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In cooperation with Okmetic Oy and the Polish ITME, researchers at Aalto University have studied the application of SOI (Silicon On Insulator) wafers, which are used as a platform for manufacturing different microelectronics components, as a substrate for producing gallium nitride crystals. The researchers compared the characteristics of gallium nitride (GaN) layers grown on SOI wafers to those grown on silicon substrates more commonly used for the process. In addition to high-performance silicon wafers, Okmetic also manufactures SOI wafers, in which a layer of silicon dioxide insulator is sandwiched between two silicon layers. The objective of the SOI technology is to improve the capacitive and insulating characteristics of the wafer.

The researchers used Micronova's cleanrooms and, in particular, a reactor designed for gallium nitride manufacturing. The image shows a six-inch substrate in the MOVPE reactor before manufacturing. Credit: Aalto University / Jori Lemettinen

The researchers used Micronova’s cleanrooms and, in particular, a reactor designed for gallium nitride manufacturing. The image shows a six-inch substrate in the MOVPE reactor before manufacturing. Credit: Aalto University / Jori Lemettinen

“We used a standardised manufacturing process for comparing the wafer characteristics. GaN growth on SOI wafers produced a higher crystalline quality layer than on silicon wafers. In addition, the insulating layer in the SOI wafer improves breakdown characteristics, enabling the use of clearly higher voltages in power electronics. Similarly, in high frequency applications, the losses and crosstalk can be reduced”, explains Jori Lemettinen, a doctoral candidate from the Department of Electronics and Nanoengineering.

‘GaN based components are becoming more common in power electronics and radio applications. The performance of GaN based devices can be improved by using a SOI wafer as the substrate’, adds Academy Research Fellow Sami Suihkonen.

SOI wafers reduce the challenges of crystal growth

Growth of GaN on a silicon substrate is challenging. GaN layers and devices can be grown on substrate material using metalorganic vapor phase epitaxy (MOVPE). When using silicon as a substrate the grown compound semiconductor materials have different coefficients of thermal expansion and lattice constants than a silicon wafer. These differences in their characteristics limit the crystalline quality that can be achieved and the maximum possible thickness of the produced layer.

‘The research showed that the layered structure of an SOI wafer can act as a compliant substrate during gallium nitride layer growth and thus reduce defects and strain in the grown layers”, Lemettinen notes. GaN based components are commonly used in blue and white LEDs. In power electronics applications, GaN diodes and transistors, in particular, have received interest, for example in frequency converters or electric cars. It is believed that in radio applications, 5G network base stations will use GaN based power amplifiers in the future. In electronics applications, a GaN transistor offers low resistance and enables high frequencies and power densities.

IC Insights recently released its new Global Wafer Capacity 2017-2021 report that provides in-depth detail, analyses, and forecasts for IC industry capacity by wafer size, by process geometry, by region, and by product type through 2021.  Figure 1 splits the world’s installed monthly wafer production capacity by geographic region (or country) as of December 2016.  Each regional number is the total installed monthly capacity of fabs located in that region regardless of the headquarters location for the companies that own the fabs.  For example, the wafer capacity that South Korea-based Samsung has installed in the U.S. is counted in the North America capacity total, not in the South Korea capacity total.  The ROW “region” consists primarily of Singapore, Israel, and Malaysia, but also includes countries/regions such as Russia, Belarus, and Australia.

Figure 1

Figure 1

As shown, Taiwan led all regions/countries in wafer capacity with 21.3% share, a slight decrease from 21.7% in 2015 when the country first became the global wafer capacity leader.  Taiwan was only slightly ahead of South Korea, which was in second place.  The Global Wafer Capacity report shows that South Korea accounted for 20.9% of global wafer capacity in 2016, slightly more than the 20.5% share it held in 2015.  Two companies in Taiwan and two in South Korea accounted for the vast share of wafer fab capacity in each country.  In Taiwan, TSMC and UMC held 73% of the country’s capacity while in South Korea, Samsung and SK Hynix represented 93% of the IC wafer capacity installed in 2016.

Japan remained firmly in third place with just over 17% of global wafer fab capacity.  Micron’s purchase of Elpida several years ago and other recent major changes in manufacturing strategies of companies in Japan, including Panasonic spinning off some of its fabs into separate companies, means that the top two companies (Toshiba and Renesas) accounted for 64% of that country’s wafer fab capacity in 2016.

