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Due to increasing capacity from China, South Korean LCD panel makers are quickly realizing that LCD displays profitability may eventually erode, due to growing capacity and price competition from China, so they are betting their future on organic light-emitting diode (OLED) displays. Because of lower profit margins and slowing market growth, the IT display category has become the first product line that LCD display manufacturers are quitting, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

Samsung Display was the first company to do so, selling a fifth generation (Gen 5) fabrication plant (fab) to a Chinese touch and module maker last year. In the future, more fab restructuring is expected, especially the facilities dedicated to making IT panels. 

“Brands like HP and Lenovo expected notebook panels to be in a surplus situation, and they were therefore keeping their panel inventories at very low levels,” said Jason Hsu, senior principal analyst, IHS Markit. “This shift from Samsung Display could cause some brands to experience panel shortages in the third quarter of 2016.”

BOE to possibly double its panel shipments this year

Samsung Display delivered 30 million notebook panels in 2015, according to the latest information from the IHS Markit Tablet and Notebook Display Market Tracker. With the company’s latest fab reorganization plan, notebook PC LCD panel shipments could fall to 12 million units in 2016 and to 4 million in 2017. There will be an 18 million-unit gap this year, which means brands might not be able to find other sources to keep up with production needs.

When reviewing the supply chain mix in the first quarter of 2016, it is clear that HP has been affected by these changes more than other companies, with shipments from Samsung Display down from 1.1 million units in first quarter to 350,000 units in the second quarter. However, HP has shifted its orders to other panel makers to secure enough panels for its production needs, for example, Innolux.

BOE is another panel maker benefitting from the exit of Samsung Display from this market. Panel shipments from BOE increased from 4.9 million units in the first quarter to 7.2 million in the second quarter. BOE is expected to grow its notebook business to more than 36 million units in 2017. BOE first began to supply panels for notebooks in 2009, and it has now become one of the largest IT panel suppliers. Furthermore, BOE has a Gen8 fab in Chongqing, China — near the world’s largest notebook production base. In fact, notebook panel shipments from the Chongqing fab are expected to grow quickly next year, thanks to the more efficient logistics.

Chinese and Taiwanese makers to increase unit shipments of premium panels 

LG Display and Samsung Display used to supply Apple with notebook panels; however, the fab re-organization — especially the reallocation of oxide capacity — has increased Apple’s concerns about a potential panel shortage and possible low yields. For this reason, Apple is expected to add another panel supplier for its new MacBook Pro, to diversify the risk from Samsung Display business changes. For its legacy MacBook Air line of notebook PCs, Apple is considering diversifying its supply chain to Chinese makers, which is the first time Apple will use LCD panels from China.

Samsung Display’s exit from the LCD display business has also affected the supply of wide-view-angle in-plane switching (IPS) and plane-to-line switching (PLS) displays. Samsung Display has been one of the major suppliers to offer wide-view-angle panels, and its shipment volume is second only to LG Display.

In order to source IPS and PLS panels, brands must find other sources to replace Samsung Display, after the company begins to reduce production. AUO is one of the qualified candidates, and apparently it is receiving more orders from notebook PC brands. AUO, Innolux and other Taiwanese manufacturers and BOE and other Chinese suppliers are all expanding IPS panels to respond to increasing panel requirements.

imec and Holst Centre (established by imec and TNO), today announced a new sensor hub integrated as a system-on-chip (SoC) intended for a broad range of wearable health devices and applications. The SoC combines an unprecedented number of biomedical analog interfaces into a single chip, on-board digital signal processing, high fidelity operation, and multi-day monitoring capability with a single battery.  Thanks to its small form factor, the SoC can be easily integrated in new innovative designs enabling maximum user comfort. This new SoC is an enabler towards the transformation of today’s mainly curative approach to healthcare to one that is preventative, predictive and personalized.

biomed hub

The biomedical analog interfaces include three ECG channels, photo-plethysmography (PPG), galvanic skin response (GSR), two multi-frequency bio-impedance (BIO-Z) channels to support new applications such as impedance-tomography, body fluid analysis and stroke volume measurements, and three reconfigurable channels.

While high performance multi-modal analog readouts have been demonstrated, they lack on-board signal processing capabilities, or are too large in size. Alternatively, existing reconfigurable readouts are smaller, but have limited performance. Imec’s and Holst Centre’s SoC moves beyond current solutions and combines advanced biomedical readouts, supported by an ARM Cortex M0+ controller and accelerators for sample-rate conversion, matrix processing, data compaction, and power management circuitry (PMIC).  The PMIC operates from a battery source (2.9- 4.5V) and generates the required voltages for the readout IC. It supports dynamic voltage scaling optimized for, but not limited to, low power and high performance applications, and can be fully customized for specific healthcare applications.

“There is a clear need for accurate and reliable bio-sensing in wearables, and we are working on the building blocks to enable this,” stated Chris Van Hoof, program director wearable health at imec. “Our new SoC sensor hub underscores patient-centric capabilities and can be integrated in numerous wearable fitness and healthcare applications such as patch monitors, chest band heart rate monitors, respiration or hydration monitors and devices for blood-pressure calculation.”

