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Restructuring of older display fabs, migration to larger-sized LCD TV panels and business strategy adjustments are some of the factors prompting LCD TV panel manufacturers to set a conservative shipment goal of 258.4 million units in 2017, a 1.2 percent decline from 2016, according to IHS Markit (Nasdaq: INFO).

LCD_TV_Display_Makers_Target

“LCD TV panel unit shipments in 2016 are forecast to decline 5 percent on year-on-year basis with 261.6 million. Among the top six panel makers, BOE and China Star continue to make the largest contribution to the growth of TV panel shipments in 2016, helped by a shortage of 32-inch panels,” said Deborah Yang, director of display supply chain at IHS Markit.

“However, this is not enough to offset declines in shipments from South Korean and Taiwanese panel makers, all of which are undergoing the process of moving to larger panel sizes, facing production yields issues, or experiencing drastic declines in demand for 23.6-inch panels.”

According to the latest IHS Markit TV Display Intelligence Service report, LCD TV panel makers continue to remain cautious with their business plans going into 2017, even as the likes of BOE, Innolux and China Star are contributing to new capacities. BOE’s shipments have shown positive growth in past years; however, the company is projecting a decline of 14 percent year-on-year in 2017 due to a production shift to larger panel sizes, in particular 43-inch and 55-inch displays, where production capacity will be shared with IT panels.

Instead of ramping up the current supply of TV panels, panel makers are now busy diversifying into larger-sized panels and other premium products, such as 4K panels. According to IHS Markit analysis, TV panel makers are planning to ship 63 million units of 4K panels in 2016, making up a 24 percent in UHD (ultra-high definition) penetration, and later to 86.4 million units in 2017, increasing their UHD penetration to 33 percent.

LG Display remains the world’s top maker of TV panels with a target of over 51 million unit shipments. Innolux will take the second largest position with 46.6 million units. However, should Innolux decides to produce smaller-size TV panels as well as to utilize its relationship with Sharp’s fabs in Japan, its unit shipments could be expected to jump to 53 million, even eclipsing LG Display to gain top spot.

HKC, a sizeable LCD TV OEM and ODM maker, which recently entered the LCD TV display market with backing from the Chinese government, represents a new vertical integration business model for the industry.

“While TV makers are suffering a profit loss, HKC’s vertical integration business model could prove that a certain level of profit can be maintained through in-house supply in spite of TV panel price fluctuations. However, the biggest challenge for HKC is whether it can overcome the technical challenge that comes with ramping up a brand new fab,” Yang said.

North America-based manufacturers of semiconductor equipment posted $1.49 billion in orders worldwide in October 2016 (three-month average basis) and a book-to-bill ratio of 0.91, according to the September Equipment Market Data Subscription (EMDS) Book-to-Bill Report published today by SEMI.  A book-to-bill of 0.91 means that $91 worth of orders were received for every $100 of product billed for the month.

SEMI reports that the three-month average of worldwide bookings in October 2016 was $1.49 billion. The bookings figure is 5.1 percent lower than the final September 2016 level of $1.57 billion, and is 12.2 percent higher than the October 2015 order level of $1.33 billion.

The three-month average of worldwide billings in October 2016 was $1.63 billion. The billings figure is 9.0 percent higher than the final September 2016 level of $1.49 billion, and is 19.8 percent higher than the October 2015 billings level of $1.36 billion.

“Total equipment billings increased 9 percent in October over September, while bookings contracted 5 percent,” said Denny McGuirk, president and CEO of SEMI.  “As the result, the book-to bill ratio for October dropped below parity for the first time in 11 months, even though bookings and billings activity remains at elevated levels relative to last year.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

Billings
(3-mo. avg)

Bookings
(3-mo. avg)

