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SEMI recently completed its annual silicon shipment forecast for the semiconductor industry. This SEMI forecast provides an outlook for the demand in silicon units for the period 2017–2019. The SEMI forecast shows polished and epitaxial silicon shipments totaling 11,448 million square inches in 2017; 11,814 million square inches in 2018; and 12,235 million square inches in 2019 (refer to table below). Total wafer shipments this year are expected to exceed the market high set in 2016 and are forecast to continue shipping at record levels in 2018 and 2019.

“Silicon shipment volumes are expected to ship at historic highs for this year and into 2019,” said Dan Tracy, senior director of Industry Research & Statistics at SEMI. “The expectation is for steady annual growth due to the proliferation of connected devices required for automotive, medical, wearables, and high-performance computing applications.”

2017 Silicon Shipment Forecast
(Millions of Square Inches, MSI)

Actual
Forecast
2015
2016
2017
2018
2019
MSI
10,269
10,577
11,448
11,814
12,235
Annual Growth
4.5%
3.0%
8.2%
3.2%
3.6%

Total Electronic Grade Silicon Slices* – Does not Include Non-Polished Wafers
Source: SEMI (www.semi.org), October 2017
*Shipments are for semiconductor applications only and do not include solar applications

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 shipped by the wafer manufacturers to the end-users. Data do not include non-polished or reclaimed wafers.

Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 0981.HK), the largest and most advanced foundry in mainland China, today announced the appointment of Dr. Haijun Zhao and Dr. Liang Mong Song as SMIC Co-CEO and Executive Director.

Dr. Zhao, age 54, was appointed as the Chief Executive Officer of the Company on May 10, 2017. Dr. Zhao joined the Company in October 2010 and was appointed as Chief Operating Officer and Executive Vice President in April 2013. In July 2013, Dr. Zhao was appointed as General Manager of Semiconductor Manufacturing North China (Beijing) Corporation, a joint venture company established in Beijing and a subsidiary of the Company. Dr. Zhao received his bachelor of science and doctor of philosophy degrees in electronic engineering from Tsinghua University (Beijing) and a master degree in business administration from the University of Chicago. He has 25 years of experience in semiconductor operations and technology development.

Dr. Liang Mong Song, age 65, graduated with a doctor of philosophy degree in electrical engineering from the Department of Electrical Engineering and Computer Sciences at the University of California, Berkeley. Dr. Liang has been engaged in the semiconductor industry for over 33 years, and was involved in memory and advanced logic process technology development. He owns over 450 patents and has published over 350 technical papers. He is a Fellow of Institute of Electrical and Electronic Engineers (IEEE).

Dr. Zixue Zhou, Chairman of SMIC, commented, “I am very pleased that Dr. Haijun Zhao and Dr. Liang Mong Song have joined the board of directors of SMIC as Executive Directors. I also warmly welcome Dr. Liang Mong Song to join SMIC together with Dr. Haijun Zhao to serve as Co-CEO. For decades Dr. Liang has focused on integrated circuit (“IC”) technology research and development and team management, with excellence and successful experience in advanced IC process development and management. His accession will further enhance SMIC’s ability to develop process technology and narrow the advanced technology gap between SMIC and its international peers; and at the same time, his efforts will further enhance SMIC’s ability to serve its customers and improve the metrics of SMIC’s existing technology. In addition, he brings corporate culture of top tier companies, which will enhance the company’s corporate culture to world class standards. It is believed with Dr. Haijun Zho and Dr. Liang Mong Song’s joint efforts SMIC will be led to a new height and make contributions to the development of IC industry.”

Dr. Haijun Zhao, Co-CEO of SMIC remarked, “I am pleased to join the board of directors of SMIC as Executive Director, and warmly welcome Dr. Liang Mong Song to join SMIC. Dr. Liang’s great achievements in the semiconductor industry are obvious to all. His accession will strengthen our management team, and as Co-CEO I am looking forward to working together with Dr. Liang. Together with our management and staff we will strive to make SMIC a global first-class IC enterprise.”

Dr. Liang Mong Song, Co-CEO of SMIC said, “I am greatly honored to take on the position of Co-CEO and Executive Director of SMIC, which to me, is not merely an opportunity, but also a challenge. SMIC’s rapid developments in recent years have been notable in the industry, and I am looking forward to working closely with the board of directors, Dr. Haijun Zhao and the management team to continuously improve the competitiveness of SMIC in the area of international IC manufacturing.”