Silicon Labs (NASDAQ: SLAB) today announced the acquisition of Micrium, a supplier of real-time operating system (RTOS) software for the Internet of Things (IoT). This strategic acquisition helps simplify IoT design for all developers by combining a commercial-grade embedded RTOS with Silicon Labs’ IoT expertise and solutions. Micrium’s RTOS and software tools will continue to be available to all silicon partners worldwide, giving customers a wide range of options, even when using non-Silicon Labs hardware. Micrium will continue to fully support existing as well as new customers.

Founded in 1999, Micrium has consistently held a leadership position in embedded software components. The company’s flagship µC/OS RTOS family is recognized for reliability, performance, dependability, impeccable source code and extensive documentation.

“With an installed base of millions of devices, Micrium’s RTOS software has established itself as one of the most reliable and trusted platforms over the last 10 years,” said Jean-Michel Orsat, Chief Technology Officer, ICT Standards and Connectivity Solutions at Somfy. “Micrium has been a rock-solid RTOS solution partner for Somfy, and we look forward to using Micrium’s RTOS software family for years to come, delivering the reliability and performance we need for our IoT applications.”

Micrium’s widely deployed RTOS software has been ported to more than 50 microcontroller architectures and has a global footprint with more than 250,000 downloads across all embedded vertical markets, with solutions certified to meet safety-critical standards for medical electronics, avionics, communications, consumer electronics and industrial control.

“By combining forces with Silicon Labs, the Micrium team will drive advances in embedded connectivity for the IoT while giving customers a flexible choice of hardware platforms, wireless stacks and development tools based on the industry’s foremost embedded RTOS,” said Jean J. Labrosse, Founder, CEO and President of Micrium. “We will continue to provide our customers with an exceptional level of support, which is a Micrium hallmark.”

The combination of Micrium’s RTOS and Silicon Labs’ multiprotocol SoCs, wireless modules, wireless stacks and Simplicity Studio development tools gives customers a faster, easier on-ramp from connected devices to the cloud with end-to-end solutions for embedded IoT design.

“IoT products are increasingly defined by software. Explosive growth of memory/processor capabilities in low-end embedded products is driving a greater need for RTOS software in connected device applications,” said Daniel Cooley, Senior Vice President and General Manager of Silicon Labs’ IoT products. “The acquisition of Micrium means that connected device makers will have easier access to a proven embedded RTOS geared toward multiprotocol silicon, software and solutions from Silicon Labs.”

By Paula Doe, SEMI

As the rate of traditional scaling slows, the chip sector looks increasingly to materials and design to move forward on multiple paths for multiple applications. Figuring out more effective ways to collaborate across silos will be crucial.

Source: IBM [IBM slide 6 in Strategic Materials Conference deck]

Source: IBM [IBM slide 6 in Strategic Materials Conference deck]

  1. Paradigm shift requires co-optimization

SMC-Image2

“Scaling has hit a wall, and there is no longer any single path forward,” noted Larry Clevenger, BEOL Architect and Technology Definition, IBM Research, at the SEMI Strategic Materials Conference 2016 (September 20-21). “The materials set we use in the middle and back end of line is running out of steam. We need new materials and design co-optimization.”  He noted EUV would much improve the critical tight pitch areas for the memory and BEOL for 7nm-5nm logic. But reducing the parasitics in the metal interconnect in middle of the line and BEOL will also be critical, with good results demonstrated from new materials like Si:P and Ge:Ga meta-stable alloys, cobalt instead of tungsten, self-forming encapsulation of copper by cobalt, and airgaps, all of which would require optimization of an ecosystem of appropriate cleaning, deposition and wet process technologies for integration. Changing the design to route the critical paths directly up to higher wiring levels where the wires are larger would also help reduce resistance.

“It’s a paradigm shift that what was once a process deviation is now an excursion,” said Archita Sengupta, Intel senior technologist, noting the need for new specialized tools to measure, monitor and control the process to detect ever tinier defects sooner. “We need more proactive cooperation across the supply chain for bottom up control of quality from suppliers.”

Showing impressive examples of imaging and computation enabling doctors to reduce errors in breast cancer detection by 85 percent, and even to operate on a beating heart, using Nvidia GPUs and artificial intelligence, Nvidia’s director of Advanced Technology John Hu noted, “We are at a real inflection point for demand for more compute power, and we can’t get there by just process scaling any more. We are going to have to rely on new architectures to rescue us from the increasingly imperfect reality of materials and processes.”

While almost every speaker stressed the increasing need for the different segments of the supply chain from materials to design to work more closely together to move technology forward along many new paths, the materials suppliers in the audience felt that progress could be better to make this happen. Some audience members talked among themselves of now being invited more often into the fabs to discuss material development, but still not being told much detail about the key target parameters. Material suppliers in the audience raised the issues of the time and expense needed to qualify their second sources for raw materials and precursors, to get the needed environmental certifications, and to find access to the expensive exotic multi-technology metrology tools capable of finding contaminates too small to see with conventional methods, before they could even bring in any potential material to be evaluated for use several years in the future.

