Solid State Technology's WaferNEWS - www.wafernews.com
September 26, 2006
Welcome to WaferNEWS, the semiconductor manufacturing industry's weekly briefing of key business and technology trends, from the editors of Solid State Technology.
Last week, a SEMInvest breakfast panel in Palo Alto, CA, was a tale of two messages. Underlying business seems solid, despite the lackluster forecast for stock prices, and a high trough for capacity utilization suggests strong growth during the next uptick. But analysts also seemed to be saying that the chip industry has matured to the point that it no longer fits into a "growth" category for investors. We've become too popular, so no one likes us anymore.
Full story...
One common thread among research being presented at the 52nd annual International Electron Devices Meeting (IEDM, Dec. 11-13, in San Francisco) will be the intersection of biology and electronics, with several researchers describing their innovative use of biologically directed self-assembly and patterning techniques to enhance nanodevice fabrication. Among the work being touted: Matsushita fabricating nanoelectronic devices using self-assembling protein molecules; carbon nanotube-based, high-frequency FET devices from France's CEA Saclay; and Duke U. describing how DNA can be used as building blocks to study self-assembly nanofabrication.
Full story...
:: VLSI: Chip production outpacing capacity adds in '06
Despite a slow first quarter, chip production is expected to return to seasonal patterns with a strong 2H06 to deliver a total 12% increase in output this year, with utilization rates climbing to 95% for the final quarter, according to data from VLSI Research Inc.
Full story...
:: TECH TALK :: TAP partner Amkor joins IBM/Chartered/Samsung alliance
The chipmaking manufacturing alliance led by IBM, Chartered Semiconductor Manufacturing, and Samsung Electronics Co. Ltd. has added another supplier to their roster. Amkor Technology Inc. is collaborating with the group to qualify 90nm and 65nm flip-chip packaging and design capabilities for the group's "Common Platform," and has begun 45nm qualifications for next-generation semiconductor applications.
Full story... :: INDUSTRY NEWS :: SEMI: NA tool orders flat in August
Orders for semiconductor manufacturing equipment from North American-based suppliers were flat in August compared with the previous month, while sales increased slightly, according to new data from SEMI.
Full story...
:: SEH raises stakes in 300mm wafer race
Shin-Etsu Chemical Co. Ltd. has announced a new $1B expansion plan to add another 30% to its monthly output of 300mm wafers, in a bid to keep its market lead in a white-hot silicon wafer market where several companies are raising the stakes.
Full story...
:: Report: ASML mulling Taiwan R&D site
ASML Holding NV reportedly is mulling over plans to open a new $312.5 million R&D headquarters in the Asia-Pacific region, and could have a proposed site in Taiwan finalized by the end of next month.
Full story...
:: Nikon, Synopsys to develop sub-45nm litho models
Nikon Corp. and Synopsys Inc. are collaborating to develop "manufacturing-aware" optical proximity correction (OPC) and resolution enhancement technology (RET) lithography simulation models for 45nm-and below semiconductor process technologies.
Full story...
:: Taiwan seeks slice of global PV pie
In an effort to address two related problems -- declining energy supplies, and increasing CO2 emissions -- the Taiwan government has proposed a plan to infuse its photovoltaic industry with more than $6 billion over the next ten years.
Full story...
:: ASML, SEMATECH qualifying RET for sub-45nm designs
SEMATECH and its manufacturing-oriented subsidiary, the International SEMATECH Manufacturing Initiative (ISMI), have signed an agreement to incorporate ASML Holding NV's resolution enhancement techniques (RET) in order to qualify imaging performance of advanced logic patterns, metrology structures, and defect designs for the 45nm, 32nm, and 22nm technology nodes.
Full story...
:: SPANNING THE GLOBE :: GERMANY
AMD has hired Elke Eckstein, former CEO of IBM/Infineon JV Altis Semiconductor, to manage day-to-day operations at the chipmaker's Fab 30 site in Dresden, and oversee its conversion to 300mm operations (after which it will be known as "Fab 38"). Prior to joining AMD, Eckstein was CEO of Altis Semiconductor for three years; before that she was with Infineon (spun out of Siemens) in a variety of executive roles including R&D responsibility for the company's Dresden-based manufacturing facility. She also has held executive roles in product and technology at ProMOS Technologies, the former JV of Infineon and Mosel Vitelic. Earlier this year AMD said it would pour $2.5 billion into its facilities in Dresden, to convert Fab 30 to 300mm and expand capacity at Fab 36, moves that together could increase overall capacity at the operations by up to 4x by 2009. First wafer outs from Fab 38 are planned for 1Q08 with projected capacity of 20,000 wafers/month by 4Q08.
[SEE WAFERNEWS STORY for more info on AMD's Dresden expansion and conversion, with input from Daryl Ostrander, AMD's SVP of logic technology and manufacturing]
:: GERMANY
Suss MicroTec has formed a subsidiary decided to refurbishment, sales, and service of its used equipment, including selling spare parts and after-sale support. Heading the unit will be Toni Wolejnik, who has more than 14 years experience in the used equipment market, much of that including close ties to Suss. "The demand for quality remanufactured Suss equipment is very great indeed and as such I am confident that the service we provide will make SUSS MicroTec REMAN a highly successful subsidiary of the Suss Group," he said, in a statement.