ClassOne Group, provider of semiconductor processing systems, today announced a special new financing program that seeks to give more attractive options to equipment purchasers.

ClassOne stated that the new financing program can eliminate the upfront cash outlay typically associated with equipment purchases, instead allowing more affordable and budgetable monthly payments. The new financing options will include capital leases, fair-market-value leases, term loans, payment deferrals and bridge-to-budget solutions. ClassOne has developed its new program in association with First American Vendor Finance, one of the nation’s largest and most highly respected equipment finance providers. The new financing program will be available both to current and future ClassOne customers.

“Our goal is to make it easier for users – especially budget-limited users – to acquire the tools and technology they need to achieve more profitable revenues,” said Byron Exarcos, CEO of ClassOne Group. “By integrating affordable new financing options directly into the equipment purchase process we can provide buyers with more attractive, more turnkey solutions – and put their new tools to work more quickly.”

The new financing program will be available both for ClassOne Technology and ClassOne Equipment purchases. ClassOne Technology provides new wet-chemical process tools specifically for ≤200mm wafer users, delivering advanced technology for the production of MEMs, power devices, RF, LEDs, photonics, sensors, microfluidics and other emerging technologies. ClassOne Equipment supplies the industry with certified high-quality refurbished systems, including major-name tools that cover a broad range of processing and metrology needs.

ClassOne Technology develops and produces innovative new wet-chemical equipment solutions that deliver advanced performance for the cost-conscious users of ≤200mm substrates.

The semiconductor IP market is expected to be valued at USD 6.22 billion by 2023, at a CAGR of 4.87% between 2017 and 2023, according to the new research report “Semiconductor IP Market by Design IP (processor IP, interface IP, memory IP), Source (royalty and licensing), vertical (consumer electronics, telecom, industrial, automotive, commercial), and Geography – Global Forecast to 2023,” published by MarketsandMarkets. The major factors driving this market include the advancement in multicore technology for consumer electronics sector, increasing demand for modern SoC designs leading to market growth, and growing demand for connected devices.

Consumer electronics to hold largest share of semiconductor IP market during forecast period

The increase in the use of consumer electronics in all the regions is boosting the growth of the semiconductor IP market for the consumer electronics vertical. Moreover, the markets for consumer electronic in APAC and RoW are expected to provide further growth opportunities for the market players as these regions are in a growing phase. In addition, APAC holds dominant share in the market for consumer electronics.

Processor IP to hold largest share of semiconductor IP market during forecast period

Owing to the increased demand for microprocessor, microcontroller, digital signal processor, and graphics processing unit across various verticals, the processor IP segment held the largest share of the semiconductor IP market in 2016, and it is expected to continue the same during the forecast period. The growth of the segment during the forecast period is attributed to the increasing application of processors in the telecom industry for 5G and in high-end cars. The market for processor IP for the automotive vertical is expected to grow at the highest CAGR between 2017 and 2023 due to increasing use of processors in advanced driver assistance systems (ADAS) and infotainment systems.

APAC to hold largest share of semiconductor IP market during forecast period

APAC held the largest share of the market in 2016 and is likely to dominate the semiconductor IP market with the largest market share during the forecast period as well. APAC is a major market for the consumer electronics, telecom, and automotive verticals. Also, this region has become a global focal point for large investments and business expansion opportunities. Moreover, the developments in electric vehicles are expected to provide an opportunity to the growth of the semiconductor IP market in China.

Toshiba Corporation (TOKYO:6502) today announced that its board of directors has approved a further investment by Toshiba Memory Corporation (TMC), a wholly-owned subsidiary that manufactures Flash memory, in manufacturing equipment for the Fab 6 clean room under construction at Yokkaichi Operations. TMC will invest approximately 110 billion yen as a second investment in Fab 6 for the installation of additional manufacturing equipment in the Phase-1 clean room.

Production at Fab 6 will be entirely devoted to BiCS FLASH, Toshiba’s innovative 3D Flash memory. As Toshiba announced in its August 3, 2017 release “Update on Toshiba Memory Corporation’s Investment in Production Equipment for Fab 6 at Yokkaichi Operations”, TMC has previously invested approximately 195 billion yen in Fab 6 as its first investment covering the installation of manufacturing equipment in the Phase-1 clean room and the construction of the Phase-2 clean room.

