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Automotive electronic system sales are forecast to rise by a compound annual growth rate (CAGR) of 5.4% from 2016 through 2021, which is the highest among six major end-use system categories (Figure 1), according to data presented in the 2018 edition of the IC Insights’ IC Market Drivers—A Study of Key System Applications Fueling Demand for Integrated Circuits that will be released later this year.

worldwide electronic systems 1

Demand is rising for electronic systems in new cars with increasing attention focused on self-driving (autonomous) vehicles, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications, as well as on-board safety, convenience, and environmental features, and growing interest in electric vehicles.  Automotive electronics is growing as technology becomes more widely available on mid-range and entry-level cars and as consumers purchase technology-based aftermarket products.  For semiconductor suppliers, this is good news as analog ICs, MCUs, and a great number of sensors are required for many of these automotive systems.

The automotive segment is expected to account for an estimated 9.1% of the $1.49 trillion total worldwide electronic systems market in 2017 (Figure 2), a slight increase from 8.9% in 2015, and 9.0% in 2016. Automotive’s share of global electronic system production has increased only incrementally through the years, and is forecast to show only marginal gains as a percent of total electronic systems market through 2021, when automotive electronics are forecast to account for 9.8% of global electronic systems sales.  Though many electronics systems are being added in new vehicles, IC Insights believes pricing pressures on both ICs and electronic systems will keep the automotive end-use application from accounting for much more than its current share of total electronic systems through the forecast period.

worldwide electronic systems 2

Other electronic system and IC market highlights from the 2018 IC Market Drivers Report include the following.

• The automotive segment is forecast to be the fastest growing electronic system market through 2021. This is good news for the total automotive IC market, which is forecast to surge 22% in 2017 and 16% in 2018.

• Industrial electronic systems are forecast to enjoy the second-fastest growth rate (4.6%) through 2021 as robotics, wearable health devices, and systems promoting the Internet of Things help drive growth in this segment. Analog ICs are forecast to hold 45% of the industrial IC market in 2017.

• The 2016-2021 communication systems CAGR is projected to be 4.2% as global sales of smartphones and other mobile devices reach saturation.  Asia-Pacific is forecast to show the strongest regional growth of communication systems and account for 69% of the total communications IC market in 2017.

• The consumer electronic systems market is forecast to display a CAGR of 2.8% through 2021.  The logic segment is forecast to be the largest consumer IC market throughout the forecast.  In total, the consumer IC market is expected to register a 2.4% CAGR across the 2016-2021 time period.

• Flat or marginal demand for personal computing devices (desktops, notebooks, tablets) is expected to result in the computer systems market showing the weakest CAGR through 2021. The total computer IC market is forecast to increase 25% in 2017 driven by much higher average selling prices for computer DRAM and NAND flash memory.

 

Worldwide silicon wafer area shipments increased during the third quarter 2017 when compared to second quarter 2017 area shipments according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.

Total silicon wafer area shipments were 2,997 million square inches during the most recent quarter, a 0.7 percent increase from the record 2,978 million square inches shipped during the previous quarter. New quarterly total area shipments are 9.8 percent higher than third quarter 2016 shipments and continue to ship at their highest recorded quarterly level.

“Global silicon wafer shipment volumes surpassed record levels for the sixth quarter in a row, resulting in a new historical high,” said Chungwei (C.W.) Lee (李崇偉), chairman of SEMI SMG and spokesman, VP, Corporate Development and chief auditor of GlobalWafers (環球晶圓).  “While silicon demand is strong, silicon pricing remains well below pre-downturn levels.”

Silicon* Area Shipment Trends

Source: SEMI (www.semi.org), November 2017
Millions of Square Inches
2Q2016
3Q2016
4Q2016
1Q2017
2Q2017
3Q2017
Total
2,706
2,730
2,764
2,858
2,978
2,997

*Semiconductor applications only

Silicon wafers are the fundamental building material for semiconductors, which in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin round disks are produced in various diameters (from one inch to 12 inches) and serve as the substrate material on which most semiconductor devices or “chips” are fabricated.

