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Technavio’s market research analysts estimate the semiconductor capital spending market in the US, to grow at a CAGR of around 9% between 2015 and 2019. The most prominent segment in global semiconductor industry has been memory, logic, MPU and analog, which made up almost 75% of the total semiconductor demand. Semiconductor technology is continuously growing with emergence of advanced technology, leading to increased investments in this segment.

The new market research report from Technavio provides a breakdown and analysis of the semiconductor capital spending market segments by technology.

“One of the interesting trends gaining traction in the market is the rise in China’s semiconductor industry. China’s semiconductor industry has a significant influence on the capital spending in the US semiconductor industry. Even though, there are a large number of local semiconductor components manufacturers in China, more than 80% of the semiconductor requirements in China is fulfilled by US semiconductor companies, such as Intel and Global Foundries,” said Asif Ghani, Lead Analyst, Hardware & Semiconductor, Technavio Research.

The semiconductor capital spending market in the US is driven by numerous drivers, of which, the most prominent among of all is the accelerated capex in memory and foundry segments. Collectively, memory and foundry represent close to two-third of the total semiconductor capital spending market. With such accelerated capital investments on a global scale, the outcome will have a considerable impact on the semiconductor industry worldwide.

The key vendors in the semiconductor capital spending market in the US include Global Foundries, Intel, Micron, Samsung Electronics, and SK Hynix. The competition in the semiconductor capital spending market in the US is rigid. And the main reason for such intense completion is the evolution of technology. With the pace of technological advancements in the US market, vendors are involved in substantial capital spending, hence, the market comprises of players with strong technological proficiency.

AKHAN Semiconductor, Inc. (AKHAN SEMI), a developer of diamond semiconductor technology, this week announced that it is deploying 200mm manufacturing equipment and process in its new production facility in Gurnee, Illinois, continuing its preparation for delivering AKHAN diamond semiconductor based-technology products to the company’s first commercial customer this quarter.

“The proven, high-yielding 200mm semiconductor manufacturing process is proving ideal for the production of a wide range of semiconductors – sensors, MEMS, analog, power management – that are embedded in the rapidly growing number of connected devices, from smartphones and tablets to cars, home appliances, wearables, and commercial and industrial applications,” said AKHAN COO Carl Shurboff.

According to market research firm Gartner, Inc., the number of Internet-connected devices, now referred to as the Internet of Things, will grow from 6.3 billion in 2016 to more than 20 billion in 2020.

This explosion in connected products is driving high global demand for all types of new semiconductors to power this new era of connected computing. SEMI noted in its Global 200mm Fab Outlook to 2018 that 200mm fab capacity is expected to grow from 5.2 million wafer starts per month in 2015 to more than 5.4 million in 2018.

“The timing for our diamond-based semiconductor technology’s market debut could not be better,” said AKHAN CEO Adam Khan. “By using man-made diamonds at the core of our new chip technology, we are ushering in a new generation of semiconductor solutions that operate at higher temperatures, are thinner and require less power. These are exactly the attributes required for all the products that make up the Internet of Things.”

The AKHAN diamond semiconductor based technology will enable a new generation of commercial, industrial and consumer products such as flexible and transparent displays that can be used in wearables and thinner consumer devices that last longer. On the commercial side, AKHAN is already developing new diamond windows for industrial, defense and aerospace applications.

AKHAN’s technology is based on a new process that uses man-made diamond rather than silicon to produce new chip materials. It is a result of the marriage of two scientific breakthroughs: the ability to use nanocrystalline diamond (NCD) films and a new doping process the makes it possible to use NCD as a semiconductor material.

The new AKHAN production facility was opened in mid-November. The company is actively hiring to staff the new facility which is expected to employee 100 people in the next two years.

The Critical Materials Council for Semiconductor Fabricators, originally established by ISMI/SEMATECH in the early 1990’s, will be managed by TECHCET CA LLC starting January 01, 2016. Under its new name CMC Fabs, the membership-based organization of semiconductor fab & fabless manufacturers will continue working to identify and remediate issues impacting the supply, availability, and accessibility of both current and emerging semiconductor process materials. In keeping with SEMATECH tradition, the work of the international council takes place in a non-competitive environment for the benefit of the semi device fabrication community. Topics addressed are identified and prioritized by the member companies.

The organization has a new website at cmcfabs.org, which includes an overview of the Council’s mission, news of upcoming events and a Members Only portal for access to minutes of monthly phone/WebEx meetings and workshop details. The site also features access for Members to the TECHCET Critical Materials Reports and the related quarterly updates.

