SEMICONDUCTOR INDUSTRY
UPDATE
September 2012
McIlvaine Company
TABLE OF CONTENTS
Jenoptik Opens New Plant in Berlin
Advantest Completes Move of U.S. Headquarters
Samsung to Invest in Austin, Texas
TSMC to Increase Chip Production
Taiwan Semiconductor Earns Taiwan’s First “Green Factory Label”
Samsung Semiconductor Plans Major Expansion
Intel to Invest in Chandler, Arizona
In Berlin, Jenoptik is doubling its manufacturing capacity of semiconductor lasers.
At the end of August, Jenoptik’s Lasers & Material Processing division opened its new production facility for high-quality semiconductor lasers in Berlin. These form the basis for high-power diode lasers, which are intended to be used as efficient tools in industrial materials processing and medical technology applications. The expanded production facility in Berlin is equipped with state-of-the-art production technology and will start operations at the beginning of 2013.
The production facility is located in the Berlin-Adlershof Technology Park. The company’s investment of approx. €10 million is the largest to date by the optoelectronics group after the production facility for energy systems at the Altenstadt site (Bavaria) was modernized and expanded in 2011.
At the Berlin-Adlershof site, Jenoptik develops and manufactures semiconductor lasers, so-called laser bars, which are used in Jenoptik’s high-power diode lasers. The company says that this expansion will enable it to meet the strong growth in demand particularly from Asia. Overall, its production capacities will be more than doubled.
“By making this investment we are expanding our position as a global leader in this market segment,” said Jenoptik Chairman Michael Mertin. “In this context we are not only increasing our production capacity but also investing in the latest available technology.”
“Even though we are currently decisively forging ahead with the process of internationalization within the Jenoptik Group, with the focus on America and Asia, Germany is and remains a high-tech production site for our customers throughout the world,” he added. Jenoptik plans to invest a total of approx. €35 million in 2012.
Jenoptik’s modern production facility in Berlin-Adlershof was built between 2005-2006. Since 2005, including the current expansion, Jenoptik has invested more than €25 million in state-of-the-art production facilities. The current expansion has increased the size of the plant from the original 2,000 to 3,400 square meters (36,584 sq. ft.) with cleanroom facilities making up almost 1,000 square meters (10,760 sq. ft.).
The entire process line covering epitaxy, wafer processing and facet coating has been installed in the clean rooms – the new areas have been added on to the existing cleanrooms – in order to manufacture semiconductor lasers. Wafers are structured and processed to laser bars, which are supplied to customers worldwide. At Jenoptik’s site in Jena they are processed to make high-power diode lasers and integrated into other laser systems.
Diode lasers are artificial light sources that create maximum electro-optical efficiency. They convert up to 70 percent of the supplied electrical energy into light. As a comparison, the efficiency of a conventional bulb is approx. five percent, that of an energy savings lamp up to 25 percent. In addition, diode lasers are very compact and sturdy, making them easy to integrate into laser systems.
Demand for high-power diode lasers from Jenoptik has risen sharply over recent years as a result of new laser applications and the high quality that Jenoptik delivers to customers worldwide. In the area of industrial laser materials processing, diode lasers are used as a high-efficiency pumping source for solid-state and fiber lasers or increasingly as a direct application (“diode direct”), amongst other things for soldering and hardening of metals as well as for welding plastics.
Jürgen Sebastian: At the beginning of 2013. We purchased some new measurement and test equipment, which will be used also by our R&D team for the further development and improvement of our epitaxy, process technology and facet coating technology and also for the development of new products.
Our employees for the production and R&D are mainly physicists, process engineers and microtechnologists. We will continue to hire new staff members in order to support our increasing production.
Into which technical and geographical markets will Jenoptik sell these high-power semiconductor lasers?
These markets are in the USA and Asia: material processing, health care and medical technology, pumping of solid-state lasers as well as diode direct applications.
The firm, which grows 4", 3" and 2" silicon carbide wafers, is expanding to cope with increased demand from the power market. Tianyu Semiconductor Technology, one of the first SiC epitaxial wafer companies in China, has started to expand its SiC epitaxial wafer business globally.
The company made this move after completing three contracts prior to this in August 2012.
"The prospects of the SiC are bright," says Li Xiguang, GM of Tianyu. "SiC substrate is getting better, larger and cheaper; more attention is paid on this market. SiC device will show more competitiveness in the global market."
According to a market analysts, the SiC device market will be netting a billion dollars in a decade.
SiC epitaxial wafers are used in producing Schottky diodes, MOSFETs, JFETs, and BJTs over a wide voltage range and customized wafers for thyristors, GTOs and IGBTs over a wider voltage range for medium to very high voltage power conversion system applications.
These devices are used for energy efficient power electronic devices for numerous applications, such as air-conditioning, solar and wind turbine inverters, hybrid and electric vehicles, high speed trains, smart grids and high-voltage DC power transmission. SiC-based semiconductor devices can reduce energy losses and system size, leading to overall reduced system costs and enhanced reliability.
