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Air Products (NYSE: APD) today announced it has been awarded the industrial gases supply for Samsung Electronics’ second semiconductor fab in Xi’an, Shaanxi Province, western China.

The Xi’an fabrication line, within the Xi’an High-tech Zone (XHTZ), represents one of Samsung’s largest overseas investments and one of the most advanced fabs in China. It produces three-dimensional (3D) vertical NAND (V-NAND) flash memory chips for a wide range of applications, including embedded NAND storage, solid state drives, mobile devices, and other consumer electronics products.

Air Products has been supporting this project since 2014 from a large site housing two large air separation units (ASUs), a hydrogen plant and a bulk specialty gas delivery system. Under the new award, Air Products will expand its site by building several large ASUs, hydrogen and compressed dry air plants, and a bulk specialty gas supply yard to supply ultra-high purity nitrogen, oxygen, argon, hydrogen and compressed dry air to the new fab, which is scheduled to be operational in 2019.

“Samsung is a strategic and longstanding customer for Air Products. It is our honor to have their continued confidence and again be selected to support their business growth and this important project in western China,” said Kyo-Yung Kim, president of Air Products Korea, who also oversees the company’s electronics investment in the XHTZ. “We have been supplying the project with proven safety, reliability and operational excellence. This latest investment further reinforces our global leading position and commitment to serving our valued customer, as well as the broader semiconductor and electronics industries.”

Continuing to build its strong relationship with Samsung Electronics, Air Products also recently announced the next phases of expansion to build two more nitrogen plants serving the customer’s giga fab in Pyeongtaek City, Gyeonggi Province, South Korea.

A leading integrated gases supplier, Air Products has been serving the global electronics industry for more than 40 years, supplying industrial gases safely and reliably to most of the world’s largest technology companies. Air Products is working with these industry leaders to develop the next generation of semiconductors and displays for tablets, computers and mobile devices.

Microprocessors, which first appeared in the early 1970s as 4-bit computing devices for calculators, are among the most complex integrated circuits on the market today.  During the past four decades, powerful microprocessors have evolved into highly parallel multi-core 64-bit designs that contain all the functions of a computer’s central processing unit (CPU) as well as a growing number of system-level functions and accelerator blocks for graphics, video, and emerging artificial intelligence (AI) applications.  MPUs are the “brains” of personal computers, servers, and large mainframes, but they can also be used for embedded processing in a wide range of systems, such as networking gear, computer peripherals, medical and industrial equipment, cars, televisions, set-top boxes, video-game consoles, wearable products and Internet of Things applications.  The recently released 2018 edition of IC Insights’ McClean Report shows that the fastest growing types of microprocessors in the last five years have been mobile system-on-chip (SoC) designs for tablets and data-handling cellphones and MPUs used in embedded-processing applications (Figure 1).

Figure 1

Figure 1

The McClean Report also forecasts that 52% of 2018 MPU sales will come from sales of all types of microprocessors used as CPUs in standard PCs, servers, and large computers.  As shown in Figure 2, only about 16% of MPU sales are expected from embedded applications in 2018, with the rest coming from mobile application processors used in tablets (4%) and cellphones (28%).  Cellphone and tablet MPUs exclude baseband processors, which handle modem transmissions in cellular networks and are counted in the wireless communications segment of the special-purpose logic IC product category. A little over half of 2018 microprocessor sales are expected to come from x86 MPUs for computer CPUs sold by Intel and rival Advanced Micro Devices.

Figure 2

Figure 2

Cellphone and tablet SoC processors were the main growth drivers in microprocessors during the first half of this decade, but slowdowns have hit both of these MPU categories since 2015.  Market saturation and the maturing of the smartphone segment have stalled unit growth in cellular handsets.  Cellphone application processor shipments were flat in 2016 and 2017 and are forecast to rise just 0.3% in 2018 to reach a record high of nearly 1.8 billion units in the year.

The microprocessor business continues to be dominated by the world’s largest IC maker, Intel (Samsung was the world’s largest semiconductor supplier in 2017). Intel’s share of total MPU sales had been more than 75% during most of the last decade, but that percentage is now slightly less than 60% because of stronger growth in cellphones and tablets that contain ARM-based SoC processors.  For nearly 20 years, Intel’s huge MPU business for personal computers has primarily competed with just one other major x86 processor supplier—AMD—but increases in the use of smartphones and tablets to access the Internet for a variety of applications has caused a paradigm shift in personal computing, which is often characterized as the “Post-PC era.”