Book-to-Bill
May 2016

$1,601.5

$1,750.5

1.09
June 2016

$1,715.2

$1,714.3

1.00
July 2016

$1,707.9

$1,795.4

1.05
August 2016

$1,709.0

$1,753.4

1.03
September 2016 (final)

$1,493.3

$1,567.2

1.05
October 2016 (prelim)

$1,627.5

$1,487.2

0.91

Source: SEMI (www.semi.org), November 2016

The SATS market is anticipated to have substantial growth mainly driven by the increasing costs for advanced packaging solutions, according to a report by Persistence Market Research. However, with increasing competition, the price is expected to decrease in the foreseeable future. Major drivers propelling the market include: increasing demand for mobility and connectivity in consumer electronic products and increasing demand of advanced electronic systems in the automobiles Additionally, increasing demand for mobility and connectivity in the consumer electronic products and ability of SATS providers to facilitate a more efficient supply chain and reduced time-to-market are few other factors propelling the market growth. SATS providers offer additional features over in-house testing and packaging capabilities which is one of the primary factors for Integrated Device Manufacturers (IDM) to outsource the SATS services. In addition, the global market of semiconductor assembly and test services has been witnessing the emergence of strategic alliances and collaborations among the leading providers and manufacturers due to rising financial pressures.

Currently, more than 50% of the market accounted for Outsourced Semiconductor Assembly and Testing (OSAT) services, and this fraction is expected to increase during the forecast period. Although many of the low-end SATS providers are competing on price-driven products, the leading players including ASE group, STATS ChipPAC Ltd., Amkor technology Inc. and Siliconware Precision Industries Co., Ltd (SPIL) are focusing on obtaining the competitive edge by targeting the advanced expensive packages.

To understand and assess the opportunities in this market, the report is categorically split into three sections, namely, market analysis by services, application, and region. The services section is further sub-segmented on the basis of interconnecting technologies. The report analyzes the global semiconductor assembly and testing services market in terms of market value (US$ Mn).

The report starts with an overview of the global semiconductor assembly and testing services market and usage of these services in various applications across the globe. In the same section, PMR covers the global semiconductor assembly and testing services market performance in terms of revenue. This section includes PMR’s analysis of key trends, drivers, and restraints from supply and demand perspectives. Impact analysis of key growth drivers and restraints, based on the weighted average model, is included in this report to better equip clients with crystal clear decision-making insights.

The Semiconductor Assembly and Testing Services market is segmented as follows:

  • By Services
  • By Application
  • By Region

On the basis of services, the SATS market is segmented into:

  • Assembly & Packaging Services
  • Testing Services

Of these, the assembly & packaging services accounted for the highest share of the overall semiconductor assembly and testing services market in 2014. The semiconductor assembly and testing services market is mainly driven by factors such as increasing adoption of consumer electronics products such as tablet PCs and wearable devices (smart watches, head mounted devices, fitness equipment etc. in the developed economies.

The section that follows analyzes the market on the basis of packaging solutions and presents the market size in terms of value for the forecast period.

On the basis of packaging solutions, the SATS market is segmented as follows:

  • Copper Wire and Gold Wire Bonding
  • Copper Clip
  • Flip Chip
  • Wafer Level Packaging
  • TSV

Of the above-mentioned segments, the wafer level packaging segment is expected to increase at the highest CAGR during the forecast period. However, the copper wire and gold wire bonding segment is expected to dominate the semiconductor assembly and testing services market in terms of value, by 2021.

On the basis of application the SATS market is segmented as follows:

  • Communication
  • Computing and Networking
  • Consumer electronics
  • Industrial
  • Automotive electronics

Of the aforementioned segments, the consumer electronics segment is expected to expand at the highest CAGR during the forecast period. However, the communications application segment is expected to dominate the semiconductor assembly and testing services market in terms of value, by 2021. Leading market participants are investing heavily in R&D activities in order to innovate new advanced packaging solutions that would cater to the growing demand of miniaturization and low power requirements. For instance, in May 2014, STATS chip PAC (now JCET) introduced innovative FlexLine Manufacturing line. This manufacturing line can process multiple silicon wafer diameters, and produce both fan-in and fan-out wafer level packages on it. Additionally, it pioneered the Through Silicon via (TSV) enabled 3D chip stacking technology in August 2013.

