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SEMI today announced the addition of a new high-profile program on China to its 2017 conference lineup for SEMICON West (July 11-13). Slated for July 11 at San Francisco’s Yerba Buena Theater, the China Strategic Innovation & Investment Forum will focus on the extensive business opportunities resulting from the semiconductor industry’s largest regional growth spurt now occurring in China.

While the global semiconductor industry continues to consolidate through large-scale mergers and acquisitions, China is embarking on a new round of expansion with heavy investment from public and private funding. China’s semiconductor industry is growing at an explosive rate, leading the rest of the world with a projected increase of 68 percent in fab equipment spending year-over-year (2017 to 2018), according to the May 2017 SEMI World Fab Forecast. China will be equipping over 50 facilities through 2018, and is forecast to spend more than US$11 billion.

The rise of the semiconductor industry in China need not be viewed as a threat to other global players, but rather as a significant driver of growth and business opportunity for suppliers worldwide. With its low indigenous market share for chips and nascent technical breadth in IC design, manufacturing, packaging, testing, equipment, and materials, China has become an enormous market for suppliers across the supply chain. In fact, ICs still top the list of all Chinese bulk imports in terms of U.S. dollar value.

At the China Strategic Innovation & Investment Forum, semiconductor and investment executives, as well as key China government and trade officials will share their views on the industry’s evolution and offer insights on growth, investment opportunities, M&A, and the latest innovations emerging in China. Attendees will hear from C-Level executives from Ali Cloud, AMEC, Applied Materials Venture Capital Group, Goldman Sachs, Verisilicon, Walden International, SEMI China, and more. An hour-long panel discussion, moderated by Lung Chu, president of SEMI China, will feature speakers and a Q&A session. With access to China experts presenting and multiple networking opportunities, the China forum will offer a collaborative platform where markets, technology, talent, and funding can meet up for mutual benefit.

SEMICON West is focused on keeping industry players informed about where the semiconductor market is headed, and where they can find — and leverage — new opportunities. The flagship event for connecting the electronics manufacturing supply chain and adjacent segments will be held July 11-13 at Moscone Center in San Francisco, Calif. For more information, visit www.semiconwest.org.

Silicon Integration Initiative Inc. (Si2), a research and development joint venture, announced today the contribution of a new integrated circuit programming language developed by Intel Corporation (NASDAQ: INTC) for the 2D pattern analysis of sub-20nm mask layouts.

The new language, called OPAL (Open Pattern Analysis for Layout), is a declarative language for geometric pattern matching. “It’s a high-level, modeling language that can describe layout patterns of any complexity,” according to Jake Buurma, an Si2 senior fellow. “OPAL provides an essential set of geometric expressions that can find specific patterns that detract from yield and it can find the robust patterns that improve first-pass yield over normal manufacturing variances.”

For example, in sub-20nm processes, wires used for interconnect have an ideal pitch for the mask to chip image transfer during lithography, Buurma explained. “But these wires also have a prohibited pitch where the image transfer is poor since lithography cannot faithfully reproduce certain 2D patterns. The OPAL language searches for the layout patterns of both yield detractors and yield enhancers and then back annotates markers onto those patterns that will have an impact on manufacturing yield.”

“At Intel, we’ve been developing layout modeling languages for over 10 years and OPAL is our latest modeling advancement which is capable of describing any geometric constraint regardless of complexity and has the potential to automatically create test layout, runsets, and tool models,” said Ramond Rodríguez, director, Strategic CAD Capabilities at Intel. “Along with several technology contributions Intel has made to Si2 which extend the Si2 OpenAccess database, we’re excited that OPAL can leverage some of our prior contributions, such as oaxPOP, which is a geometric engine for polygon operators on OpenAccess.”

“OpenAccess has always had the ability to store mask layout constraints in its C++ database, but the actual checking of those constraints required an expert to program an exact sequence of steps into a design rule checking engine,” Buurma said. “But as a high-level, declarative language, OPAL can model complex 2D patterns by just describing a specific pattern with a few geometric expressions.”

