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Cree, Inc. (Nasdaq:CREE) announces that it signed a strategic long-term agreement to produce and supply its Wolfspeed silicon carbide (SiC) wafers to Infineon Technologies AG (FSE:IFX) (OTCQX:IFNNY). The agreement governs Cree’s supply of advanced 150 mm SiC wafers to Infineon, which will broaden Infineon’s product offering to address today’s high-growth markets, such as photovoltaic inverters and electro mobility.

“Infineon is a longstanding, valuable commercial partner with an excellent reputation,” said Gregg Lowe, CEO of Cree. “This agreement validates the quality of Cree’s SiC wafer technology and our capacity expansion, as well as the accelerated adoption of SiC-based solutions that are critical to enabling faster, smaller, lighter and more powerful electronic systems.”

“We have known Cree for a long time as a strong and reliable partner with an excellent industry reputation,” said Reinhard Ploss, CEO of Infineon. “Based on the secured long-term supply of SiC wafers, we strengthen our strategic growth areas in automotive and industrial power control. As a consequence, we will create additional value for our customers.”

Wolfspeed, A Cree Company, is a manufacturer of silicon carbide wafers and epitaxial wafers. The supply agreement, valued at well over $100 million, enables SiC applications in broad markets such as photovoltaic, electro mobility, robotics, charging infrastructure, industrial power supplies, traction and variable speed drives.

North America-based manufacturers of semiconductor equipment posted $2.36 billion in billings worldwide in January 2018 (three-month average basis), according to the January Equipment Market Data Subscription (EMDS) Billings Report published today by SEMI.  The billings figure is 1.4 percent lower than the final December 2017 level of $2.40 billion, and is 27.2 percent higher than the January 2017 billings level of $1.86 billion.

“The strong billings levels from late 2017 have carried over into the new year,” said Ajit Manocha, president and CEO of SEMI. “We maintain a positive outlook for the 2018 market, marking three years of growth for equipment spending.”

The SEMI Billings report uses three-month moving averages of worldwide billings for North American-based semiconductor equipment manufacturers. Billings figures are in millions of U.S. dollars.
Billings
(3-mo. avg)
Year-Over-Year
August 2017
$2,181.8
27.7%
September 2017
$2,054.8
37.6%
October 2017
$2,019.3
23.9%
November 2017
$2,052.3
27.2%
December 2017 (final)
$2,398.4
28.3%
January 2018 (prelim)
$2.364.8
27.2%

Source: SEMI (www.semi.org), February 2018
SEMI publishes a monthly North American Billings report and issues the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report in collaboration with the Semiconductor Equipment Association of Japan (SEAJ). The WWSEMS report currently reports billings by 24 equipment segments and by seven end market regions. SEMI also has a long history of tracking semiconductor industry fab investments in detail on a company-by-company and fab-by-fab basis in its World Fab Forecast and SEMI FabView databases. These powerful tools provide access to spending forecasts, capacity ramp, technology transitions, and other information for over 1,000 fabs worldwide. For an overview of available SEMI market data, please visit www.semi.org/en/MarketInfo.

Nordson Corporation (NASDAQ: NDSN) announces that the SEMI Foundation has appointed Joseph Stockunas, Corporate Vice President for Electronics Systems at Nordson Corporation and the immediate past chair of the SEMI North America Advisory Board, to the SEMI Foundation Board of Trustees in accordance with the association’s by-laws.

“We are excited to leverage Joe’s passion for innovation and his desire to help young people make thoughtful education and career choices,” said Leslie Tugman, Executive Director of the SEMI Foundation. “As the Foundation’s vision is expanding to address the larger industry workforce development pipeline and leadership in the area of women’s issues, Joe’s talent, industry insight, and commitment will be a great asset.”

The mission of the SEMI Foundation is to support education and career awareness in the field of high technology. The SEMI Foundation produces SEMI High Tech U (HTU), a three-day interactive program that encourages high school students to pursue academic paths that emphasize science, technology, engineering, and math (STEM) and to expose them to high technology careers such as semiconductor manufacturing.