The next face-to-face meeting of CMC Fabs will take place May 3-6, 2016 in Hillsboro, Oregon. The meeting will include the annual CMC Materials Seminar held on May 5-6 that is open to the public. Sessions include a market briefing, supply chain issues and methods, the evolution of emerging materials in ALD / ALE, and the materials revolution around carbon. Speakers will be drawn from fabs, suppliers and analysts to address topics of concern and interest to the Council, and the semiconductor materials supply chain.

CMC Fabs is a unit of TECHCET CA LLC, a firm focused on Process Materials Supply Chains, Electronic Materials Technology, Materials Market Research and Consulting for the Semiconductor, Display, Solar/PV, and LED Industries. The company has been responsible for producing the SEMATECH Critical Material Reports since 2000.

Fairchild Semiconductor International announced Monday that its board of directors has determined that a revised unsolicited proposal received on December 28, 2015, from China Resources Microelectronics Limited and Hua Capital Management Co., Ltd. to acquire Fairchild for $21.70 per share in cash would reasonably be expected to result in a “Superior Proposal” as defined in the company’s agreement and plan of merger with ON Semiconductor Corporation.

On December 28, Fairchild received an unsolicited offer from China Resources Microelectronics Limited and Hua Capital Management Co., Ltd. to acquire the company for $21.70 per share in cash.

As previously announced on November 18, 2015, Fairchild entered into an agreement and plan of merger with ON Semiconductor to acquire Fairchild for $20.00 per share in an all cash transaction valued at approximately $2.4 billion.

Fairchild Semiconductor said its board’s determination allows the company to take certain actions, in accordance with the procedures set forth in the agreement and plan of merger with ON Semiconductor, to further consider the revised proposal, including engaging in discussions with China Resources and Hua Capital.

EUV lithography is on the threshold of becoming a mainstream patterning technology for sub-10nm chips, featured speaker Anthony Yen of Taiwan Semiconductor Manufacturing Co. (TSMC) will tell fellow attendees at SPIE Advanced Lithography 2016.

SPIE Litho will run February 21-25 in the San Jose (California) Marriott and Convention Center, and is sponsored by SPIE, the international society for optics and photonics.

In its 41st year in 2016, the annual event provides a focal point for the development of micro- and nanolithography and related technologies. It brings together participants from a wide range of sectors to share and learn about state-of-the-art lithographic tools, resists, metrology, materials, etch, design, and process integration.

Yen, a former SPIE Litho symposium chair and the director of TSMC’s Nanopatterning Technology Infrastructure Division, is one of three leading semiconductor lithography researchers scheduled to give plenary talks on Monday of the conference week.

Harry Levinson, GlobalFoundries Senior Director of Technology Research and Senior Fellow and another former SPIE Litho symposium chair, will review the evolution of lithographic technologies in his plenary talk, starting with the earliest simulation software through to EUV.

Richard Gottscho, Executive vice president of Global Products at Lam Research Corporation, will discuss how to minimize process-induced variability in multiple patterning.

SPIE Litho will offer more than 500 presentations in seven conferences, two poster receptions, 15 technical professional development courses, a two-day exhibition showcasing leading suppliers for the industry, and the first-ever SPIE Litho all-symposium welcome reception.

Mircea Dusa, Fellow and scientist at ASML US, Inc., is symposium chair, and Bruce Smith, Director of Microsystems Engineering at Rochester Institute of Technology, is cochair.

Among other highlights are:

  • the 30th anniversary celebration for the Metrology, Inspection, and Process Control conference with a “Wheel of Fortune” game
  • awarding of the 2016 SPIE Frits Zernike Award for Microlithography
  • a panel discussion on fundamental technology challenges in metrology, lithography, and design as critical dimensions for integrated circuits shrink to near-atomic scales.

Companies in the exhibition on Tuesday and Wednesday will include Canon USA, Inc., Carl Zeiss SMS GmbH, JSR Micro, Inc., Swiss Litho AG, Synopsys, Inc., Tokyo Electron Limited, Zygo Corporation, and others, both well-established industry leaders and newer companies.

Accepted conference proceedings papers will be published in the SPIE Digital Library as soon as approved after the meeting, and in print volumes and digital collections.

Registration, hotel, and other information is at www.SPIE.org/AL.

