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A new study coauthored by Wellesley economist, Professor Daniel E. Sichel, reveals that innovation in an important technology sector is happening faster than experts had previously thought, creating a backdrop for better economic times ahead.

The Producer Price Index (PPI) of the United States suggests that the prices of semiconductors have barely fallen in recent years. The slow decline in semiconductor prices stands in sharp contrast to the rapidly falling prices reported from the mid-1980s to the early 2000s, and has been interpreted as a signal of sluggish innovation in this key sector.

The apparent slowdown puzzled Sichel and his coauthors, David M. Byrne of the Federal Reserve Board, and Stephen D. Oliner, of the American Enterprise Institute and UCLA–particularly in light of evidence that the performance of microprocessor units (MPUs), which account for about half of U.S. semiconductor shipments, has continued to improve at rapid pace. After closely examining historical pricing data, the economists found that Intel, the leading producer of MPUs, dramatically changed the way it priced these chips in the mid-2000s–roughly the same time when the slowdown reported by government data occurs. Prior to this period, Intel typically lowered the list prices of older chips to remain competitive with newly introduced chips. However, after 2006, Intel began to keep chip prices relatively unchanged over their life cycle, which affected official statistics.

To obtain a more accurate assessment of the pace of innovation in this important sector, Sichel, Byrne, and Oliner developed an alternative method of measurement that evaluates changes in actual MPU performance to gauge the rate of improvement in price-performance ratios. The economists’ preferred index shows that quality-adjusted MPU prices continued to fall rapidly after the mid-2000s, contrary to what the PPI indicates–meaning that worries about a slowdown in this sector are likely unwarranted.

According to Sichel, these results have important implications, not only for understanding the rate of technological progress in the semiconductor industry but also for the broader debate about the pace of innovation in the U.S. economy.

“These findings give us reason to be optimistic,” said Sichel. “If technical change in this part of the economy is still rapid, it provides hope for better times ahead.”

Sichel and his coauthors also acknowledge that their results raise a new puzzle. “In recent years,” they write, “the price index for computing equipment has fallen quite slowly by historical standards. If MPU prices have, in fact, continued to decline rapidly, why have prices for computers–which rely on MPUs for their performance–not followed suit?” The researchers believe it is possible that the official price indexes for computers may also suffer from measurement issues, and they are investigating this possibility in further work.

“How Fast Are Semiconductor Prices Falling,” coauthored by Daniel E. Sichel, Wellesley College and NBER; David M. Byrne, Federal Reserve Board; and Stephen D. Oliner, American Enterprise Institute and UCLA, is available as an NBER working paper and is online at http://www.nber.org/papers/w21074 and https://www.aei.org/publication/how-fast-are-semiconductor-prices-falling/.

The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached $83.1 billion during the first quarter of 2015, an increase of 6.0 percent compared to the first quarter of 2014. Global sales for the month of March 2015 were $27.7 billion, 6.0 percent higher than the March 2014 total of $26.1 billion and 0.1 percent lower than last month’s total. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Despite macroeconomic challenges, first quarter global semiconductor sales are higher than they were last year, which was a record year for semiconductor revenue,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Americas region posted its sixth straight month of double-digit, year-to-year growth to lead all regional markets, and DRAM and analog products continue to be key drivers of global sales growth.”

Regionally, sales were up compared to last month in Asia Pacific/All Other (3.1 percent), Europe (2.7 percent), and China (1.0 percent), which is broken out as a separate country in the sales data for the first time. Japan(-0.4 percent) and the Americas (-6.9 percent) both saw sales decrease compared to last month. Compared to March 2014, sales increased in the Americas (14.2 percent), China (13.3 percent), and Asia Pacific/All Other (3.8 percent), but decreased in Europe (-4.0 percent) and Japan (-9.6 percent).

“Congress is considering a legislative initiative called Trade Promotion Authority (TPA) that would help promote continued growth in the semiconductor sector and throughout the U.S. economy,” Neuffer continued. “Free trade is vital to the U.S. semiconductor industry. In 2014, U.S. semiconductor company sales totaled $173 billion, representing over half the global market, and 82 percent of those sales were to customers outside the United States. TPA paves the way for free trade, and Congress should swiftly enact it.”

