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SEMI, the industry association representing the global electronics manufacturing supply chain, and TechSearch International today reported that the global semiconductor packaging materials market reached $16.7 billion in 2017. While slower growth of smartphones and personal computers – the industry’s traditional drivers – is reducing material consumption, the slowdown was offset by strong unit growth in the cryptocurrency market in 2017 and early 2018. Flip chip package shipments into the cryptocurrency market, while providing a windfall to many suppliers, are not expected to remain at high levels.

The Global Semiconductor Packaging Materials Outlook shows that, despite growth in automotive electronics and high-performance computing, continuing price pressure and declining material consumption will constrain future material revenue growth to steady single-digits, with the materials market forecast to reach $17.8 billion in 2021. IC leadframes, underfill, and copper wire are among the materials segments that will see single-digit unit volume growth through 2021.

Laminate substrate suppliers participating in the sale of flip chip substrates for cryptocurrency saw volume increases in 2017, but this segment continues to be battered by increased use of multi-die solutions and the shift to wafer level packages (WLPs), including fan-out WLP, slowing growth. Wafer-level packaging (WLP) dielectrics and plating chemistry suppliers will experience stronger revenue growth as the adoption of advanced packaging continues.

Over the next several years, advances in the semiconductor materials market will present a number of opportunities driven by trends including:

  • Continued adoption of FO-WLP including FO-on-substrate solutions with high density geometries down to 2µm lines and spaces
  • Liquid crystal polymer (LCP) under consideration as a possible material option because of its good electrical performance and low moisture absorption, especially for mmWave applications such as 5G
  • Adoption of low-cost package solutions such as MIS and other routable-QFN technologies
  • PPF QFN volumes are rising with automotive applications, driving a requirement for roughened plating to deliver needed reliability
  • Expansion of photoresist plating capability for selective plating of leadframes
  • Thermally enhanced and high-voltage mold compounds for power and automotive devices
  • Thermally conductive die attach materials other than solder die attach for power applications

Report highlights include:

  • Laminate substrates represent the largest revenue segment of the materials market with more than $6 billion in sales for 2017.
  • Overall leadframe shipments are forecast to grow at a 3.9 percent CAGR from 2017 through to 2021, with LFCSP (QFN type) experiencing the strongest unit growth, an 8 percent CAGR.
  • Following five years of decline, gold wire shipments increased in both 2016 and 2017 though represent just 37 percent of the total bonding wire shipments in 2017.
  • Liquid encapsulant revenues totaled $1.3 billion in 2017 with single-digit expected through 2021. LED packaging applications are driving the revenue growth over the forecast period though downward pricing pressures are a constant in the market.
  • Die attach material revenues reached $741 million in 2017 with single digit growth to 2021. DAF materials will experience higher unit growth, though downward pricing trends continue.
  • Solder ball revenues reached $231 million in 2017. The revenue outlook depends on fluctuations in metal pricing.
  • The wafer-level plating chemical market was put at $263 million in 2017 with strong growth through 2021. RDL and Cu pillar will be the key growth segments.

SEMI and TechSearch International, Inc. teamed up again to develop the 8th edition of the Global Semiconductor Packaging Materials Outlook, a comprehensive market research study on the semiconductor packaging materials market. Interviews were conducted with more than 130 semiconductor manufacturers, packaging subcontractors, fabless semiconductor companies, and packaging material suppliers to gather information for the report. The report covers the following semiconductor packaging materials segments: substrates, leadframes, bonding wire, mold compounds, underfill materials, liquid encapsulants, die attach materials, solder balls, wafer level package dielectrics, and wafer-level plating chemicals.

UnitySC, a developer of advanced inspection and metrology solutions for the semiconductor and related industries, today announced that its board of directors has appointed Kamel Ait-Mahiout as chief executive officer. He has also been elected to serve on UnitySC’s board. Following the company’s recent announcement of the acquisition of HSEB Dresden, GmbH, this appointment marks the next step of the company’s aggressive growth strategy for its process control solutions.