All data cited in this release is inclusive of polished silicon wafers, including virgin test wafers and epitaxial silicon wafers, as well as non-polished silicon wafers shipped by the wafer manufacturers to the end-users.

 

NXP Semiconductors, Chongqing Economic and Information Technology Commission, and Chongqing Laingian New Area Administrative Committee have signed an agreement to establish the NXP China Applications Development Center for Auto Electronics. The center will help China’s domestic carmakers quickly gain the needed knowledge and expertise to build Electronic Control Units (ECUs) using NXP solutions.

Chongqing, a mega city with more than 30 million inhabitants located in the eastern part of China, plays a vital role in China’s modern automobile industry. As the country’s largest automobile production base with 14 vehicle manufacturers, Chongqing has identified automotive growth as a key strategic pillar and seeks to build its strength and competitive edge by expanding its semiconductor capabilities.

NXP has partnered with the Chongqing Economic and Information Technology Commission and the Chongqing Laingian New Area Administrative Committee to drive more automotive industry growth with the new applications development center. The facility, staffed with NXP automotive experts, provides a tight link to local automotive teams that will bring their products, reference designs and application support needs for consultation.

The agreement outlines a 15-year minimum window of commitment, the hiring of 100 team members and massive joint investment to create rich conditions for growth. It also aims to increase tier one electronic capability and build and support infrastructure with an initial focus on microcontrollers.

About Chongqing and the Application Center

  • Chongqing plays a vital role in China’s modern automobile industry. It has the country’s largest automobile production base with 14 vehicle manufacturers.
  • It is the first R&D organization in Chongqing to focus on automotive semiconductors and four major applications in the automotive industry (traditional vehicle body, new energy, autonomous driving and intelligent networks).
  • Chongqing is developing an automotive electronics industry worth hundreds of billions of RMB and expanding the influence of the city’s innovation in the Chinese and global automotive market.

“It is the right time for NXP to establish the China Auto Electronics Application Development Center in Chongqing,” said Wu Cunrong, mayor of Chongqing. “Combining automotive and electronic information, the automotive electronics industry has a vast space for development. Chongqing is currently targeting global market demand and focusing on automotive electronics research and development in order to promote industrial transformation and upgrading. We hope that the Application Center will enhance the capability of Chongqing in auto electronics R&D, improve the industrial ecosystem and enhance the vitality of industrial development. I hope that the project can start construction as soon as possible, so that we can benefit from its research and development capacity.”

Dialog Semiconductor plc (XETRA:DLG), a provider of highly integrated power management, AC/DC power conversion, charging, and low power connectivity technology, announced today that it has completed the acquisition of privately-held Silego Technology Inc. (“Silego”), a provider of Configurable Mixed-signal ICs (CMICs).

Headquartered in Santa Clara, California with approximately 235 employees worldwide, Silego is the pioneer and market leader in CMICs that integrate multiple analog, logic, and discrete component functionality into a single chip. Silego’s product portfolio will strengthen Dialog’s presence in markets including IoT, computing and automotive.

“The acquisition of Silego brings a highly complementary technology to Dialog. What Silego has developed is truly unique – a mixed-signal platform which customers can configure to their design requirements on the fly, drastically reducing the time to bring their products to market,” said Jalal Bagherli, CEO of Dialog. “With global scale and customer access, Dialog is the right platform to further accelerate industry wide CMIC adoption. Furthermore, we gain an exceptional group of talented people that will fit well with Dialog’s culture. Together, we will significantly increase the value we can bring to our customers by creating a better-positioned and more-diversified mixed signal offering.”

“We believe Dialog will be a great environment for the Silego team to grow as part of a much larger company serving global customers,” stated John Teegen, CEO of Silego Technology. “Our proprietary and configurable approach has allowed Silego to establish leadership while creating a new market. By leveraging Dialog’s technology and capabilities, I am confident we can further drive adoption of CMICs.”

Silego anticipates achieving over $80 million of revenue in 2017 and double-digit growth in 2018. The transaction is expected to be accretive to Dialog’s underlying EPS for full calendar year 2018 and accretive to Dialog’s gross margin.

