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The global semiconductor materials market increased 3 percent in 2014 compared to 2013 while worldwide semiconductor revenues increased 10 percent. Revenues of $44.3 billion mark the first increase in the semiconductor materials market since 2011.

Total wafer fabrication materials and packaging materials were $24.0 billion and $20.4 billion, respectively. Comparable revenues for these segments in 2013 were $22.7 billion for wafer fabrication materials and $20.4 billion for packaging materials. The wafer fabrication materials segment increased 6 percent year-over-year, while the packaging materials segment remained flat. However, if bonding wire were excluded from the packaging materials segment, the segment increased more than 4 percent last year. The continuing transition to copper-based bonding wire from gold is negatively impacting overall packaging materials revenues.

For the fifth consecutive year, Taiwan was the largest consumer of semiconductor materials due to its large foundry and advanced packaging base, totaling $9.8 billion. Japan claimed the second spot during the same time. Annual revenue growth was the strongest in the Taiwan market. The materials market in North America had the second largest increase at 5 percent, followed by China, South Korea and Europe. The materials markets in Japan and Rest of World were flat relative to 2013 levels. (The ROW region is defined as Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets.)

Region 2013 2014 % Change
Taiwan

8.91

9.58

8%
Japan

7.17

7.19

0%
South Korea

6.87

7.03

2%
Rest of World

6.64

6.66

0%
China

5.66

5.83

3%
North America

4.76

4.98

5%
Europe

3.04

3.08

1%
Total

43.05

44.35

3%

Source: SEMI, April 2015
Note: Figures may not add due to rounding.

The Material Market Data Subscription (MMDS) from SEMI provides current revenue data along with seven years of historical data and a two-year forecast.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced worldwide sales of semiconductors reached $27.8 billion for the month of February 2015, an increase of 6.7 percent from February 2014 when sales were $26.0 billion. Global sales from February 2015 were 2.7 percent lower than the January 2015 total of $28.5 billion, reflecting seasonal trends. Regionally, sales in the Americas increased by 17.1 percent compared to last February to lead all regional markets. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The global semiconductor industry maintained momentum in February, posting its 22nd straight month of year-to-year growth despite macroeconomic headwinds,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales of DRAM and Analog products were particularly strong, notching double-digit growth over last February, and the Americas market achieved its largest year-to-year sales increase in 12 months.”

Regionally, year-to-year sales increased in the Americas (17.1 percent) and Asia Pacific (7.6 percent), but decreased in Europe (-2.0 percent) and Japan (-8.8 percent). Sales decreased compared to the previous month in Europe (-1.6 percent), Asia Pacific (-2.2 percent), Japan (-2.3 percent), and the Americas (-4.4 percent).

“While we are encouraged by the semiconductor market’s sustained growth over the last two years, a key driver of our industry’s continued success is free trade,” Neuffer continued. “A legislative initiative called Trade Promotion Authority (TPA) has paved the way for opening markets to American goods and services for decades, helping to give life to nearly every U.S. free trade agreement in existence, but it expired in 2007. With several important free trade agreements currently under negotiation, Congress should swiftly re-enact TPA.”

February 2015
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 6.51 6.23 -4.4%
Europe 2.95 2.90 -1.6%
Japan 2.62 2.56 -2.3%
Asia Pacific 16.47 16.10 -2.2%
Total 28.55 27.79 -2.7%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.32 6.23 17.1%
Europe 2.96 2.90 -2.0%
Japan 2.81 2.56 -8.8%
Asia Pacific 14.96 16.10 7.6%
Total 26.04 27.79 6.7%
Three-Month-Moving Average Sales
Market Sep/Oct/Nov Dec/Jan/Feb % Change
Americas 6.53 6.23 -4.6%
Europe 3.19 2.90 -9.2%
Japan 2.93 2.56 -12.7%
Asia Pacific 17.12 16.10 -6.0%
Total 29.77 27.79 -6.7%

Semiconductor equipment manufacturer ClassOne Technology announced the sale and delivery of its Solstice S8 Plating System to Advanced Wireless Semiconductor Company (AWSC) of Taiwan. The fully automated Solstice S8 will be installed at the AWSC facility in the Tainan Industrial Park in Taiwan where it will be used for volume manufacturing processes such as lead-free wafer level packaging (WLP) and through wafer vias (TWV) used in the manufacture of RF and other microdevices.

