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Soitec, a designer and manufacturer of semiconductor materials for the electronics industry, is launching a pilot line to produce fully depleted silicon-on-insulator (FD-SOI) wafers in its Singapore wafer fab. This is the first stage in beginning FD-SOI production in Singapore and providing multi-site FD-SOI substrate sourcing to the global semiconductor market.

“Our decision to launch this FD-SOI line in Singapore as well as the decision we already made to ramp up our FD-SOI production in France are based on direct customer demand,” said Paul Boudre, CEO of Soitec. “These are very important milestones for Soitec and the expanding FD-SOI ecosystem. In Singapore, we plan to get full qualification at the customer level in the first half of 2019 and then increase capacity in line with market commitment.”

The FD-SOI ecosystem continues to strengthen and the use of FD-SOI technology is progressing. Multiple foundries, IDMs and fabless customers are engaged with a growing number of FD-SOI tape-outs and wafer starts. FD-SOI offers a unique value proposition for low-power applications, which makes it well suited for rapidly growing electronic market segments such as mobile processing, IoT, automotive and industrial.

Soitec reports that its investment in Singapore to launch its FD-SOI pilot line is approximately US$40 million, to be spent over a 24-month period.

Historically, the DRAM market has been the most volatile of the major IC product segments. Figure 1 reinforces that statement by showing that the average selling price (ASP) for DRAM has more than doubled in just one year. In fact, the September Update to The McClean Report will discuss IC Insights’ forecast that the 2017 price per bit of DRAM will register a greater than 40% jump, its largest annual increase ever!

Just one year ago, DRAM buyers took full advantage of the oversupply (excess capacity) portion of the cycle and negotiated the lowest price possible with the DRAM manufacturers, regardless of whether the DRAM suppliers lost money on the deal. Now, with tight capacity in the market, DRAM suppliers are getting their “payback” and charging whatever the market will bear, regardless of whether the price increases hurt the users’ electronic system sales or causes it to lose money.

Figure 1

Figure 1

The three remaining major DRAM suppliers—Samsung, SK Hynix, and Micron—are each currently enjoying record profits from their memory sales.  For example, Micron reported net income of $1.65 billion on $5.57 billion in sales—a 30% profit margin—in its fiscal 3Q17 (ending in May 2017).  In contrast, the company lost $170 million in its fiscal 4Q16 (ending August 2016).  A similar turnaround has occurred at SK Hynix.  In 2Q17, SK Hynix had a net profit of $2.19 billion on sales of $5.94 billion—a 37% profit margin.  In contrast, SK Hynix had a net profit of only $246 million on $3.39 billion in sales one year ago in 2Q16.

Previously, when DRAM capacity was tight and suppliers were enjoying record profits, one or more suppliers eventually would break rank and begin adding additional DRAM capacity to capture additional sales and marketshare. At that time, there were six, eight, or a dozen DRAM suppliers.  If the supplier was equipping an existing fab shell, new capacity could be brought on-line relatively quickly (i.e., six months).  A greenfield wafer fab—one constructed on a new site—took about two years to reach high-volume production.  Will the same situation play out with only three DRAM suppliers left to serve the market?

Recently, Micron stated that it does not intend to add DRAM wafer capacity in the foreseeable future. Instead, it will attempt to increase its DRAM output by reducing feature size that, in turn, reduces die size.   Eventually, as the company moves down the learning curve, it will be able to ship an increasing number of good die per wafer.  However, SK Hynix, in its 2Q17 financial analyst conference call, stated that it plans to begin adding DRAM wafer capacity since it is not able to meet increasing demand by technology advancements alone.  Samsung has been less forthcoming in its plans for future DRAM production capacity.

Although Samsung and Micron may tolerate SK Hynix’s DRAM expansion efforts for a short while, IC Insights believes that both companies will eventually step up and add DRAM wafer start capacity to protect their marketshare—and DRAM ASPs will begin to fall.  As the old saying goes, it only takes two companies to engage in a price war—and there are still three major DRAM suppliers left.