Although speakers kept referring to the past Golden Age of Moore’s Law of regular two-year dimensional scaling, before the proliferation of alternatives, Tim Hendry, retiring Intel VP, Fab Materials, pointed out that it hadn’t really seemed like a Golden Age at the time. “As I remember, we thought it was pretty hard back then too.”

  1. Look to self-aligned and selective processes as scaling boosters

As lithography scaling slows down, new approaches will make creative use of deposition and etch to keep improving pattern resolution. “14nm is a real sweet spot technically for lithography that will be with us for a long time,” noted Anton DeVilliers, Tokyo Electron America director of Patterning Technology, suggesting a toolkit of assorted self-alignment and selective deposition and etch processes likely to see increasing use as resolution boosters as an alternative to pushing the lithography, such as collars at key points to protect the pattern, or self aligned patterning by selective etching.

Adding a protective ALD collar holds a key region open during etch to widen the process window and prevent shorts from process variation in tight pattern areas.

SMC-Image3

ALD snap collar holds the critical part of M1 pattern open to widen window in LELELE process…

SMC-Image4

So that overlay variation that would typically create a short…

SMC-Image5

Instead creates the desired pattern. Source: TEL

Using materials with different etch selectivity for different parts of a pattern, such as for alternate lines, enables the creation of a self aligned pattern at higher resolution than the lithography.  Different etch selectivity in alternate metal tracks could also reduce the number of exposure passes and improve overlay tolerance. “For 5nm nanowires, we’ll have to use selective ALD and ALE, controlled by self assembling monolayers,” noted DeVilliers. “We’ve done each of these steps on a tool, but now the challenge is to put them all together.”

  1. Progress on 3D alternatives

“To maintain the pace of progress we’ll have to change everything—we can’t do it with Moore’s Law,” said Bill Bottoms, chairman and CEO, Third Millennium Test Solutions, updating on the international effort to create a Heterogeneous Integration Roadmap. “Future progress will come from bringing active elements closer together through integration at the system level, with interconnect with photonics and plasmonics.” The aim is to map future needs to better enable precompetitive collaboration. The first edition of the roadmap is now slated to come out in March.

SMC-Image6

CEA-Leti researchers meanwhile are reporting good progress on lowering the temperatures of the various processes needed to build a second chip directly on top of a first, for monolithic 3D CMOS-on-CMOS integration.  Performance of the bottom chip degrades if the process temperatures for the top chip are >500°C, mainly because the NiPt silicide deteriorates, but replacing the NiPt with a more stable NiCo and adding an Si cap looks promising to increase stability. The 8nm active active layer for the top device is bonded atop the bottom device at room temperature and annealed 300C. Nanosecond laser thermal annealing and low temperature solid phase epitaxy regrowth help bring down temperatures for dopant activation. Cycles of deposition and etch replace selective epitaxy for the source and drain, while different precursors reduce process temperatures to 500-550C. “Later this year at IEDM we’ll demonstrate top CMOS made at 500°C with these developments,” said Philippe Rodriguez, CEA-Leti research engineer.

  1. Get used to the slow growth world 

The semiconductor industry will see silicon demand (MSI) pick up from this year’s 0.6 percent increase to  ~3.8 percent growth in 2017, and ~6.3 percent in 2018, as some uncertainty about interest rates and government policy in major countries resolves, according to the econometric semiconductor forecast from Hilltop Economics and LINX Consulting. “We got comfortable with 3 percent GDP growth in the world that we sell chips into, but since the 2009 recession we are only seeing about 2.4 percent growth,” said Duncan Meldrum, chief economist, Hilltop Economics. He noted that economists keep saying the world will get back to its regular 3 percent growth next quarter or year, but it hasn’t happened, probably because high government debt levels in most major economies tends to reduce growth by about reduces it. Silicon demand grows a little faster than GDP, but its trends generally track that global growth number more than in the past as the electronics industry matures.

  1. Wafer level fan out will shake up package materials sector

Now that it appears the 40 to 50 percent improvement in performance in the newest Apple A10 processor is largely from its wafer-level fan out packaging from TSMC, demand for the packaging approach is ramping fast. “This is one of the fastest ramps we’ve seem for a package in a long time,” said TechSearch International president Jan Vardaman. “It’s a very disruptive technology that will have a big impact on the industry.” The thinner, lower-cost packaging approach is also showing up in RF and audio codec chips in mobile phones, with  ~2 billion units just in Samsung and Apple phones, potentially bringing big changes to the packaging materials market. Laminate substrate suppliers will see demand plunge, copper post suppliers will see little change, and makers of wafer-level dielectrics could potentially see 3X growth in volume. “But don’t think you’ll see that in revenue, since customers will really beat the prices down.”