Tianyu was founded on January 7th, 2009, and is located in China's Songshan Lake National High-tech Industrial Development Zone of Dongguan City in Guangdong province.
The firm has six major researchers and 30 engineers working on the SiC epitaxial technology growth. The epitaxial wafers are 4", 3", and 2". Production capacity is 10000 pieces per month, which can be increased if needed, and product specifications reach the advanced level in international standards.
Leading semiconductor test equipment supplier Advantest Corporation has consolidated its Silicon Valley operations into a 116,000-square-foot facility in San Jose, Calif. The new headquarters of Advantest America, Inc., located at 3061 Zanker Road, now houses all staff and operations from its Santa Clara facility, which had been the U.S. headquarters since 1997, as well as its Cupertino facility, which had been home to former automated test equipment supplier Verigy, Inc.
In addition to expansive office space, the new headquarters includes a 19,000-square-foot laboratory for engineering development activities, an auditorium, customer training facilities and two loading docks.
As Advantest America prepares to celebrate its 30th anniversary in September, it is reaffirming its commitment to its customers and to maintaining an environmentally friendly facility. In compliance with the international ISO 14001 standard, the company is using only high-efficiency lighting and water fixtures throughout the building. Advantest America follows an established environmental management system (EMS) that systematically reduces the company's environmental impact through effective tracking and analysis tools. Furthermore, Advantest America has invested in renewable energy certificates that will cover 100 percent of the company's 2012 power requirements through the purchase of American wind power. Since launching its EMS program, Advantest America has decreased its energy consumption by 30 percent and increased its recycling volume by 40 percent.
On the strength of its "green" activities, Advantest America has received certification from the U.S. Environmental Protection Agency (EPA) as part of its Green Power Partnership program recognizing companies that reduce their impact on the environment. Advantest America is also a member of the EPA's Green Power Leadership Club.
"Our company is dedicated to contributing to the progress of a sustainable society through the development, design and manufacturing of advanced semiconductor test systems as well as our customer service activities," said Keith Lee, president and CEO of Advantest America, Inc. "Our corporate philosophy of caring for our planet is carried through in the environmentally responsible actions of our employees and embodied in this new headquarters facility."
Chip maker Samsung Electronics plans to invest around US$4bn at its Austin Semiconductor plant in Texas, US to meet growing demand for logic products. The funds will be used to renovate its existing fabrication operations to accommodate full System LSI (large-scale integrated circuit) production.
The remodeled fabrication line will mainly produce state-of-the-art mobile SoCs on 300mm wafers at the 28nm process node.
Starting work this month (August), the project is scheduled to start mass production in the second half of 2013.
Woosung Han, president of Samsung Austin Semiconductor, said: “We are extremely pleased to extend our presence in Austin and reinforce Samsung's capacity for highly advanced logic products. The added ability in production will allow our customers to respond better to market needs.”
Samsung's latest investment is said to be the largest single foreign investment ever made in the state of Texas. The company's total investment in Samsung Austin Semiconductor since 1996 will exceed $13bn.
Chip manufacturer Taiwan Semiconductor Manufacturing Co (TSMC) has approved capital expenditure of US$2.4bn to ‘expand and upgrade’ production of its most advanced process 28nm chips.
The firm’s board of directors has also granted permission to build a new fab with funding of approximately $379m.
No details have been revealed about when construction will begin.
TSMC’s consolidated net sales for July 2012 increased by 37% compared with July 2011.
TSMC previously announced that Phases 4 and 5 of its Fab 12 facility in Hsinchu and Phases 3 and 4 of its Fab 14 Facility in Tainan have received ISO 50001 Energy Management System certification.
Fab 12 and Fab 14 are key plants for TSMC’s advanced process technologies. The firm estimates that Fab 12, Phases 4 and 5 and Fab 15, Phases 3 and 4 will conserve 50 million kW-hours of electricity and eliminate 30,000 tons of carbon emissions a year in 2012 following adoption of ISO 50001 standards.
TSMC announced that its Fab 12 Phase 4 facility located in the Hsinchu Science Park has earned certification from the R.O.C. Ministry of Economic Affairs Industrial Development Bureau (IDB) to gain Taiwan's first "Green Factory Label". This recognition once again highlights TSMC commitment to mitigating climate change and protecting the environment, and sets a new milestone for Taiwan's green manufacturing.
TSMC's Fab 12 Phase 4 facility is one of TSMC's green pioneers, gaining gold-class certification from the U.S. Green Building Council's "Leadership in Energy and Environmental Design-New Construction" (LEED-NC) standard, and diamond-class certification from Taiwan's "Ecology, Energy Saving, Waste Reduction and Health" (EEWH) standard. The facility is also certified under the ISO 50001 energy management system.