Si2 will host the OPAL project and launch an OPAL Working Group to evaluate and entertain proposals for an industry roadmap on how to best utilize the newly contributed technology from Intel.

Gyuszi Suto, principle engineer at Intel and the lead developer of OPAL, said that “Working with an R&D joint venture is the best way for a team of experts, like an Si2 Working Group, to specify a standard methodology that allows users to clearly and concisely write geometric searches that find specific 2D patterns in their layouts.”

At DAC 2017, Si2 will hold an OPAL workshop where a team of industry experts will describe the rapidly growing number of layout and pattern constraints that appear at sub-20nm manufacturing nodes. The complimentary workshop will be held Monday, June 19, 11:00 a.m. – 1:00 p.m., in Room 7 at the Austin Convention Center. For reservations visit http://www.si2.org/events/opal/.

Cypress Semiconductor Corporation (“Cypress”) (NASDAQ: CY) today announced that Executive Chairman Ray Bingham has tendered his resignation as Executive Chairman and is stepping down from the Board of Directors. He also notified the Board that he was declining to stand for re-election at the Annual Meeting. The Board has accepted his decision. In addition, Eric Benhamou has stepped down as Lead Independent Director. He will remain on the Board. In response to these developments, the Board of Directors has appointed current independent director W. Steve Albrecht as its new Chairman. As a world-renowned expert in the field of corporate governance, the Board unanimously decided that Steve is the right person for the job. Finally, the independent members of the Cypress Board decided, given CEO Hassane El-Khoury’s superior performance, there is no longer a need for the Executive Chairman role. All of these changes are effective immediately.

“It has been a great privilege to serve as Chairman of Cypress’ Board of Directors and most recently Executive Chairman, alongside some of the smartest minds in the business, at such an important time in Cypress’ history,” said Bingham. “In the last year, we have accomplished a great deal, including removing an underperforming CEO who was no longer right for the Company, and appointing a dynamic CEO who I believe will continue to lead the Company upward and implement the successful turnaround driven by the Cypress 3.0 strategy. While it saddens me to leave the Board at such a time, I believe that the nature of this proxy contest has become a distraction to the Company and the management team’s ability to fully execute Cypress 3.0 – the strategy that is putting Cypress back on track. I wish Hassane, his team and the Board members all the best in the future and look forward to watching them accomplish great things in the months and years to come.”

“On behalf of the full Board, I want to thank Ray for his years of contributions to Cypress,” said W. Steve Albrecht, Chairman of Cypress. “His extensive experience and deep industry knowledge played an enormous part in the turnaround that started with the removal of T.J. Rodgers as CEO and member of the Board and culminated with the appointment of Hassane as the new CEO and his formulation and execution of the Cypress 3.0 strategy. The Board and I remain as committed and as focused as ever to good corporate governance, driving growth and creating value for all of our stockholders. I’m honored to take on the role and responsibility of Chairman and pledge to serve in the best interests of all Cypress’ stakeholders through my service on the Board. I am also grateful that Eric Benhamou will continue to serve on the Board. He brings a wealth of experience that is highly relevant to our new 3.0 strategy.”

Dr. Albrecht, who is a National Association of Corporate Directors (“NACD”) Board Leadership Fellow, is highly acclaimed in the corporate governance field, having chaired the audit committee and served on the nomination/governance committee of nearly every board he has served on. Dr. Albrecht also teaches the MBA corporate governance and board of directors’ class at Brigham Young University (“BYU”) and has authored a text on corporate governance and boards of directors. Albrecht has done extensive research and writing on financial reporting, business fraud, ethics and corporate governance. His research has resulted in the publication of over one hundred and twenty-five articles in professional and academic journals. He is the author or co-author of over 25 books or monographs, several of which are on fraud, integrity, financial and managerial accounting and corporate governance/boards of directors. Dr. Albrecht is also a certified public accountant, certified internal auditor and certified fraud examiner with extensive experience in controls and financial accounting matters, with a particular expertise in multinational companies.