And in a final note, the gathered materials sector paused in a moment of silence for Dan Rose, who passed away on September 19.  Dan was a well-known market researcher and founder of Rose Associates with a focus on materials market data.

Originally published on the SEMI blog.

IC Insights recently released its September Update to the 2016 McClean Report. This Update included Part 2 of an extensive analysis of the IC foundry business. An excerpt from the September Update, describing foundry sales by feature size, is shown below.

Figure 1

Figure 1

TSMC has long been the technology leader among the major pure-play foundries. As shown in Figure 1, 54% of TSMC’s 2016 revenue is expected to come from <40nm processing. GlobalFoundries, which has dedicated a large portion of its capacity to making advanced processors over the past few years, also generates a large portion of its sales based on leading-edge process technology and feature sizes. In 2016, 52% of GlobalFoundries’ sales are forecast to come from <40nm production.

Although GlobalFoundries and TSMC are forecast to have a similar share of their sales dedicated to <40nm technology this year, TSMC is expected to have almost 6x the sales volume at <40nm as compared to GlobalFoundries in 2016 ($15.6 billion for TSMC and $2.6 billion for GlobalFoundries). In contrast, SMIC only entered initial production of its 28nm technology in 4Q15, more than three years after TSMC first put its 28nm process into production.

Because TSMC has a very large percentage of its sales targeting <40nm production, its revenue per wafer is forecast to increase at a CAGR of 3% from 2011 through 2016 as compared to a -1% CAGR expected for the total revenue per wafer average of GlobalFoundries, UMC, and SMIC over this same timeperiod. Only 2% of SMIC’s 2016 sales are expected to come from devices having 28nm feature sizes (the company does not offer a finer feature size at this time), which is the primary reason its revenue per wafer is so low as compared to TSMC and GlobalFoundries.

It is interesting to note that the increase in pure-play foundry sales this year is forecast to be almost entirely due to <40nm feature size device sales (Figure 2). Although it is expected to represent 60% of total pure-play foundry sales in 2016, the ≥40nm pure-play IC foundry market is forecast to be flat this year. In contrast, the leading-edge <40nm pure-play foundry market in 2016 is expected to surge by 23%, increasing by a hefty $3.6 billion.

Figure 2

Figure 2

By David W. Price and Douglas G. Sutherland

Author’s Note: The Process Watch series explores key concepts about process control—defect inspection and metrology—for the semiconductor industry. Following the previous installments, which examined the 10 fundamental truths of process control, this new series of articles highlights additional trends in process control, including successful implementation strategies and the benefits for IC manufacturing. 

Introduction

In a previous Process Watch article [1], we showed that big excursions are usually easy to detect but finding small excursions requires a combination of high capture rate and low noise. We also made the point that, in our experience, it’s usually the smaller excursions which end up costing the fab more in lost product. Catastrophic excursions have a large initial impact but are almost always detected quickly. By contrast, smaller “micro-excursions” sometimes last for weeks, exposing hundreds or thousands of lots to suppressed yield.

Figure 1 shows an example of a micro-excursion. For reference, the top chart depicts what is actually happening in the fab with an excursion occurring at lot number 300. The middle chart shows the same excursion through the eyes of an effective inspection strategy; while there is some noise due to sampling and imperfect capture rate, it is generally possible to identify the excursion within a few lots. The bottom chart shows how this excursion would look if the fab employed a compromised inspection strategy—low capture rate, high capture rate variability, or a large number of defects that are not of interest; in this case, dozens of lots are exposed before the fab engineer can identify the excursion with enough confidence to take corrective action.

Figure 1. Illustration of a micro-excursion. Top: what is actually happening in the fab. Middle: the excursion through the lens of an effective control strategy (average 2.5 exposed lots). Bottom: the excursion from the perspective of a compromised inspection strategy (~40 exposed lots).

Figure 1. Illustration of a micro-excursion. Top: what is actually happening in the fab. Middle: the excursion through the lens of an effective control strategy (average 2.5 exposed lots). Bottom: the excursion from the perspective of a compromised inspection strategy (~40 exposed lots).

Unfortunately, the scenario depicted in the bottom of Figure 1 is all too common. Seemingly innocuous cost-saving tactics such as reduced sampling or using a less sensitive inspector can quickly render a control strategy to be ineffective [2]. Moreover, the fab may gain a false sense of security that the layer is being effectively monitored by virtue of its ability to find the larger excursions. 

Micro-Excursions 

Table 1 illustrates the difference between catastrophic and micro-excursions. As the name implies, micro-excursions are subtle shifts away from the baseline. Of course, excursions may also take the form of anything in between these two.

Table 1: Catastrophic vs. Micro-Excursions

Table 1: Catastrophic vs. Micro-Excursions

Such baseline shifts happen to most, if not all, process tools—after all, that’s why fabs employ rigorous preventative maintenance (PM) schedules. But PM’s are expensive (parts, labor, lost production time), therefore fabs tend to put them off as long as possible.