The report also analyzes the market on the basis of region and presents the market size in terms of value for the forecast period.

Regions covered in the report are as follows:

  • North America
  • Asia Pacific Excluding Taiwan
  • China
  • Japan
  • Singapore,
  • Thailand
  • The Philippines
  • Taiwan
  • Europe
  • The Middle East & Africa
  • Latin America

Of the aforementioned segments, the Taiwan market is expected to expand at the highest CAGR during the forecast period and is expected to remain largest market share, out of the total semiconductor assembly and testing services market in 2021.

The global market for nanotubes was valued at $1,250.00 million in 2015 and is expected to grow at a CAGR of 17.9% during the forecast period 2016-2025. According to a recent report by Research and Markets, “Global Carbon Nanotubes Market – Segmented by Type, Application and Geography – Trends and Forecasts (2016 – 2025)”, the single-walled carbon nanotubes (SWTs) are expected to reach 689.35 million by 2018 with a CAGR of 22.5%.

Carbon nanotubes have high thermal conductivity, elasticity, tensile strength, absorbency, etc. as a result of which they have been widely used in the fields of nanotechnology, semiconductors, optics, etc. At present the carbon nanotubes account for about 28% market share of the total nanomaterial market. The production capacity of the carbon nanotubes is highest in the Asia-pacific region, followed by the North America and Europe. This domination of the Asia-pacific region is expected to continue as the demand for the carbon nanotubes is growing in the Asia-pacific region.

The global Carbon Nanotubes market is dominated by a few large suppliers/producers operating in multiple industry segments. The number of companies producing carbon nanotubes is expected to double in the next five years. Moreover, there is a lot of research being done regarding these nanotubes to enhance its properties. The number of publications being published about them has increased a lot over the last decade.

Asia-Pacific has the largest installed capacity of carbon nanotubes, mainly due to the significant presence of the electrical & electronics market in Japan, South Korea, Taiwan, China, and Singapore. Moreover, due to the industrialization and urbanization in the developing countries, the demand for the electronic products is increasing resulting in increasing usage of the carbon nanotubes. Hence a number of developing nations notably China and India, which due to their higher population levels, will potentially be large and profitable markets for the carbon nanotubes.

The growth of this market is mainly influenced by the development of the synthesis methods, advancement in the carbon nanotubes to enhance its properties and growing applications. The increasing demand for electronic & storage devices and in the energy sector, where carbon nanotubes find extensive applications, will drive the demand for the carbon nanotubes. The key challenge in this market is the high cost of production and purity of the carbon nanotubes. There is a baseline for the production of carbon nanotubes based on safety regulations, hence the productivity is less. Another challenge is with the difficulty in the acquirement of patents in nanotechnology.

Some of the key vendors of carbon nanotubes are CNano technology, Nanocyl, Covestro, Showa Denko, Arkema, carbon solutions, carbon NT&F, catalyx nanotech and CNT.

 

Technavio’s latest report on the global industrial embedded systems market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Bharath Kanniappan, a lead analyst from Technavio, specializing in research on industrial automation sector, says, “Industrial embedded systems are widely used in both process and discrete industries. Industries such as oil and gas, power, cement, chemical, and automotive, and pulp and paper, among others, have harsh operating conditions and require robust automation systems.”

New trends such as vision systems, multi-core processors, and power efficiency capabilities have further augmented the utility and scope of the industrial embedded hardware market. The latest developments in embedded hardware are the incorporation of embedded sensors in the form of nano blobs in materials used to build industrial robots, thus enabling the machines to achieve increased conductivity and superior sensitivity. Such attributes let robots safely interact with objects and human beings in industrial environments. Such developments are an impetus to the growing embedded hardware market.