Ait-Mahiout joins UnitySC after serving seven years as senior vice president and general manager at Amkor Europe. During that time, he successfully restructured Amkor Europe, strategically positioning the company as a dynamic, customer-oriented, and commercially strong organization. Under his watch, Amkor Europe’s revenue grew by more than 60%, despite the region’s challenging competitive environment.

“We are pleased to welcome Kamel as Unity’s new CEO,” said Patrick Leteurtre, chairman of the board, UnitySC.  “He has demonstrated his leadership experience, operational excellence, and strategic vision in the semiconductor industry for over 20 years. Kamel’s experience managing growth businesses makes him exceptionally well-suited to lead us through our next growth phase, and position Unity as the next market leader in advanced inspection and metrology equipment.”

“It is a pivotal time to be joining UnitySC. The company has built a strong reputation for technology and market leadership, particularly in new semiconductor applications, and has significant growth potential driven by its ambitious strategy,” said Ait-Mahiout. “The combination of great in-house technologies, high-value products, growth based on a solid backlog of profitable revenue, and a group of very talented employees in a dynamic and innovative company culture is a recipe for success and makes for a very exciting CEO opportunity. I am delighted to bring my experience to guide the company through its next growth phase and make it a key player in semiconductor process control.”

Prior to Amkor, Ait-Mahiout held various roles with Kyocera Microelectronics and Tekelec Temex. In addition to a technical engineering background, he has a deep understanding of supply chain and industrial strategy. Ait-Mahiout holds a Science Master EEA, Electronic Components Option from the University of Technology in Reims, France.

Although flexible active-matrix organic light-emitting diode (AMOLED) panel shipments for smartphones are expected to continue growing in 2018, the pace will be much slower than expected, according to a latest report from business information provider IHS Markit(Nasdaq: INFO).

With the adoption by Apple’s iPhone X, shipments of film-based, flexible AMOLED panels for smartphones more than tripled in 2017 to 125 million units from 40 million units in 2016, and it was expected to see continued strong growth in 2018. However, sales of the iPhone X have not met market expectations, mainly because of the $1,000-plus price tag, which is partially attributed by a more pricey display panel.

“The weak demand for the iPhone X has made smartphone brands revisit their AMOLED panel purchasing plans,” said Hiroshi Hayase, senior director at IHS Markit. Now, flexible AMOLED panel shipments for smartphones are expected to reach 167 million units in 2018, up 34 percent from 2017, much slower than the expected almost double growth.

Apple seems to reexamine the percentage of its iPhone models using AMOLED panels and those using low-temperature-poly-silicon (LTPS) thin-film transistor liquid crystal display (TFT LCD) panels for 2018. Major Chinese smartphone brands, such as Huawei, Oppo, Vivo and Xiaomi, also appear to continue applying LTPS TFT LCD panels instead of switching to AMOLED for their 2018 models, while Samsung Electronics plans to keep using flexible AMOLED panels for the Galaxy S9 this year.

As a result, demand for AMOLED smartphone panels by switching from TFT LCD panels is expected to slow down. According to the latest Smartphone Display Intelligent Service report by IHS Markit, shipments of total AMOLED panel shipments for smartphones are forecast to grow 14 percent to 453 million units in 2018, from 397 million units in 2017. Glass-based, rigid AMOLED panel shipments are expected to grow at a single digit pace to 285 million units in 2018.

On the other hand, as demand for high-resolution smartphone displays is increasing in the mid-to-high-end smartphone market, demand for LTPS TFT LCD panels is forecast to keep growing in 2018 to 785 million units, up 19 percent from 656 million units in 2017. Shipments of LTPS TFT LCD panels are expected to grow stronger than AMOLED panels in the mid-high-end smartphone panel market in 2018.