The latest update to the World Fab Forecast report, published on September 5, 2017 by SEMI, again reveals record spending for fab equipment. Out of the 296 Front End facilities and lines tracked by SEMI, the report shows 30 facilities and lines with over $500 million in fab equipment spending.  2017 fab equipment spending (new and refurbished) is expected to increase by 37 percent, reaching a new annual spending record of about US$55 billion. The SEMI World Fab Forecast also forecasts that in 2018, fab equipment spending will increase even more, another 5 percent, for another record high of about $58 billion. The last record spending was in 2011 with about $40 billion. The spending in 2017 is now expected to top that by about $15 billion.

fab equipment spending

Figure 1: Fab equipment spending (new and refurbished) for Front End facilities

Examining 2017 spending by region, SEMI reports that the largest equipment spending region is Korea, which increases to about $19.5 billion in spending for 2017 from the $8.5 billion reported in 2016. This represents 130 percent growth year-over-year. In 2018, the World Fab Forecast report predicts that Korea will remain the largest spending region, while China will move up to second place with $12.5 billion (66 percent growth YoY) in equipment spending. Double-digit growth is also projected for Americas, Japan, and Europe/Mideast, while other regions growth is projected to remain below 10 percent.

The World Fab Forecast report estimates that Samsung is expected to more than double its fab equipment spending in 2017, to $16-$17 billion for Front End equipment, with another $15 billion in spending for 2018. Other memory companies are also forecast to make major spending increases, accounting for a total of $30 billion in memory-related spending for the year. Other market segments, such as Foundry ($17.8 billion), MPU ($3 billion), Logic ($1.8 billion), and Discrete with Power and LED ($1.8 billion), will also invest huge amounts on equipment. These same product segments also dominate spending into 2018.

In both 2017 and 2018, Samsung will drive the largest level in fab spending the industry has ever seen. While a single company can dominate spending trends, SEMI’s World Fab Forecast report also shows that a single region, China, can surge ahead and significantly impact spending. Worldwide, the World Fab Forecast tracks 62 active construction projects in 2017 and 42 projects for 2018, with many of these in China.

For insight into semiconductor manufacturing in 2017 and 2018 with more details about capex for construction projects, fab equipping, technology levels, and products, visit the SEMI Fab Database webpage (www.semi.org/en/MarketInfo/FabDatabase) and order the SEMI World Fab Forecast Report. The report, in Excel format, tracks spending and capacities for over 1,200 facilities including over 80 future facilities, across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $33.6 billion for the month of July 2017, an increase of 24.0 percent compared to the July 2016 total of $27.1 billion and 3.1 percent more than the June 2017 total of $32.6 billion. All major regional markets posted both year-to-year and month-to-month increases in July, and the Americas market led the way with growth of 36.1 percent year-to-year and 5.4 percent month-to-month. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“Worldwide semiconductor sales increased on a year-to-year basis for the twelfth consecutive month in July, reflecting impressive and sustained growth for the global semiconductor market,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales in July increased throughout every major regional market and semiconductor product category, demonstrating the breadth of the global market’s recent upswing, and the industry is on track for another record sales total in 2017.”

Year-to-year sales increased in the Americas (36.1 percent), China (24.1 percent), Asia Pacific/All Other (20.5 percent), Europe (18.9 percent), and Japan (16.7 percent). Month-to-month sales increased in the Americas (5.4 percent), Asia Pacific/All Other (2.8 percent), China (2.7 percent), Japan (2.1 percent), and Europe (1.2 percent).

To find out how to purchase the WSTS Subscription Package, which includes comprehensive monthly semiconductor sales data and detailed WSTS Forecasts, please visit http://www.semiconductors.org/industry_statistics/wsts_subscription_package/. For detailed data on the global and U.S. semiconductor industry and market, consider purchasing the 2017 SIA Databook: https://www.semiconductors.org/forms/sia_databook/.