This year, AMD looks to continue its aggressive comeback effort in x86-based server processors that it started in 2017 with the rollout of highly parallel MPUs built with the company’s new Zen microarchitecture. Intel has responded by increasing the number of 64-bit x86 CPUs in its Xeon processors. Intel, AMD, Nvidia, Qualcomm, and others are also increasing emphasis of processors and co-processor accelerators for machine-learning AI in servers, personal computing platforms, smartphones and embedded processing.

The 2018 McClean Report shows that the total MPU market is forecast to rise 4% to $74.5 billion in 2018, following market growth of 5% in 2017 and 9% in 2016.  Through 2022, total MPU sales are expected to increase at a compound annual growth rate of 3.4%.  Total microprocessor units are expected to rise 2% in 2018, the same growth rate as 2017, to 2.6 billion units.  Through the forecast period, total MPU units are forecast to rise by a CAGR of 2.1%.

SEMICON Korea 2018 opens at COEX in Seoul today with its largest-ever exhibition and an expected 50,000 attendees at the premier event for the Korean semiconductor and electronics manufacturing supply chain. January 31 to February 2, SEMICON Korea features a sold-out exhibition with 1,913 booths, the most in its history, 436 exhibitors from 20 countries, and forums on Smart Manufacturing and Smart Automotive, two key industry growth drivers.

SEMICON Korea kicks off with Korea, logging the highest semiconductor capital expenditures of any region in 2017, at the top of the semiconductor market. Last year, Korea-based Samsung and SK Hynix were ranked the number one and three semiconductor suppliers, respectively, and together accounted for more than 20 percent of total semiconductor revenue. Additionally, Samsung’s semiconductor investment totaled $27 billion in 2017 and is expected to reach $28 billion in 2018 – both records.

In a SEMICON Korea press conference this morning, SEMI, the global industry association representing more than 2,000 companies in the electronics manufacturing supply chain and organizer of the event, reported that strong semiconductor industry growth will continue. Dan Tracy, Senior Director Industry Research & Statistics of SEMI, revealed that2017 was a record-setting year with semiconductor revenues increasing more than 20 percent and equipment spending over 30 percent. Positive growth is expected in 2018, with high-performance computing, Internet of Things (IoT) and automotive as key drivers. In 2018, the Korea market is expected to win the largest share in equipment spending and remain the largest region in terms of installed 300mm capacity and memory production.

Highlights of SEMICON Korea:

  • At today’s opening ceremony, Ajit Manocha, SEMI president of CEO, and Yong-Han Lee, member of SEMI’s Board of Directors, will address the gathering before joining HD Cho, President of SEMI Korea; HK Kang, Chairman of SEMICON Korea STS Committee; Tetsuo Tuneishi, Chairman of SEMI Board; and Korean industry leaders to cut the ceremonial ribbon.
  • Four industry thought leaders – from Samsung Electronics, IBM, Xilinx and imec – will present keynote insights on the future of the global semiconductor industry, immediately following the opening ceremony.
  • SMART Automotive Forum – New at SEMICON Korea this year is the Smart Automotive Forum, highlighting the new market opportunities for semiconductors. The forum will explore how smart automobiles are changing the driving experience and examine how chips will power connected cars and autonomous driving systems. Close collaboration with semiconductor manufacturers is essential as automobile manufacturers expect to introduce fully autonomous cars before 2030.
  • SMART Manufacturing Forum – Top experts will share their insights on the latest trends and emerging technologies in Smart Manufacturing areas such as IoT, Cloud Computing, Big Data, Machine Learning, and Artificial Intelligence (AI). The experts will also examine how the industry can realize the promise of Smart Manufacturing through the adoption of new methods, systems and solutions.
  • The Industry Leadership Dinner, an exclusive VIP networking event tonight, will gather more than 450 global industry executives to connect and build relationships.
  • Through the Supplier Search Program, expanded this year to 90 meetings, eight of the world’s leading companies (Samsung Electronics, SK Hynix, Intel, Micron, SONY, Toshiba and Lam Research) will look for new suppliers.
  • SEMICON Korea attracts top companies to connect with customers and decision makers and to demonstrate product and technology leadership. The exposition includes deep technical networking and business programs that give insight into the full Korean electronics manufacturing ecosystem.