Dr. Albrecht has served on the boards of directors of four public companies and five private companies. In addition to Cypress Semiconductor, he currently serves on the Boards of Directors of Red Hat, Inc. and SkyWest, Inc. At BYU, Dr. Albrecht is the Gunnel Endowed Professor in the Marriott School of Management and a BYU Wheatley Fellow. Prior to BYU, he taught at Stanford Universityand the University of Illinois and served as a trustee for both the Financial Accounting Foundation (which oversees the FASB) and COSO (the organization that established the internal control framework used by corporations). He has consulted with numerous corporations and has been an expert witness in 37 fraud cases, including many of the largest financial statement fraud cases in the United States. In 2006, Dr. Albrecht was named by Utah Business as one of its first class of top five corporate directors in the state of Utah. In 2013 he was included in the NACD Directorship 100, being named one of the top 50 Corporate Directors in America. Later this month, Dr. Albrecht will receive the Lifetime Outstanding Director Award in the State of Utah.

By Paula Doe, SEMI

Fabs and tool makers are starting to pay a lot more attention to suppliers of components and subsystems– as defects in these materials start to impact yields at 14nm and below. Solving these emerging issues, though, will take a collaborative effort to determine what parameters matter, how to measure them, and how to trace them back across an extended supply chain, suggests Pawitter Mangat, GLOBALFOUNDRIES director of Global Incoming Quality, one of the speakers who’ll discuss these issues in the program on component impact on yields at advanced nodes, July 11, at SEMICON West 2017.

“As we move below 22nm, even the composition of the materials in the subcomponents become critical,” he says. “But currently there is no general agreement on what the important parameters are to control for particular applications, or on how to measure these parameters with the same methods for consistent results.” The issues are often with the industrial grade raw materials from which the subcomponents are made, and these industrial chemical suppliers may be reluctant to invest in controls as the semiconductor industry represents only a tiny percentage of their business. “This means we need to look beyond our immediate suppliers to a wider ecosystem of components and material suppliers, and to extend digital traceability through this wider ecosystem as well,” he notes. “If we have an issue, we need to be able to quickly trace it back to the cause.”

“The 7nm world tends to forget that all subcomponents, everything, has been developed for other industries, not the semiconductor industry, and the makers of all these basic pumps and valves and O-rings have no way of knowing what the important parameters are to prevent defects in the final semiconductor devices,” notes Dalia Vernikovsky, CEO, Applied Seals North America, and co-chair of the SEMI Semiconductor Components, Instruments, and SubSystems (SCIS) special interest group.

She suggests the major users and suppliers get together to come up with the basic parameters for things like metal contamination, surface cleanliness or outgassing for specific components for specific processes, and then agree on a common way to measure these parameters, to enable tracing and characterizing the defects in the final devices.   This is also the first step towards specifying and controlling the parameters of the raw materials used in the components and subsystems that also matter. “If I am going to push my supplier, I have to be able to show him what the end customers’ requirement is,” notes Vernikovsky.  “This is not about individual companies’ intellectual property. It’s the basic requirement of the IC industry that we all need to meet, and then we can compete on a higher level.”

Other speakers at the Semiconductor Components, Instruments and Subsystems (SCIS) session include Norm Armour, Micron Technology, Managing Director Worldwide Facilities and Corporate EHSS; Sanchali Bhattaharjee, Intel, Engineering Manager, Global Supply Chain Management; and a panel with the speakers moderated by Dan Hutcheson, VLSI Research, CEO and Chairman. The SEMI SCIS special interest group will also have an open meeting on their current collaborative efforts July 13 at the Marriott Marquis. See www.semiconwest.org/programs-catalog/enabling-hvm-advanced-process-nodes.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $31.3 billion for the month of April 2017, an increase of 20.9 percent from the April 2016 total of $25.9 billion and 1.3 percent more than last month’s total of $30.9 billion. April marked the global market’s largest year-to-year growth since September 2010. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects annual global market growth of 11.5 percent in 2017 and 2.7 percent in 2018, followed by a slight decrease of 0.2 percent in 2019.

