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IBM today announced a significant milestone in the development of silicon photonics technology, which enables silicon chips to use pulses of light instead of electrical signals over wires to move data at rapid speeds and longer distances in future computing systems.

For the first time, IBM engineers have designed and tested a fully integrated wavelength multiplexed silicon photonics chip, which will soon enable manufacturing of 100 Gb/s optical transceivers. This will allow datacenters to offer greater data rates and bandwidth for cloud computing and Big Data applications.

“Making silicon photonics technology ready for widespread commercial use will help the semiconductor industry keep pace with ever-growing demands in computing power driven by Big Data and cloud services,” said Arvind Krishna, senior vice president and director of IBM Research. “Just as fiber optics revolutionized the telecommunications industry by speeding up the flow of data — bringing enormous benefits to consumers — we’re excited about the potential of replacing electric signals with pulses of light. This technology is designed to make future computing systems faster and more energy efficient, while enabling customers to capture insights from Big Data in real time.”

Silicon photonics uses tiny optical components to send light pulses to transfer large volumes of data at very high speed between computer chips in servers, large datacenters, and supercomputers, overcoming the limitations of congested data traffic and high-cost traditional interconnects. IBM’s breakthrough enables the integration of different optical components side-by-side with electrical circuits on a single silicon chip using sub-100nm semiconductor technology.

IBM’s silicon photonics chips uses four distinct colors of light travelling within an optical fiber, rather than traditional copper wiring, to transmit data in and around a computing system. In just one second, this new transceiver is estimated to be capable of digitally sharing 63 million tweets or six million images, or downloading an entire high-definition digital movie in just two seconds.

The technology industry is entering a new era of computing that requires IT systems and cloud computing services to process and analyze huge volumes of Big Data in real time, both within datacenters and particularly between cloud computing services. This requires that data be rapidly moved between system components without congestion. Silicon photonics greatly reduces data bottlenecks inside of systems and between computing components, improving response times and delivering faster insights from Big Data.

IBM’s new CMOS Integrated Nano-Photonics Technology will provide a cost-effective silicon photonics solution by combining the vital optical and electrical components, as well as structures enabling fiber packaging, on a single silicon chip. Manufacturing makes use of standard fabrication processes at a silicon chip foundry, making this technology ready for commercialization.

Silicon photonics technology leverages the unique properties of optical communications, which include transmission of high-speed data over kilometer-scale distances, and the ability to overlay multiple colors of light within a single optical fiber to multiply the data volume carried, all while maintaining low power consumption. These characteristics combine to enable rapid movement of data between computer chips and racks within servers, supercomputers, and large datacenters, in order to alleviate the limitations of congested data traffic produced by contemporary interconnect technologies.

Silicon photonics will transform future datacenters

By moving information via pulses of light through optical fibers, optical interconnects are an integral part of contemporary computing systems and next generation datacenters. Computer hardware components, whether a few centimeters or a few kilometers apart, can seamlessly and efficiently communicate with each other at high speeds using such interconnects. This disaggregated and flexible design of datacenters will help reduce the cost of space and energy, while increasing performance and analysis capabilities for users ranging from social media companies to financial services to universities.

Most of the optical interconnect solutions employed within datacenters as of today are based upon vertical cavity surface emitting laser (VCSEL) technology, where the optical signals are transported via multimode optical fiber. Demands for increased distance and data rate between ports, due to cloud services for example, are driving the development of cost-effective single-mode optical interconnect technologies, which can overcome the bandwidth-distance limitations inherent to multimode VCSEL links.

IBM’s CMOS Integrated Nano-Photonics Technology provides an economical solution to extend the reach and data rates of optical links. The essential parts of an optical transceiver, both electrical and optical, can be combined monolithically on one silicon chip, and are designed to work with with standard silicon chip manufacturing processes.

IBM engineers in New York and Zurich, Switzerland and IBM Systems Unit have demonstrated a reference design targeting datacenter interconnects with a range up to two kilometers. This chip demonstrates transmission and reception of high-speed data using four laser “colors,” each operating as an independent 25 Gb/s optical channel. Within a full transceiver design, these four channels can be wavelength multiplexed on-chip to provide 100 Gb/s aggregate bandwidth over a duplex single-mode fiber, thus minimizing the cost of the installed fiber plant within the datacenter.