The Nordson Corporation Foundation sponsored its first HTU program February 12 – 15, 2018 at the Nordson facility in Carlsbad, California. This was one of the first HTU events to be held in Southern California. Forty high school students from five local high schools, including Carlsbad, Sage Creek, San Marcos, Rancho Buena Vista, and Mission Hills, attended the program, where they learned from industry instructors and visited the UC San Diego campus for a look at college life. The Nordson Corporation Foundation is dedicated to improving the quality of life in its communities by improving educational outcomes that enable individuals to become self-sufficient, active participants in the community.

Stockunas has a long history of engaging and supporting STEM activities and the workforce development pipeline. Stockunas sponsored SEMI High Tech U at Air Products in Pennsylvania where he had previously worked for 30 years. In 2013, he joined Nordson Corporation, and has helped facilitate the company’s sponsorship of SEMI High Tech U in 2018.

“I have been a long-time supporter of the SEMI Foundation’s High Tech U program, which helps students make the connection between familiar electronic products and future career choices in high tech,” said Joe Stockunas. “I look forward to working with the Board to help drive new initiatives to support young people and strengthen the industry workforce.”

Qualcomm Incorporated (NASDAQ: QCOM) (“Qualcomm”) today announced that Qualcomm River Holdings B.V., an indirect wholly owned subsidiary of Qualcomm, has reached an agreement with NXP Semiconductors N.V. (NASDAQ: NXPI) to increase to $127.50 per share its previously announced cash tender offer to purchase all outstanding shares of NXP.  The amended agreement, which was approved by the Qualcomm and NXP Boards of Directors, also lowers the minimum tender condition from 80% of NXP’s outstanding shares to 70%.

Qualcomm also announced that Qualcomm River Holdings B.V. has entered into binding agreements with nine NXP stockholders who collectively own more than 28% of NXP’s outstanding shares (excluding additional economic interests through derivatives) to tender their shares at $127.50 per share.  These stockholders include funds affiliated with Elliott Advisors (UK) Limited and Soroban Capital Partners LP.

The revised price reflects enhanced current value drivers for NXP, including:

  • NXP’s recent performance, including calendar 2017 results that exceeded Qualcomm’s transaction model on revenue, gross margin and EBIT. NXP’s non-GAAP operating income (excluding Standard Products) increased 20% from calendar 2016 to 2017.
  • Strong market dynamics and positive outlook for key segments. NXP’s Auto business has increased revenues by 11% year over year. Qualcomm has also significantly improved its own capabilities in key industry segments such as Auto ($3 billion revenue pipeline), IoT ($1 billion in FY17 sales) and Networking, further enhancing the value proposition of the combined company to its customers and stockholders.
  • High confidence in annualized cost synergies of at least $500 million resulting from insights gathered during the integration planning process.

Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated, said, “Qualcomm’s leading SoC capabilities and technology roadmap, coupled with NXP’s differentiated position in Automotive, Security and IoT, offers a compelling value proposition.  We remain highly confident in our fiscal 2019 Non-GAAP EPS target of $6.75–$7.50, which includes $1.50 per share accretion from the acquisition of NXP.  With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously.  Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees and stockholders.”

Tom Horton, Presiding Director of the Qualcomm Board of Directors, said, “The acquisition of NXP will enable us to accelerate our growth strategy.  The Board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders based on NXP’s recent strong financial performance, the growth in key strategic areas such as Auto and IoT and our high confidence in management’s ability to execute upon the synergy opportunities.”

Dr. Paul E. Jacobs, Chairman of the Board of Qualcomm, said, “NXP is a highly strategic and attractive acquisition for Qualcomm that enhances the value of our leading 5G technologies.  We also believe the revised agreement provides certainty for both Qualcomm and NXP stockholders.”