Today, SEMI announced that SEMICON Japan, the exposition for the electronics manufacturing supply chain in Japan, will focus on smart applications as key drivers of the electronics industry. Over 30,000 attendees are expected to convene at SEMICON Japan at Tokyo Big Sight in Tokyo on December 13-15. Registration for the exhibition and programs is now open.

Both on the exhibition floors and in sessions, smart applications will be featured, including Smart Automotive, Smart Manufacturing, Smart MedTech and the Internet of Things (IoT), bringing the theme, “Dreams Start Here” to life.

Smart Automotive – On the show floor, Toyota and Tesla will share new Smart Automotive technologies. Two dedicated forums on Smart Automotive will be featured at SEMICON Japan:

  • IoT Key Technology Forum: Companies, including Nissan Motors, NVIDIA andHitachi Automotive Systems will share their perspectives on the future of Smart Automotive.
  • Smart Mobility Forum: The technologies shaping our future mobile society, including autonomous bus systems, robot cars and drones, are featured.

Smart Manufacturing – The Smart Manufacturing Forum will share the latest on advanced  manufacturing lines from two Japanese solution providers ─ Fuji Machine Manufacturing and Yokogawa Electric. On the exhibition floor, Peer Group, Siemens and Yokogawa Electric will showcase the technologies and products.

Smart MedTech – The Smart Healthcare Forum will feature the Internet Association Japan and Hitachi who will explore the development of medical electronics and the latest technologies and solutions brought by IoT and AI. On the show floor, companies providing key enabling technologies for wearable devices including JINS, Toyobo and YUASA Systems will exhibit in the Flexible Hybrid Electronics area.

WORLD OF IOT – Many of the above exhibits on smart applications and their enabling technologies will be located at the WORLD OF IOT, a technology showcase highlighting the companies, products, technologies, and applications enabling the IoT revolution. WORLD OF IOT will have more than 70 exhibitors including Fujitsu, Hitachi, IBM, Micron, Nokia, Panasonic, Soft Bank and Sony. SEMICON Japan also features two sessions on IoT technologies:

  • IoT Global Trends Forum: Executives from leading technology companies, including Arm, Intel and Sony, will discuss the technology development needed to reach a smarter and more connected world.
  • IoT Connectivity Forum: Presentations by wireless communication technology companies Ericsson and NTT Docomo on next-generation technology including 5G and LPWA, needed to accelerate the Industrial IoT and Smart Manufacturing.

 

All about Drones – SEMICON Japan will also present “All about Drones”─a spotlight on drones, a growing application of sensor and actuator technologies. A tear-down drone exhibit, drone lectures, and a demonstration area will allow visitors fly drones.

Osamu Nakamura, president of SEMI Japan said, “With all these exhibits and sessions, the semiconductor manufacturing supply chain will intersect with the growing application markets, technologies and players to find new opportunities for collaboration, innovation and growth. That’s why ‘Dreams Start Here’ at SEMICON Japan.”

For more information on the SEMICON Japan exposition and programs, visit http://www.semiconjapan.org/en.

“The GaN market promises an imminent growth”, announced Dr. Ana Villamor, Technology & Market Analyst from Yole Développement (Yole). “2015 and 2016 have been undoubtedly exciting years for the GaN power business. We project the explosion of the market with 84% CAGR between 2017 and 2022. The market value will so reach US$ 450 million at the end of the period.” What makes the power GaN technology so promising?

The “More than Moore” market research and strategy consulting company Yole pursued its investigations based on numerous exchanges with power GaN companies and thanks to its participation to leading conferences. Yole announces this month the Power GaN 2017: Epitaxy, Devices, Applications, and Technology Trends report. Things are going on the right way: the power GaN supply chain prepares for production and 2017 has been showing significant investments that confirm the added-value of power GaN technology and its strong potential in numerous applications. The new Power GaN analysis conveys Yole’s understanding of GaN implementation and details the different market segments, the related drivers, metrics and technical roadmaps.

In 2016 the power GaN market reached US$ 12 million: it is still a small market compared to the impressive US$ 30 billion silicon power semiconductor market. However its expected growth in the short term is showing the enormous potential of the power GaN technology based on its suitability for high performance and high frequency solutions.