Further details will be presented by IBM at the 2015 Conference on Lasers and Electro Optics (May 10-15) in San Jose, California, during the invited presentation entitled “Demonstration of Error Free Operation Up To 32 Gb/s From a CMOS Integrated Monolithic Nano-Photonic Transmitter,” by Douglas M. Gill, Chi Xiong, Jonathan E. Proesel, Jessie C. Rosenberg, Jason Orcutt, Marwan Khater, John Ellis-Monaghan, Doris Viens, Yurii Vlasov, Wilfried Haensch, and William M. J. Green.

IBM Research has been leading the development of silicon photonics for more than a decade, announcing a series of technology milestones beginning in 2006. Silicon photonics is among the efforts of IBM’s $3 billion investment to push the limits of chip technology to meet the emerging demands of cloud and Big Data systems.

The 61st annual IEEE International Electron Devices Meeting (IEDM) has issued a Call for Papers seeking the world’s best original work in all areas of microelectronics research and development. The paper submission deadline is Monday, June 22, 2015 at 23:59 p.m. Pacific Time.

Overall, the 2015 IEDM is seeking increased participation in the areas of ‘Beyond CMOS’ devices, flexible devices, neuromorphic computing, power devices, sensors for the Internet of Things (IoT) and variation/reliability.

In addition, Special Focus Sessions will be held on the following topics: neural-inspired architectures; 2D materials and applications; flexible electronics and applications; power devices and reliability on non-native substrates; and silicon-based nanodevices for detection of biomolecules.

The 2015 IEDM will take place at the Washington, DC Hilton Hotel from December 7-9, 2015, preceded by a collection of 90-minute afternoon Tutorial sessions on Saturday, Dec. 5, and a full day of Short Courses on Sunday, Dec. 6. On Wednesday the conference will continue the successful Entrepreneurs Luncheon sponsored by IEDM and EDS Women in Engineering.

At IEDM each year, the world’s best scientists and engineers in the field of microelectronics from industry, academia and government gather to participate in a technical program of more than 220 presentations, along with a special Luncheon Presentation on Tuesday, Dec. 8 and a variety of panels, special sessions, Short Courses, IEEE/EDS award presentations and other events spotlighting more leading work in more areas of the field than any other conference.

Papers in the following areas are encouraged:
– Circuit and Device Interaction
– Characterization, Reliability and Yield
– Display and Imaging Systems
– Memory Technology
– Modeling and Simulation
– Nano Device Technology
– Power and Compound Semiconductor Devices
– Process and Manufacturing Technology
– Sensors, MEMS and BioMEMS

SEMI has announced that executives from MEMS giants Bosch and STMicroelectronics, MEMS largest fabless Invensense and dominating IC foundry TSMC will be delivering the keynote talks at the European MEMS Summit (Sept 17-18, 2015 – Milan, Italy).

For the first installment of SEMI’s European MEMS Summit, themed “Sensing the Planet, MEMS for Life,” Stefan Finkbeiner, GM and CEO of Bosch Sensortec, Benedetto Vigna, Executive VP and General Manager of the Analog, MEMS & Sensors group of STMicroelectronics, Behrooz Abdi, CEO and President of Invensense, and Maria Marced, President of TSMC Europe will join SEMI to share their vision of the current challenges facing the MEMS industry and their recipes for success. With these headliners, SEMI’s European MEMS Summit promises to be a powerhouse of MEMS experts, both from a technological standpoint and from a business standpoint.

“We are very excited to offer attendees a high-profile collection of international speakers for this first edition of our European MEMS Summit,” commented Yann Guillou, business development manager at SEMI. “Elaborated with the support of industry representatives, we have made an effort to address the most crucial industry issues with the belief that this conference program will be a positive contribution to the MEMS industry and will help MEMS actors collectively shape their industry’s progress. Above all, our hope is that attendees will leave the Summit with a better understanding of the crucial technological and business challenges faced by the MEMS value chain as well as an idea of the solutions that are being proposed today to address those problems.”