“Foundries often need to weigh performance and price carefully, and we believe the S8 strikes the right balance,” said Kevin Witt, ClassOne’s V.P. of Technology. “For example, the Solstice can enable a customer to move Copper Pillar, Nickel, Tin Bump, and Cu Backside Via production from several wet benches onto a single automated tool that gives a better process result and higher productivity. In addition, ClassOne supports customers with process development and deployment every step of the way.”

“Solstice fills a void in the market between wet benches on the low end and the large, expensive 300mm plating systems on the high end,” said Win Carpenter, ClassOne’s V.P. of Global Sales. “The Solstice S8 was designed to provide advanced plating performance at a reasonable cost for everyone who manufactures on 200mm and smaller substrates. Those users include many emerging markets such as MEMS, LEDs, RF, power, and sensors.”

The Solstice electroplating systems were introduced in 2014 and are available in fully automated, 4- and 8-chamber configurations that deliver up to 75 wph of capacity. The Solstice family handles substrates up to and including 200mm, whether transparent or opaque, and performs key processes such as electroplating of various metals and alloys. Solstice pricing is less than half that of similarly configured 300mm plating systems outfitted for 200mm from the large manufacturers.

IC Insights recently released its March Update to the 2015 McClean Report.  The Update includes a review of IC company sales by headquarters location.  In this example, Samsung’s sales from its fabrication facility in Austin, Texas, are counted as sales from South Korean companies.  Intel’s sales from its fabs in China, Ireland, and Israel are included among U.S. companies, etc.  As shown, U.S. companies held a 55 percent share of the total worldwide IC market in 2014, which includes sales from IDMs and fabless IC companies. The total does not include foundry sales.  South Korean companies captured an 18 percent share and Japanese companies placed third with a 9 percent share. Chinese companies accounted for only 3 percent of total IC sales in 2014 (Figure 1).

IDM fab sales Fig 1

 

Among IDMs (companies with wafer fabs that manufacture their own ICs), U.S.-headquartered companies accounted for slightly over half of worldwide sales followed by companies based in South Korea, Japan, and Europe. Taiwan companies (not including foundries) held only a 2 percent share.

Over the next couple of years, NXP’s purchase of Freescale (expected to close later this year) and Infineon’s purchase of IR will likely boost the European share of worldwide IDM IC sales by a few percentage points at the expense of U.S. share.  In contrast, Europe is expected to lose fabless IC company marketshare in the next few years due to Qualcomm’s acquisition of CSR, Europe’s second-largest fabless IC supplier, and Intel’s purchase of Lantiq, Europe’s third-largest fabless IC supplier (Figure 2).

IDM fab sales Fig 2

 

U.S. companies held the dominant share of fabless IC sales last year, although its share was down from 69 percent in 2010.  The largest increase in fabless IC marketshare came from Chinese companies, which held a 9 percent share in 2014 compared to only 5 percent in 2010.

Further details on IC sales by region and by company, including IC Insights’ final sales ranking of the top 50 IDMs and top 50 fabless IC companies for 2014, are included in the March Update to The McClean Report—A Complete Analysis and Forecast of the Integrated Circuit Industry.

Programme information is now available on the inaugural SEMICON Southeast Asia, which will run from 22–24 April at SPICE in Penang. The event, organized by SEMI, a global industry association, features an expanded programme and larger audience base focusing on Southeast Asia communities in the semiconductor and microelectronics sector.  SEMI estimates spending of US$19 on semiconductor equipment and materials in the Southeast Asia region for 2015 and 2016. With an emphasis on opening up new business opportunities and fostering stronger cross-regional engagement, SEMICON Southeast Asia will feature a tradeshow exhibition, networking events, market and technology seminars, and conferences.

Ng Kai Fai, President of SEMI Southeast Asia, said, “Southeast Asia is a vibrant and changing market for the semiconductor industry. For 2015 and 2016, SEMI estimates spending of almost US$ 5 billion on front-end and back-end equipment in the Southeast Asia region, and another $14 billion in spending on materials including $11 billion on packaging-related materials.  Southeast Asia has over 35 production fabs including Foundry, Compound Semiconductors, MEMS, Power, LED, and other devices. The region contributes a substantial 27 percent of global assembly, test and production, on top of being the largest market for assembly and test equipment,” he added.