Shipments of amorphous silicon (a-Si) TFT LCD panels used for low-end smartphones and feature phones are forecast to reach 807 million units in 2018, down 16 percent form 965 million units in 2017, offsetting the growth in AMOLED and LTPS TFT LCD panel demand.

Total shipments of mobile phone displays, including both TFT LCD and AMOLED panels, are forecast to increase by 1 percent to 2.02 billion units in 2018 compared to the previous year.

“As AMOLED panels allow more options in terms of form factors, demand for AMOLED for smartphones will continue to grow. However, it will start to outpace LTPS TFT LCD only after 2020,” Hayase said. “In order to compete with LTPS TFT LCD, production cost of both rigid and flexible AMOLED panels still need to be slashed, to close the price gap with LTPS TFT LCD.”

Amkor Technology, Inc. (Nasdaq: AMKR), a provider of semiconductor packaging and test services, today announced that multiple factories have passed certification audits for IATF 16949:2016, a key certification required for manufacturers who supply products to the automotive market. IATF 16949:2016 replaces and supersedes the older ISO/TS 16949 standard.

Included in the list of factories that achieved certification is Amkor’s newest, K5 ― a facility with 2.3 million square feet of floor space located in Incheon, South Korea. K5 combines automation, world class particle control and automotive processes to meet stringent quality and reliability requirements.

“This certification is a testament to Amkor’s significant automotive experience, as well as our exacting quality standards,” said YongChul Park, Amkor’s executive vice president, Worldwide Manufacturing. “Semiconductors are the foundation for automotive electronic systems that help keep passengers connected and safe. Certifying our factories for automotive applications offers significant growth opportunities for Amkor and enables us to deliver the leading-edge solutions our customers and automotive OEMs require.”

Automotive ICs must perform reliably under harsh conditions for extended periods of time. To deliver the durability and accuracy expected by automakers, IC suppliers are required to use specialized packaging techniques with additional process steps and controls. Amkor has factories in several countries that have achieved IATF 16949:2016 certification, including ATK, ATP, ATM, ATT, and ATC; IATF 16949:2016 certifications for J-Devices and Amkor Technology Portugal are in process. For more information, visit https://amkor.com/quality-management/.

SEMI today announced that it has signed a memorandum of understanding to integrate the ESD (Electronic System Design) Alliance as a SEMI Strategic Association Partner this year. Under the partnership, the Redwood City, Calif.-based association and its system design ecosystem membership will join SEMI, deepening ESD Alliance’s global reach in the electronics manufacturing supply chain and enabling SEMI members to connect and directly collaborate with the semiconductor design sector.

As a SEMI Strategic Association Partner, the ESD Alliance will continue to pursue its mission representing companies in the semiconductor design ecosystem by addressing technical, marketing, economic and legislative issues affecting the entire industry. The ESD Alliance will retain its own governance and lead its overall direction and initiatives while leveraging SEMI’s robust global resources. With the addition of the ESD Alliance, SEMI adds the product design segment to the electronics manufacturing supply chain, streamlining and connecting the full ecosystem.

“Design is the very foundation of semiconductor innovation and manufacturing, and the ESD Alliance complements SEMI’s existing membership in bringing smarter, faster, more powerful, and more affordable electronic products to more people every day,” said Ajit Manocha, president and CEO of SEMI. “ESD Alliance members bring key insights to SEMI vertical application platforms such as Smart Transportation, Smart Manufacturing and Smart Data to enhance collaboration and innovation across the collective SEMI membership. We welcome ESD Alliance members to the SEMI family of Strategic Association Partners as we continue to broaden SEMI’s scope to include the full global electronics product design and manufacturing supply chain.”

“The integration of the ESD Alliance with SEMI’s event and global platforms will enable us to extend our design expertise in the worldwide electronics industry,” said Bob Smith, executive director, the ESD Alliance. “ESD Alliance members will be better able to more efficiently engage with the electronics manufacturing supply chain on technical and business issues and gain access to comprehensive global resources and platforms.”