SEMICON Korea 2018 is the leading semiconductor technology event for market trends and breaking technology developments, featuring technical forums, business programs and standards activities. The event is an opportunity to meet and learn from more 100 global experts.

 

SiFive, a provider of commercial RISC-V processor IP, today announced Shafy Eltoukhy as vice president of operations. Eltoukhy, a veteran of Microsemi and Intel, will lead SiFive’s DesignShare activities and ensure the smooth rollout of new Core IP, SoCs and services.

Over the course of his career, Eltoukhy has been awarded 24 patents, and is the author of more than 20 technical articles. He brings this expertise to SiFive with a goal to help the company expand its DesignShare program, which gives any SoC designer, inventor or maker the ability to harness the power of custom silicon with little to no upfront risk. Since its inception, companies including Analog Bits, eMemory, FlexLogix, Rambus, Think Silicon and UltraSoC have joined the DesignShare ecosystem. He will also help to coordinate SiFive’s fast-growing hardware and software engineering teams with key partners as the company launches new products and services.

“SiFive’s mission – to lower the barriers for innovation in the silicon industry – immediately resonated with me when presented with the opportunity to work with the team,” Eltoukhy said. “Knowing firsthand the challenges involved in bringing a new SoC to market, I immediately recognized SiFive’s ability to resolve the issues that customers and designers have faced for decades. I am thrilled to join the SiFive team and am honored to have the opportunity to help revolutionize the semiconductor industry.”

Eltoukhy brings three decades of experience to his role at SiFive, having most recently served as vice president and business unit manager for the analog mixed signal division at Microsemi. Earlier in his career, Eltoukhy was vice president of operations and technology at Open-Silicon, where he released to production over 150 ASIC and complex SoC products. He also served as Vice President of Technology at Lightspeed Semiconductor, where he joined the founding team that invented structured ASIC technology with a goal to simplify ASIC design cycle and reduce development cost. As Director of Technology Development at Actel Corporation (now Microsemi), he participated in the early development of the first and second generation of Antifuse FPGA products. He has also held senior engineering positions at semiconductor pioneers Intel and Fairchild. Eltoukhy holds a doctorate in electrical engineering from the University of Waterloo as well as master’s and bachelor’s degrees from Cairo University.

“We are thrilled to have someone with Shafy’s credentials join the SiFive executive team,” said Naveed Sherwani, CEO of SiFive. “His experience as a founder and leader of numerous startups is invaluable to SiFive as we strive to breathe new life into a stagnant industry. His perspective will benefit not only to SiFive but the semiconductor market writ large as we work to simplify the design process.”

Kateeva, a developer of inkjet deposition equipment solutions for OLED display manufacturing, today announced that the company has expanded its executive team by appointing Marc Haugen as chief operating officer (COO).

Mr. Haugen brings extensive semiconductor equipment industry experience to Kateeva. As a former executive at Applied Materials and Lam Research, he implemented operational disciplines designed to maximize supply-chain and manufacturing efficiencies. As COO, his role will be to help drive Kateeva’s operational performance as a technology leader and key enabler of the global display industry. He reports to chairman and chief executive officer (CEO), Dr. Alain Harrus.

Mr. Haugen assumes the COO title from Kateeva co-founder, Dr. Conor Madigan, who remains president, and who will now focus on leading the company’s technology and new product development.

“We believe that Marc’s operational roles for global capital equipment companies make him particularly well-qualified to help Kateeva extend its market leadership by applying operational disciplines that will allow us to scale our operations effectively,” said Dr. Harrus.  “We also expect his expertise will enrich our capability to deliver the technology solutions our customers need to win in their marketplace.”

“We’re very pleased to welcome Marc to Kateeva,” noted Dr. Madigan. “As COO, we expect he will further tighten interaction between the field, manufacturing, engineering, finance, and other key functions to support our product development, sales, and operations performance. In addition, he will be responsible for implementing processes to improve efficiency, predictability and reliability, with the goal of reducing overall operating costs.”