China showed the largest increase in global wafer capacity in 2016, rising 1.1 percentage points to 10.8% from 9.7% in 2015. China’s gained marketshare came mostly at the expense of North America’s share, which slipped 0.9 percentage points in 2016. With a lot of buzz circulating about new ventures and wafer fabs in China in the coming years, it will be interesting to watch how quickly China’s installed wafer capacity grows.  It is worth noting that China first became a larger wafer capacity holder than Europe in 2010.  The two companies with the largest portion of wafer fab capacity in China were SMIC and HuaHong Grace (including shares from joint ventures).

In total, the top five wafer capacity leaders accounted for more than half of the IC industry’s wafer fab capacity, having increased from 2009, when the top five wafer capacity leaders accounted for approximately a third of global capacity.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced the global semiconductor industry posted sales totaling $338.9 billion in 2016, the industry’s highest-ever annual sales and a modest increase of 1.1 percent compared to the 2015 total. Global sales for the month of December 2016 reached $31.0 billion, equaling the previous month’s total and bettering sales from December 2015 by 12.3 percent. Fourth quarter sales of $93.0 billion were 12.3 percent higher than the total from the fourth quarter of 2015 and 5.4 percent more than the third quarter of 2016. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Following a slow start to the year, the global semiconductor market picked up steam mid-year and never looked back, reaching nearly $340 billion in sales in 2016, the industry’s highest-ever annual total,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Market growth was driven by macroeconomic factors, industry trends, and the ever-increasing amount of semiconductor technology in devices the world depends on for working, communicating, manufacturing, treating illness, and countless other applications. We expect modest growth to continue in 2017 and beyond.”

2016 worldwide revenue

Several semiconductor product segments stood out in 2016. Logic was the largest semiconductor category by sales with $91.5 billion in 2016, or 27.0 percent of the total semiconductor market. Memory ($76.8 billion) and micro-ICs ($60.6 billion) – a category that includes microprocessors – rounded out the top three segments in terms of total sales. Sensors and actuators was the fastest growing segment, increasing 22.7 percent in 2016. Other product segments that posted increased sales in 2016 include NAND flash memory, which reached $32.0 billion in sales for a 11.0 percent annual increase, digital signal processors ($2.9 billion/12.5 percent increase), diodes ($2.5 billion/8.7 percent increase), small signal transistors ($1.9 billion/7.3 percent), and analog ($47.8 billion/5.8 percent increase).

Regionally, annual sales increased 9.2 percent in China, leading all regional markets, and in Japan (3.8 percent). All other regional markets – Asia Pacific/All Other (-1.7 percent), Europe (-4.5 percent), and the Americas (-4.7 percent) – saw decreased sales compared to 2015.

“A strong semiconductor industry is strategically important to U.S. economic growth, national security, and technological leadership,” said Neuffer. “We urge Congress and the new administration to enact polices in 2017 that spur U.S. job creation, and innovation and allow American businesses to compete on a more level playing field with our competitors abroad. We look forward to working with policymakers in the year ahead to further strengthen the semiconductor industry, the broader tech sector, and our economy.”

The electronic data connections within and between microchips are increasingly becoming a bottleneck in the exponential growth of data traffic worldwide. Optical connections are the obvious successors but optical data transmission requires an adequate nanoscale light source, and this has been lacking. Scientists at Eindhoven University of Technology (TU/e) now have created a light source that has the right characteristics: a nano-LED that is 1000 times more efficient than its predecessors, and is capable of handling gigabits per second data speeds. They have published their findings in the online journal Nature Communications.

This is a scanning electron microscope picture of the new nano-LED, including some details. Credit: Eindhoven University of Technology

This is a scanning electron microscope picture of the new nano-LED, including some details. Credit: Eindhoven University of Technology

With electrical cables reaching their limits, optical connections like fiberglass are increasingly becoming the standard for data traffic. Over longer distances almost all data transmission is optical. Within computer systems and microchips, too, the growth of data traffic is exponential, but that traffic is still electronic, and this is increasingly becoming a bottleneck. Since these connections (‘interconnects’) account for the majority of the energy consumed by chips, many scientists around the world are working on enabling optical (photonic) interconnects. Crucial to this is the light source that converts the data into light signals which must be small enough to fit into the microscopic structures of microchips. At the same time, the output capacity and efficiency have to be good. Especially the efficiency is a challenge, as small light sources, powered by nano- or microwatts, have always performed very inefficiently to date.