March 2015
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 6.23 5.80 -6.9%
Europe 2.88 2.95 2.7%
Japan 2.55 2.54 -0.4%
China 7.75 7.83 1.0%
Asia Pacific/All Other 8.33 8.59 3.1%
Total 27.74 27.71 -0.1%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.08 5.80 14.2%
Europe 3.08 2.95 -4.0%
Japan 2.81 2.54 -9.6%
China 6.91 7.83 13.3%
Asia Pacific/All Other 8.27 8.59 3.8%
Total 26.15 27.71 6.0%
Three-Month-Moving Average Sales
Market Oct/Nov/Dec Jan/Feb/Mar % Change
Americas 6.73 5.80 -13.8%
Europe 3.01 2.95 -1.7%
Japan 2.80 2.54 -9.1%
China 8.03 7.83 -2.5%
Asia Pacific/All Other 8.57 8.59 0.2%
Total 29.13 27.71 -4.9%

About SIA

SiVance, LLC, a subsidiary of Milliken & Company, today announced the opening of a new, 11,000 sq.ft. research and development (R&D) laboratory, on the company’s R&D and manufacturing campus in Gainesville, Fla., that will enhance its ability to quickly develop and scale new silane and silicone technologies. The new facility is part of a planned series of investments enabling SiVance to better address current and future customer needs in target markets such as electronic semiconductors, contact lenses, coatings and light-emitting diodes (LEDs). The lab will also speed process development for custom manufacturing of speciality silanes, silicones and other chemistries.

“This…facility is a major milestone in our continuous investment strategy for the business, which was initiated following Milliken’s acquisition of SiVance in 2011,” said Saikat Joardar, vice president, SiVance, LLC. “The new lab was designed from the ground up to support customer needs. It enables us to accelerate product and process development and scale up to manufacturing, strengthen collaboration with customers and take advantage of new market opportunities for chemistries that fit our expertise and capabilities.”

The new building is outfitted with sophisticated equipment for research, process development and testing. Installations include eight benchtop hoods for small-scale research development and eight large walk-in fume hoods that enable large-scale development activities and the manufacturing of materials for sampling. A dedicated instrument lab houses an inductively coupled plasma mass spectrometer (ICP-MS) that allows laboratory staff to detect minute levels of trace elements, a capability that supports the high purity demands of semiconductor manufacturing. The facility is further equipped with video conferencing systems that simplify remote collaboration with customers and researchers at other Milliken sites. Customers are also encouraged to make onsite visits to observe running processes and conduct quality audits.

The Gainesville site has experienced steady capacity and infrastructure expansion since SiVance was acquired by Milliken to accommodate current and future growth. The new R&D lab will further propel growth in standard and custom products, while offering customers improved capabilities for developing innovative new solutions.

SiVance, LLC develops silicone chemistry, focusing on the development and manufacture of specialty silicone technologies and intermediates required to modify basic silicone polymers.

IHS Technology’s final market share results for 2014 reveal that worldwide semiconductor revenues grew by 9.2 percent in 2014 coming in just slightly below the growth projection of 9.4 percent based on preliminary market share data IHS published in December 2014. The year ended on a strong note with the fourth quarter showing 9.7 percent year-over-year growth.  IHS semiconductor market tracking and forecasts mark the fourth quarter of 2014 as the peak of the annualized growth cycle for the semiconductor industry.

Global revenue in 2014 totaled $354.5 billion, up from $324.7 billion in 2013, according to a final annual semiconductor market shares published by IHS Technology). The nearly double-digit percentage increase follows solid growth of 6.6 percent in 2013, a decline of 2.6 percent in 2012 and a marginal increase of 1.3 percent in 2011. The performance in 2014 represents the highest rate of annual growth since the 33 percent boom of 2010.

“While 2014 marked a peak year for semiconductor revenue growth, the health of both the semiconductor supply base and end-market demand, position the industry for another year of strong growth in 2015,” said Dale Ford, vice president and chief analyst at IHS Technology. “Overall semiconductor revenue growth will exceed 5 percent in 2015, and many component categories and markets will see improved growth over 2014.  The more moderate 2015 growth is due primarily to more modest increases in the memory and microcomponent categories.  The dominant share of semiconductor markets will continue to see vibrant growth in 2015.”

More information on this topic can be found in the latest release of the Competitive Landscaping Tool from the Semiconductors & Components service at IHS.