Taiwan's "Green Factory Label" is the world's first green certification system designed for factories, and examines both "green building construction" and "clean production". Applicants must first gain the Ministry of the Interior's green building label as well as clean production certification from the IDB. The concept for the "Green Factory Label" originated at TSMC's Green Forum in 2008, and TSMC continued to work with regulatory agencies to integrate industry views and set a standard for green factories. The "Green Factory Label" is world's first comprehensive certification system that combines green production (energy and water conservation, waste reduction, and pollution prevention), green transportation, employee health, surrounding ecosystems, and corporate social responsibility, putting Taiwan at the forefront of setting international standards.
TSMC pledged in 2005 that all new factories and office buildings would be built to the most up-to-date green building standards. Currently, TSMC has the most green buildings of any company in Taiwan, with five LEED gold and three EEWH diamond certifications. TSMC not only plans to extend the "Green Factory Label" to all newly-built factories, the company will also continue to upgrade existing factories in line with "Green Factory" standards. In addition to Fab 12 Phase 4, Fab14 Phase 3 has already gained "green building and "clean production" certifications and has entered the final accreditation process. In addition, Fab 12 Phase 5 and Fab 14 Phase 4 were all among the first facilities to gain the IDB's "clean production" certification.
"TSMC is dedicated to effective green management and building a world-class green enterprise," said TSMC Spokesperson and Senior Vice President Ms. Lora Ho. "From green R&D to green manufacturing, green productions, green supply chain, green buildings and green factories, we have shown our determination to carry out our corporate social responsibility and live in harmony with the environment."
In the next few years, Korean-based Samsung Semiconductor Inc. plans a major expansion and “a considerable increase” in the workforce at its North San Jose, California manufacturing facility.
Governor Jerry Brown, San Jose Mayor Chuck Reed and Santa Clara County Board of Supervisors President George Shirakawa signed a Memorandum of Understanding with Samsung that outlines the company’s plans to build a new expanded Research and development facility.
“This new facility will considerably increase the company’s current employment and significantly increase the size of the existing facility. Locating Samsung’s R&D facility in San Jose will stimulate the local economy through investment and add further depth to the Silicon Valley innovation ecosystem and California,” the agreement said.
“Samsung is excited about the prospect of expanding our facilities in the State of California. The signing of a Memorandum of Understanding demonstrates our growing partnership with the City of San Jose and highlights our shared vision of investing for the future of Silicon Valley,” said. Jong Joong Kim, President of Device Solutions Management Office, Samsung Electronics.
Samsung officials said specific details about its expansion plans, such as the size of its investment and hiring estimates, are still being formalized. According to the Memorandum of Understanding; “The City, County, and Samsung will identify the appropriate level of investment and number of jobs as consideration for the incentives included in the final agreement.”
The expansion will stimulate the local economy by significantly increasing both the size of Samsung’s existing facility on 3655 North 1st Street in North San Jose and the number of people employed there, the Governor’s Office said.
Over the past several months, the California Governor’s Office of Business and Economic Development team has worked directly with Samsung and partnered with the City and County officials to assist with site selection, workforce development and permitting issues.
The State and City of San Jose are offering Samsung an incentive package to assist in its expansion plans including; a job training grant, expedited permitting and proposed tax credits to facilitate infrastructure improvements, equipment purchases, facility expansion and research and development. The site is also located in San Jose’s Enterprise Zone making the expansion eligible for additional tax credits from the city.
Intel Corp. plans to invest more than $300 million to build a research and development facility at its Chandler, Arizona complex, creating what the company estimated as “several hundred jobs,” and nearly a thousand construction jobs.
Intel’s Chandler facility, at Rural Road and Chandler Boulevard, will be built to support packaging operations for the company. Research conducted in Chandler is strategic to the company’s future product roadmap and will promote Intel’s leadership role in technology innovation, the company said
"This significant investment in R&D reflects Intel’s principal role in defining the future of technology," said Babak Sabi, Intel vice president and director, Assembly and Test Technology Development. "The innovation set to take place within the walls of this new research center will influence technology trends for years to come, and we’re delighted to bring that distinction to the community of Chandler and the State of Arizona."
Intel officials said about half of the positions will be filled by individuals with advanced engineering degrees. Other positions are open to candidates with technical degrees and relevant experience. Military veterans with technical training are often well suited for a variety of roles within the company and Intel will specifically recruit veterans for these positions. "Intel recognizes that highly skilled military veterans are a valuable resource," said Sabi. "They bring real-world experience and proven expertise that complements the Intel culture."
News of this additional investment comes as Intel forges ahead with construction of Fab 42, its new manufacturing facility in Ocotillo, a Chandler community. Upon scheduled completion in 2013, Fab 42 will be the most advanced, high-volume semiconductor manufacturing facility in the world. Intel’s combined investment in the two new Chandler facilities will exceed $5.3 billion.
Site preparation for the two-story, approximately 285,000-square-foot R&D facility began in June; construction is expected to be completed in the second half of 2013. The building is designed to enable Leadership in Energy and Environmental Design certification.
Intel could take advantage of the state’s tax credits for firms that invest in research and development, foreign trade zone exemptions and special corporate income tax incentives for large scale investments.
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