Researchers at TU Eindhoven have now developed a light-emitting diode (LED) of some hundred nanometers with an integrated light channel (waveguide) to transport the light signal. This integrated nano-LED is a 1000 times more efficient than the best variants developed elsewhere. The Eindhoven-based researchers have especially made progress in the quality of the integrated coupling of the light source and the waveguide whereby much less light is lost and therefore far more light enters the waveguide. The efficiency of the new nano-LED currently lies between 0.01 and 1 percent, but the researchers expect to be well above that figure soon thanks to a new production method.

Another key characteristic of the new nano-LED is that it is integrated into a silicon substrate on a membrane of indium phosphide. Silicon is the basic material for microchips but is not suitable for light sources whereas indium phosphide is. Furthermore, tests reveal that the new element converts electrical signals rapidly into optical signals and can handle data speeds of several gigabits per second.

The researchers in Eindhoven believe that their nano-LED is a viable solution that will take the brake off the growth of data traffic on chips. However, they are cautious about the prospects. The development is not yet at the stage where it can be exploited by the industry and the production technology that is needed still has to get off the ground.

By Denny McGuirk, SEMI president and CEO

“Do not go where the path may lead, go instead where there is no path and leave a trail.”  Attributed to Ralph Waldo Emerson, this could be the credo of our industry.  Moore’s Law has created $13 trillion of market value and we’ve been pioneering the way forward – since even before Gordon Moore made the famous “observation” that became Moore’s Law more than 50 years ago.  Our industry paved the road forward with advancements in design, materials, processing, equipment, and integration, traveling at the speed of exponential growth number in transistors per chip (doubling approximately every two years).

Today, globally, we’re shipping more than one trillion ICs per year!  Leading-edge chips boast more than 10 billion transistors at the advanced 10nm (gate length) technology node and are made with 3D FinFET architectures formed by 193nm wavelength immersion multi-patterning lithography.  It’s become a very challenging – and very expensive – road (a single lithography tool alone costs in the tens of millions of dollars).  The companies building the road ahead are bigger and fewer as massive bets now need to be placed on new fabs costing more than $5 billion and even $10 billion and where a new single chip design alone costs more than $150 million to bring into production.

What follows, in Part 1 of this two-part article, is a quick look back at the industry in 2016 and the road ahead in 2017 followed by what SEMI achieved in 2016 and where SEMI’s road will lead in 2017 to keep pace our industry charging forward where there is no path. Part 2 (next week’s Global Update) will focus on SEMI 2020 initiatives.

A look back at 2016: “Straight roads do not make skillful drivers”

2016 was definitely not a straight road; truly it was a wild ride – so, SEMI members have become extremely skilled drivers. The semiconductor manufacturing industry had a slow first half with pessimism building throughout the first quarter, but by April semiconductors bottomed and NAND investment and a slate of new China projects drove a strong second half.  For semiconductor equipment, SEMI’s statistics indicate global sales in 2015 were $36.5 billion and 2016 came in at $39.7 billion, ultimately ending up about 9 percent.  For reference semiconductor materials in 2015 was $24.0 billion and 2016 came in at $24.6 billion, up nearly 2.6 percent year-over year (YoY).

But, it turns out, that’s not half the story.  2016 was full of surprises.  At the geopolitical level, Brexit, an impeachment in South Korea, and a Trump win were wholly unanticipated and leave a lot of questions as to how that road ahead might look.  In technology, the Galaxy Note 7 mobile phone became an airline hazard announcement and stalwarts like Yahoo! faded into the background (now part of Verizon).  In part due to challenges of the road ahead (and because the cost of capital remained low) M&A fever continued in semiconductors with more than $100B in deals announced in 2016.