Those resources include SEMI’s technology communities and activities in areas such as advocacy, international standards and environment, health and safety (EH&S), industry statistics, trade and regulatory initiatives.

The integration is a key step in streamlining collaboration and connection of SEMI members with the electronic system design, IP and fabless communities. Among other benefits, the integration promises to tighten the industry coordination and collaboration necessary to developing specialized artificial intelligence (AI) chips for a host of smart applications.

“The semiconductor industry has grown and matured since the EDA Consortium was formed,” said Dr. Aart de Geus, chairman and co-Chief Executive Officer of Synopsys. “Many of the previously disparate areas within the industry now overlap and it’s obvious we need to address the supply chain from manufacturing all the way through design. The ESD Alliance represents the system design ecosystem and perfectly aligns with SEMI’s vision to support the entire supply chain. As an international organization with offices around the globe, SEMI gives the ESD Alliance an opportunity to further expand its reach and grow to its full potential.”

All ESD Alliance member companies, including global leaders ARM, Cadence, Mentor, a Siemens business, and Synopsys, will join SEMI’s global membership of more than 2,000 companies while retaining the ESD Alliance’s distinct self-governed community within SEMI.

SEMI, the industry association representing the global manufacturing supply chain, today announced postponement of SEMICON Southeast Asia from 8-10 May 2018 to 22-24 May 2018. The postponement avoids a timing conflict with the recently announced Malaysian election planned for 9 May 2018. The venue for SEMICON Southeast Asia, the newly constructed Malaysia International Trade and Exhibition Centre (MITEC), remains unchanged

The postponement is in respect to Malaysian exhibitors and visitors to exercise their right to vote, said Ng Kai Fai, President of SEMI Southeast Asia. The decision was made in view of the election date and following discussions with SEMICON Southeast Asia stakeholders.

“We highly value and respect the country’s election process, which is very important for Malaysia and Malaysians,” Kai Fai said. “We also want to ensure that SEMICON Southeast Asia achieves its primary objective of forming connections and collaborations for exhibitors and visitors, both regionally and globally. We have received very strong support from our stakeholders and are confident and reassured that this will be the largest SEMICON Southeast Asia show to date.”

 

Global MEMS market for mobile devices to grow at a CAGR of 10.55% during the period 2017-2021.

The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

One trend in the market is advances in the manufacturing technology of MEMS pressure sensors. The OEMs in the global MEMS pressure sensors market are continually adding new features to their products, resulting in the launch of innovative products in the market on a regular basis. The accuracy of MEMS pressure sensors is increasing with these advances.

According to the report, one driver in the market is MEMS becoming an integral part of consumer electronic devices. MEMS devices are increasingly being used in consumer electronics and mobile devices such as smartphones, tablets, and gaming consoles. The mobile devices integrated with MEMS devices can be scrolled, tilted, rotated, and switched from horizontal and vertical displays. Applications such as GPS and gaming, which employ motion sensors, are popular among smartphone and tablet users. For instance, MEMS sensors, when used in GPS applications, help consumers get directions and estimate the distance even in remote locations.

Further, the report states that one challenge in the market is design-related challenges faced by optical MEMS manufacturers. MEMS manufacturers face a lot of difficulties while designing optical MEMS. The optimization of the switching speed of optical MEMS devices needs a clear understanding of the mode shapes and frequencies of oscillations. Optical MEMS devices need to be checked for parameters such as shock dynamics, temperature drift, contact dynamics, and power. Furthermore, the manufacturing of integrated MEMS wafers is very challenging for the manufacturers as the components are manufactured individually and are then assembled on a single chip. This increases the time to market and creates the need for the testing of components at the individual and assembled levels.