Jul 2017

Billions

Month-to-Month Sales                              

Market

Last Month

Current Month

% Change

Americas

6.59

6.94

5.4%

Europe

3.16

3.20

1.2%

Japan

2.98

3.04

2.1%

China

10.41

10.69

2.7%

Asia Pacific/All Other

9.50

9.77

2.8%

Total

32.64

33.65

3.1%

Year-to-Year Sales                         

Market

Last Year

Current Month

% Change

Americas

5.10

6.94

36.1%

Europe

2.69

3.20

18.9%

Japan

2.60

3.04

16.7%

China

8.61

10.69

24.1%

Asia Pacific/All Other

8.11

9.77

20.5%

Total

27.13

33.65

24.0%

Three-Month-Moving Average Sales

Market

Feb/Mar/Apr

May/Jun/Jul

% Change

Americas

6.08

6.94

14.2%

Europe

2.99

3.20

7.3%

Japan

2.88

3.04

5.7%

China

10.13

10.69

5.6%

Asia Pacific/All Other

9.21

9.77

6.0%

Total

31.29

33.65

7.5%

Healthcare is facing one of its major turning points in decades. After penetrating the consumer market, the digital revolution and its related IoT concept is rapidly changing health models.
Yole Développement’s analysts announce an impressive US$9 billion market in 2016 with a 16% CAGR between 2016 and 2022. Connected devices are now part of the IoT industry: the Internet of Medical Things (IoMT) is born. Such developments have been performed in parallel of the numerous technical innovations dedicated to the consumer applications.

Yole Développement (Yole) releases today the report Connected Medical Devices Market & Business Models. This report analyzes the dynamics of the connected medical devices market, the competitive landscape and its technical innovations. It also details the drivers for the adoption of connected medical devices as well as devices for personal assistance. Trends for connectivity and typical architecture for an IoMT project and much more are presented in this report.
The IoMT powers industry momentum in digital health and reinvents healthcare organization. The Medical Technology team from Yole offers you today an overview of the latest innovations and their impact on our daily life. What will be the tomorrow’s healthcare?

medical_connected_devices_iomt_versus_iot_yole_sep2017_433x280

The population is growing and aging, and chronic diseases are exploding. More than 415 million people are living with diabetes worldwide and there are more than 1.5 billion people at risk of cardiovascular diseases. The number of doctors and nurses has stayed consistently flat, as health budgets are shrinking in many regions. Fortunately, connected devices and smartphones are now widespread. People are managing their lives through apps and clouds, and now can do the same with their health, from hospital to home or even just walking in the street.

Healthcare is shifting to a patient centric model with nearly 20% growth over the period to 2022 for the segment of self-quantified devices. This compares to single-digit growth for connected implantable devices, which face serious security issues. Preventive and predictive medicine and even participative medicine are on the way to supplement evidence-based approaches, using the large volumes of data generated by these connected medical devices.

Technical developments for the medical sector were made in parallel to consumer applications. However, introduction of these “connected innovations” was longer due to regulation aspect in healthcare as well as longer development time and test to clearance.

“Convergence of sensor technology and connectivity made possible the set-up of IoT,” asserts Jérôme Mouly, Technology & Market Analyst, Medical Technologies at Yole. “Today, when connected devices are medical-grade approved, we can talk about IoMT. And this is the focus of Yole’s report”.

Bringing connectivity to medical devices has offered new experience to patient and health body: self-monitoring, alerts, patient coaching, exchange and storage of data, records at local level. Therefore, IoMT infrastructure clearly offers a wide opportunity to store millions of data from several devices, from several patients. “We are just at the beginning of data exploitation for the benefit of patients”, comments Jérôme Mouly from Yole.

According to Yole’s report, the connected medical devices market is structured within 4 market segments, each one with dedicated requirements and challenges front of connectivity. They are implantable devices – self-monitored – professional oriented – and assistance devices for people’s lacking autonomy.

The healthcare industry is changing smoothly and connected medical devices will slightly impose their presence. For example, chronic diseases are strongly driving connected medical device market with more than 80% of sales generated by monitoring of diabetes, respiratory and cardiovascular diseases. The connected medical devices penetration rate for chronic diseases is yet reaching 20%+ from comparable market.

These applications will not be the last one. Indeed connected technologies will continue to impact the healthcare industry with always the same objective: move towards an efficient, accurate and personalized healthcare for the benefit of patient.