The top three emerging trends driving the global industrial embedded systems market according to Technavio automation research analysts are:

  • Increased adoption of multi-core processors
  • Rise of wireless connectivity
  • Advancement of materials used in embedded systems

Increased adoption of multi-core processors

Earlier, 8-bit microcontrollers were the most commonly used in industrial embedded systems such as motor control, industrial process control, actuators, sensors, and robotics. However, industrial technology has advanced to include complex capabilities such as wireless connectivity, imaging, and smart sensors, and this has propelled the demand for advanced and efficient algorithms. Hence, vendors are designing single chips with multiple cores to enhance applications, increase reliability, reduce power consumption, and lower overall operational costs.

“The Compact RIO industrial embedded controller from National Instruments has a dual core processor which has enabled the integration of latest technologies such as Xilinx Kintex 7 FPGAs and 64-bit Intel Atom E3800 SoC,” according to Bharath.

Rise of wireless connectivity

IoT enables prompt collection, storage, and transmission of data, which allows rapid analysis and decision making by experts across international borders. Recent developments in sensor technologies (such as wireless sensor nodes) can be integrated with wireless networking protocols like ZigBee and Wi-Fi. Previously industrial embedded systems were operating as stand-online systems. Currently, due to the high demand of IoT and wireless protocols including near field communications and long range protocols in various industries, industrial embedded systems are adopting wireless SoC architecture.

Wireless connectivity in industrial embedded systems has enabled Internet connectivity and subsequently increased the market prospects of industrial embedded systems during the forecast period.

Advancement of materials used in embedded systems

Previously sensors used in industries could collect and interpret information only at the point of contact between the sensor and the object. This is a major limiting factor in the use of industrial sensors. Hence newer materials are being developed which can incorporate multiple embedded technologies and augment the functioning of sensors. Using new composite materials such as ceramic hybrid polymers and polydimethylsiloxane, the lifespan of embedded systems remains unaffected as these materials redirect stress away from these electronic devices.

By successful incorporation of embedded systems in these materials and the use of finite-element-analysis (FEA) software, sensors can perform their function beyond the limits of the contact point by using analysis of predictive stress and strain patterns. These superior sensors can be utilized for effective and efficient predictive maintenance in various industries.

The key vendors are as follows:

  • Atmel
  • Intel
  • National Instruments
  • Infineon Technologies

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

 

Electronics manufacturing executives will examine growth prospects, global industry developments and technology strategy at the SEMI Industry Strategy Symposium (ISS) 2017 to be held January 8-11 at the Ritz-Carlton, Half Moon Bay.  ISS 2017, designed as the year’s earliest indicator of emerging trends, provides critical perspective and market insight to executives responsible for corporate strategy and key relationships in the electronics manufacturing supply chain. The annual symposium brings together leading analysts, researchers, economists, and technologists to provide fresh insights on the forces shaping the semiconductor industry. The elite event offers insight into new growth opportunities, potential partners, and vital intelligence to help navigate the industry’s rapidly changing playing field.

ISS 2017 highlights include:

  • Market Perspective: Where’s the growth? Hear what experts are saying at Google, IBM Research, and the Consumer Technology Association.
  • Economic Trends: Will an expanding Internet of Things (IoT) ecosystem drive demand for investments in cloud storage, security, and new devices? Get insider perspectives from Gartner, Linx Consulting, and VLSI Research.
  • Technology: Will EUV lithography finally arrive, or will the industry double-down on multiple patterning? Get insights from executives at imec, SanDisk, Applied Materials, and more.
  • Global Forces: Consolidation and China’s will to establish a homegrown semiconductor supply chain are redrawing the map. Hear from Philips Healthcare, International Business Strategies, and McKinsey & Co.

Plus, powerful first-of-the-year keynotes by:

  • GLOBALFOUNDRIES─ Gary Patton, CTO and senior VP of Worldwide R&D
  • Intel─ Diane Bryant, executive VP and GM of the Data Center Group
  • Applied Materials ─Om Nalamasu, CTO
  • Philips Healthcare─ Diego Olego, senior VP and Chief Strategy & Innovation Officer

The challenges are many, the investments enormous, and the pressure to show profitability and growth is greater than ever. SEMI ISS 2017 will give industry professionals the perspective needed to succeed in today’s turbulent business climate. To learn more and to register, visit www.semi.org/en/ISS.