Top ten maneuvers

Intel maintained its strong position as the largest semiconductor supplier in the world followed by Samsung Electronics and Qualcomm at a strong number two and three position in the rankings.  On the strength of its acquisition of MStar, MediaTek jumped into the top 10 replacing Renesas Electronics at number 10.  The other big mover among the top 20, Avago Technologies, also was boosted by an acquisition, moving up nine places to number 14 with its acquisition of LSI in 2014.

Strategic acquisitions continue to play a major role in shaping both the overall semiconductor market rankings and establishing strong leaders in key semiconductor segments.  NXP and Infineon will be competing for positions among the top 10 semiconductor suppliers in 2015 with the boost from their mergers/acquisitions of Freescale Semiconductor and International Rectifier, respectively.

Among the top 25 semiconductor suppliers, 21 companies achieved growth in 2014.  Out of the four companies suffering declines, three are headquartered in Japan as the Japanese semiconductor market and suppliers continue to struggle.

Broad-based growth

As noted in the preliminary market share results, 2014 was one of the healthiest years in many years for the semiconductor industry.  Five of the seven major component segments achieved improved growth compared to 2013 growth. All of the major component markets saw positive growth in 2014.  Out of 128 categories and subcategories tracked by IHS, 73 percent achieved growth in 2014.  The combined total of the categories that did not grow in 2014 accounted for only 8.1 percent of the total semiconductor market.

Out of more than 300 companies included in IHS semiconductor research, nearly 64 percent achieved positive revenue growth in 2014.  The total combined revenues of all companies experiencing revenue declines accounted for only roughly 15 percent of total semiconductor revenues in 2014.

Semiconductor strength

Memory still delivered a strong performance driven by continued strength in DRAM ICs. However, memory market growth declined by a little more than 10 percent compared to the boom year of 2013 with over 28 percent growth in that year.  Growth in sensors & actuators came in only slightly lower than 2013.

Microcomponents achieved the strongest turn around in growth moving from a -1.6 percent decline in 2013 to 8.9 percent growth in 2014.  It also delivered the best growth among the major segments following memory ICs.  Even Digital Signal Processors (DSPs) achieved positive growth in 2014 following strong, double-digit declines in six of the last seven years.  MPUs lead the category with 10.7 percent growth followed by MCUs with 5.4 percent growth.

Every application market delivered strong growth in 2014 with the exception of Consumer Electronics.  Industrial Electronics lead all segments with 17.8 percent growth.  Data Processing accomplished the strongest improvement in growth as it grew 13.7 percent, up nearly 10 percent from 2014.  Of course, MPUs and DRAM played a key role in the strength of semiconductor growth in Data Processing.  The third-strongest segment was Automotive Electronics which was the third segment with double-digit growth at 10 percent.  Only Wireless Communications saw weaker growth in 2014 compared to 2013 as its growth fell by roughly half its 2013 level to 7.8 percent in 2014.

San’an Optoelectronics Co., Ltd. today announced that it has licensed the United States patents of an LED patent portfolio it recently acquired from a major Japanese company to its subsidiary, Luminus Devices, Inc.

The portfolio comprises over 125 issued patents, including over thirty United States patents as well as issued patents in China, Japan, Korea, Taiwan, and Germany.  The earliest patents in the portfolio have priority dates reaching back to the mid-1990s, and more recent patents are from the mid-2000s.  These patents in the acquired portfolio are directed to a range of fundamental LED chip and wafer level technology, such as p-type branch electrodes (for example U.S. Patent Nos. 6,881,985 and 6,384,430), transparent ZnO layers, and reflecting electrodes, barrier layers (U.S. Patent No. 6,265,732), spacer layers, doped active layers (U.S. Patent No. 6,081,540), optimized MQWs (U.S. Patent No. 6,501,101), direct-bonded substrates, and GaInP current spreading layers.

According to San’an President Zhiqiang Lin, “We were quite pleased to acquire this well-respected LED patent portfolio as it complements the San’an patent portfolio nicely in time and subject matter and increases the San’an patent holdings to over 280 issued patents and published applications.  San’an recognizes the importance of a strong patent portfolio in the LED industry and we are committed to growing our patent base organically and by strategic acquisition.”