GSR graph 2_med

 

“The global semiconductor market has grown at an impressive rate through the beginning of 2017, culminating with April’s year-to-year growth of 21 percent, the global market’s largest increase in nearly seven years,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Although driven in part by tremendous growth in the memory market, sales of non-memory products also grew by double digits in April, and all major regional markets posted substantial year-to-year gains. The global market is projected to experience significant annual growth this year, with slower growth expected next year and roughly flat sales in 2019.”

Regionally, year-to-year sales increased in China (30.0 percent), the Americas (26.9 percent), Asia Pacific/All Other (14.1 percent), Europe (12.7 percent), and Japan (12.0 percent). Compared with last month, sales were up slightly across all regions: Asia Pacific/All Other (2.0 percent), the Americas (1.8 percent), Japan (1.4 percent), China (0.7 percent), and Europe (0.5 percent).

Additionally, SIA today endorsed the WSTS Spring 2017 global semiconductor sales forecast, which projects the industry’s worldwide sales will be $377.8 billion in 2017. This would mark the industry’s highest-ever annual sales, an 11.5 percent increase from the 2016 sales total. WSTS projects year-to-year increases across all regional markets for 2017: Asia Pacific (12.4 percent), the Americas (12.2 percent), Europe (8.7 percent), and Japan (6.6 percent). Beyond 2017, growth in the semiconductor market is expected to slow across all regions. WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

The Semiconductor Industry Association (SIA) today welcomed a new $75 million initiative outlined in the President’s fiscal year 2018 budget proposal and funded through the Defense Advanced Research Projects Agency (DARPA) that would bolster long-term semiconductor research. The public-private “electronics resurgence” initiative would advance research to progress beyond the limits of traditional scaling and catalyze next-generation semiconductor materials, designs, and architectures. The program would combine with DARPA’s other microelectronics R&D initiatives for a total of more than $200 million devoted to semiconductor and related technology research in the coming fiscal year, an amount that will be supplemented by significant industry investments.

“Semiconductors, the brains of modern electronics, are fundamental to America’s economic, technological, and military infrastructure,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Advances in semiconductor technology reverberate throughout society, making technology more affordable and accessible to consumers and boosting U.S. innovation, productivity, and economic growth. DARPA’s new initiative would strengthen long-range semiconductor research, enhance semiconductor technology’s positive impacts on our country, and bolster national security. The semiconductor industry has a long record of partnering with our government to advance early-stage research. This new, forward-looking program is yet another important example of this ongoing collaboration, and we are committed to working with the Administration and Congress to ensure its enactment.”

The new DARPA initiative is expected to focus on the development of new materials for use in electronics devices, nontraditional architectural approaches, and innovative circuit designs, among other research areas. In addition to fostering advancements in semiconductor technologies used for national security, the ripple effect from this research will be felt across the full range of semiconductor applications: communications, computing, health care, transportation, clean energy, and countless others.

As one of America’s top exporters and advanced manufacturers, the U.S. semiconductor industry is a key contributor to our country’s strength. Our industry supports more than one million jobs in America, accounts for nearly half of the world’s chip sales, and is the world’s most innovative sector. And the United States is home to almost half of U.S. semiconductor companies’ manufacturing base, across 21 states.

“Our industry’s continued strength, and the myriad benefits it provides to our country, are directly attributable to large and sustained investments in research,” said Neuffer. “Recognizing this, the U.S. semiconductor industry plows about one-fifth of its annual sales back into research and development, among the most of any industry. The new DARPA initiative marks a major commitment to furthering semiconductor technology and keeping America at the head of the class in innovation.”