By Ajit Manocha, president and CEO, SEMI

In my first six months at SEMI, I’ve visited with many member companies and industry leaders.  One theme I hear repeatedly is a concern about our most fundamental source of innovation and productivity – people.

Our industry has a significant need for additional workers and several trends are working against us.

For one, only 11 percent of elementary students in the U.S. indicate an interest in science, technology, engineering, and mathematics (STEM) education according to the National Science Foundation.  In other regions, recruiting and retaining high-skilled workers remains a constant challenge.

Ironically, the incredible electronics manufacturing technology that we create has enabled many of the new-tech industries in software, social media, internet services and applications that now directly compete for the best and brightest technical talent.  Young engineers have other choices and many are lured to newer growth industries with familiar internet brands.

Today, due to continued industry advancement and robust growth, capital equipment companies, device makers and materials companies collectively have thousands to tens-of-thousands of open unfilled positions. Furthermore, the representation of women in the high-tech workplace remains disproportionately low.

We have long been aware of the need to support a diverse pipeline for high-skilled workers.  In 2001, the SEMI Foundation was established to encourage STEM education and stimulate interest in high-tech careers. SEMI and its Foundation launched the High-Tech U (HTU) program to engage and excite high school students. HTU enlists industry volunteers to work with local high school students in a three-day interactive hands-on curriculum. Young people get a fun and inspirational exposure to binary logic, circuit making, a fab or electronics manufacturing setting and other aspects of professional development.

To date, we’ve delivered 216 HTU programs and reached nearly 7,000 students in 12 states and nine countries.  The results are compelling.  Our 2016 survey of HTU alumni shows that they enter college at five times the national rates and 70 percent that graduated college are employed in a STEM field.   By any measure, the initiative is successful and worthwhile.

However, the talent problem statement has grown. Industry needs are greater and the time has come to redouble our effort to attract and retain talent for our high-skilled manufacturing sector.  Therefore, SEMI is elevating workforce development as a top strategic priority.

The SEMI HTU team is already engaged with key member companies to develop our enhanced roadmap for workforce development including a comprehensive study with Deloitte Consulting to underpin the key problems and solutions in areas of focus for decisive and systematic SEMI action.

Belle Wei, SEMI Foundation Board member and the Carolyn Guidry Chair in Engineering Education and Innovative Learning at San Jose State University said, “It is critical that we work to prepare the future workforce.  This requires a high level of collaboration between industry and higher education.  We appreciate SEMI’s leadership role in this collaboration to further develop the workforce pipeline.”

We have launched a HTU Certified Partner Program (CPP) with the goal of reaching more students through industry partners who commit to long-term participation and independent delivery of High Tech U.  In addition, we are expanding outreach to universities and community colleges and preparing to launch an industry image campaign to better tell the remarkable story of opportunity in our industry.

The capacity to innovate and the skills to manage complex design, engineering and manufacturing processes are essential factors that sustains our high-tech industry – and they are dependent on people.

Finally, as mentioned above, we have already started some new initiatives to enhance our HTU. A SEMI workforce development roadmap and execution plan will be detailed in a future SEMI Global Update article following the upcoming SEMI International Board Meeting.  SEMI welcomes any inputs in addition to your continued support.

This endeavor is increasingly urgent and recruiting the industry’s future innovators is well-aligned with SEMI’s mantra to connect, collaborate, innovate, grow and prosper.

 Yole Développement (Yole) expects the IGBT market to go over US$ 5 billion by 2022 with a major growth coming from IGBT power module. The high performance that SiC and GaN materials can afford is already creating a battlefield with Silicon based IGBT. To overcome this thread, Si IGBT manufacturers need to look for prompt solutions as technologically update their systems for better efficiency or to increase their IGBT portfolio offer.

How is the IGBT market evolving for different applications? How will the IGBT market face the adoption of high performance WBG based devices?… Yole’s power electronics team proposes you today a new technology & market report titled IGBT market and technology trends 2017 report. Yole’s report presents an overview of the IGBT market including detailed forecasts and a new application section focused on energy storage systems. This analysis is also showing the status of the competitive landscape.