“I believe that Kateeva enjoys a strong foundation to build momentum for growth,” said Mr. Haugen. “The technology is industry-leading, the team is outstanding, and the customer base includes leading display companies. This is a terrific opportunity to support Kateeva’s innovation roadmap by driving operational excellence across the company.”

Mr. Haugen has spent three decades working in the semiconductor industry. As group vice president of worldwide operations and supply chain for Applied Materials from 2013-2016, he led a team of thousands of people in factories across the globe, with an annual multi-billion-dollar spend. From his base in Singapore, he directed supply chain operations, volume manufacturing, new product manufacturing, quality and logistics to support the company’s semiconductor systems, display and energy business segments.

Before that, he was corporate vice president of global product operations at Lam Research. While there, he directed the integration of products, product operations, and product development processes, including Lam’s acquisition of Novellus Systems, as well as its acquisition of Austria-based SEZ. During this time, he also served as vice president/managing director of SEZ.

Immediately prior to Kateeva, Mr. Haugen was EVP of global operations and engineering at Cepheid, a molecular diagnostics company. He began his career in 1987 as a surface warfare officer in the U.S. Navy. After that, he held operations roles with increasing responsibility at Applied Materials and Lam Research.

Mr. Haugen holds a BS degree in industrial and systems engineering from the University of Southern California. He earned his MBA with a special focus on international/Asia business strategy from the University of California Los Angeles and the National University of Singapore (UCLA/NUS Executive MBA Program).

efabless corporation, the world’s first crowd sourcing platform for electronics solutions, today announced Mike Noonen joined its advisory board.

Noonen, a creative entrepreneur well-known throughout the semiconductor industry, will work with efabless management to help shape and refine the commercialization strategy for its platform and marketplace. “Mike shares the efabless vision of a connected community and marketplace that will bring open innovation to electronics and enable custom solutions for IoT devices,” says Mike Wishart, co-founder and chief executive officer (CEO) of efabless.

“Mike was instrumental in kicking off the successful efabless and Dialog Semiconductor Go Configure Design Challenge Series where the global community created designs for Dialog’s unique Configurable Mixed Signal IC,” adds Mohamed Kassem, efabless co-founder and chief technical officer. “We are thrilled that he has joined our advisory board,”

“efabless brings the proven benefits of crowd sourcing and connected community to the semiconductor industry, something that is welcome and long overdue,” notes Noonen. “It’s only a matter of time before the global efabless on-line community invigorates innovation and opens large new market opportunities. I am excited and delighted to be part of it.”

In addition to efabless, Noonen currently serves as an advisor or a member of the board of directors for a range of companies, including Maja Systems, Mythic AI, Qromis Technology and LocatorX.

Most recently, he was vice president of sales, marketing and business development for Silego Technology, now Dialog Semiconductor, and Ambiq Micro’s CEO and a member of the board directors. Noonen was founder and chairman of Silicon Catalyst, the world’s first incubator for semiconductor start-ups. At GLOBALFOUNDRIES, Noonen was executive vice president of global products, quality, design, sales and marketing. While at GLOBALFOUNDRIES, he was elected to the Global Semiconductor Alliance Board of Directors.

Prior experience includes senior executive positions at NXP Semiconductors, National Semiconductor (now Texas Instruments), Cisco Systems and 8×8. He began his career as a field applications engineer teaching mixed-signal IC design at NCR Microelectronics.

Noonen was awarded a Bachelor of Science degree in Electrical Engineering from Colorado State University in Fort Collins, Colo., and serves on its College of Engineering Advisory Board. In 2012, he was named the College of Engineering Distinguished Alumni of the Year.

 

Worldwide shipments of devices — PCs, tablets and mobile phones — totaled 2.28 billion units in 2017, according to Gartner, Inc. Shipments are on course to reach 2.32 billion units in 2018, an increase of 2.1 percent.

Two markets will drive overall growth in device shipments in 2018. First is the mobile phone market, led by the high-end smartphone segment. Second is the premium ultramobile market, where thin and light Apple and Microsoft Windows 10 devices are stimulating higher demand.

“Consumers have many technologies to choose from, which poses two main challenges for vendors. The first is to compete for wallet share, given how many devices consumers own. The second is to deliver value and maintain relevance — to offer the right device to the right audience,” said Ranjit Atwal, research director at Gartner. “We will see more buyers focusing on value, rather than just price, and therefore considering higher-priced devices.”