“LiDAR, wireless power and envelope tracking are high-end low/medium voltage applications, and GaN is the only existing technology able to meet their requirements,” explained Ana Villamor from Yole. “Beginning of the year, Velodyne Lidar opened a ‘megafactory’ to ramp up the latest 3D sensor for LiDAR manufacturing and this October they already announced a fourfold production increase.”
Other major companies, like Apple and Starbucks, started offering wireless charging solutions. Moreover, since 2016, EPC has been working with Taiwan’s JJPlus Corporation to accelerate the wireless charging market’s growth. The power supply segment is still the biggest application for GaN. The data center market is adopting GaN solutions with a phenomenal speed, driving a 114% CAGR for power supplies through to 2022. Existing solutions from Texas Instruments and EPC for data centers, consisting of a DC/DC converter and point of load supply that steps down the voltage from 48 V to 1.2 V in a single chip, will propel the market. AC/DC power adapters for laptops or smartphones can be also implemented with GaN power IC solutions, which further reduces the size and cost of the system.

Therefore the consumer market is expected to grow during coming years and Yole’s analysts envisage two different scenarios, depending on the acceptance in key markets like AC/DC adapters for laptops and cellphones.

GaN needs to hurry to gain adoption in the EV/HEV market because SiC MOSFETs are already replacing silicon IGBTs in the main inverters. However, a future market for the 48 V battery’s DC/DC converter is still possible for GaN due to its high-speed switching capability. Some main players, as Transphorm, have already obtained qualification for automotive, and this would help to finally ramp-up GaN production for EV/HEV.

In parallel, the GaN power devices supply chain is acting to support market growth. Therefore it is close to being settle for the power GaN market and deals during 2017 show confidence that GaN will be a successful market. “First of all, there have been big investments from the main foundries to increase their capacity to handle mass production”, asserted Zhen Zong, Technology & Market Analyst at Yole Développement. And he added: “Navitas just announced the partnership with TSMC and Amkor to ramp production capacity. Moreover, BMW i Ventures has just invested in GaN Systems. The Taiwan’s Ministry of Economic Affairs is also interested in using GaN for clean and green technologies, also in collaboration with GaN Systems.”

GaN manufacturers clearly continue developing new products and provide samples to customers, as is the case with EPC and its wireless charging line. For example, during 2017, Panasonic announced the mass production of its 650 V products and Exagan successfully produced its first high voltage devices on 8-inch wafers. Other players are in the final phase of R&D or qualification for their GaN products to be launched in 2018. In both cases, manufacturers and clients are pushing to use GaN HEMTs in emerging technologies.

Strategy Analytics reports revenue for RF GaAs devices increased by slightly less than 1 percent in 2016. An anticipated drop in cellular revenue nearly offset gains in other market segments, but GaAs device revenue still managed to surpass $7.5 billion for the first time. “RF GaAs Device Forecast and Outlook: 2016 – 2021,” from Strategy Analytics’ Advanced Semiconductor Applications (ASA) service, forecasts that gigabit LTE and emerging 5G applications will drive GaAs device revenue past $9 billion in 2021.

“The RF GaAs device market is so dependent on cellular terminals that declining growth rates in smartphone sales has put the brakes on total revenue growth,” commented Eric Higham, Director of the Advanced Semiconductor Applications (ASA) service. “The good news for the industry is that growing adoption of gigabit LTE networks and devices, coupled with emerging 5G opportunities will restart the GaAs growth engine.”

“We are seeing new platforms and major program upgrades starting to ramp toward production and these developments will maintain the growth of GaAs device revenue in the defense sector,” noted Asif Anwar, Director of the Advanced Defense Systems (ADS) service.

North America-based manufacturers of semiconductor equipment posted $2.03 billion in billings worldwide in September 2017 (three-month average basis), according to the September Equipment Market Data Subscription (EMDS) Billings Report published today by SEMI.

SEMI reports that the three-month average of worldwide billings of North American equipment manufacturers in September 2017 was $2.03 billion.The billings figure is 6.9 percent lower than the final August 2017 level of $2.18 billion, and is 36.0 percent higher than the September 2016 billings level of $1.49 billion.