The Summit’s conference will bring together a diversity of high caliber MEMS technology experts, including representatives of ARM, ASE Group, CEA-Leti, Freescale, IHS, Infineon, SITRI, Tronics Microsystems, X-FAB, Yole Développement and more. The event will insist on the importance of understanding the dynamics of the marketplace in perpetuating a global comprehension of the evolution of MEMS. Speakers will provide their outlooks on the MEMS market, their expectations for future marketplace trends and their assessment of the changes in business models, the supply chain, and the ecosystem. One full day of the event will be dedicated to “Applications” to give attendees a more global vision of how MEMS are being applied in the automotive, consumer electronics, wearable and industrial sector as well as the importance of MEMS in the growth of the Internet of Things. Despite a strong focus on business-related aspects, technology will not be forgotten; speakers will address topics such as new detection principles, innovation in materials, new packaging solutions, MEMS on 300mm wafers and more.

The Summit will be held at the grandiose Palazzo Lombardia, in Milan, Italy. At the heart of the Palazzo and in complement to the conference, SEMI will organize a MEMS Exhibition, giving companies with MEMS activities a chance to reach out to other participants who are coming from the same sector. The European MEMS Summit will include numerous networking opportunities – a gala dinner, a networking cocktail hour and numerous coffee and lunch breaks.

For any question regarding the event, contact Yann Guillou from SEMI ([email protected]).

BY GREG SHUTTLEWORTH, Global Product Manager at LINDE ELECTRONICS

The market expectations of modern electronics technology are changing the landscape in terms of performance and, in particular, power consumption, and new innovations are putting unprecedented demands on semiconductor devices. Internet of Things devices, for example, largely depend on a range of different sensors, and will require new architectures to handle the unprecedented levels of data and operations running through their slight form factors.

The continued shrinkage of semiconductor dimensions and the matching decreases in microchip size have corresponded to the principles of Moore’s Law with an uncanny reliability since the idea’s coining in 1965. However, the curtain is now closing on the era of predictable / conventional size reduction due to physical and material limitations.

Thus, in order to continue to deliver increased performance at lower costs and with a smaller footprint, different approaches are being explored. Companies can already combine multiple functions on a single chip–memory and logic devices, for example–or an Internet of Things device running multiple types of sensor through a single chip.

We have always known that we’d reach a point where conventional shrinking of semiconductor dimensions would begin to lose its effect, but now we are starting to tackle it head on. A leading U.S. semiconductor manufacturer got the ball rolling with their FinFET (or tri–gate) design in 2012 with its 3D transistors allowing designs that minimize current leakage; other companies look set to bring their own 3D chips to market.

At the same time, there’s a great deal of experimentation with a range of other approaches to semiconductor redesign. Memory device manufacturers, for instance, are looking to stack memory cells vertically on top of each other in order to make the most of a microchip’s limited space. Others, meanwhile, are examining the materials in the hope of using new, more efficient silicon–like materials in their chips.

Regardless of the approach taken, however, this step change in microchip creation means new material demands from chip makers and new manufacturing techniques to go with them.

The semiconductor industry has traditionally had to add new materials and process techniques to enhance the performance of the basic silicon building blocks with tungsten plugs, copper wiring / CMP, high–k metal gates, for example. Now, however, it is beginning to become impossible to extend conventional materials to meet the performance requirements. Germanium is already added to Si to introduce strain, but its high electron mobility means Germanium is also likely to become the material of the Fin itself and will be complemented by a corresponding Fin made of III–V material, in effect integrating three semiconductor materials into a single device.

Further innovation is required in the areas of lithography and etch. This is due to the delay in production suitability of the EUV lithography system proposed to print the very fine structures required for future technology nodes. Complex multi-patterning schemes using conventional lithography are already underway to compensate for this technology delay, requiring the use of carbon hard masks and the introduction of gases such as acetylene, propylene and carbonyl sulphide to the semiconductor fab. Printing the features is only half of the challenge; the structures also need to be etched. The introduction of new materials always presents some etch challenges as all materials etch at slightly different rates and the move to 3D structures, where very deep and narrow features need to be defined through a stack of different materials, will be a particularly difficult challenge to meet.