The license of the United States patents to Luminus Devices is exclusive, subject to prior issued licenses, with the right to enforce.  “The addition of the licensed patents to our existing patent portfolio further reinforces the position of Luminus Devices in the LED market,” said Decai Sun, the chief executive officer of Luminus Devices.  Luminus Devices has over eighty patents worldwide including fifty United States patents and is the exclusive licensee of key patents related to laser lift-off and patterned sapphire substrates.

Semiconductor equipment manufacturer ClassOne Technology announced today that it has signed a joint electrochemical deposition (ECD) applications lab agreement with Shanghai Sinyang Semiconductor Materials Co., Ltd.  Sinyang, China’s premier supplier of ECD chemicals, is purchasing ClassOne electroplating equipment and will be providing a site for demonstrating ClassOne’s tools in the Chinese marketplace. SPM International Ltd., ClassOne’s representative in China will also be providing product support and process assistance.

“This collaborative lab will be the first of its kind in the region,” said Byron Exarcos, President of ClassOne Technology. “Now, in a single location, users will be able to see the advanced performance of ClassOne’s electroplating tools and Sinyang’s electroplating chemicals and also be able to evaluate processes. It allows us to provide a complete solution — and a significant convenience — to users throughout the region.”

“We are looking forward to working with customers on the Solstice LT plating system because it is a high-performance tool and will provide an excellent real-world laboratory for ongoing enhancement of our chemicals,” said Dr. Wang Su, Vice President of Sinyang. “The new working arrangement will also enable us to provide direct input to ClassOne as they develop future generations of wet processing equipment.”

Shanghai Sinyang is purchasing ClassOne’s Solstice LT Electroplating System and Trident Spin Rinse Dryer (SRD). The Solstice LT is a two-chamber plating development tool designed for <200mm wafers. In Sinyang’s applications, one chamber will be dedicated to copper plating and the second to nickel plating, with the Trident SRD servicing both process streams. This will provide significant flexibility while substantially reducing cycle time and streamlining process development. The new equipment will be installed at the Sinyang lab facility in Shanghai, which is scheduled to begin live demonstrations in late May. The lab will be able to plate virtually all metals except gold, and it can also cross-reference with all chemicals for comparison benchmarks.

In addition to the LT development tool, ClassOne also offers the Solstice S8, an 8-chamber, fully-automated electroplating system for high-volume production needs. These tools are particularly well suited to wafer level packaging (WLP), through silicon via (TSV) and other applications that are important for MEMS, Sensors, LEDs, RF, Power and many other devices.

ClassOne Technology products have been described as “Advanced Wet Processing Tools for the Rest of Us” because they address the needs of many cost-conscious users. The company’s stated aim is to provide advanced yet affordable alternatives to the large systems from the large manufacturers. ClassOne supplies a range of innovative new wet processing tools, including its Solstice Electroplating Systems, Trident Spin Rinse Dryers and Trident Spray Solvent Tools (SSTs).

By Lara Chamness, senior market analyst manager, SEMI

Semiconductor Market Trends

2014 was the second record breaking year in a row in terms of semiconductor device revenues; the industry grew a robust 10 percent to total $336 billion, according to the WSTS. The strong momentum of the device market was enough to drive positive growth for both the equipment and materials markets. After two successive years of revenue decline, both the equipment and materials markets grew 18 percent and 3 percent, respectively last year, according to SEMI (www.semi.org). Even though the semiconductor materials market did not enjoy the same magnitude of recovery as the equipment market last year, the materials market has been larger than the equipment for the past seven years.

Just like last year, the weakened Yen negatively impacted total revenues for semiconductor materials and equipment (refer to Dan Tracy’s March 2014 article for more detail). The Table (below) shows the impact of the weakened Yen on Semiconductor Equipment Association of Japan’s (SEAJ) book-to-bill data. SEMI reveals that if the data was kept in Yen, the 2014 market for Japan-based suppliers would be up 37 percent. However, when the Yen are converted to dollars the 2014 equipment market for Japan-based suppliers only increased 26 percent. When silicon semiconductor shipment volumes are compared year-over-year, shipments were up 11 percent. By comparison, silicon revenues only increased one percent. SEMI also tracks leadframe unit shipments. In 2014, leadframe shipments were up 9 percent year-over-year; however, leadframe revenues increased only 4 percent. Silicon and leadframe revenues were adversely impacted by intense price down pressure exasperated by the weakened Yen. Given that Japan-headquartered suppliers represent a significant portion of the equipment and materials markets; this has the effect of muting the growth of the global equipment and materials markets as well.