Qualcomm Incorporated (NASDAQ: QCOM)  today announced that its subsidiary, Qualcomm Technologies, Inc. (QTI),  and Samsung Electronics Co., Ltd., have extended their decade-long strategic foundry collaboration to manufacture Qualcomm Technologies’ latest Snapdragon premium processor, Qualcomm Snapdragon 835, with Samsung’s 10-nanometer (nm) FinFET process technology.

The decision to use Samsung’s cutting edge process in the next generation premium processor highlights Qualcomm Technologies’ continued dedication in being the technology leader in mobile platforms.

“We are excited to continue working together with Samsung in developing products that lead the mobile industry,” said Keith Kressin, senior vice president, product management, Qualcomm Technologies. Inc. “Using the new 10nm process node is expected to allow our premium tier Snapdragon 835 processor to deliver greater power efficiency and increase performance while also allowing us to add a number of new capabilities that can improve the user experience of tomorrow’s mobile devices.”

In October, Samsung announced they are the first in the industry to enter mass production of 10nm FinFET technology. Compared to its 14nm FinFET predecessors, Samsung’s 10nm technology allows up to a 30% increase in area efficiency with 27% higher performance or up to 40% lower power consumption. Using 10nm FinFET, the Snapdragon 835 processor will offer a smaller chip footprint, giving OEMs more usable space inside upcoming products to support larger batteries or slimmer designs. Process improvements, combined with a more advanced chip design, are expected to bring significant improvements in battery life.

“We are pleased to have the opportunity to work closely with Qualcomm Technologies in producing the Snapdragon 835 using our 10nm FinFET technology,” said Jong Shik Yoon, executive vice president and head of foundry business, Samsung. “This collaboration is an important milestone for our foundry business as it signifies confidence in Samsung’s leading chip process technology.”

Snapdragon 835 is in production now and expected to ship in commercial devices in the first half of 2017. Snapdragon 835 follows the Snapdragon 820/21 processor, which has over 200 designs in development.

United Microelectronics Corporation (UMC) (NYSE: UMC; TWSE: 2303), a global semiconductor foundry, today celebrated the grand opening of United Semi, UMC’s 12-inch joint venture wafer fab in Xiamen China. The fab, which was completed in record time, realized volume production for customer products merely 20 months after groundbreaking in March of 2015. Pilot production yields for communication ICs at the fab have already exceeded 99% on the company’s 40nm process. Zhuang Jiahan, city mayor of Xiamen, delivered the keynote speech for today’s event.

Po-Wen Yen, CEO of UMC, said “Owing to the tireless teamwork of our suppliers, facilities management and engineering teams, we have realized successive, noteworthy milestones since United Semi broke ground in March, 2015. We achieved cleanroom readiness and equipment move-in within a year, and pilot run verification to mass production in only 8 months. With United Semi being able to leverage UMC’s technology expertise and over 35 years of proven manufacturing experience, we believe this new fab is the best choice for IC designers in China and worldwide who wish to manufacture their products locally in order to serve China’s vast electronics market, while also mitigating geographic risk. We are excited for the future of United Semi as today’s grand opening kicks off the next growth stage for UMC.”

United Semi is a 3-way joint venture foundry company between UMC, Xiamen Municipal People’s Government and Fujian Electronics & Information Group. Its fab, Fab 12X, is southern China’s first 300mm foundry facility. The fab will utilize UMC’s mass production 55nm and 40nm technologies, with a maximum design capacity of 50,000 wafers per month. The main advantage for choosing Xiamen as the fab location is its short distance from Taiwan, allowing seamless support from UMC’s Taiwan headquarters. Furthermore, Xiamen has a well-established infrastructure to supply ample local engineering talent and logistical support. United Semi complements UMC’s Hejian fab in Suzhou, China, which provides 8” foundry services for local and international customers.