“Global semiconductor equipment billings of North American headquartered suppliers for September were $2.0 billion, down 12 percent from the peak level set in June of this year,” said Ajit Manocha, president and CEO of SEMI. “Total billings through the first three quarters of this amazing year have surpassed total billings for all of 2016.”

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
April 2017
$2,136.4
46.3%
May 2017
$2,270.5
41.8%
June 2017
$2,300.3
34.1%
July 2017
$2,269.7
32.9%
August 2017 (final)
$2,181.8
27.7%
September 2017 (prelim)
$2,031.1
36.0%

Source: SEMI (www.semi.org), October 2017
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.

The ConFab, to be held May 20-23 at The Cosmopolitan of Las Vegas, is excited to announce IBM’s Dr. Rama Divakaruni will be the opening keynote for the 2018 conference. Dr. Divakaruni’s presentation is entitled, “How AI is Driving the New Semiconductor Era“. He will address the Artificial Intelligence era demands for dramatic enhancement in computational performance and efficiency of AI workloads, and discuss the needs and changes required in algorithms, systems and chip design as well as in devices and materials.

“Increased use of artificial intelligence will radically change how semiconductors are designed and manufactured, and I’m delighted IBM’s Rama Divakaruni will be sharing his insights at The ConFab in 2018,” said Pete Singer, Editor-in-Chief of Solid State Technology and the conference chair of The ConFab.

Dr. Divakaruni is responsible for IBM Advanced Process Technology Research (which includes EUV technologies and advanced unit process and enablement technologies) and he is the main interface between IBM Semiconductor Research and IBM’s Systems Leadership. Dr. Divakaruni is an IBM Distinguished Engineer and one of IBMs top inventors with over 225 issued US patents.

An impressive background – since 1994, Dr. Divakaruni has been working on advanced semiconductor technologies at IBM. Through 2003, while in DRAM Technology Development, his team introduced the world’s first sub-8F2 vertical transistor DRAM trench technology. The next two years, Dr. Divakaruni worked as the technical lead for the 90nm strained silicon technology which was the world’s first to introduce dual stress liner technology; the technology was the basis of the Nintento Wii, XBOX360 and the PlayStation3 game platforms. After a year serving as project manager for the Unit Process team, he was program manager and technical lead for the development of 45nm industry standard bulk technologies for IBM’s Joint Development Alliance. At 45nm, IBM and its development partners introduced strained silicon technology for low power mobile products thus launching strained silicon across the spectrum of bulk low power and SOI performance CMOS technologies. This technology was the basis for the first Apple I-pad, early Apple I-phones and was the technology that IBM’s partners, including Samsung, used for all their mobile platforms and devices. 

Praxair, Inc. (NYSE:PX), a global industrial gas company, has signed a long-term agreement to supply gaseous nitrogen to GLOBALFOUNDRIES in Malta, New York.

Praxair will build, own and operate a plant to support GLOBALFOUNDRIES’ advanced manufacturing processes at its Malta fabrication facility. GLOBALFOUNDRIES is a semiconductor foundry that provides design, development and fabrication services to technology companies, manufacturing chips for many of the top semiconductor companies in the world.

“With our rich history of supporting leading electronics customers worldwide, we are proud to grow Praxair’s existing relationship with GLOBALFOUNDRIES as they expand their chip manufacturing,” said Kevin Foti, president of Praxair’s U.S. industrial gases business. “As a result of this agreement, two companies with significant local New York operations are coming together and spurring growth in their businesses and the local economy as well. Our reliable supply of nitrogen and industry expertise will support GLOBALFOUNDRIES’ position as one of the leading semiconductor fabs in the world.”

“GLOBALFOUNDRIES continues to grow to meet the needs of our global customer base,” said Debra Leach, GLOBALFOUNDRIES senior director of Procurement. “A reliable supply of high-quality gaseous nitrogen is an important component of our manufacturing operation at Fab 8 in New York, especially as we expand capacity to meet demand for our leading-edge semiconductor technologies.”