SPIE is the international society for optics and photonics, an educational not-for-profit organization founded in 1955 to advance light-based science and technology. The Society serves nearly 264,000 constituents from approximately 166 countries, offering conferences and their published proceedings, continuing education, books, journals, and the SPIE Digital Library in support of interdisciplinary information exchange, professional networking, and patent precedent. In 2015, SPIE provided more than $5.2 million in support of education and outreach programs. SPIE is a Founding Partner of the International Year of Light and Light-based Technologies and a Founding Sponsor of the U.S. National Photonics Initiative.

The SEMI Foundation today announced that Belle W. Y. Wei, Ph.D., was elected as a new director to the SEMI Foundation Board of Trustees in accordance with the association’s by-laws. Her appointment to the Board is immediately effective.

The SEMI Foundation is known for its flagship program, SEMI High Tech U, which serves high school students interested in pursuing careers in science, technology, engineering and math (STEM).  Since 2001, the Foundation has delivered 190 programs to over 6,000 students and teachers worldwide. Companies and organizations join the SEMI Foundation’s existing High Tech U program, by generously offering financial support, in-kind donations and volunteering at High Tech U events.

Belle Wei has held a range of leadership positions at California State University, Chico, and San Jose State University’s College of Engineering. Wei has promoted student success and bolstered STEM education, expanded educational access for historically underrepresented groups, and helped improve students’ timely graduation. She also led the Engineering Pathway Initiative that brought the Project Lead the Way engineering curricula to middle and high schools in the San Francisco/Silicon Valley region to prepare young students for colleges and careers in STEM fields. Wei presented before U.S. Congress in 2006 and contributed to the America COMPETES Act of 2007. In 2012, she participated in the “10,000 Engineers Initiative” of the President’s Council on Jobs and Competitiveness. Wei has a Ph.D. in Electrical Engineering and Computer Sciences from the University of California, Berkeley and Master of Science degree in Engineering from Harvard University. Her undergraduate degree is in Biophysics from the University of California, Berkeley.

“We are inspired by Belle’s deep engagement in higher education and her drive to help students pursue STEM careers,” said Denny McGuirk, president and CEO of SEMI. “We welcome her to the Board and look forward to utilizing her knowledge and experience as we expand the SEMI Foundation’s contributions to STEM education and workforce development.”

“I’m impressed with the SEMI Foundation’s High Tech U program, which helps students understand the connection of STEM skills to future career opportunities in high tech. At a more strategic level, the Foundation’s track record of engaging industry sponsors is remarkable,” said Belle Wei. “I’m looking forward to working with the Board and helping to develop new opportunities for the SEMI Foundation to strengthen its role in STEM education and career exploration for young people.”

Other members of the SEMI Foundation Board are: Denny McGuirk, chairman of the SEMI Foundation and president and CEO of SEMI; Richard Salsman, CFO and treasurer of the SEMI Foundation and CFO and executive vice president of Global Alliances at SEMI; Leslie Tugman, secretary of the SEMI Foundation and executive director of the SEMI Foundation; Arthur Zafiropoulo, chairman and CEO of Ultratech; Yong Han Lee, chairman of Wonik; Stanley Myers, president of ST Myers and Associates; Dana Ditmore, Oak Valley Consulting; and John Biera, principal of Central High School in Phoenix, Ariz.

The SEMI Foundation’s Board of Trustees represent companies from Asia and the United States, reflecting the global scope of the association’s activities. For more information about the SEMI Foundation, visit www.semi.org/en/About/SEMIFoundation.

Apple’s use of Force Touch technology in the Apple Watch and 3D Touch in the iPhone 6S line is leading to growth in force sensing and other touch-panel enhancements in mobile devices. Other brands and integrated-circuit (IC) makers are now responding by preparing their own force sensing solutions, mainly for high-end and mid-range smartphones due to the high cost. In 2016, force sensing module shipments are expected to grow 317 percent to reach 461 million units in 2016. Nearly one quarter (24 percent) of new smartphones shipped will include the technology, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

“Aside from force sensing solutions, touch controller IC makers are aggressively expanding production of in-cell and on-cell touch displays to further improve touch interfaces for smartphone users,” said Calvin Hsieh, director of touch and user interface research for IHS Technology. According to the latest IHS Touch User Interface Report, in-cell and on-cell touch panel shipments will reach 40 percent of all mobile phone touch-panel shipments in 2015, rising to 50 percent in 2018. “Smartphone touch controller IC makers are focused on developing new features to spur growth in the maturing touch panel market.”