Semiconductor Equipment

Worldwide sales of semiconductor manufacturing equipment totaled $37.5 billion in 2014, representing a year-over-year increase of 18 percent and placing spending on par with 2004 levels. According to SEMI, looking at equipment sales by major equipment category, 2014 saw expansions in all major categories — Wafer Processing equipment increased 15 percent, while the Assembly and Packaging and Test equipment segments grew 32 and 31 percent, respectively. The Other Front-end segment (Other Front End includes Wafer Manufacturing, Mask/Reticle, and Fab Facilities equipment) increased 15 percent.

Taiwan retained its number one ranking last year at $8.2 billion, even though it was the only region to experience a year-over-year contraction in spending. The equipment market in North America maintained second place at $8.2 billion for the second year as its market grew a robust 55 percent due to investments in excess of a billion dollars each from Intel, GLOBALFOUNDRIES, and Samsung.  Spending levels of $6.8 billion in South Korea remain significantly below their market high set in 2012 resulting in South Korea maintaining the third spot for the second year in a row. China moved up in the rankings to hit a market high and displacing Japan to claim the fourth position in the market. Strong investments by Samsung, SK Hynix, SMIC, and back-end companies are driving the equipment market in China. Equipment sales to Europe and Rest of world increased 24 and 4 percent, respectively in 2014. Rest of World region aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets.

Semiconductor Materials
SEMI reports that the global semiconductor materials market, which includes both fab and packaging materials, increased 3 percent in 2014 totaling $44.3 billion. Looking at the materials market by wafer fab and packaging materials, the wafer fab materials segment increased 6 percent, while the packaging materials segment was flat.  However if bonding wire were excluded from the packaging materials segment, the segment increased more than 4 percent last year. The continuing transition to copper-based bonding wire from gold is negatively impacting overall packaging materials revenues.

Taiwan maintained the top spot for the fifth year in a row, followed by Japan, South Korea, Rest of World, and China. Driving the materials market in Taiwan are advanced packaging operations and foundries. Japan still claims a significant installed fab base and has a tradition in domestic-based packaging, although many companies in Japan have rapidly adopted a fab lite strategy and have consolidated their fab and packaging plants. South Korea passed Rest of World (primarily SE Asia) as the third largest market for semiconductor materials given the dramatic increase in advanced fab capacity in the region in recent years.

Outlook

Most analysts predict mid- to high single-digit growth for the semiconductor device market for 2015. Initial monthly data for silicon shipments and semiconductor equipment are proving to be encouraging. In light of growth expectations for the device market, SEMI projects that the semiconductor materials market will increase 4 percent this year. Given current CapEx announcements, the outlook for semiconductor equipment is optimistic as well, with current projections of the equipment market showing another year of growth, which would place the equipment market on par with the last market high set in 2011.

2014 was a much welcomed year for equipment and materials suppliers as device manufacturers easily exceeded revenues of $300 billion. Even with the weakened Yen, both the semiconductor and equipment segments experienced growth. 2015 is promising to be another growth year for the entire market with device, materials and equipment suppliers poised to experience increases for the year.

Portions of this article were derived from the SEMI Worldwide Semiconductor Equipment Market Statistics (WWSEMS), the Material Market Data Subscription (MMDS) and the World Fab Watch database. These reports are essential business tools for any company keeping track of the semiconductor equipment and material market. Additional information regarding this report and other market research reports is available at www.semi.org/marketinfo

Programme information is now available on the inaugural SEMICON Southeast Asia, which will run from 22–24 April at SPICE in Penang. The event, organized by SEMI, a global industry association, features an expanded programme and larger audience base focusing on Southeast Asia communities in the semiconductor and microelectronics sector.  SEMI estimates spending of US$19 on semiconductor equipment and materials in the Southeast Asia region for 2015 and 2016. With an emphasis on opening up new business opportunities and fostering stronger cross-regional engagement, SEMICON Southeast Asia will feature a tradeshow exhibition, networking events, market and technology seminars, and conferences.