Because the individual micro-excursions are so small, they are difficult observe from end-of-line (EOL) yield data. They are frequently only seen in EOL yield data through the cumulative impact of dozens of micro-excursions occurring simultaneously; even then it more often appears to be baseline yield loss. As a result, fab engineers sometimes use the terms “salami slicing” or “penny shaving” since these phrases describe how a series of many small actions can, as an accumulated whole, produce a large result [3].

Micro-excursions are typically brought to an end because: (a) a fab detects them and puts the tool responsible for the excursion down; or, (b) the fab gets lucky and a regular PM resolves the problem and restores the tool to its baseline. In the latter case, the fab may never know there was a problem.

The Superposition of Multiple Simultaneous Micro-Excursions

To understand the combined impact of these multiple micro-excursions, it is important to recognize:

  1. Micro-excursions on different layers (different process tools) will come and go at different times
  2. Micro-excursions have different magnitudes in defectivity or baseline shift
  3. Micro-excursions have different durations

In other words, each micro-excursion has a characteristic phase, amplitude and wavelength. Indeed, it is helpful to imagine individual micro-excursions as wave forms which combine to create a cumulative wave form. Mathematically, we can apply the Principle of Superposition [4] to model the resulting impact on yield from the contributing micro-excursions.

Figure 2 illustrates the cumulative effect of one, five, and 10 micro-excursions happening simultaneously in a 1,000 step semiconductor process. In this case, we are assuming a baseline yield of 90 percent, that each micro-excursion has a magnitude of 2 percent baseline yield loss, and that they are detected on the 10th lot after it starts. As expected, the impact of a single micro-excursion is negligible but the combined impact is large.

Figure 2. The cumulative impact of one, five, and 10 simultaneous micro-excursions happening in a 1,000 step process: increased yield loss and yield variation.

Figure 2. The cumulative impact of one, five, and 10 simultaneous micro-excursions happening in a 1,000 step process: increased yield loss and yield variation.

It is interesting to note that the bottom curve in Figure 2 would seem to suggest that the fab is suffering from a baseline yield problem. However, what appears to be 80 percent baseline yield is actually 90 percent baseline yield with multiple simultaneous micro-excursions, which brings the average yield down to 80 percent. This distinction is important since it points to different approaches in how the fab might go about improving the average yield. A true baseline yield problem would suggest that the fab devote resources to run experiments to evaluate potential process improvements (design of experiments (DOEs), split lot experiments, failure analysis, etc.). These activities would ultimately prove frustrating as the engineers would be trying to pinpoint a dozen constantly-changing sources of yield loss.

The fab engineer who correctly surmises that this yield loss is, in fact, driven by micro-excursions would instead focus on implementing tighter process tool monitoring strategies. Specifically, they would examine the sensitivity and frequency of process tool monitor inspections; depending on the process tool, these monitors could be bare wafer inspectors on blanket wafers and/or laser scanning inspectors on product wafers. The goal is to ensure these inspections provide timely detection of small micro-excursions, not just the big excursions.

The impact of an improved process tool monitoring strategy can be seen in Figure 3. By improving the capture rate (sensitivity), reducing the number of non-critical defects (by doing pre/post inspections or using an effective binning routine), and reducing other sources of noise, the fab can bring the exposed product down from 40 lots to 2.5 lots. This, in turn, significantly reduces the yield loss and yield variation.

Figure 3. The impact of 10 simultaneous micro-excursions for the fab with a compromised inspection strategy (brown curve, ~40 lots at risk), and a fab with an effective process tool monitoring strategy (blue curve, ~2.5 lots at risk).

Figure 3. The impact of 10 simultaneous micro-excursions for the fab with a compromised inspection strategy (brown curve, ~40 lots at risk), and a fab with an effective process tool monitoring strategy (blue curve, ~2.5 lots at risk).

Summary

Most fabs do a good job of finding the catastrophic defect excursions. Micro-excursions are much more common and much harder to detect. There are usually very small excursions happening simultaneously at many different layers that go completely undetected. The superposition of these micro-excursions leads to unexplained yield loss and unexplained yield variation.

As a yield engineer, you must be wary of this. An inspection strategy that guards only against catastrophic excursions can create the false sense of security that the layer is being effectively monitored—when in reality you are missing many of these smaller events that chip away or “salami slice” your yield.

References:

About the Author: 

Dr. David W. Price is a Senior Director at KLA-Tencor Corp. Dr. Douglas Sutherland is a Principal Scientist at KLA-Tencor Corp. Over the last 10 years, Dr. Price and Dr. Sutherland have worked directly with more than 50 semiconductor IC manufacturers to help them optimize their overall inspection strategy to achieve the lowest total cost. This series of articles attempts to summarize some of the universal lessons they have observed through these engagements.

The bill of materials (BOM) for an iPhone 7 equipped with 32 gigabytes (GB) of NAND flash memory carries $219.80 in bill of materials costs, according to a preliminary estimate from IHS Markit (Nasdaq: INFO), a source in critical information, analytics and solutions.