It was an astonishing year for combinations with huge deal announcements such as Qualcomm buying NXP for $47 billion and SoftBank buying ARM for $32 billion.  Meanwhile, mergers in the equipment and materials space continued, to name a few notables ASML’s acquisition of Hermes Microvision, DuPont and Dow announcing the intent to merge (announced December 2015, but still in the works), and Lam Research and KLA-Tencor ultimately calling off their deal due to complications of regulatory pushback.  The extended supply chain was mixing things up, too, with acquisitions like the announcement by Siemens to acquire Mentor Graphics.  It has been very active, overall.  This was the second year of semiconductor M&A deals valued at more than $100 billion, a signal that size and scale is critical to build the road ahead.

A look ahead: “Difficult roads often lead to beautiful destinations”

With all the talk about roads, it’s no surprise that the automotive segment is gathering momentum as a strong growth driver for the electronics supply chain.  Not only is there increasing electronics content in cars for comfort and infotainment, but also for assisted and autonomous driving and electric vehicles which are ushering in a new era of electronics consumption.

Along with automotive, IoT (Internet of Things), 5G, AR/VR (Augmented Reality and Virtual Reality), and AI (Artificial Intelligence) round out a set of powerful IC and electronics applications drivers (see figure).  Per an IHS Study, 5G alone may enable as much as $12.3 trillion in goods and services in 2035. Gartner’s most recent forecast is cause for optimism further down the electronics manufacturing supply chain.  Gartner see IC revenue growing from 2016’s $339.7 billion to 2017’s $364.1 billion up 7.2 percent and growing further in 2018 at $377.9 billion up 3.8 percent.  For semiconductor equipment, SEMI’s forecast indicates 2015 was $36.5 billion, 2016 will come in at $39.7 billion, and 2017 is projected to be $43.4 billion, pointing to both 2016 and 2017 experiencing approximately 9 percent YoY growth.

In 2017, China investment is projected to continue as a major driver, likely consuming over 16 percent of the total global equipment investment (second only to South Korea).  SEMI is currently tracking 20 new fab projects.  Investments come from both multinationals and local Chinese ventures.  A sign of the rise of China is China’s upward production share trend of its own IC consumption market (IC Insights): 8 percent in 2009, 13 percent in 2015, and 21 percent in 2020. Further down in the electronics supply chain, fab equipment related spending in China will rise to more than $10 billion per year by 2018 and remain at that level or above for subsequent years.

NAND will continue to be a major driver with 3D NAND investment leading the way.  Silicon in Package (SiP) and heterogeneous integration will increasingly be solutions to augment traditional feature scaling to fit more transistors into less space at lower costs.  Materials innovations will be relied upon to solve front-end and packaging challenges while standard materials will be the focus of increased efficiencies and cost reduction. 200mm fab capacity will grow and stimulate new 200mm investment with upside driven by power devices and MEMS segments.  Investment in foundry MEMS will grow by an estimated 285 percent (2015 to 2017).

“There are far better things ahead than any we leave behind”

SEMI, the global non-profit association connecting and representing the worldwide electronics manufacturing supply chain, has been growing with the industry for 47 years.  SEMI has evolved over the years, but it has remained as the central point to connect.  Whether connecting for business, connecting for collective action, or connecting to synchronize technology, SEMI connects for member growth and prosperity.

As a reminder, here are SEMI’s mission, vision, and 2020 strategic focus areas.

  • Mission — our focus for the next five years
    • SEMI provides industry stewardship and engages our members to advance the interests of the global electronics manufacturing supply chain.
  • Vision — what we stand for
    • SEMI promotes the development of the global electronics manufacturing supply chain and positively influences the growth and prosperity of its members.  SEMI advances the mutual business interests of its membership and promotes a free and open global marketplace.
  • Members’ Growth — 2020 strategic focus
    • SEMI enables member growth opportunities by evolving SEMI communities and building new communities across the global electronics manufacturing supply chain via cooperation, partnerships, and integration.
  • Members’ Prosperity — 2020 strategic focus
    • SEMI enables members to prosper by building extended supply chain collaboration forums providing opportunities to increase value while optimizing the supply chain for SEMI members.

Our industry is in the midst of a vast change.  To deal with the escalating complexity (making a semiconductor chip now uses the great majority of the periodic table of the elements) and capital cost, many companies have had to combine, consolidate, and increasingly collaborate along the length of the electronics manufacturing supply chain.