Figure 1

Figure 1

The IGBT market represents a very promising bet for the next few years, announces the “More than Moore” market research and strategy consulting company: its analysts invite you to discover the latest IGBT technology trends and market challenges.

“The IGBT industry will follow power electronics’ growth pattern, mainly caused by the high volume automotive market, especially for the electrification of powertrains in EV/HEV ”, asserts Dr Ana Villamor, Technology & Market Analyst, Power Electronics at Yole Développement.

The EV/HEV sector has great growth prospects because it is still an emerging market with tremendous volume potential.

Another big sector for IGBT is clearly motor drives, which keep on growing, thanks to aggressive regulation targets. Yole Développement forecasts a 4.6% CAGR for motor drives from 2016 to 2022. Photovoltaics and wind are very dynamic markets with growth from huge installations being installed during the last few years. It is worth to say that China led the solar panel implementation in 2016, with an impressive 35 GW installed.

“There will be applications for SiC which will impact the IGBT market, for example it is highly possible that it will take over the automotive market”, comments Dr Ana Villamor. “However, we forecast that IGBTs will keep a significant market share in the power electronics industry and will not be replaced completely.”

In fact, even if the IGBT has almost reached its technological limit, new designs and new materials can still be used to improve system performance to overcome the WBG devices arrival. In coming years, there will be new IGBT designs from Infineon, Fuji or ABB coming into the market. Packages are being improved by different manufacturers to decrease parasitics and improve system efficiency. A clear example is the introduction of the embedded techniques for discrete IGBTs and overmolded solutions for IGBT modules to reduce size or increase functional density.

Currently, IGBT manufacturers can have wide voltage ranges in their portfolios, going from 400 V to 6.5k V. The 400 V IGBTs will directly compete with MOSFETs, whereas IGBTs with voltages higher than 600 V will compete with SJ MOSFETs and WBG devices, which exhibit advantages over IGBTs. Lower voltage IGBTs will not be developed since they do not show any advantage compared with MOSFETs.

As IGBTs is a mature technology, the supply chain is well established, with strong partnerships and companies well positioned in each level.

“Therefore, the main IGBT manufacturers that we included in our 2015 report are still in the IGBT best sellers, except ON Semiconductor, which has become one of the top five IGBT vendors after the acquisition of Fairchild at the end of 2016”, explains Dr Ana Villamor. “However, more companies are entering the IGBT market in order to capture added value, like Littelfuse, who just announced the agreement on the acquisition of IXYS Corporation.”

Following a substantial increase in semiconductor capital expenditures during the first half of this year, IC Insights raised its annual semiconductor capex forecast to a record high of $80.9 billion for 2017, a 20% increase from $67.3 billion in 2016. Previously, 2017 semiconductor capex was expected to grow 12% in 2017 to $75.6 billion.

A little over half of 2017 capex spending is forecast for wafer foundries (28%) and upgrades for NAND flash memory (24%), as shown in Figure 1. With a projected 53% increase in 2017, the DRAM/SRAM segment is expected to display the largest percentage growth in capital expenditures of the major product types this year. With DRAM prices surging since the third quarter of 2016, DRAM manufacturers are once again stepping up spending in this segment. Although the majority of this spending is going towards technology advancement, DRAM producer SK Hynix recently admitted that it can no longer keep up with demand by technology advancements alone and needs to begin adding wafer start capacity.

Figure 1

Figure 1

Even with a DRAM spending surge this year, capital spending for flash memory in 2017 ($19.0 billion) is still expected to be significantly higher than spending allocated to the DRAM/SRAM category ($13.0 billion). Overall, IC Insights believes that essentially all of the spending for flash memory in 2017 will be dedicated to 3D NAND process technology, including production of 3D NAND at Samsung’s giant new fab in Pyeongtaek, South Korea.