Demand for TMC’s next generation 3D Flash memory devices is expected to increase significantly due to growing demand for enterprise SSDs in datacenters, SSDs for PCs, and memory for smartphones; TMC expects this strong market growth to continue in 2018. TMC’s investment timing will position it to capture this growth and expand its business.

The investment in Fab 6 will enable TMC to install manufacturing equipment for 96-layer 3D Flash memories, including deposition and etching equipment.

There is no change in the FY2017 Financial Forecast announced on Aug 10, 2017, as the impact of the additional investment will be realized after FY2018. However, the FY2017 investment plan for Toshiba Corporation Storage & Devices Solutions Segment will be revised from 330 billion yen, as announced on August 10, to 400 billion yen by accelerating a part of the investment previously planned for FY2018. This will be used with the remaining 40 billion yen in the FY2017 investment plan, bringing this second investment to 110 billion yen. As announced on March 17, 2016 announcement “Notice of Construction of New Semiconductor Fabrication Facility,” Toshiba decided on a construction and equipment investment plan for the new fabrication facility, with an estimated cost of approximately 360 billion yen from FY2016 to FY2018. The company will update its investments plans to reflect any subsequent changes.

TMC has recently asked SanDisk, its collaborator in three joint ventures for investment in manufacturing equipment at TMC’s Yokkaichi Operations, whether it intends to jointly participate in this second investment for the Phase-1 clean room in the Fab 6 facility.

Fujitsu Semiconductor Limited and ON Semiconductor (Nasdaq: ON) today announced an agreement that ON Semiconductor will purchase a 30 percent incremental share of Fujitsu’s 8-inch wafer fab in Aizu-Wakamatsu, resulting in 40 percent ownership when the purchase is completed. The purchase is scheduled to be completed on April 1, 2018, subject to certain regulatory approvals and other closing conditions.

The two companies entered into an agreement in 2014, under which ON Semiconductor obtained a 10 percent ownership interest in Fujitsu’s Aizu 8-inch fab. Initial transfers began in 2014, and successful production and ramp-up of wafers began in June 2015. ON Semiconductor continues to increase demand at the Aizu 8-inch fab, and both companies determined that further strategic partnership will maximize the value both companies provide.

ON Semiconductor plans to increase ownership to 60 percent by the second half of 2018 and to 100 percent in the first half of 2020, allowing ON Semiconductor to add capacity to their global footprint. This additional capacity will allow ON Semiconductor to continue scaling its business based on demand and enable increased supply chain flexibility.

“We believe that transforming into a globally competitive company is the key for the continuous growth of the Aizu 8-inch fab. Furthering our strategic partnership with ON Semiconductor, who provides a broad product portfolio, will enable the Aizu 8-inch fab to secure future growth,” said Kagemasa Magaribuchi, president of Fujitsu Semiconductor Limited. “We believe that the growth of the Aizu 8-inch fab will contribute to maintaining and expanding a strong workforce and assist with the development of the regions.”

“We have had a strong and successful partnership with Fujitsu since announcing our investment in 2014,” said Keith Jackson, president and CEO of ON Semiconductor. “We believe furthering our partnership with Fujitsu Semiconductor will enable us to maintain our industry-leading manufacturing cost structure and also help us optimize our capital spending in coming years. This is a strategic investment for ON Semiconductor to secure additional manufacturing capacity, in support of our accelerated production needs and for revenue growth in coming years.”

Manufacturing is a core competency for ON Semiconductor, and approximately 75 percent of manufacturing operations are done internally through the company’s industry leading cost structure.

NXP Semiconductors N.V. (NASDAQ:NXPI) announced that it had received the 2017 Excellence in Quality award from Cisco.

This prestigious award recognizes NXP for Excellence in Quality for displaying the highest quality standards, practices, and methodologies in their products and processes, and differentiating through their quality management systems and alignment to Cisco’s strategies and values.

The distinction was awarded during Cisco’s 26th Annual Supplier Appreciation Event, held August 31 at the Santa Clara Convention Center in California.

“The theme this year for our Supplier Appreciation event is ‘Connecting the Unconnected: Transforming to the Digital Supply Chain,’ which highlights our laser focus on enabling break-through value in operational commitments and customer satisfaction through digital orchestration,” said Jeff Gallinat, senior vice president, Global Manufacturing Operations, Cisco.