After $5 in basic manufacturing costs are added, Apple’s total cost to manufacture the iPhone 7 rises to $224.80. The unsubsidized price for a 32GB iPhone 7 is $649. IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus. This preliminary estimated total is $36.89 higher than the final analysis of the iPhone 6S published by IHS in December 2015.

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”

Same shape. No jack.

While the overall shape and physical design of the iPhone 7 is similar to the iPhone 6S that preceded it, the new display has wider color gamut, including DCI-P3 as well as traditional sRGB, which improves the rendering of photos and videos. The device’s haptic engine, which provides the “click” feel for users, has also been improved for longer-duty cycles and better dynamic response. The home button is now static and mimics the MacBook in terms of a solid-state button design.

Apple has also eliminated the 3.5 millimeter headphone jack, allowing a larger battery and haptic motor. “Where there was an audio jack in the previous design, Apple replaced it with a symmetrical grill — not for speakers, but for the waterproof microphone, leaving more room for the larger battery and Taptic Engine,” Rassweiler said.

Increased base-model storage

Apple has increased the iPhone 7’s storage density. For the first time, the base model starts at 32 gigabytes (GB) – which is only the second time Apple has upgraded the base storage in the iPhone. From a cost perspective, the shift from 16GB/64GB/128GB iPhones to 32GB/128GB/256GB is a big jump. “Despite significant cost erosion in NAND flash over the last year, this increase in the overall memory cost definitely puts pressure on the bill of materials costs — and therefore margins — from Apple’s perspective,” Rassweiler said.

Intel returns

The Intel design win, and six years of absence that Intel had from the iPhone, is important to note. Even so, Intel still shares the processor business with Qualcomm. “Whereas Apple strives to have ‘one iPhone model for all carriers and markets,’ there are a number of different hardware permutations supporting various countries and carriers,” Rassweiler said. “Apple will likely look for ways to simplify the design moving forward, which means one supplier – whether Intel or Qualcomm – will likely dominate, as part of supplier and SKU streamlining.”

According to Wayne Lam, principal analyst of smartphone electronics, IHS Markit, “Largely left behind in the 4G LTE market, Intel has finally worked itself back into the iPhone, which is a huge win, but not one that is going to be financially significant in the near term for Intel.”

RF paths

Apple has also eliminated segmented antenna bands, which means the company is pushing all radio-frequency (RF) paths to the very ends of the phone – both on the top and bottom. The aluminum uni-body construction and design forces all RF paths into those two locations. Whereas other smartphones use a glass back and RF components with antennas mounted on the ample back spaces, Apple is restricted to just two physical antennas.  “This design limitation may force Apple to go back to an all-glass design again so that they can fit in 4x4MIMO LTE antennas and more features like wireless charging in the next iPhone iteration,” Lam said.

Modem moved

The baseband thin modem has been moved next to the A10 processor. Prior to the iPhone 7, the thin modem was always on the other side of the SIM card receptacle. “This is a subtle change but likely shows us where Apple wants to take this,” Lam said, “eventually putting the thin modem right on the apps processor package or even integrating it into the A-series processor.”

Officially water resistant

iPhone 7 is now officially rated as water resistant. “We also saw evidence of this water proofing design evolution in the earlier iPhone 6S, which included additional gasketing around critical connectors, as well as the use of WiFi antenna at the end of the primary speaker box,”Lam said. “Doing so pushes the antennas near the only other opening, for better reception and transmission.”

Jet-black polished case

Jet black polish is a new option on 128GB and 256GB models. “This is a new feature that produces a whole new look for the iPhone,” Lam said. “It is a lower yielding, time-intensive manufacturing step that adds cost, as well as considerable value, pushing the retail price higher for those requesting this option.”

Antenna speaker design

The antenna speaker design on the iPhone 7 came from the WiFi antenna packed into the speakers of Apple’s MacBook.  “Apple likes to reuse these unique designs throughout their product lines,” Lam said. In a first for the iPhone series, the headset speaker now doubles as a stereo speaker.

Upgraded camera

While not as groundbreaking as the two optical paths in the iPhone 7 Plus, the iPhone 7 camera has now been upgraded to optical image stabilization (OIS), for better low light performance.

Improved battery life

The battery has been increased to 1960mAhr capacity from 1715mAh in the previous iPhone 6s.  This change is consistent with Apple’s claims of improved battery life.

IC Insights recently released its September Update to the 2016 McClean Report. This Update included Part 2 of an extensive analysis of the IC foundry industry and a look at the current state of the merger and acquisition surge in the semiconductor industry. An excerpt from the M&A portion of this Update is shown below.

After an historic surge in semiconductor merger and acquisition agreements in 2015, the torrid pace of transactions has eased (until recently), but 2016 is already the second-largest year ever for chip industry M&A announcements, thanks to three major deals struck in 3Q16 that have a combined total value of $51.0 billion. As of the middle of September, announced semiconductor acquisition agreements this year have a combined value of $55.3 billion compared to the all-time high of $103.8 billion reached in all of 2015 (Figure 1). Through the first three quarters of 2015, semiconductor acquisition pacts had a combined value of about $79.1 billion, which is 43% higher than the total of the purchasing agreements reached in the same period of 2016, based on M&A data compiled by IC Insights.