Neuffer also noted SIA’s longstanding support for basic scientific research funded through other federal agencies such as the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the Department of Energy (DOE) Office of Science. He expressed the semiconductor industry’s eagerness to work with the Administration and Congress to enact a budget that prioritizes the strategic importance of research investments to America’s economic and national security and technological leadership.

 

SEMI today reported that worldwide semiconductor manufacturing equipment billings reached US$13.1 billion for the first quarter of 2017. The quarter ended very strong, with March billings reaching $5.6 billion, an all-time monthly record.

Quarterly billings of US$13.1 billion also represent the first time quarterly billings exceeded the record quarterly high set in the third quarter of 2000 ($13.0 billion). Billings for the most recent quarter are 14 percent higher than the fourth quarter of 2016 and 58 percent higher than the same quarter a year ago. The data is gathered jointly with the Semiconductor Equipment Association of Japan (SEAJ) from over 95 global equipment companies that provide data on a monthly basis.

The quarterly billings data by region in billions of U.S. dollars, quarter-over-quarter growth and year-over-year rates by region are as follows:

 
1Q2017
4Q2016
1Q2016
1Q2017/4Q2016
(Qtr-over-Qtr)
1Q2017/1Q2016
(Year-over-Year)
Korea
3.53
2.39
1.68
48%
110%
Taiwan
3.48
4.15
1.89
-16%
84%
China
2.01
1.15
1.60
74%
25%
North America
1.27
1.24
1.01
3%
26%
Japan
1.25
1.05
1.24
19%
1%
Europe
0.92
0.93
0.35
-1%
160%
Rest of World
0.63
0.60
0.51
4%
23%
Total
13.08
11.52
8.28
14%
58%

Source: SEMI (www.semi.org) and SEAJ, June 2017

The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports: the monthly SEMI Billings Report, which offers a perspective of the trends in the equipment market; the monthly Worldwide Semiconductor Equipment Market Statistics (WWSEMS), a detailed report of semiconductor equipment bookings and billings for seven regions and 24 market segments; and the SEMI Semiconductor Equipment Forecast, which provides an outlook for the semiconductor equipment market.

 

EV Group (EVG), a supplier of wafer bonding and lithography equipment for the MEMS, nanotechnology and semiconductor markets, today announced that it is expanding production capacity at its corporate headquarters in St. Florian am Inn, Austria. Representing a 20 million Euro investment, the expansion will include the construction of a new building that provides additional production and test capacity for EVG equipment that meets the high cleanliness requirements of the semiconductor industry, as well as that allows for a significant expansion of warehouse space.

EV Group headquarters in St. Florien, Austria, including construction site for additional production and test capacity.

EV Group headquarters in St. Florien, Austria, including construction site for additional production and test capacity.

“With the new building adjacent to our existing manufacturing facilities, we will first and foremost create additional test rooms for the final assembly, software installation and quality assurance of our equipment and the technical source inspection by our customers,” stated Dr. Werner Thallner, executive operations and financial director at EV Group. “This enables us to act on the significant increase in demand for our solutions in both existing and new markets, and pursue our mid- and long-term growth targets at the same time.”

From left to right: Paul Lindner, Erich Thallner, Aya Maria Thallner, Hermann Waltl and Dr. Werner Thallner (EV Group Executive Board)

From left to right: Paul Lindner, Erich Thallner, Aya Maria Thallner, Hermann Waltl and Dr. Werner Thallner (EV Group Executive Board)

The new building to expand production capacity is set to open before the end of this calendar year.

North America-based manufacturers of semiconductor equipment posted $2.17 billion in billings worldwide in April 2017 (three-month average basis), according to the April 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 April 2017 was $2.17 billion. The billings figure is 4.6 percent higher than the final March 2017 level of $2.08 billion, and is 48.9 percent higher than the April 2016 billings level of $1.46 billion.