Some companies have broadened their businesses by investing in adjacent segments such as Flexible Hybrid Electronics (FHE), MEMS, Sensors, LEDs, PV, and Display.  Lines are blurring between segments – PCBs have morphed into flexible substrates, SiP is both a device and a system.  Electronics integrators are rapidly innovating and driving new form factors, new requirements, and new technologies which require wide cooperation across the length of the electronics manufacturing supply chain and across a breadth of segments.

The business is changing and SEMI’s members are changing.  When SEMI’s members change, SEMI must change, too – and SEMI has, and is.  SEMI developed a transformation plan, SEMI 2020, which I wrote about at the beginning of 2016.  We’re well on our way on this path and in next week’s e-newsletter Global Update, I’d like to update you on what we’ve accomplished and what’s to come.

Each year, Solid State Technology turns to industry leaders to hear viewpoints on the technological and economic outlook for the upcoming year. Read through these expert opinions on what to expect in 2017.

Driving the industry forward with materials engineering

Raja_Prabu_fullPrabu Raja, vice president and general manager, Patterning and Packaging Group, Applied Materials, Inc.

Over the past few years, the industry has made remarkable progress in bringing 3D chip architectures to volume production. In 2017, we will continue to see exciting technology innovations for scaling 3D NAND devices to 64 layers, ramping the 10nm process node into volume manufacturing and increasing the adoption of highly integrated chip packages.

With the transition to the 3D and sub-10nm era, the semiconductor world is changing from lithography-based scaling to materials-enabled scaling. This shift requires multiple new materials and capabilities in selective processing.

The magnitude and pace of these changes are truly disruptive. For example, with 3D NAND materials innovations for hard mask deposition and hard mask etch are essential. The challenge is to build high aspect ratio vertical structures with uniform profiles from the top to the bottom as more layers are added. Selective removal processes can remove targeted materials in vertical and horizontal structures without damage or residue throughout the stack.

For logic/foundry, the introduction of the 10nm process node in volume manufacturing brings significant growth in the number of patterning steps. This trend will increase even more for 7nm and below designs. Patterning these advanced nodes requires innovative etch capabilities to deliver feature-scale uniformity with low line edge roughness. Selective processes and alternative manufacturing schemes will also be needed as the industry seeks solutions for layer-to-layer vertical alignment. We expect this to result in a two-fold increase in the number of materials to be deposited and removed.

Finally, the industry will continue to adopt new and improved packaging schemes for enabling increased device performance, lower power consumption and to deliver desired form factors. In 2016, we saw the volume adoption of Fan-Out packaging in mobile devices and this trend is expected to grow further in 2017. The high performance computing segment will pursue 2.5D interposer and/or 3D TSV packaging schemes for higher memory bandwidth, lower latency and better power efficiency.

Applied Materials is focused on delivering game-changing selective process technologies and materials innovations to help solve the industry’s toughest challenges.

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The Semiconductor Industry Association (SIA) today announced worldwide sales of semiconductors reached $31.0 billion for the month of November 2016, an increase of 7.4 percent compared to the November 2015 total of $28.9 billion and 2.0 percent more than the October 2016 total of 30.4 billion. November marked the market’s largest year-to-year growth since January 2015. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Global semiconductor sales continued to pick up steam in November, increasing at the highest rate in almost two years and nearly pulling even with the year-to-date total from the same point in 2015,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Chinese market continues to stand out, growing nearly 16 percent year-to-year to lead all regional markets. As 2016 draws to a close, the global semiconductor market appears likely to roughly match annual sales from 2015 and is well-positioned for a solid start to 2017.”

Month-to-month sales increased modestly across all regions: the Americas (3.3 percent), China (2.7 percent), Europe (2.5 percent), Asia Pacific/All Other (0.7 percent), and Japan (0.4 percent). Year-to-year sales increased in China (15.8 percent), Japan (8.2 percent), Asia Pacific/All Other (4.8 percent), and the Americas (3.2 percent), but fell slightly in Europe (-1.6 percent).

From the ground-breaking research breakthroughs to the shifting supplier landscape, these are the stories the Solid State Technology audience read the most during 2016.