In many ways, 2016 has become a sequel to the M&A mania that erupted in 2015, when semiconductor acquisitions accelerated because a growing number of suppliers turned to purchase agreements to offset slower growth in major existing end-use equipment applications (such as smartphones, PCs, and tablets) and to broaden their businesses to serve huge new market potentials, including the Internet of Things (IoT), wearable electronics, and strong segments in embedded electronics, like highly-automated automotive systems. China’s goal of boosting its domestic IC industry is also driving M&A. In the first half of 2016, it appeared the enormous wave of semiconductor acquisitions in 2015 had subsided substantially, with the value of transactions announced between January and June being just $4.3 billion compared to $72.6 billion in the same six-month period in 1H15. However, three large acquisition agreements announced in 3Q16, including SoftBank’s purchase of ARM, Analog Devices’ intended purchase of Linear Technology, and Renesas’ potential acquisition of Intersil) have insured that 2016 will be second only to 2015 in terms of the total value of announced semiconductor M&A transactions.

Figure 1

Figure 1

A major difference between the huge wave of semiconductor acquisitions in 2015 and the nearly 20 deals being struck in 2016 is that a significant number of transactions this year are for parts of businesses, divisions, product lines, technologies, or certain assets of companies.  This year has seen a surge in the agreements in which semiconductor companies are divesting or filling out product lines and technologies for newly honed strategies in the second half of this decade.

Solid State Technology announced today that its premier semiconductor manufacturing conference and networking event, The ConFab, will be held at the iconic Hotel del Coronado in San Diego on May 14-17, 2017. A 30% increase in attendance in 2016 with a similar uplift expected in 2017, makes the venue an ideal meeting location as The ConFab continues to expand.

    

For more than 12 years, The ConFab, an invitation-only executive conference, has been the destination for key industry influencers and decision-makers to connect and collaborate on critical issues.

“The semiconductor industry is maturing, yet opportunities abound,” said Pete Singer, Editor-in-Chief of Solid State Technology and Conference Chair of The ConFab. “The Internet of Things (IoT) is exploding, which will result in a demand for “things” such as sensors and actuators, as well as cloud computing. 5G is also coming and will be the key technology for access to the cloud.”

The ConFab is the best place to seek a deeper understanding on these and other important issues, offering a unique blend of market insights, technology forecasts and strategic assessments of the challenges and opportunities facing semiconductor manufacturers. “In changing times, it’s critical for people to get together in a relaxed setting, learn what’s new, connect with old friends, make new acquaintances and find new business opportunities,” Singer added.

Dave Mount

David Mount

Solid State Technology is also pleased to announce the addition of David J. Mount to The ConFab team as marketing and business development manager. Mount has a rich history in the semiconductor manufacturing equipment business and will be instrumental in guiding continued growth, and expanding into new high growth areas.

Mainstream semiconductor technology will remain the central focus of The ConFab, and the conference will be expanded with additional speakers, panelists, and VIP attendees that will participate from other fast growing and emerging areas. These include biomedical, automotive, IoT, MEMS, LEDs, displays, thin film batteries, photonics and advanced packaging. From both the device maker and the equipment supplier perspective, The ConFab 2017 is a must-attend networking conference for business leaders.

The ConFab conference program is guided by a stellar Advisory Board, with high level representatives from GLOBALFOUNDRIES, Texas Instruments, TSMC, Cisco, Samsung, Intel, Lam Research, KLA-Tencor, ASE, NVIDIA, the Fab Owners Association and elsewhere.

Details on the invitation-only conference are at: www.theconfab.com. For sponsorship inquiries, contact Kerry Hoffman at [email protected]. For details on attending as a guest or qualifying as a VIP, contact Sally Bixby at [email protected].

By Ted Shafer, Business Manager, Mature Product Sales, ASML

Ted Shafer of ASML reports on the highlights from the ≤200mm manufacturing session during SEMICON West, organized by the SEMI Secondary Equipment and Applications Special Interest Group. Your next opportunity to catch up on latest trends on ≤200mm manufacturing trends and its impact on the secondary equipment and applications market is SEMICON Europa 2016 and the Secondary Equipment Tech Arena session

Wednesday July 13th at SEMICON West a seminar and panel discussion were held to discuss the longevity and growth of the 200mm equipment market, and responses from IDMs, OEMs and 3rd parties to the challenges this growth presents.

Tim Tobin of Entrepix was the first speaker.  Entrepix is a premier 3rd party refurbisher of CMP and other process equipment.  Tim was the first to remark on a phenomenon that the other speakers and panelists also noted: a huge portion of the die in the devices we use daily do not require state of the art 300mm manufacturing.  For example, 60% – 80% of the chips in your smartphone or tablet are manufactured on 200mm – or smaller – wafers.  These wafers are created using mature equipment, which is frequently purchased from the secondary market, often from refurbishers such as Entrepix.