Ng Kai Fai, President of SEMI Southeast Asia, said, “Southeast Asia is a vibrant and changing market for the semiconductor industry. For 2015 and 2016, SEMI estimates spending of almost US$ 5 billion on front-end and back-end equipment in the Southeast Asia region, and another $14 billion in spending on materials including $11 billion on packaging-related materials.  Southeast Asia has over 35 production fabs including Foundry, Compound Semiconductors, MEMS, Power, LED, and other devices. The region contributes a substantial 27 percent of global assembly, test and production, on top of being the largest market for assembly and test equipment,” he added.

More than 60 industry speakers and 200 companies will participate in SEMICON Southeast Asia, with thousands of attendees participating in the event. Attendees will learn the latest technology developments and strategies from industry leaders. SEMICON Southeast Asia connects decision makers from leading and emerging semiconductor companies with important industry stakeholders from both the region and all over the world.

Focusing on key trends and technologies in semiconductor design and manufacturing, the event also addresses expanding applications markets like mobile devices and other connected “Internet of Things” (IoT) technologies. Key enablers, such as specialised materials, packaging, and test technologies, as well as new architectures and processes, will be featured throughout the event. Highlights of SEMICON Southeast Asia include:

  • Market Trend Briefing — Features presentations from: EQUVO, Gartner, GFK Retail Technology , IC Insights, SMC Pneumatics (SEA), SEMI, and Yole Developpement
  • Assembly and Packaging Forum — “Emerging Packaging Solutions for Computing, Mobility and IoT Platforms” forum features presentations from: Advantest, AMD, ASE Group, Freescale Semiconductor, GLOBALFOUNDRIES Singapore, Intel, Infineon, Kulicke & Soffa, Lam Research, MediaTek, Tanaka Kikinzoku, and Yole Developpement
  • Product and System Test Forum — “Testing Strategy for a Fast-paced Semiconductor Market” with presentations from Advantest, ATMEL, GLOBALFOUNDRIES Singapore, Intel, Keysight Technologies, Silicon Labs International, UTAC Singapore, Xcerra

In addition, the event features forums on Technology Innovation, LED Technology, and Yield Productivity and Failure Analysis.

For more information and exhibition opportunities, visit www.semiconsea.org or register now.

LED Taiwan, opening today at TWTC Nangang Exhibition Hall in Taipei, is Taiwan’s only LED manufacturing-focused exposition. LED Taiwan (March 25-28) showcases LED production equipment and materials, epi wafers, crystals, packaging, modules, etc., as well as related technologies and manufacturing solutions. Organized by SEMI and TAITRA, LED Taiwan is the country’s most influential LED exhibition where manufacturers unveil their products, technologies, and solutions. The Taiwan International Lighting Show (TILS) and Taiwan Solid State Lighting (TSSL) are co-located at LED Taiwan. This combination exhibition platform provides both attendees and exhibitors the world’s most comprehensive view of solid state lighting technology and products, from manufacturing to applications.

As countries across the globe embrace the use of LED lighting, renewed capital spending and capacity increases are foreseen for both 2015 and 2016.  According to the quarterly SEMI Opto/LED Fab Forecast on HB-LED front-end fabs, 2015 LED wafer fab equipment spending will rise approximately 24 percent to nearly US$1.5 billion in 2015, which will boost epitaxy capacity this year. Investment momentum is expected to continue in 2016 with $1 billion spending in front-end LED epitaxy and chip facilities.

Attendees at LED Taiwan 2015 will find solutions and technologies — from hardware, materials, parts, manufacturing, and inspection to test for component manufacturing and encapsulation and thermal dissipation. With a combined 337 exhibitors showcasing their latest developments in LED component technologies, LED manufacturing processes and display lighting applications in 898 booths, the three-in-one, industry-specific event is expected to attract over  20,000 visitors from across the world for the four-day event.

At the LED Executive Summit today (March 25), themed “What’s Next for LED?,” presenters from Cree, EPISTAR, OSRAM Opto, Philips Lumileds, with special video greetings from Dr. Shuji Nakamura, Nobel Prize in Physics Winner 2014. They will share their perspectives on the challenges and opportunities in the LED industry.