More than 60 industry speakers and 200 companies will participate in SEMICON Southeast Asia, with thousands of attendees participating in the event. Attendees will learn the latest technology developments and strategies from industry leaders. SEMICON Southeast Asia connects decision makers from leading and emerging semiconductor companies with important industry stakeholders from both the region and all over the world.

Focusing on key trends and technologies in semiconductor design and manufacturing, the event also addresses expanding applications markets like mobile devices and other connected “Internet of Things” (IoT) technologies. Key enablers, such as specialised materials, packaging, and test technologies, as well as new architectures and processes, will be featured throughout the event. Highlights of SEMICON Southeast Asia include:

  • Market Trend Briefing — Features presentations from: EQUVO, Gartner, GFK Retail Technology , IC Insights, SMC Pneumatics (SEA), SEMI, and Yole Developpement
  • Assembly and Packaging Forum — “Emerging Packaging Solutions for Computing, Mobility and IoT Platforms” forum features presentations from: Advantest, AMD, ASE Group, Freescale Semiconductor, GLOBALFOUNDRIES Singapore, Intel, Infineon, Kulicke & Soffa, Lam Research, MediaTek, Tanaka Kikinzoku, and Yole Developpement
  • Product and System Test Forum — “Testing Strategy for a Fast-paced Semiconductor Market” with presentations from Advantest, ATMEL, GLOBALFOUNDRIES Singapore, Intel, Keysight Technologies, Silicon Labs International, UTAC Singapore, Xcerra

In addition, the event features forums on Technology Innovation, LED Technology, and Yield Productivity and Failure Analysis.

For more information and exhibition opportunities, visit www.semiconsea.org or register now.

According to IHS Inc. (NYSE: IHS), a global source of critical information and insight, the recent agreement to merge NXP Semiconductor and Freescale Semiconductor creates a company that would have reached $4 billion in automotive semiconductor revenues in 2014. The merged company would, therefore, become the leading supplier of semiconductors to the automotive market, with at least $1 billion more revenue than the next-largest supplier, Renesas.

“The merger brings together two companies with complementary semiconductor portfolios in several automotive segments, as well as overlapping areas,” said Luca DeAmbroggi, principal analyst of automotive semiconductors for IHS. “The merged company’s broader portfolio will consequently strengthen its position in the automotive semiconductor market, even though functional overlaps could create some internal hurdles. But most of all, buyers in the electronics industry now have fewer choices.”

“NXP and Freescale both have a strong automotive tradition, and both companies are focused on making high reliability, quality components,” DeAmbroggi continued. “The announced merger between Freescale and NXP gives birth to a company that is strongly positioned in the automotive sector and can serve complete semiconductor solutions to all high-growth segments, including infotainment, advanced driver assistance systems, and connectivity, as well as new frontiers represented by in-vehicle security and hybrid and electric vehicles.”

In the past NXP led the automotive infotainment segment, thanks to application-specific standard products (ASSPs), such as AM/FM tuner and audio processing, audio amplifier, and digital radio, as well as networking and discrete components; while Freescale supplies the brain of the automotive infotainment system — specifically, microprocessing units (MCUs) and the company’s successful i.MX6 family of microprocessors used in infotainment solutions.

By making use of Freescale’s integrated circuits (ICs), the merged company could rapidly target autonomous driving systems, including automatic emergency braking and adaptive cruise control. Freescale also delivers its strong market position in radar chipsets, automotive image system-on-chip (SoC) solutions, radar-signal and data-fusion processing components, and ASIL-compliant MCUs for active-control functions.

Freescale contributes its strong position in products for hybrid-electric vehicles, thanks to the company’s portfolio of broad-based MCU solutions. NXP-Freescale will also become a dominant supplier for vehicular wireless communications (V2X), using Freescale’s secure processor solutions and NXP’s dedicated short-range communication (DSRC) wireless chipsets.