ASML Holding N.V. (ASML) today announces that its Supervisory Board intends to appoint Christophe Fouquet (44) as Executive Vice President to the Board of Management, subject to notification of the Annual General Meeting of Shareholders on 25 April 2018. With the addition of Christophe Fouquet, the ASML Board of Management will expand from five to six members. Christophe Fouquet will take over responsibility for the Business Line EUV (Extreme Ultraviolet) from Frits van Hout per 1 April 2018.

Frits van Hout has successfully overseen the development of the EUV business over the last 5 years, bringing it to a level where EUV is widely accepted as the next lithography platform for the semiconductor industry. From 1 April 2018, he will focus on strategy and strategic supplier relations. Within the Board of Management he will be responsible for ASML’s growth specifically as it relates to the increasing significance of strategic supplier relationships, notably in the context of EUV and High-NA EUV as well as e-beam metrology and optical systems.

Christophe Fouquet, as a new member of the Board of Management, will oversee the introduction of EUV lithography in high volume manufacturing of integrated circuits (ICs) at customer sites. As ASML will continue to make improvements in the availability of the EUV systems and the profitability of the EUV business, Christophe Fouquet will drive the roll-out and industrialization of EUV and in parallel he will oversee the development and introduction of High-NA EUV lithography over coming years. In his current role as leader of Business Line Applications, Christophe Fouquet has established the Applications business as a key pillar under ASML’s Holistic Lithography strategy, overseeing strong organic sales growth and initiating and executing successful M&A through Taiwan-based HMI. Jim Koonmen, currently managing ASML-unit Cymer Light Sources, and before that managing ASML’s computational lithography unit, will succeed Christophe Fouquet as the leader of Business Line Applications.

“We’re delighted to welcome Christophe to the Board of Management where he will bring broad and deep technology and business experience. With Frits focusing on the best possible collaboration with our key strategic suppliers, we are confident that we have a great team in place to execute our strategy, achieve our 2020 sales and profit targets and realize further growth of the company beyond 2020,” said ASML’s President and Chief Executive Officer Peter Wennink.

US demand for semiconductor machinery is forecast to reach $7.4 billion in 2021, according to Semiconductor Machinery: United States, a report recently released by Freedonia Focus Reports. Growth in demand for wafer processing equipment will account for the majority of value increases. Ongoing expansion in global production of mobile electronics will support demand for smaller, faster, and more energy-efficient logic integrated circuits, as well as the increasingly advanced wafer processing machinery required for production. Specifically, rising adoption of lithography equipment that utilizes extreme ultraviolet (EUV) technology will spur gains.

Semiconductor assembly machinery demand is forecast to grow the fastest among the product segments. Intensifying production of increasingly compact electronic systems for use in mobile devices will drive demand for more sophisticated semiconductor assembly equipment. For example, semiconductor device manufacturers such as integrated device manufacturers, outsourced semiconductor assembly and test providers, and foundries will require systems capable of mounting ever-smaller semiconductors.

These and other key insights are featured in Semiconductor Machinery: United States. This report forecasts to 2021 US semiconductor machinery demand and shipments in nominal US dollars at the manufacturer level. Total demand is segmented by product in terms of:

  • wafer processing
  • testing
  • assembly

To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2006 to 2016.

More information about the report is available at https://www.freedoniafocusreports.com/Semiconductor-Machinery-United-States-FF75028/

Siemens announced it has entered into an agreement to acquire Oulu, Finland-based Sarokal Test Systems Oy, a provider of test solutions for fronthaul networks that are comprised of links between the centralized radio controllers and the radio heads (or masts) at the “edge” of a cellular network. Sarokal products are used by chipset vendors, fronthaul equipment manufacturers, and telecom operators to develop, test and verify their 4G and 5G network devices from the early design stages through implementation and field-testing.

“The planned acquisition of Sarokal reinforces our ongoing commitment to EDA and the IC industry,” said Tony Hemmelgarn, president and CEO of Siemens PLM Software. “Building on our acquisition of Mentor Graphics, we continue to make strategic investments which leverage Mentor’s existing strengths and enable Siemens to expand its offerings to the IC industry.”

