwan (13-15 September), held at Taipei’s Nangang Exhibition Center, will feature over 1,700 booths and 700 exhibitors, and more than 45,000 attendees from the global electronics manufacturing supply chain. This year, in addition to the much-anticipated Executive Summit, themed “Transformation: A Key to Solution,” 27 international forums will be held, exploring major issues. Speakers from TSMC, UMC, Powerchip, NVIDIA, Micron and Amkor will share their insights on trends and strategies of the next-generation electronics industry.

According to the SEMI Material Market Data Report, Taiwan’s semiconductor materials consumption was US$9.8 billion in 2016 − the world’s largest. Global semiconductor manufacturing equipment billings reached US$13.1 billion in Q1 2017, exceeding the record quarterly high set in Q3 2000. These figures signal that application drivers will continue to drive the development of a supply chain feeding their manufacturing processes, equipment and materials.

“As SEMICON Taiwan celebrates its 22nd year, the exhibition area will be expanded to closely align with the four major trends of applications in the market, which include Internet of Things (IoT), Smart Manufacturing, Smart Transportation, and Smart Medtech,” said Terry Tsao, president of SEMI Taiwan. “This year, SEMICON Taiwan aims to increasingly connect the entire manufacturing ecosystem vertically and horizontally. In addition, it will provide an overview of market trends and leading technologies in the industry, with forums and business matching activities which will enable collaboration and new opportunities.”

Theme Pavilions and Region Pavilions Focus on Opportunities

In addition to the eight customary theme pavilions, five new pavilions are featured this year, and to promote cross-border collaboration, eight regional pavilions are offered. The 21 pavilions include:

Theme Pavilions
  • Automated Optical Inspection (AOI)
  • Chemical Mechanical Planarization (CMP)
  • High-Tech Facility
  • Materials
  • Precision Machinery
  • Secondary Market
  • Smart Manufacturing & Automation
  • Taiwan Localization

 
New Theme Pavilions
  • Circular Economy
  • Compound Semiconductor
  • Flexible Hybrid Electronics/Micro-LED
  • Laser
  • Opto Semiconductor

 
Regional Pavilions
  • Cross-Strait
  • German
  • Holland High-Tech
  • Korean
  • Kyushu (Japan)
  • Okinawa (Japan)
  • Silicon Europe
  • Singapore

Co-located with SEMICON Taiwan 2017, the SiP Global Summit will discuss three key system-in-package topics:

  • Package Innovation in Automotive
  • 3D IC, 3D interconnection for AI and High-end Computing
  • Innovative Embedded Substrate and Fan-Out Technology to Enable 3D-SiP Devices

Participants will share trends on 2.5D/3D IC technologies, and the evolution and challenges of embedded technologies and wafer level packaging.

This is the first year that the International Test Conference (ITC) will be co-located with SEMICON Taiwan 2017, also marking the first time that ITC is held in Asia. The conference will focus on the rapid growth of emerging applications like IoT and automotive electronics, and how testing technologies are challenged by rapid advancements of manufacturing processes, 3D stacking and SiP.

For more information about SEMICON Taiwan 2017, please visit www.semicontaiwan.org or follow us on Facebook.

MagnaChip Semiconductor Corporation (NYSE: MX), a Korea-based designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications, announced today it was selected as a foundry partner by ELAN Microelectronics to manufacture the world’s first fingerprint sensor IC-based smartcard. The smartcard uses biometrics technology that provides secure identification to prevent credit card fraud, a severe and growing problem globally. The sensor-IC based smartcard will be manufactured utilizing MagnaChip’s 0.35 micron Mixed Signal Thick IMD manufacturing process technology.

The requirement for more precise, efficient and low-power ICs has increased dramatically, coinciding with the rise in importance of biometrics technology for a range of applications.  Industry analyst Frost & Sullivan forecasts that the biometrics industry will grow at a CAGR of 17.4% from 2014 to 2019 and that fingerprint-based sensor ICs will comprise 66% of the market.

MagnaChip was selected as ELAN’s foundry partner primarily because of the company’s recognized specialized foundry capability, proven and reliable manufacturing processes with robust analog  performance. MagnaChip’s current technologies for fingerprint sensor ICs include 0.35 micron, 0.18 micron 1.8V/3.3V and single 3.3V Mixed Signal technology processes. MagnaChip plans to expand its portfolio of manufacturing processes to include more advanced technologies such as its highly competitive 0.18 micron Slim Mixed Signal manufacturing process, which requires fewer mask layers than usual. MagnaChip’s manufacturing processes are well-suited for applications in fast-growing markets that require fingerprint identification, such as in the payment, medical, transportation and automobile industries.

“We hope that the collaboration between MagnaChip and ELAN will continue to produce innovative and high quality products for our customers,” said I. H. Yeh, ELAN’s Chief Executive Officer. “ELAN sees its continued strategic partnership with MagnaChip as a long-term benefit to ELAN and MagnaChip.”

YJ Kim, Chief Executive Officer of MagnaChip, commented, “We are very pleased to announce MagnaChip’s continued partnership with ELAN and the volume ramp of fingerprint sensor IC-based products utilizing our 0.35 micron Mixed Signal Thick IMD based process technology. This process is well-suited for smartcards, which require low power consumption. We will continue to develop high-performance and cost-effective fingerprint sensor IC technology solutions that meet the growing needs of our foundry customers.”