PC market will be flat in 2018

Gartner forecasts that shipments of traditional PCs will decline by 5.4 percent in 2018 (see Table 1), with notebooks showing the steepest decline (6.8 percent). The premium ultramobile market will be the only PC segment to achieve growth in 2018, without which the overall PC market would decline.

“DRAM costs have doubled since June 2016, and PC providers have increased PC prices since the first half of 2017,” added Mr. Atwal. “This trend is likely to continue into 2018, until DRAM cost trends reverse.”

Table 1

Worldwide Device Shipments by Device Type, 2016-2019 (Millions of Units)

Device Type

2016

2017

2018

2019

Traditional PCs (Desk-Based and Notebook)

220

204

193

187

Ultramobiles (Premium)

50

59

70

80

Total PC Market

270

262

264

267

Ultramobiles (Basic and Utility)

169

160

159

156

Computing Device Market

439

423

423

423

Mobile Phones

1,893

1,855

1,903

1,924

Total Device Market

2,332

2,278

2,326

2,347

Source: Gartner (January 2018)

 By 2021, 9 percent of smartphones sold will support 5G

Gartner forecasts that mobile phone shipments will increase by 2.6 percent in 2018, with the total amounting to 1.9 billion units. In 2018, smartphone sales will grow by 6.2 percent, to represent 87 percent of mobile phone sales. “We expect Apple smartphone sales to grow by more than the market average in 2018, with the launch of new models fueling stronger replacement cycles,” said Roberta Cozza, research director at Gartner.

In 2018, smartphone vendors will focus on delivering more compelling personalized experiences, via on-device (AI), virtual personal assistants and more natural user interfaces, but also through biometrics and further enhancements to display and camera features. We expect to see some of these unveiled at Mobile World Congress 2018 in Barcelona.

5G phones will reach the market in 2019, when rollouts of 5G networks will start in select countries, such as the U.S. and South Korea. “We predict that, by 2021, 9 percent of smartphones sold will support 5G,” said Ms. Cozza. “Overall, 5G will be a significant driver of video and streaming services, as it will bring faster uplinks and support new AI applications.”

Advanced Micro-Fabrication Equipment Inc. (AMEC) today announced that the Patent Re-examination Board (PRB) of the State Intellectual Property Office (SIPO) in China, ruled on Jan. 23 that all patent claims relating to patent number ZL 01822507.1 held by Veeco Instruments Inc. (Veeco U.S.), and titled “Susceptorless reactor for growing epitaxial layers on wafers by chemical vapor deposition”, are invalid. The court cited “lack of novelty and non-obviousness” for its decision.

The patent ruled invalid is the Chinese counterpart of the patents (U.S. 6506252 and U.S. 6726769) asserted by Veeco U.S. in an infringement action taken last year against AMEC’s wafer carrier supplier, and filed in the U.S. District Court for the Eastern District of New York.

AMEC thoroughly analyzed the patent when first developing its MOCVD technology. The company found that the technology covered by the patent was preceded by substantial prior art dating back to the 1960s. As such, the patent should be invalid. AMEC had earlier filed petitions to invalidate the counterpart patents in the Intellectual Property (IP) offices of China, South Korea and the U.S.

“We are pleased that based on our compelling evidence, the Chinese Patent Re-examination Board has ruled Veeco’s patent invalid,” said Dr. Zhiyou Du, senior vice president, COO & general manager of AMEC’s MOCVD product division. “We are confident that the same decision will be reached by the Patent Trial and Appeal Boards of the U.S. Patent & Trademark Office and the Korean IP office.”

Dr. Du continued: “To be enforceable, a patent must meet the requirements of patent law. It is intolerable to us that Veeco U.S. would attempt to stifle competition by leveraging an obviously invalid patent to file a lawsuit against AMEC’s wafer carrier supplier.”

In a separate development that occurred on Jan. 12, 2018, Chinese customs temporarily detained two EPIK700 MOCVD tools upon their arrival in China. The tools, shipped by Veeco Asia, are suspected of infringing AMEC’s patent (CN 202492576). The detention was consistent with Chinese law. AMEC is contemplating further legal action, which may include filing a patent infringement lawsuit with the Chinese court.