Sarokal’s products are used to test transmission specifications across multiple domains. Its tester product family addresses the entire development and maintenance flow for cellular and wired transmission system testing. The technology is especially designed to detect radio frequency (RF) problems. With Sarokal’s foresight into the requirements of 5G testing, their testing models were created from the beginning for both the virtual (digitalization) environment as well as the physical testing environment.

“Sarokal has been on the forefront of the development of the 5G specification and its requirements for fronthaul networks since its inception. The 5G specification aims to greatly enhance performance for mobile broadband, network operation and Internet of Things (IoT) communication, and this requires new test methodologies,” said Harri Valasma, CEO at Sarokal. “Becoming part of Siemens and integrating our technology into the Veloce emulation platform will give us greater visibility into early customer adoption of 5G, which can help us maintain our leadership as this segment is forecasted to grow rapidly.”

“The addition of Sarokal’s one-of-a-kind fronthaul testing expertise is expected to provide our Veloce emulator customers with a unique advantage,” said Eric Selosse, vice president and general manager, Mentor Emulation Division, a Siemens business. “Sarokal’s tester technology in conjunction with Mentor’s Veloce emulation platform will enable customers to “shift left” the validation of 4G and 5G designs for accurate and timely pre- and post-silicon testing.”

The transaction is expected to close during the first quarter of calendar 2018, subject to receipt of regulatory approvals and other customary closing conditions. The terms of the transaction were not disclosed.

Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood.

Orbotech Ltd. (NASDAQ: ORBK) today announced that SPTS Technologies, an Orbotech company and a supplier of advanced wafer processing solutions for the global semiconductor and related industries, has received approximately $37M in orders for multiple etch and deposition systems from two GaAs foundry customers. SPTS’s Omega plasma etch, Delta PECVD, and Sigma PVD systems will be used to manufacture radio frequency (RF) devices for 4G and emerging 5G wireless infrastructure and mobile device markets. Delivery of the systems is expected to be split between the first quarter and second quarter of 2018.

“Compound semiconductor electronic devices based on gallium arsenide (GaAs) are the cornerstone of high speed wireless communications,” stated Kevin Crofton, Corporate Executive Vice President at Orbotech and President of SPTS Technologies. “RF devices are entering another exciting phase of growth with the proliferation of 4G mobile communications and preparation for 5G. IDMs and foundries are looking to add capacity to existing fabs to meet the growing demand, while new entrants are establishing new lines to address future demand for the 5G rollout. Our lead customer has been at the forefront of GaAs foundry services for almost two decades, and their repeat orders are a testament to the production advantages that our etch and deposition solutions continue to deliver to their core business.”

Power amplifiers (PAs) are among the most critical RF components in mobile communications and virtually all PAs in a modern smartphone are made from circuits built on GaAs semiconductors. Analysts[1] are predicting that the growth of 4G communications, gigabit LTE (Long Term Evolution) and emerging 5G will be the growth engine to drive the RF GaAs device market from over $8.1 billion in 2017 to over $9 billion by 2021.

“Our latest forecast[1] shows that PAs for cellular applications will continue to account for more than half of the RF GaAs device market,” noted Eric Higham, Director of the Advanced Semiconductor Applications service at Strategy Analytics. He added, “Despite smartphone growth slowing, the added complexity in mobile devices to support gigabit LTE and the emergence of 5G points to continuing growth in RF GaAs production.”

Park Systems, a manufacturer of atomic force microscopes celebrated the grand opening of their European Headquarters on February 6, 2018 in Mannheim, Germany.  The new office will serve as a central European AFM research facility, providing technical sales and service with a fully equipped Atomic Force Microscopy Nanoscience Lab on site. The ceremony was attended by many around Europe including from Deutsche Bank (Germany), Schaefer South-East Europe SRL (Romania), Milexia SAS (France), ST Instruments B.V. (Netherlands),  GambettiKenologiaSrl (Italy), Promenergolab LLC (Russia), Tekno-TIP AnalitikSistemler Ltd. (Turkey) and Park Systems representatives from Europe, US and Asia.