Overall, capital spending for the flash memory segment is forecast to register a 33% surge in 2017 after a strong 23% increase in 2016. However, historical precedent in the memory market shows that too much spending usually leads to overcapacity and subsequent pricing weakness. With Samsung, SK Hynix, Micron, Intel, Toshiba/Western Digital/SanDisk, and XMC/Yangtze River Storage Technology all planning to significantly ramp up 3D NAND flash capacity over the next couple of years (and new Chinese producers possibly entering the market), IC Insights believes that the future risk for overshooting 3D NAND flash market demand is high and growing.

Silicon – the second most abundant element in the earth’s crust – shows great promise in Li-ion batteries, according to new research from the University of Eastern Finland. By replacing graphite anodes with silicon, it is possible to quadruple anode capacity.

In a climate-neutral society, renewable and emission-free sources of energy, such as wind and solar power, will become increasingly widespread. The supply of energy from these sources, however, is intermittent, and technological solutions are needed to safeguard the availability of energy also when it’s not sunny or windy. Furthermore, the transition to emission-free energy forms in transportation requires specific solutions for energy storage, and lithium-ion batteries are considered to have the best potential.

Researchers from the University of Eastern Finland introduced new technology to Li-ion batteries by replacing graphite used in anodes by silicon. The study analysed the suitability of electrochemically produced nanoporous silicon for Li-ion batteries. It is generally understood that in order for silicon to work in batteries, nanoparticles are required, and this brings its own challenges to the production, price and safety of the material. However, one of the main findings of the study was that particles sized between 10 and 20 micrometres and with the right porosity were in fact the most suitable ones to be used in batteries. The discovery is significant, as micrometre-sized particles are easier and safer to process than nanoparticles. This is also important from the viewpoint of battery material recyclability, among other things. The findings were published in Scientific Reports.

“In our research, we were able to combine the best of nano- and micro-technologies: nano-level functionality combined with micro-level processability, and all this without compromising performance,” Researcher Timo Ikonen from the University of Eastern Finland says. “Small amounts of silicon are already used in Tesla’s batteries to increase their energy density, but it’s very challenging to further increase the amount,” he continues.

Next, researchers will combine silicon with small amounts of carbon nanotubes in order to further enhance the electrical conductivity and mechanical durability of the material.

“We now have a good understanding of the material properties required in large-scale use of silicon in Li-ion batteries. However, the silicon we’ve been using is too expensive for commercial use, and that’s why we are now looking into the possibility of manufacturing a similar material from agricultural waste, for example from barley husk ash,” Professor Vesa-Pekka Lehto explains.

A discovery by two scientists at the Energy Department’s National Renewable Energy Laboratory (NREL) could aid the development of next-generation semiconductor devices.

The researchers, Kwangwook Park and Kirstin Alberi, experimented with integrating two dissimilar semiconductors into a heterostructure by using light to modify the interface between them. Typically, the semiconductor materials used in electronic devices are chosen based on such factors as having a similar crystal structure, lattice constant, and thermal expansion coefficients. The close match creates a flawless interface between layers and results in a high-performance device. The ability to use different classes of semiconductors could create additional possibilities for designing new, highly efficient devices, but only if the interfaces between them can be formed properly.

Park and Alberi determined that ultraviolet (UV) light applied directly to the semiconductor surface during heterostructure growth can modify the interface between two layers. Their paper, “Tailoring Heterovalent Interface Formation with Light,” appears in Scientific Reports.

“The real value of this work is that we now understand how light affects interface formation, which can guide researchers in integrating a variety of different semiconductors in the future,” Park said.

The researchers explored this approach in a model system consisting of a layer of zinc selenide (ZnSe) grown on top of a layer of gallium arsenide (GaAs). Using a 150-watt xenon lamp to illuminate the growth surface, they determined the mechanisms of light-stimulated interface formation by varying the light intensity and interface initiation conditions. Park and Alberi found the UV light altered the mixture of chemical bonds at the interface through photo-induced desorption of arsenic atoms on the GaAs surface, resulting in a greater percentage of bonds between gallium and selenium, which help to passivate the underlying GaAs layer. The illumination also allowed the ZnSe to be grown at lower temperatures to better regulate elemental intermixing at the interface. The NREL scientists suggested careful application of UV illumination may be used to improve the optical properties of both layers.