#1: Moore’s Law did indeed stop at 28nm

In this follow up, Zvi Or-Bach, president and CEO, MonolithIC 3D, Inc., writes: “As we have predicted two and a half years back, the industry is bifurcating, and just a few products pursue scaling to 7nm while the majority of designs stay on 28nm or older nodes.”

#2: Yield and cost challenges at 16nm and beyond

In February, KLA-Tencor’s Robert Cappel and Cathy Perry-Sullivan wrote of a new 5D solution which utilizes multiple types of metrology systems to identify and control fab-wide sources of pattern variation, with an intelligent analysis system to handle the data being generated.

#3: EUVL: Taking it down to 5nm

The semiconductor industry is nothing if not persistent — it’s been working away at developing extreme ultraviolet lithography (EUVL) for many years, SEMI’s Deb Vogler reported in May.

#4: IBM scientists achieve storage memory breakthrough

For the first time, scientists at IBM Research have demonstrated reliably storing 3 bits of data per cell using a relatively new memory technology known as phase-change memory (PCM).

#5: ams breaks ground on NY wafer fab

In April, ams AG took a step forward in its long-term strategy of increasing manufacturing capacity for its high-performance sensors and sensor solution integrated circuits (ICs), holding a groundbreaking event at the site of its new wafer fabrication plant in Utica, New York.

#6: Foundries takeover 200mm fab capacity by 2018

In January, Christian Dieseldorff of SEMI wrote that a recent Global Fab Outlook report reveals a change in the landscape for 200mm fab capacity.

#7: Equipment spending up: 19 new fabs and lines to start construction

While semiconductor fab equipment spending was off to a slow start in 2016, it was expected to gain momentum through the end of the year. For 2016, 1.5 percent growth over 2015 is expected while 13 percent growth is forecast in 2017.

#8: How finFETs ended the service contract of silicide process

Arabinda Daa, TechInsights, provided a look into how the silicide process has evolved over the years, trying to cope with the progress in scaling technology and why it could no longer be of service to finFET devices.

#9: Five suppliers to hold 41% of global semiconductor marketshare in 2016

In December, IC Insights reported that two years of busy M&A activity had boosted marketshare among top suppliers.

#10: Countdown to Node 5: Moving beyond FinFETs

A forum of industry experts at SEMICON West 2016 discussed the challenges associated with getting from node 10 — which seems set for HVM — to nodes 7 and 5.

BONUS: Most Watched Webcast of 2016: View On Demand Now

IoT Device Trends and Challenges

Presenters: Rajeev Rajan, GLOBALFOUNDRIES, and Uday Tennety, GE Digital

The age of the Internet of Things is upon us, with the expectation that tens of billions of devices will be connected to the internet by 2020. This explosion of devices will make our lives simpler, yet create an array of new challenges and opportunities in the semiconductor industry. At the sensor level, very small, inexpensive, low power devices will be gathering data and communicating with one another and the “cloud.” On the other hand, this will mean huge amounts of small, often unstructured data (such as video) will rippling through the network and the infrastructure. The need to convert that data into “information” will require a massive investment in data centers and leading edge semiconductor technology.

Also, manufacturers seek increased visibility and better insights into the performance of their equipment and assets to minimize failures and reduce downtime. They wish to both cut their costs as well as grow their profits for the organization while ensuring safety for employees, the general public and the environment.

The Industrial Internet is transforming the way people and machines interact by using data and analytics in new ways to drive efficiency gains, accelerate productivity and achieve overall operational excellence. The advent of networked machines with embedded sensors and advanced analytics tools has greatly influenced the industrial ecosystem.

Today, the Industrial Internet allows you to combine data from the equipment sensors, operational data , and analytics to deliver valuable new insights that were never before possible. The results of these powerful analytic insights can be revolutionary for your business by transforming your technological infrastructure, helping reduce unplanned downtime, improve performance and maximize profitability and efficiency.