The LED Taiwan TechXPOT sessions include:

  • March 25: “Manufacturing Equipment and Materials” track includes speakers from: Advanced International Multitech, Aixtron, DISCO, Dow Corning, Shanghai Micro Electronics Equipment (AMEC), SEMI, Alinc Taiwan, and Sil-More Industrial.
  • March 26: “Sapphire and PSS” track features presenters from Advanced System Technology, EVG, Galaxy Technology Development, Meyer Burger, Monocrystal, Rigidtech, Sandvik Hyperion, Smooth & Sharp, and Yole.
  • March 27: “LED Advanced Technologies” track includes speakers from: Advanced Optoelectronic Technology, ASM, Beijing NMC, Epistar, Everlight, Lextar, PlayNitride, and Yole.
  • March 28: “Smart Lighting and Automobile Lighting” track with presenters from Cree, Infineon Technologies Taiwan, and TSLC.

For more information on LED Taiwan, please visit: www.ledtaiwan.org (Chinese) or www.ledtaiwan.org/en (English).

Following two lethargic years of low growth and some setbacks, worldwide sales of optoelectronics, sensors, actuators, and discrete semiconductors regained strength in 2014 and collectively increased 9 percent to reach an all-time high of $63.8 billion after rising just 1 percent in 2012 and 2013, according to IC Insights’ new 2015 O-S-D Report—A Market Analysis and Forecast for Optoelectronics, Sensors/Actuators, and Discretes.  Modest gains in the global economy, steady increases in electronic systems production, and higher unit demand in 2014 drove a strong recovery in discretes along with substantial improvements in sensors/actuators and greater growth in optoelectronics, says the new 360-page annual report, which becomes available in March 2015.

Each of the three O-S-D market segments are forecast to increase at or above their long-term annual growth rates in 2015 and 2016 (Figure 1) as the global economy continues to gradually improve and major new end-use systems applications boost sales in some of the largest product categories of optoelectronics, sensors/actuators, and discretes.  After a modest slowdown in 2017, due to the next anticipated economic downturn, all three O-S-D market segments are expected to continue reaching record-high sales in 2018 and 2019, based on the five-year forecast in the new 10th edition of IC Insights’ O-S-D Report.

Optoelectronics sales are now forecast to rise 10 percent in 2015 to set a new record-high $34.8 billion after growing 8 percent in 2014 to reach the current annual peak of $31.6 billion.  Sales of sensors/actuators are also expected to strengthen slightly in 2015, rising 7 percent to $9.9 billion, which will break the current record high of $9.2 billion set in 2014 when this market segment grew 6 percent.  The commodity-filled discretes market is forecast to see a more normal 5 percent increase in 2015 and reach a new record high of $24.2 billion after roaring back in 2014 with a strong 11 percent increase following declines of 7 percent in 2012 and 5 percent in 2013.  The two-year drop was the first back-to-back decline for discretes sales in more than 30 years and primarily resulted from delays in purchases of power transistors and other devices as cautious systems manufacturers kept their inventories low in the midst of uncertainty about the weak global economy and end-user demand.

OSD fig 1

 

In 2014, combined sales of O-S-D accounted for 18 percent of the semiconductor industry’s $354.9 billion in total revenues compared to 16 percent in 2004 and 13 percent in 1994.  (Optoelectronics was 9 percent of the 2014 sales total with sensors/actuators being 3 percent, discretes at 6 percent and ICs accounting for 82 percent, or $290.8 billion, last year).  On the strength of optoelectronics and sensor products—including CMOS image sensors, high-brightness light-emitting diodes (LEDs), and devices built with microelectromechanical systems (MEMS) technology—total O-S-D sales have outpaced the compound annual growth rate (CAGR) of ICs since the late 1990s.  IC Insights’ new report shows this trend continuing between 2014 and 2019 with combined O-S-D sales projected to grow by a CAGR of 6.9 percent versus 5.5 percent for ICs.

The 2015 O-S-D Report shows strong optoelectronics growth being driven in the next five years by new embedded cameras and image-recognition systems made with CMOS imaging devices as well as the spread of LED-based solid-state lights and high-speed fiber optic networks built with laser transmitters that are needed to keep up with tremendous increases in Internet traffic, video transmissions, and cloud-computing services, including those connected to the huge potential of the Internet of Things (IoT). The sensors/actuators market is forecast to see steady growth from high unit demand driven by the spread of automated embedded-control functions, new sensing networks, wearable systems, and measurement capabilities being connected to IoT in the second half of this decade.  Discretes sales are expected to climb higher primarily due to strong growth in power transistors and other devices used in battery-operated electronics and to make all types of systems more energy efficient—including automobiles, high-density servers in Internet data centers, industrial equipment, and home appliances.