SEMICONDUCTOR
INDUSTRY UPDATE
August 2011
McIlvaine Company
TABLE OF CONTENTS
Special Precision Tools to Open Philippine Plant
Inari IPO New Packaging Facility Planned
55 UAE Students Graduate Al Nokhba Internship Program
First Semiconductor Fab for Central and South America Gains Design Approval
A Swiss firm will invest P285 million (US$6.6 million) for a manufacturing firm producing chip bonding tools to supply various Philippine semiconductor factories operating inside the Clark Freeport zone.
Clark Development Corporation (CDC) president Antonio Felipe B. Remollo said Switzerland-based Special Precision Tools (Phils) Clark Corporation is expected to supply the needs of various firms including Texas Instrument Clark, Phoenix Semiconductor Philippine Corporation, Siemens and other leading semiconductor firms in Clark.
"The factory, designed by Normandy Architects Inc., will be established inside the Philexcel Business Part here and leasing a total land area of 4,872 square meters," Remollo said.
The agreement was signed between CDC president Remollo and SPT Clark president Peter Glutz.
SPT has manufacturing operation in Mandaluyong, Metro Manila, but recently decided to move and build a new facility and headquarters in Clark.
SPT, which has six factories worldwide located in Japan, Switzerland, China, Singapore, Philippines and United States, was founded in 1890 and started as a manufacturer of watch jewels and industrial jewels in Lyss, Switzerland.
In 1964, it was renamed as Aprova Ltd. that produces its first wire bonding capilliaries for wire bonding of transistors and integrated circuits and in 1974 SPT joined Aprova Ltd.
Today, SPT has more than 1,000 employees in six countries with more than US$200 million sales annually.
Glutz told Remollo that an initial 138 workers are expected to be hired once the SPT factory is fully operational within the year.
EV Group (EVG), wafer bonding and lithography equipment supplier, began a manufacturing capacity expansion at its Austrian headquarters. The company cites a 40% increase in order intake in fiscal year 2011 compared with fiscal 2010. As part of the expansion, EVG will recruit about 100 additional employees.
The new building is adjacent to EVG's existing manufacturing facility, doubling the company's production floor space. It should come on-line in 2011.
EVG will also invest in additional machining capacity and new manufacturing technologies and facility upgrades, such as new filter fan units for particle-free manufacturing areas. Full air conditioning, additional hydraulic ramps, and a large overhead crane will improve workers' capabilities and comfort.
A new visitor area will be built, allowing customers to observe manufacturing. Test rooms will enable customer-specific process development and customization, including a smooth source inspection process even at busy times.
EVG will need about 100 manufacturing and technical service and support hires to staff the expanded area.
EV Group (EVG) makes wafer processing equipment for semiconductor, MEMS and nanotechnology applications.
Inari Berhad, contract semiconductor packaging and test house, was listed on the ACE Market of the Bursa Malaysia Securities Berhad (Bursa Malaysia) on July 19, 2011, Stock Code: 0166, in an initial public offering (IPO) that was oversubscribed by 10.42 times.
Listing on Bursa Malaysia was "crucial" to Inari's expansion, said Dr. Tan Seng Chuan, managing director, Inari Berhad. Of the proceeds, RM17.5 million will be allocated for capital expenditure, including building a new assembly and manufacturing facility in Penang by Q1 2012.
Inari provides end-to-end vertically integrated semiconductor packaging services for chips used in RF mobile technology and devices.
55 of the UAE's elite semiconductor pioneers successfully graduated from the Al Nokhba Internship program. Ceremonies held at Globalfoundries' manufacturing facilities in both Singapore and Dresden acknowledged the unique achievements of the class of 2011 and celebrated their role as part of a pioneering generation of young Emiratis putting Abu Dhabi on the global advanced technology map.
The interns were joined for the graduation ceremonies by distinguished guests from Abu Dhabi Education Council (ADEC), the Advanced Technology Investment Company (ATIC) and Globalfoundries.
Sponsored by Abu Dhabi Education Council and the Advanced Technology Investment Company, this year's internship program provided the best and brightest UAE engineering students hands-on experience at the world-class semiconductor manufacturing facilities of Globalfoundries, the ATIC-owned semiconductor manufacturing company.
The six week long internship combined lectures, in-classroom workshops, hands-on learning, as well as the opportunity to spend time in the clean-room putting their new found knowledge into action.
2011 marks the third successful cycle of the Al Nokhba Internship. 30 participated at Globalfoundries in Dresden, while another 25 took the opportunity to travel to Globalfoundries in Singapore, a new addition to the program this year.
Meaning the elite in Arabic, Al Nokhba is part of ATIC's overall efforts to develop a strong human capital base, which will serve as a foundation for Abu Dhabi's strategic development in the advanced technology sector.
A four-month fab design verification project was approved for CEITEC S.A., for what is said to be the first semiconductor manufacturing facility to be built in Central and South America. CEITEC S.A. is a Brazilian company that produces application-specific standard products (ASSPs) for RFID, wireless communication and digital multimedia. The design verification project was overseen by Lotus Technical Services, one of five operational divisions of the LotusWorks based in Sligo, Ireland.
The project, at CEITEC’s Porto Alegre, Brazil operations, ran from March to July 2011. The team consisting of four Lotus Technical Services personnel, were responsible for performing design verification of the installations of all mechanical and electrical systems at the facility including all gas and chemical services supporting their recently installed semiconductor manufacturing tool sets.
"Lotus did a superb job in helping CEITEC S.A. through the process of fab acceptance. The expertise and thoroughness that they brought to the task will help CEITEC S.A. shorten the time required to bring up the facility, said Dr. da Silva. “Brazil will soon join the select group of countries capable of designing and manufacturing application specific integrated circuits. With plenty of energy sources, the capability to feed a large population, a democratic and peaceful society, Brazil will be a powerhouse in the 21st century. A strong domestic microelectronics industry is a key element for the decades to come.”
The electronic industry represents only 1.9 percent Brazil’s GDP, small by comparison to OECD countries, and this 1.9 percent is mostly semiconductor assembly. Brazil's President Luiz Inacio Lula da Silva envisions Brazil becoming a competitive, independent semiconductor industry hub by 2022.
The location of CEITEC S.A. facility in Porto Alegre’s was not by chance: the city has over 4 million residents and boasts the highest level of education of any Brazilian city with nine major universities located in the area.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012; Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com