TriLumina Corp., a developer of semiconductor laser illuminators for solid-state LiDAR systems that enable autonomous vehicles and new automotive safety systems, announced that Brian Wong has been named as the company’s new President and Chief Executive Officer and as a member of the board of directors. Mr. Wong is an experienced leader and highly respected in the semiconductor industry with an impressive record of building and growing profitable technology companies.

“As TriLumina continues to solidify its position in the automotive sensing market building customer relationships and strategic partnerships, we are pleased to have Brian join the Company to lead us into this exciting next phase,” said Ray Quintana, TriLumina board member and Partner with Cottonwood Technology Fund.  “Brian brings the experience and leadership necessary to drive TriLumina from technology developer to a key supplier of enabling products to the rapidly expanding automotive sensing, illumination and depth sensing markets.”

With over 30 years’ experience in optical, semiconductor, and energy storage segments for automotive, aerospace, and consumer customers, Mr. Wong’s background dovetails well with TriLumina’s technology and target markets. In previous CEO roles, he has introduced complex technologies into high volume production for mission critical applications, formed strategic partnerships with over a dozen international companies, and raised significant equity financing.  Most recently, Mr. Wong was CEO of Enevate Corp, a Silicon-Anode based Li-Ion battery company.

“I’m excited to join TriLumina and lead the company as we commercialize our technology for key markets,” Mr. Wong said, “particularly now as TriLumina focuses and accelerates its development efforts in the solid-state LiDAR space. LiDAR sensors, enabled by TriLumina lasers, are driving the development of today’s new safety systems and tomorrow’s autonomous vehicles. The technology will make our roads much safer, more efficient and are expected to save millions of lives.”

“Brian Wong is the ideal person for the CEO position at TriLumina given his long track record in developing and deploying semiconductor technologies in automotive and other extremely demanding customer segments.  Brian has a successful history of growing cutting-edge and innovative companies and is a perfect match for TriLumina,” said Lee Rand, a TriLumina board member and Partner at Sun Mountain Capital.

Celebrating its 30th anniversary, the largest-ever SEMICON Korea will be held from February 8 to 10, featuring 600 exhibiting companies and an expected 40,000 attendees at COEX, Seoul. SEMICON Korea 2017 is the bellwether event for advanced memory, electronics manufacturing, and breaking technology developments, deep technical forums, business programs and Standards activities.

Each year, companies exhibit at SEMICON Korea ─ to the full capacity of the COEX facility ─ to connect with customers and decision makers, demonstrate product and technology leadership and expand their brand.

On opening day (February 8) of SEMICON Korea, three industry thought leaders will keynote on the future of the global semiconductor industry:

SEMICON_Korea_2017

The exposition includes valuable specific technical networking and business programs that are always very popular as they give insight into the full Korea electronics manufacturing ecosystem.

  • Supplier Search – featuring the world’s leading materials manufacturers
  • OEM Supplier Search – facilitating business cooperation between global suppliers and Korea’s parts manufacturers
  • Presidents Reception – an exclusive VIP networking event with more than 450 global industry leaders, that have been contributing to the growth of the Korea semiconductor industry for over 30 years.

SEMICON Korea 2017 is the leading semiconductor technology event in Korea. Major programs include: Smart Manufacturing Forum, SEMI Technology Symposium, System LSI Forum, Metrology and Inspection Forum, Test Forum, Market Seminar and more. The event is an opportunity to meet and learn from more 100 global experts. A complete schedule of the program is available here:
www.semiconkorea.org/en/attend/program-sessions

New this year, 32 companies will showcase their innovations in the new LED Pavilion at SEMICON Korea 2017, an opportunity to meet the entire LED supply chain.

Complimentary registration for SEMICON Korea 2017, which includes access to the exhibition hall and keynote attendance, opens tomorrow, November 16 (www.semiconkorea.org/en/attend/registration) and closes on February 1, 2017.