Key Vendors

  • Analog Devices
  • Robert Bosch
  • STMicroelectronics

Other Prominent Vendors

  • AAC Technologies
  • Goertek
  • Maxim Integrated
  • Murata Manufacturing
  • Sensata Technologies
  • Silicon Laboratories

Cree, Inc. (NASDAQ: CREE) announces that it signed a non-exclusive, worldwide, royalty-bearing patent license agreement with Nexperia BV, a Dutch company. The agreement provides Nexperia access to Cree’s extensive gallium nitride (GaN) power device patent portfolio, which includes over 300 issued U.S. and foreign patents that describe inventive aspects of high electron mobility transistor (HEMT) and GaN Schottky diode devices. The portfolio addresses novel device structures, materials and processing improvements, and packaging technology. The patent license involves no transfer of technology.

“Cree was founded to develop novel compound semiconductor materials like GaN and SiC and to create devices that capitalize on their unique properties,” said John Palmour, Cree co-founder and CTO of Wolfspeed, a Cree company. “Cree’s decades of innovation are now yielding devices that enable market introductions of new power management and wireless systems. To help facilitate the growth of these new markets, Cree is licensing its GaN power device patents for GaN power-management systems.”

Veeco Instruments Inc. (NASDAQ: VECO) today announced its GENxcel R&D Molecular Beam Epitaxy (MBE) System earned the 2018 Compound Semiconductor (CS) Industry Innovation Award. Hosted by Compound Semiconductor magazine, the CS Industry Awards celebrate the success of companies across five unique categories. Specifically, the Innovation Award honors the most significant breakthrough in compound semiconductor manufacturing over the last 12 months.

“We are honored to have the GENxcel MBE System recognized by Compound Semiconductor and our industry peers. The recognition is especially meaningful because winners are voted on by our respected colleagues, customers and collaborators,” said Gerry Blumenstock, vice president and general manager of MBE and ALD products at Veeco. “We continue to be committed to creating the most advanced and highest quality tools to support leading-edge compound semiconductor R&D and production.”

The GENxcel R&D MBE system builds on the success of the GENxplor® MBE system designed for compound semiconductor R&D and pilot production markets. The system produces high-quality epitaxial layers on substrates up to 100mm in diameter. The innovative architectural concept of GENxcel reduces the system footprint by 40 percent compared to similar 100mm wafer systems, improves the ease of maintenance, and allows users to easily integrate additional deposition and analysis chambers—specifically Veeco’s new atomic layer deposition (ALD) product line.

The CS Industry Awards is a peer-voted awards program honoring people, processes and products within the compound semiconductor industry. Winners were honored at a ceremony on April 10 in conjunction with the CS International Conference in Brussels, Belgium. For a complete list of 2018 winners, visit www.csawards.net/winners.

Previous Veeco products that have won the CS Industry Innovation Award include the TurboDisc® EPIK700™ Gallium Nitride (GaN) Metal Organic Chemical Vapor Deposition (MOCVD) System in 2015, the GENxplor MBE system in 2014, and the TurboDisc® MaxBright® Multi-Reactor MOCVD System in 2012. To learn more about Veeco’s GENxcel R&D MBE system, please visithttp://www.veeco.com/products/genxcel-randd-mbe-system.

Indium Corporation, one of more than 3,000 ON Semiconductor production suppliers, was selected for its commitment to ensuring high quality and supply continuity in an evolving semiconductor market.

The annual Perfect Quality Award was presented to Weng Fai Pang, Managing Director for Asia-Pacific Operations, and Tim Twining, Vice President of Marketing, at ON Semiconductor’s Supplier Executive Conference in March in Hong Kong, China.

Indium Corporation is a materials manufacturer and supplier to the global electronics, semiconductor, thin-film, and thermal management markets. Products include solders and fluxes; brazes; thermal interface materials; sputtering targets; indium, gallium, germanium, and tin metals and inorganic compounds; and NanoFoil®. Founded in 1934, the company has global technical support and factories located in China, Malaysia, Singapore, South Korea, the United Kingdom, and the USA.