“As we continue on our digitization journey, our strong relationships and close collaboration with our supplier and partner ecosystem will continue to play a critical role in our continued innovation, productivity and ultimately success.”

Cisco presented awards to its partners and suppliers in recognition of their contributions to Cisco’s success in the fiscal year 2017.  At the event, Cisco celebrated the collective achievements of its most strategic suppliers and partners, and reaffirmed its commitment to a strong, continued partnership that will further accelerate innovation, alignment and operational excellence.

Today, SEMI announced the lineup of keynotes coming to SEMICON Japan’s “SuperTHEATER” ─ focusing on the future of the electronics manufacturing supply chain. SEMICON Japan 2017, the largest exhibition in Japan for electronics manufacturing, will take place at Tokyo Big Sight in Tokyo on December 13-15. Registration is now open for the exhibition and programs.

With the theme “Dreams Start Here,” SEMICON Japan 2017 will bring together the connections between people, technologies and businesses across the electronics manufacturing supply chain ─ extending to the internet of things (IoT) applications that inspire the dreams that shape the future.

Japan has the world’s third-largest 300mm wafer installed fab capacity and the world’s largest 200mm and smaller wafer fab capacity (including discrete devices production). Japan also supplies one third of the semiconductor equipment and more than half of the semiconductor materials that are purchased in the global market.

The SuperTHEATER offers nine keynote forums, all with simultaneous English-Japanese translation. On December 13, keynotes at SEMICON Japan’s SuperTHEATER include:

  • Opening Keynotes ─ Visions of the Game Changing Era
    • Soft Bank:  Ken Miyauchi, president and CEO, “The Information Revolution beyond the Singularity”
    • Qualcomm Technologies: Raj Talluri, senior VP of product management, “Qualcomm Viewpoint: Accelerating the Internet of Things”
       
  • Semiconductor Executive Forum ─ Growth Strategy in New Business Environment
    • TowerJazz Semiconductor: Russell Ellwanger, CEO, “Value Creation”
    • SMIC: Haijun Zhao, CEO, Considerations in Developing Manufacturable IC Technologies”
    • Micron Technology: Wayne Allan, senior VP of global manufacturing, “Enabling Smart Manufacturing in Today’s Industry 4.0”

The SEMI Market Forum, also on December 13, will offer presentations from IHS Markit and SEMI, with the theme “In the Light and Shadow of Awaking China”

Additional SEMICON Japan 2017 highlights include:

  • IT/AI Forum on U.S. companies’ artificial intelligence strategies
  • IoT Global Trends Forum on semiconductors for IoT
  • IoT Key Technology Forum on Smart Transportation
  • Manufacturing Innovation Forum n “Manufacturing Technology for the Diversified Future”
  • Electronics Trends
  • Mirai (the Future) Vision

 

For more information and to register for SEMICON Japan, visit www.semiconjapan.org/en/

By Yoichiro Ando, SEMI Japan

Shinzo Abe, the prime minister of Japan, plans to stage a Robot Olympics in 2020 alongside the summer Olympic Games to be hosted in Tokyo. Abe said he wants to showcase the latest global robotics technology, an industry in which Japan has long been a pioneer. Japan’s Robot Strategy developed by the Robot Revolution Initiative Council plans to increase Japanese industrial robot sales to 1.2 trillion JPY by 2020. This article discusses how the robotics industry is not just a key pillar of Japan’s growing strategy but also a key application segment that may lead Japan’s semiconductor industry growth.

Japan leads robotics industry

According to International Federation of Robotics (IFR), the 2015 industrial robot sales increased by 15 percent to 253,748 units compared to the 2014 sales. Among the 2015 record sales, Japanese companies shipped 138,274 units that represent 54 percent of the total sales according to Japan Robot Association (JARA). The robotics companies in Japan include Yaskawa Electric, Fanuc, Kawasaki Heavy Industries, Fujikoshi and Epson.

Source: International Federation of Robotics (global sales) and Japan Robot Association (Japan shipment)

Source: International Federation of Robotics (global sales) and Japan Robot Association (Japan shipment)

The automotive industry was the most important customer of industrial robots in 2015 that purchased 97,500 units or 38 percent of the total units sold worldwide. The second largest customer was the electrical/electronics industry (including computers and equipment, radio, TV and communication devices, medical equipment, precision and optical instruments) that showed significant growth of 41 percent to 64,600 units.