:: ISRAEL
Tower Semiconductor Ltd. has signed a long-term foundry agreement to produce semiconductor wafers at its Fab 2 facility for power management chipmaker International Rectifier. Terms of the deal (e.g. payment structure or duration) were not disclosed. "Tower's experience in successful technology transfers, combined with a can-do attitude and great engineering talent, made it the best choice for us," stated Alex Lidow, International Rectifier's CEO. Earlier this year Tower laid out a 50% acceleration of the production ramp at Fab 2, from current output of 15,000 200mm wafers/month to 24,000 wafers/month, including "a considerable increase" in capacity for 0.13-micron process technologies.
:: JAPAN
Brooks Automation Inc. and Yaskawa Electric have officially opened their joint venture, Yaskawa Brooks Automation, a $100 million tool automation company (based on trailing 12-month sales) located in Shin-Yokohama. The JV, first announced in May, will provide an exclusive channel for sales, marketing, and support in Japan of Yaskawa's semiconductor robotics products and Brooks' automation hardware products. Excluded from the JV are Yaskawa's robots used for flat-panel display manufacturing and its motion control products, as well as Brooks' software products and technology from recently acquired Helix Technology. Edward Grady, president and CEO of Brooks Automation, called the JV "a game-changing partnership" to address the automation needs of the Japanese OEM market, noting that Japan is the 2nd-largest world market for tool automation.
:: TAIWAN
Samsung Electronics and Fujitsu are both planning to increase their procurements from Taiwanese suppliers, according to the Taiwan Economic News. Samsung will be holding talks next month with Taiwanese suppliers from markets ranging from LCDs to microchips. Details of the amount of upcoming procurements were not revealed, but the paper noted that Samsung previously indicated it would buy $2.5 billion worth of electronics from Taiwan this year, up 20% from 2005, to support an 11% increase in sales to $4.0 billion. Analyst project a $3.0 billion budget Taiwan procurement budget next year from Samsung, the paper added.
Meanwhile, Fujitsu has pledged a 10% increase this year of procurements from Taiwan suppliers, to 50 billion yen (~$424 million), fueled by purchases of parts for computers, networking equipment, LCD panels, semiconductors, and cell phones. Fujitsu -- which ranks behind only Sony Corp. and NEC Corp. among top Japanese firms in terms of procurement value in Taiwan -- mainly procures parts around Asia for final assembly as finished IT products, sold back in Japan with the Fujitsu brand, noted the report.
:: TAIWAN
Himax Technologies Inc. has signed an agreement to acquire fabless startup Wisepal Technologies Inc., a designer of LCD driver ICs, in a stock swap worth about $50 million. The deal is designed to bolster Himax's position in the small- and medium-sized display driver market. Wisepal, an affiliate company of Compal Electronics and TPO Displays Corp., says its aim is to become the "preferred ASIC Partner" of leading TFT-LCD and 3C manufacturers.
:: WaferNEWS FAB 50
Click here for a full listing of Fab 50 companies.
:: WaferNEWS Financials Stock Market Information | FinancialContent.com
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CIBC analyst Gary Hsueh upgraded Lam Research to "sector outperformer," citing possible upward revision of estimates in calendar 2007. Share gains at Taiwan DRAM companies, as well as new wet clean business from foundry TSMC, suggest potential record shipment levels in March 2007, he said.
Investors were cool on MEMC after wafer making rival and market-leading Shin-Etsu announced a $1 billion capacity expansion plan.
Wall Street also wasn't wild about Electroglas after the company reported a wider fiscal 1Q06 net loss amid rising sales costs, and announced it would discontinue its SideWinder strip test system.
MARKET DIARY: Most active issues ADVANCES................24 DECLINES................25 UNCHANGED................1 NEW HIGHS................2 NEW LOWS.................1
LARGEST DOLLAR GAINER...............Lam Research Corp............................3.46 LARGEST DOLLAR LOSER................Formfactor Inc..............................-4.61 LARGEST PERCENTAGE GAINER...........Lam Research Corp............................8.32% LARGEST PERCENTAGE LOSER............Electroglas Inc............................-14.72%
While analysts are getting nervous about the chip industry's near-term outlook, waiting to see whether back-to-school and holiday demand can curb rising inventories, meanwhile the fabless segment keeps chugging along. Revenues in the fabless segment totaled a record $23.7 billion in 1H06, a 32% year-over-year increase, and represented 20% of overall semiconductor sales. The top 10 firms -- Qualcomm, Broadcom, nVidia, SanDisk, ATI, Marvell, LSI Logic, Xilinx, MediaTek, and Altera -- raked in a combined $12.4 billion, slightly more than half of total fabless revenues. North American fabless firms took 75% of total revenues, followed by Asia (21%), Europe (3%), and India (<1%). Eighty-five fabless companies raised $1.1 billion in 1H06, seven more than in 1H05, and a 22% year-on-year increase in dollar amount.
A closer look at the fabless fundings numbers shows an interesting statistic in venture capital activity. Fabless fundings, which accounted for 94% of total semiconductor investment in 2Q06, decreased sequentially in both number and dollar amount (42 companies/$523.7 million, vs. 43 companies/$533.6 million in 1Q06). But overall VC activity for the overall semiconductor industry increased more than 15% quarter-on-quarter, according to the FSA, quoting data from PricewaterhouseCoopers, the National Venture Capital Association, and Thomson Financial. -- J.M.
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