“The European scientific community plays a critical role in expanding cutting-edge science and research across many industries, particularly at the nanoscale,” commented Ludger Weisser, the General Manager of Park Systems Europe at the ribbon-cutting ceremony. “The new Park Systems Nanoscience Lab in Europeis a landmark opportunity to provide the best-in-class AFM technology and unparalleled technical service for our European business partners to advance scientific research and development.”

The new office will provide technical, application and sales support for all European customers. As the demand for a modern AFM technology continuously grows in Europe, Park Systems recognizes the need of serving the key European scientific laboratories and research facilities with even stronger and direct support.

“Park Systems has invested significant resources into the new Park Nanoscience Lab in Europe to offer the vast European scientific community a better opportunity to use our AFM product and make side-by-side comparisons to the well-known European AFM.  We are confident that our AFM will demonstrate in Europe as it has in North America and Asia undeniable higher performance and cost efficiencies for research and production facilities,” commented James Woo, Park Systems Global Sales Manager.  “We invite European customers to our new Park Nanoscience Lab facility to use our equipment and witness for yourself why Park has been the world-leader in AFM technology since its inception.”

The Park Nanoscience Lab at the Europe Headquarters in Manheim Germany is a new branch of Park Systems and part of a growing network of Park Global Nanoscience labs including a recently opened Park Nanoscience Center at SUNY Polytech Institute in Albany, New York.The Park Nanoscience Lab will showcase advanced atomic force microscopy (AFM) systems, demonstrate a wide variety of cutting-edge applications—ranging from materials science, to chemistry and biology, to semiconductor and data storage devices—and provide hands on experience, training and service, year-round.  It will be equipped with the latest Park AFM systems, including the Park NX20, Park NX10, and Park NX-Hivac, playing a crucial role in providing the best and direct technical, application and sales support to the European audience.

“Besides the excellent AFM technology, having a direct and reliable contact partner for inquires of any matter was surely one of the most important factors for us when we chose Park Systems half a year ago,” says Francesco Simone, the junior fellow at the University of Cambridge, UK, and Park NX10 AFM user.

Park Systems, a global AFM manufacturer, has offices in key cities worldwide, including Santa Clara, California; Tokyo, Japan; Singapore; Manheim, Germany; and Suwon, South Korea. Since becoming the only public offering for an AFM business in 2015, its stock has increased by over 300% reflecting the strong growth of its business with many company-wide global initiatives for continued future word-wide success.

Applied Materials, Inc. announced today that it has been recognized by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, on its 2018 list as one of the World’s Most Ethical Companies.

“Ethical business conduct at Applied Materials extends far beyond a set of rules or policies; it is engrained in our values and reflected in the actions of our employees every day,” said Steve Adams, vice president, Litigation, Protection and Compliance at Applied Materials. “I want to thank everyone throughout the company for maintaining responsibility and integrity in all our business and community interactions.”

Applied Materials has been recognized as one of the World’s Most Ethical Companies for seven consecutive years. It is one of only six honorees in the Electronics & Semiconductors category.

“I congratulate everyone at Applied Materials for again being recognized as one of the World’s Most Ethical Companies,” said Ethisphere’s CEO, Timothy Erblich. “Amidst a rapidly changing technology industry, it is encouraging to see companies like Applied that remain true to their values and continually raise the bar for responsible corporate citizenship.”

This year, Ethisphere recognized 135 companies, spanning 23 countries and 57 industries. These honorees each demonstrated record levels of involvement with their stakeholders and their communities. Listed companies make it a priority to measure and improve corporate culture around ethical practices, to lead authentically and to commit to transparency, diversity and inclusion.

The World’s Most Ethical Companies list is based upon the Ethics Quotient framework, which quantitatively measures a company’s performance in an objective, consistent and standardized manner. Scores are generated in five categories: ethics and compliance program; corporate citizenship and responsibility; culture of ethics; governance; and leadership, innovation and reputation.

The full list of the 2018 World’s Most Ethical Companies can be found at https://worldsmostethicalcompanies.com/honorees.