In 2015, all economic indicators pointed to continued market growth for both industries, power electronics and LED, especially with IGBT modules boosted by EV/HEV industry and general lighting applications, a killer application for LEDs since 2012. To support this growth and answer the thermal management needs in power electronics and LED, lot of innovative technologies are emerging. According to Yole Développement (Yole), one of the most impressive technical developments is the convergence of thermal management for both sectors, LED and power electronics, particularly the materials used for thermal management. The thermal management convergence is driven by the applications, announces the “More than Moore” market research and strategy consulting company, Yole.

thermal management

Thermal Management Technology & Market perspectives in Power Electronics and LEDs report powered by Yole’s Power Electronics & LED teams, reviews insight into synergies between power electronics and LED for thermal management. It describes and analyzes drivers and challenges that are facing industrial companies. This latest report proposes an overview of the market trends and technology evolution including 2015-2021 market figures, technology status and technical roadmap analysis and more. Under this report, Yole’s analysts also offer business model and supply chain analysis across various materials used for thermal management.

A rapid convergence of key technologies is driving unprecedented change. In this dynamic environment, Yole’s goal is to understand their customers’ strengths and guide their success.

“Power electronics and LEDs are different industries that today face similar challenges”, explains Dr Pierric Gueguen, Business Unit Manager at Yole. And he adds:”Needs for green energy with lower CO2 emissions have led these industries to develop more efficient and smaller solutions.” At the device level, cost pressure and the need for better performance is pushing designers towards smaller and thinner chips, also leading to increased power density. Such power density targets in both power electronics and LEDs bring a convergence of thermal management requirements, supporting the development of new materials.

Among materials used for thermal management, Yole specifically investigated the market and technology evolution of die attach, substrates, baseplates/PCBs and encapsulants. Overall, the market for these materials was worth US$1.98 billion in 2015 and will grow to US$3.16 billion by 2021 at a CAGR of 6%.

“Their value proposition has the potential to bring business to their suppliers and key differentiating factors to device manufacturers,” commented Pierrick Boulay, Technology & Market Analyst at Yole.

“Power electronic modules represent a healthy market, worth about US$2.9 billion in 2015 and set to reach US$4.5 billion in 2021, growing at 9% CAGR,” explained Pierric Gueguen. In parallel, the LED packaging market reached US$15 billion in 2015, after years of strong growth led by LED TV and general lighting. However, price pressure will moderate growth in coming years, with a 3.4% CAGR leading to a market worth US$18.5 billion in 2021.

Power electronics and LEDs need the right materials to handle thermal management challenges. As those applications are driven by similar technical requirements, one technical solution can be adopted and developed for one industry before being used by another industry. “The 30% of the overall thermal management material market that is common to both LED and power electronics represents US$660 million in 2015”, announces Pierrick Boulay. “According to our estimations, such market segment will reach US$1014 million in 2021”. Moreover, another 30% can be reached by adapting existing technologies used in LED or power for the other application…

From perspectives ranging from manufacturers and material suppliers through to end users, market dynamics, drivers and challenges are presented in this report, for both power electronics and LEDs.
A detailed description of the thermal management report as well as other LED & Power Electronics reports Yole are available on i-micronews.com, reports section.

SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain, today reported that worldwide sales of new semiconductor manufacturing equipment are projected to increase 8.7 percent to $39.7 billion in 2016, according to the SEMI Year-end Forecast, released today at the annual SEMICON Japan exposition.  In 2017, another 9.3 percent growth is expected, resulting in a global semiconductor equipment market totaling $43.4 billion.

The SEMI Year-end Forecast predicts that wafer processing equipment, the largest product segment by dollar value, is anticipated to increase 8.2 percent in 2016 to total $31.2 billion. The assembly and packaging equipment segment is projected to grow by 14.6 percent to $2.9 billion in 2016 while semiconductor test equipment is forecast to increase by 16.0 percent, to a total of $3.9 billion this year.

For 2016, Taiwan and South Korea are projected to remain the largest spending regions, with China joining the top three for the first time. Rest of World (essentially Southeast Asia), will lead in growth with 87.7 percent, followed by China at 36.6 percent and Taiwan at 16.8 percent.

SEMI forecasts that in 2017, equipment sales in Europe will climb the most, 51.7 percent, to a total of $2.8 billion, following a 10.0 percent contraction in 2016. In 2017, Taiwan, Korea and China are forecast to remain the top three markets, with Taiwan maintaining the top spot even with a 9.2 percent decline to total $10.2 billion. Equipment sales to Korea are forecast at $9.7 billion, while equipment sales to China are expected to reach $7.0 billion.

The following results are given in terms of market size in billions of U.S. dollars:

2016-year-end