The microchip industry has continuously evolved to deliver amazing technological advances, but we are now seeing the start of a revolution in microchip design and manufacturing. The revolution will be slow but steady. Such is the pattern of the microchip industry, but it will need a succession of new materials at the ready, and, at Linde, we’re prepared to make sure the innovators have everything they need.

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

Nanoelectronics research center imec, today reported the financial results for fiscal year ended December 31, 2014. Revenue for 2014 totaled 363 million euros, a 9 percent growth from the previous year.

The fiscal year end total includes the revenue generated through R&D contracts from international partners, collaborations with universities worldwide and funds from European research initiatives. The annual revenue figure also covers a yearly grant from the Flemish government totaling 48.8 million euro in 2014, and a 4.1 million euro grant from the Dutch government to support the Holst Centre, a research center setup by imec and TNO.

“I am extremely proud that 2014, our 30th anniversary year, concludes as one of our strongest years ever,” said Luc Van den hove, president and CEO at imec. “We reported strong financial growth, announced new collaborations and inspiring innovations. We filed a record number of patents, achieved notable industry awards and published prominent scientific papers—all a testament to our commitment to innovate. Moreover, we also added significant talent to our already impressive roster of researchers, growing to a total of 2,188 employees by the end of 2014.”

“Looking to the future, together with our partners, we are committed to overcome the next challenges. First, we work to enable the fabrication of sub-10nm technology. With further scaling, new lithography techniques and new materials, and based on CMOS technology, we’ll be busy doing that for another number of years. But we have also started looking for materials and techniques for the post-CMOS era. There are many alternatives, and it is our task to see which of these can be scaled to a technology that can be mass-produced. Next to that, we help our partners with technologies for the sustainable and smart applications of the Internet-of-Things, Internet-of-Energy, and Internet-of-Health. It is expected that 2015 will be an important year for the breakthrough of these systems. A breakthrough that will be positive for the whole semiconductor industry;” continued Luc Van den hove. “This groundbreaking research requires ever more talent. That’s why today we have over 100 vacancies for a variety of profiles. Vacancies for people who have the ambition to contribute to the technologies for a sustainable future.”

2014 Organizational Highlights:

  • As an international scientific hub, 71 nationalities are now represented at imec, a multicultural environment, attracting top global talent
  • 950 peer-reviewed papers and conference presentations were published
  • ·         Imec and the organization’s researchers received 34 awards. Amongst them, imec took home the CS Industry R&D Award 2014, recognizing success and progression along the entire value chain of the semiconductor industry, for its outstanding work on III/V FinFET devices. Imec also received the PRoF Award for Research 2014, acknowledging the application of imec’s nanotechnology research and development in the healthcare domain. In July 2014, imec was awarded by the European Commission with the HR excellence in Research label, a recognition of imec’s human resource policy to create the best possible employment and working conditions for researchers 
  • With a record of 143 filed patents, imec was the leading Belgian applicant of European patents in 2014. In the past years, imec has increased its investment in building a patent portfolio to support its R&D offering and to form a solid base for more application oriented activities. Imec’s patent portfolio also leverages the patent portfolio of Flemish Academia with which the organization collaborates
  • Two new spin-offs were launched in 2014—Luceda Photonics, active in photonics design, and Bloom Technologies, focusing on wearable health monitoring for expectant mothers
  • To house its growing talent base, imec opened a new office building, as it aims to expand further across its R&D focuses. Additionally, the center also started building a new cleanroom that adheres to the very latest standards with a significant footprint for the most advanced semiconductor tools. The new cleanroom will enable the organization to remain at the forefront of nanoelectronics research and development, offering a neutral platform where all the key players from the semiconductor value chain closely collaborate to advance the next generation technology nodes and advancing industrial innovation
  • Imec IC-link is imec’s industrial arm offering SMEs, universities and research institutes access to advanced foundry technologies, assembly, test, and place and route services. With a customer base of more than 300 SMEs and 700 universities and research institutes (through Europractice service), IC-link tapes-out an average of 500 designs per year

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.

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