The ongoing evolution in the touch-panel industry is also changing the supply chain and affecting competition. Touch controller IC makers, primarily in Taiwan and China, accounted for more than 45 percent of the market for major information technology and consumer electronics products in the first half of 2015.

The global market for semiconductors used in electric vehicle (EV) charging stations for plug-in hybrid (PH) and battery electric vehicles (BEV) will continue to expand in the coming years, providing significant growth opportunities to semiconductor manufacturers.  Revenue from semiconductors used in EV charging stations reached $44 million in 2014 and is expected to grow at a compound annual growth rate (CAGR) of 39 percent to reach $233 million in 2019, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight.

“Fast charging is a necessary step to the strong adoption of EVs and a higher power rating is required to support these shorter charging times,” said Noman Akhtar, industrial semiconductors analyst for IHS Technology. “Electric vehicle charging stations with higher ratings require more power semiconductors, especially discrete semiconductor components, which will lead to increased semiconductor revenue growth.”

In 2014, the average price for semiconductor components in a level-two charging station — which could charge a battery in about five hours — was $143. By comparison, semiconductor components used in the latest fast-charging direct-current (DC) chargers now cost more than $1,000; however, they are capable of charging a vehicle battery to 80 percent of capacity in just 15 minutes.

Average selling prices of semiconductors used in communication modules are expected to increase over time, as the industry moves toward single system-on-chip (SoC) solutions that not only provide faster control, but also include the memory required for secure communications and other applications. “Better communication between the utility and the charger improves the stability of the electric grid,” Akhtar said. “The latest developments in communication interface ICs enable more secure and reliable information transfer.”

TowerJazz, the global specialty foundry, announced the signing of a definitive agreement with Semiconductor Laboratory, an Asian Governmental Agency. Under the agreement, TowerJazz will leverage its manufacturing expertise and assets while providing during the coming three years the required process engineering and equipment maintenance support for successful operation of the facility. In addition, TowerJazz will provide support to help establish wafer reclaim capabilities and will provide training and procedures on the establishment of chemical lab capabilities.

The deal will generate revenues of approximately $35 million, which are incremental to TowerJazz’s revenues from its existing manufacturing facilities. This agreement allows TowerJazz to realize profits and cash generation from its valuable manufacturing expertise and its skilled engineering manpower.

“This project represents another notable acknowledgement of our worldwide manufacturing expertise and capabilities,” said Mr. Russell Ellwanger, CEO of TowerJazz. “It is a special business model providing revenue and profit upside incremental to our base financial model.”

TowerJazz operates two manufacturing facilities in Israel (150mm and 200mm), one in the U.S. (200mm) and three additional facilities in Japan (two 200mm and one 300mm) through TowerJazz Panasonic Semiconductor Co. (TPSCo), established with Panasonic Corporation of which TowerJazz has the majority holding.

Congress took a major step in supporting U.S. manufacturing and innovation today by voting to make the federal Research and Development (R&D) tax credit permanent. SEMI has been working to make the popular tax incentive a permanent part of the tax code since the R&D credit was first established in 1981.

“SEMI members invest and average of 15 percent of their revenues back into R&D activities every year,” said SEMI president & CEO, Denny McGuirk. “Being able to count on the R&D tax credit is immensely important to our members, which are some of the most innovative companies in the world.”

In its temporary status, the credit was widely used by many SEMI member companies; however, it was often not reliable because of its temporary status. In the past 34 years, the credit had expired 17 times, and on more than one occasion, was expired for almost an entire tax year before being retroactively reinstated. By making the credit permanent, companies will now be able to plan their long term research and development projects with greater certainty.

The permanent provision for innovation-supporting tax policy was included in the wide-ranging year-end “tax extenders” bill that was then combined with the omnibus appropriations legislation to fund the government through September 2016. Included in the same legislation is an extension of the popular solar energy Investment Tax Credit (ITC). The 30 percent ITC, which was set to be reduced to 10 percent at the end of 2016, has been critical to the wide-scale deployment of solar photovoltaic panels in the U.S. With the passage of this bill, the 30 percent credit will be extended until 2019, and then gradually phased down to 10 percent at the end of 2021.

“Both the R&D Credit and the ITC are good examples of why SEMI engages with policymakers in Washington, D.C. on behalf of our members,” continued McGuirk. “SEMI, our members, and many others in the high tech community have long advocated for this change. Our collective persistence has resulted in important and meaningful support for innovation.”

SEMI is the global industry association serving the electronics manufacturing supply chains.