Semiconductors devices used in robotics industry

Robotics needs semiconductor devices to improve both performance and functionality. As the number of chips used in a robot increases and more advanced chips are required, the growing robotics market is expected to generate significant semiconductor chip demands.

FEA-RO-IA-R2000-SpotWeld-3

Semiconductor devices in robots are used for collecting information; information processing and controlling motors and actuators; and networking with other systems.

  • Sensing Devices: Sensors are used to collect information including external information such as image sensors, sound sensors, ultrasonic sensors, infrared ray sensors, temperature sensors, moisture sensors and pressure sensors; and movement and posture of the robot itself such as acceleration sensors and gyro sensors.

    Enhancing these sensors’ sensitivity would improve the robot performance. However, for robot applications, smaller form factors, lighter weight, lower power consumption, and real-time sensing are also important. Defining all those sensor requirements for a specific robot application is necessary to find an optimal and cost-effective sensor solution.

    In addition, noise immunity is getting more important in selecting sensors as robot applications expand in various environments that include noises. Another new trend is active sensing technology that enhances sensors’ performance by actively changing the position and posture of the sensors in various environments.

  • Data Processing and Motor Control Devices: The information collected by the sensors is then processed by microprocessors (MPUs) or digital signal processors (DSPs) to generate control signals to the motors and actuators in the robot. Those processors must be capable of operating real-time to quickly control the robot movement based on processed and analyzed information. To further improve robot performance, new processors that incorporate artificial intelligence (AI) and ability to interact with the big data cloud database are needed.
  • As robotics is adapted to various industry areas as well as other services and consumer areas, the robotics industry will need to respond to multiple demands. It is expected that more field programmable gate arrays (FPGAs) will be used in the industry to manufacture robots to those demands.

    In the control of motors and actuators, power devices play important roles. For precise and lower-power operation of the robot, high performance power devices using high band gap materials such as Silicon Carbide and Gallium Nitride will likely used in the industrial applications.

  • Networking Devices: Multiple industrial robots used in a production line are connected with a network. Each robot has its internal network to connect its components. Thus every robot is equipped with networking capability as a dedicated IC, FPGA or a function incorporated in microcontrollers.

Ando--industrial-automation

Smart Manufacturing or Industry 4.0 requires all equipment in a factory to be connected to a network that enables the machine-to-machine (M2M) communication as well as connection to the external information (such as ordering information and logistics) to maximize factory productivity. To be a part of such Smart Factories, industrial robots must be equipped with high-performance and high-reliability network capability.

Opportunities for semiconductor industry in Japan

Japanese semiconductor companies are well-positioned in the key semiconductor product segments for robotics such as sensors, microcontrollers and power devices. These products do not require the latest process technology to manufacture and can be fabricated on 200mm or smaller wafers at a reasonable cost. Japan is the region that holds the largest 200mm and smaller wafer fab capacity in the world and the lines are quite versatile in these product categories.

The robotics market will likely be a large-variety and small-volume market. Japanese semiconductor companies will have an advantage over companies in other regions because they can collaborate with leading robotics companies in Japan from early stages of development. Also, Japan may lead the robotics International Standards development which would be another advantage to Japanese semiconductor companies.

For more information about the robotics and semiconductor, attend SEMICON Japan on December 13 to 15 in Tokyo. Event and program information will be available at www.semiconjapan.org soon.

The Semiconductor Industry Association (SIA) released the following statement today from SIA president & CEO John Neuffer in support of the corporate tax reform framework released today by leaders in the Trump Administration and Congress. The proposal is expected to be considered by Congress in the coming weeks.

“Over the past three decades, the U.S. semiconductor industry has unleashed tremendous innovations that have transformed America’s economic, technological, and national security landscape. America’s corporate tax system, meanwhile, has remained largely unchanged, leaving U.S. businesses at a disadvantage to their overseas competitors.

“The tax reform framework is a step forward to make the U.S. corporate tax system more competitive and allow U.S. semiconductor companies to continue to grow and innovate here at home. The plan would advance the U.S. semiconductor industry’s core priorities for tax reform: a lower, globally competitive rate, a modern international tax system, and strong incentives for research and innovation.

“While there are many details of importance to our industry that need to be fleshed out, we support the plan as a framework for advancing corporate tax reform.  We look forward to working with Congress and the Administration to enact corporate tax reform that makes the United States more globally competitive and boosts U.S. leadership in semiconductor research, design, and manufacturing.”