SEMI’s Christian Dieseldorff next provided a great overview of 200mm market trends, titled “200mm Fab: Trends, Status, and Forecast”.  Driven by the growth of IoT (Internet of Things), new 200mm fabs are being built and additional capacity is being added at existing fabs.  Key take-away is that after peaking in 2006, then declining for several years, 200mm wafer starts per month are now forecasted to exceed 2006’s level of 5.4M by 2019.  The question on everyone’s mind is, once that level is exceeded, where will the tools come from to manufacture those wafers?

200mm-image1

Pierric Gueguen of Yole spoke of the increased adoption of exotic substrates like GaN, Sapphire and Silicon Carbide.  These substrates provide many performance advantages, such as lower power consumption, faster switching speed, and high temperature resistance.  Yet the substrates cannot scale to 12”, and sometimes not to 8”.  So the increased adoption of these substrates is driving additional demand for 150mm/200mm tools.

As a counter-point to the 200mm discussions, Karen Erz of Texas Instruments gave a very well-received presentation on TI’s pivot to 300mm for analog, which has traditionally been manufactured on 200mm wafers.  A key to TI’s success is to embrace without fear buying opportunities for used equipment when they present themselves.  TI does not compete at the leading edge – their minimum feature size is 130nm – and thus mature, pre-owned, cost-effective equipment is always their first choice.  In fact, surplus 300mm is often more available, and less expensive, than comparable 200mm tools.  TI capitalized on the bankruptcies of the 300mm fabs of Qimonda Dresden, Qimonda Richmond, and PROMOS, also surplus tools at Powerchip, to scoop up large batches of inexpensive 300mm tools.  They continue to buy surplus 300mm tools when they come on the market, even in advance of actually requiring the tools.  As a result, 92% of RFAB’s analog production is done with pre-owned 300mm equipment.

Emerald Greig of Surplus Global, in addition to organizing the seminar, also provided a well-researched presentation on surplus equipment trends, titled “The Indispensable Secondary Market”.  Surplus Global is one of the largest surplus equipment traders, and they track the used equipment market very closely.  Emerald discussed how the supply of tools per year is trending dramatically downwards.  In 2009 they saw 6,000 tools come on the market, and that run-rate has steadily decreased to the point where by last year it was under 1,000/year.  This year we are at just 600.

200mm-image2

AMAT’s John Cummings provided the first OEM perspective on the 200mm market.  John showed how over 70% of the chips in the segments of automotive, wearables and mobile are produced on <=200mm wafers.  These segments are growing – for example a BMW i3 contains an astonishing 545 total die, and 484 of them are manufactured on <=200mm wafers.   AMAT reports that there are not enough used 200mm tools on the market to support the demand, and thus AMAT supplies their customers with new 200mm tools to augment the upgrades and refurbs they perform on pre-owned tools.  AMAT also provides new functionality for their mature 200mm products, increasing their usefulness and extending their lifetime.

Finally there was the OEM panel discussion, consisting of Kevin Chasey of TEL, David Sachse of LAM, Hans Peters from Ebara, and Ted Shafer of ASML.  Emerald Greig of Surplus Global provided some initial questions and solicited additional ones from the audience.   The OEMs echoed one common theme of the presentations, that 200mm demand is robust, and core tools are increasingly hard to find.  TEL additionally noted that China is a growing player in this market, and that OEMs must now support their 200mm product lines much longer than initially planned.  LAM said that 200mm core supply is so tight that the prices are rising above even comparable 300mm cores.  In response, LAM augments the supply of used tools by creating new 200mm tools.  Ebara added that the core tools coming on the market are often undesirable first-generation tools or tools in very bad condition.  On the other hand, this creates a role for the OEM, who has the expertise to make these tools production-worthy.  ASML noted that many of their larger 200mm customers are considering a migration from the PAS 5500 platform to ASML’s TWINSCAN platform for 200mm production.  Although developed for 300mm, and in general larger and more expensive than the 200mm 5500 series, ASML has spent the last 15 years making TWINSCANs increasingly productive and reliable, to the point where they often offer superior cost of ownership at 200mm than ASML’s 5500 platform.  Furthermore, customers buying TWINSCAN for 200mm production have an easy upgrade to 300mm when/if their plans call for it.

200mm-image3

In summary, the seminar showcased a robust exchange of ideas, where the presenters and panelists examined the resurgent 200mm market, and described many solutions to the common challenge of limited and expensive 200mm cores.

Attend SEMICON Europa and the Secondary Equipment & Applications session on October 26 to find out the latest trends and discuss in what areas OEMs, IDMs and secondary  market operators can cooperate more closely to improve sustainable access to legacy manufacturing equipment.

Find out more about SEMI’s Secondary Equipment and Applications Special Interest Group and the Secondary Equipment Legacy Management Program that is currently under development. For more information and to get involved, contact [email protected] (Ms. Rania Georgoutsakou, Director Public Policy for Europe, SEMI).