The enforcement action by Chinese customs on Jan. 12 followed a ruling last Dec. by the Fujian High Court in Chinawhen it granted AMEC’s motion for an injunction against Veeco Shanghai. The injunction prohibits Veeco Shanghai from importing, manufacturing, selling or offering for sale to any third party any MOCVD systems and wafer carriers used in the MOCVD systems that would infringe AMEC’s patent in China.

Dr. Gerald Yin, chairman and CEO of AMEC stated: “AMEC will never tolerate infringement of its IP rights. We will vigorously defend against violations and will always proactively protect our IP investment. Of course, we prefer to concentrate on innovating high-value products and providing quality services to customers instead of wasting time and resources on lawsuits.”

Dr. Yin concluded: “The Chinese LED industry should not be distracted or harmed by litigation involving Veeco U.S., our wafer carrier supplier, and AMEC. Therefore, we are open to reaching a solution that is beneficial for all three parties.”

SEMI, the global industry association representing the electronics manufacturing supply chain, today announced an urgent call to action to overcome the pressing semiconductor industry challenge of recruiting new talent. In a letter to the CEOs of more than 2,000 global SEMI member companies, Ajit Manocha, SEMI’s president and CEO, called on the executives to act together to attract workers and develop the workforce vital to industry growth.

New talent is key to sustaining robust growth that has broken all semiconductor industry records. Industry analysts at SEMI’s Industry Strategy Symposium (ISS) last week reported that semiconductor device (chip) revenues jumped 22 percent for the year to nearly $450 billion.  Semiconductor manufacturing equipment sales rose 36 percent and, with materials, topped $104 billion.  In 2018, chip revenues are forecast to increase 7 percent and semiconductor equipment more than 11 percent.

“Talent has become a pinch point,” Manocha said. “In Silicon Valley alone, SEMI member companies have thousands of open positions. Globally there are more than 10,000 open positions.  Attracting new candidates and developing a global work force are critical to sustain the pace of innovation and growth. If we do not act together quickly, we will choke our own growth.”

SEMI recently developed a comprehensive roadmap to attract and develop talent across regional, diversity and skill set needs. Manocha’s letter urges SEMI member CEOs to support a collective workforce development roadmap aimed at building and sustaining a talent pipeline for SEMI’s global membership. Workforce development is a pillar of SEMI 2.0, outlined in Manocha’s recent article Work to Do to Keep the Good Times Rolling.

As part of its workforce development initiatives, over the past 17 years SEMI has delivered a hands-on, STEM-based career exploration program to encourage high-school students to pursue STEM (Science Technology Engineering and Math) educations and careers. Through its award-winning High Tech U (HTU), SEMI has touched more than 6,000 high school students at SEMI member industry facilities in 11 U.S. states and nine countries. Over 70 percent of high school students attending HTU have pursued STEM educations and careers.

Lam Research Corp. (NASDAQ:LRCX), a global supplier of advanced semiconductor manufacturing equipment, today announced the promotion of Tim Archer to the position of president, effective immediately. Mr. Archer will continue to serve as chief operating officer of the company, a position he has held since June 2012. Martin Anstice, Lam’s chief executive officer and current president, will continue as CEO.

“Tim has played a key role in leading the company through a period of transformational growth,” said Mr. Anstice. “The promotion to president is a natural evolution which recognizes Tim’s significant leadership to the success of Lam Research and the high-quality and complementary partnership that we share. It is wonderful to recognize his contributions and potential in the Office of the CEO with me; we have the privilege of working alongside an outstanding global leadership community at Lam.”

Mr. Archer was appointed chief operating officer of Lam Research in June 2012 when the company completed its acquisition of Novellus Systems, Inc. Mr. Archer was previously the chief operating officer of Novellus. He joined Novellus in 1994 and held a number of positions at that company, including executive vice president of Sales, Marketing, and Customer Satisfaction; executive vice president of the PECVD and Electrofill Business Units; and senior director of technology for Novellus Systems Japan.

As president and COO, Mr. Archer will focus on driving the operational priorities of the organization and be accountable for delivery of results across the entire company. His key focus will include ensuring that Lam continues to deliver enabling products and services to customers in a differentiated manner.  As CEO, Mr. Anstice will continue to focus on the strategic agenda and have comprehensive engagement with the full community of stakeholders, including customers, employees, suppliers, partners, and investors.