“Semiconductor equipment billings levels exceed two billion dollars for the second month in a row,” said Ajit Manocha, president and CEO of SEMI.  “Solid market fundamentals, coupled with strong demand for memory for data storage and processors for smartphones, are fueling significant investments.”

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
November 2016
$1,613.3
25.2%
December 2016
$1,869.8
38.5%
January 2017
$1,859.4
52.3%
February 2017
$1,974.0
63.9%
March 2017 (final)
$2,079.7
73.7%
April 2017 (prelim)
$2,174.5
48.9%

Source: SEMI (www.semi.org), May 2017
SEMI ceased publishing the monthly North America Book-to-Bill report in January 2017. SEMI will continue publish a monthly North American Billings report and issue the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report in collaboration with the Semiconductor Equipment Association of Japan (SEAJ).

Worldwide semiconductor revenue totaled $343.5 billion in 2016, a 2.6 percent increase from 2015 revenue of $334.9 billion, according to final results by Gartner, Inc. The top 25 semiconductor vendors’ combined revenue increased 10.5 percent, a significantly better performance than the overall industry’s growth; however, most of this growth resulted from merger and acquisition (M&A) activity.

“The semiconductor industry rebounded in 2016, with a weak start to the year, characterized by inventory correction, giving way to strengthening demand and an improving pricing environment in the second half,” said James Hines research director at Gartner. “Worldwide semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and relatively benign currency movements.”

Intel retained its No. 1 position as the largest semiconductor manufacturer and grew its semiconductor revenue 4.6 percent in 2016 (see Table 1). Samsung Electronics continued to maintain the No. 2 spot with 11.7 percent market share.

Table 1. Top 10 Semiconductor Vendors by Revenue, Worldwide, 2016 (Millions of Dollars)

2015 Rank

2016 Rank

Vendor

2016 Revenue

2016
Market Share (%)

2015 Revenue

2015-2016 Growth (%)

1

1

Intel

54,091

15.7

51,690

4.6

2

2

Samsung Electronics

40,104

11.7

37,852

5.9

4

3

Qualcomm

15,415

4.5

16,079

-4.1

3

4

SK hynix

14,700

4.3

16,374

-10.2

17

5

Broadcom Ltd. (formerly Avago)

13,223

3.8

4,543

191.1

5

6

Micron Technology

12,950

3.8

13,816

-6.3

6

7

Texas Instruments

11,901

3.5

11,635

2.3

7

8

Toshiba

9,918

2.9

9,162

8.3

12

9

NXP Semiconductors

9,306

2.7

6,517

42.8

10

10

Media Tek

8,725

2.5

6,704

30.1

Others

153,181

44.6

160,562

-4.6

Total Market

343,514

100.0

334,934

2.6

Source: Gartner (May 2017)

Consolidation continued to play a major role in the market share rankings, with several large companies growing through acquisitions. Merger and acquisition activity among the major vendors in 2016 included Avago Technologies’ acquisition of Broadcom Corp. to become Broadcom Ltd., On Semiconductor’s acquisition of Fairchild Semiconductor, and Western Digital’s acquisition of SanDisk. The largest mover in the top 25 was Broadcom Ltd., which moved up 12 places in the market share ranking.

“The combined revenue of the top 25 semiconductor vendors increased by 10.5 percent during 2016 and accounted for a 74.9 percent share, outperforming the rest of the market, which saw a 15.6 percent revenue decline,” said Mr. Hines. “However, these results are skewed by the large amount of M&A activity during 2015 and 2016. If we adjust for this M&A activity by adding the revenue of each acquired company to the revenue of the acquirer for both 2015 and 2016 where necessary, then the top 25 vendors would have experienced a 1.9 percent revenue increase, and the rest of the market would have increased by 4.6 percent.”