According to the IHS ADAS Semiconductor Market Tracker, the merged company could potentially target about 80 percent of the $3 billion advanced driver assistance systems (ADAS) semiconductor market by 2020. Freescale’s diverse portfolio of processors, MCUs, digital systems processors (DSPs) and sensors, fused with NXP’s strong profile in networking ASSPs, will allow the merged company to address the safety application market, including lane departure warning (LDW) and pedestrian detection (PD). The company will also address automatic emergency braking (AEB), adaptive cruise control (ACC), and other solutions for autonomous driving systems.

Freescale recently announced an ASIL-compliant automotive image SoC (i.e., S32V) with sensor fusion capabilities. So far Renesas, Texas Instruments and Mobileye have similar SoCs for the fast growing ADAS market, including R-Car from Renesas, TDA from Texas Instruments and EyeQ from Mobileye. “The addition of S32V to this list will allow NXP to address the front-view camera processor market, which is currently being led by EyeQ processors,” DeAmbroggi said.

According to IHS ADAS semiconductor research, the revenue for MCUs, DSPs, processors and SoCs used for data fusion, front-view camera functions and radar-sensor functions is set to grow fourfold, reaching $600 million by 2020. Freescale is also one of the major suppliers for silicon-germanium (SiGe) 77GHz-based radar chipsets used in long-range and mid-range ADAS applications. Radar technology is primarily found in collision warning and AEB applications, which are a part of the car safety guidelines from EuroNCAP, NHTSA and other regional bodies. The radar sensor market will double by 2020, and NXP can get on board with other radar sensor suppliers.

Vehicle-to-vehicle communications (V2V) will be an important milestone in the evolution of self-driving functions, according to IHS. “NXP could leverage Freescale’s expertise in secure processors and combine their DSRC based wireless chipset technology to create a strong portfolio for the V2V communication market, which set to soar after 2020,” DeAmbroggi said.

NXP could also target the automotive night-vision market, with Freescale’s microbolometers. Currently night vision is a niche market, as it is an expensive comfort application found in luxury segments; however, automotive night vision could be one of the technologies used to implement sophisticated self-driving functions.

Dr. Terry Brewer, founder and CEO of Brewer Science, was presented the Kathryn C. Hach Award for Entrepreneurial Success on Tuesday, March 24, 2015, at the American Chemical Society’s 249th National Meeting. The award recognizes Dr. Brewer’s innovative global leadership in creating, developing, and manufacturing revolutionary microelectronic products found in today’s technology devices. The award also recognizes his strong support in cultivating the next generation of technology leaders.

“Receiving the Kathryn C. Hach Award is very special to me and our company,” said Dr. Terry Brewer, founder and CEO of Brewer Science. “Kathryn C. Hach is such a strong symbol for small business entrepreneurship and for making a positive difference. The American Chemical Society’s sponsorship of this award is significant and inspiring to all those interested in taking the ‘path less traveled.’ The choice to start your own business not only returns unique value to you, but it also provides you with the opportunity to return unique value to many, many others. The outcomes from my choice to begin a new business are seen in the new products and technologies developed at Brewer Science and in our employees. Our people are engaged in continuous learning and are growing personally and professionally. The energy from learning and growing overflows into the community as employees find creative ways to share and give back. The value has risen exponentially each day for the employees and the community associated with Brewer Science. Thank you for this special recognition. It is an honor.”

Earlier this year, Dr. Terry Brewer was honored with the 2014 SEMI Award for North America. Dr. Brewer was also selected by the Missouri Arts Council to be the recipient of the 2014 Missouri Arts Award for Philanthropy, the state’s highest honor to individuals and institutions that have made profound and lasting contributions to the cultural and artistic landscape of Missouri. Under Dr. Brewer’s leadership, Brewer Science was recognized as one of the Top 50 Employers by Minority Engineer magazine in 2014 and again in 2015. The company received recognition from the St. Louis Post-Dispatch as a Top Workplace in 2012 and 2013. In 2013, Brewer Science was presented with the Flag of Freedom Award from the Missouri Department of Economic Development for the company’s commitment to consider Missouri veterans for employment through the State of Missouri Show-Me Heroes program.

M/A-COM Technology Solutions Holdings, Inc., a supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products, today announced the appointment of Stephen G. Daly as an independent director. Mr. Daly brings 25 years of experience and leadership in the RF and microwave industry to MACOM’s Board of Directors.

“I am pleased to welcome Steve to our Board of Directors,” said John Ocampo, MACOM’s Chairman. “Steve’s track record of creating shareholder value is exemplary and the Board and I look forward to his future contributions as we enter our next phase of growth.”

Previously, Mr. Daly served as Chairman of the Board and also as President and Chief Executive Officer of Hittite Microwave Corporation. Additionally he held various microwave engineering positions at Raytheon’s Missile Systems Division and sales management positions at Alpha Industries. Mr. Daly received a B.S. in Electrical Engineering from Northeastern University.

Headquartered in Lowell, Massachusetts, M/A-COM Tech is certified to the ISO9001 international quality standard and ISO14001 environmental management standard. M/A-COM Tech has design centers and sales offices throughout North America, Europe, Asia and Australia.

GLOBALFOUNDRIES, a provider of advanced semiconductor manufacturing technology, and NXP Semiconductor N.V, a semiconductor company for secure connection solutions, today announced that they have jointly developed a next-generation embedded non-volatile memory (eNVM), which has resulted in production of 300mm prototype wafers on GLOBALFOUNDRIES’ 40-nanometer (nm) process technology platform. GLOBALFOUNDRIES is the first wafer foundry to develop and qualify 40nm eNVM low-power process technology.  Volume production is expected in 2016 at its Singapore facility.

The successful execution of joint development and technology production milestones will enable faster time to market of high density on-chip eNVM for innovative applications in a variety of products including identification, near-field-communication, healthcare, and microcontrollers. NXP will leverage GLOBALFOUNDRIES’ leading-edge semiconductor manufacturing capability to apply the overall technology to 40nm eNVM that will bring competitive value to end customers.

“We are pleased to see the co-developed 40nm-LP eNVM technology is ready for production in GLOBALFOUNDRIES facility,” said Dr. Hai Wang, executive vice president of Technology and Operations at NXP Semiconductor. “GLOBALFOUNDRIES is the first foundry that developed this process technology specifically targeting markets that require embedded non-volatile memory products. The successful release to production will enable NXP to further strengthen our market leadership in offering advanced solutions for secure and near field communication market segments.”

“We have a long-standing and close collaboration with NXP across other technology nodes. The successful joint development of eNVM gives us a boost in our confidence in the marketplace as we advance our 40nm technology leadership,” said KC Ang, SVP and GM for GLOBALFOUNDRIES Singapore. “We look forward to having additional eNVM technology offerings for future market opportunities.”

GLOBALFOUNDRIES’ manufacturing site in Singapore is certified by the German Federal Office for Information Security (BSI) for secure IC products manufacturing.  In 2012, the foundry received Common Criteria ISO 15408-EAL 6 certification and successfully received renewal in 2014. The company is also a two-time winner of NXP annual supplier award for best foundry services.

North America-based manufacturers of semiconductor equipment posted $1.31 billion in orders worldwide in February 2015 (three-month average basis) and a book-to-bill ratio of 1.02, according to the February EMDS Book-to-Bill Report published today by SEMI.   A book-to-bill of 1.02 means that $102 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in February 2015 was $1.31 billion. The bookings figure is 1.3 percent lower than the final January 2015 level of $1.33 billion, and is 1.0 percent higher than the February 2014 order level of $1.30 billion.

The three-month average of worldwide billings in February 2015 was $1.28 billion. The billings figure is 0.2 percent lower than the final January 2015 level of $1.28 billion, and is 0.9 percent lower than the February 2014 billings level of $1.29 billion.

“Year-to-date bookings and billings for North American semiconductor equipment are higher than last year for the same time period,” said SEMI president and CEO Denny McGuirk. “The year is off to a good start, with growth in bookings from the back-end sector.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

Billings
(3-mo. avg)

Bookings
(3-mo. avg)

Book-to-Bill
September 2014 

$1,256.5

$1,186.2

0.94
October 2014 

$1,184.2

$1,102.3

0.93
November 2014 

$1,189.4

$1,216.8

1.02
December 2014 

$1,395.9

$1,381.5

0.99
January 2015 (final)

$1,279.1

$1,325.6

1.04
February 2015 (prelim)

$1,277.1

$1,308.1

1.02

Source: SEMI, March 2015