Semiconductor Company Expands Wafer Capacities

Osram Opto Semiconductors is switching its fabrication of red, orange, and yellow light emitting diodes to 6-inch wafers. The German high-tech company is extending the fabrication of all large-wafer LEDs to the indium-gallium-aluminum-phosphide (InGaAlP) material system and therefore expanding its production capacity. The company began switching fabrication of blue LED chips back in 2011.

The latest switch involves chips for LEDs intended for a wide range of applications. Red and yellow LEDs are used in virtually every sector: as turn indicators, brake lights, and interior vehicle lighting in the automotive sector, in displays, for projection, for signage, and for color mixing systems in general illumination. The Regensburg-based company was the first manufacturer to switch all LED colors worldwide to 4-inch wafers many years ago and is now continuing this approach with 6-inch wafers.

“The demand for light emitting diodes in red, orange and yellow continues to grow. We are keeping pace with this demand by being the first manufacturer in the world to switch fabrication to 6-inch wafers – thereby also expanding our capacity," says Aldo Kamper, CEO of Osram Opto Semiconductors. “The switch will involve all product families and was initiated at the start of the year.”

The red, yellow, and orange chips will be fabricated at the company headquarters in Regensburg. InGaN chips for blue, green and white LEDs are also produced there, as well as in Penang, Malaysia.

Experience from 6-inch wafer production so far has flowed directly into the current process – as have the results from the projects funded by the German Federal Ministry of Education and Research (the “GallEff” project and the “Greight” project for scaling indium-gallium-nitride wafers).

Renesas Electronics and Sony to Transfer Facility and Equipment

Renesas Electronics Corporation and Sony Corporation announced that they have signed a definitive agreement to transfer a semiconductor manufacturing facility and related equipment at the Tsuruoka Factory (12-inch front-end wafer fabrication line of the semiconductor production facility) of Renesas Yamagata Semiconductor Co., Ltd., a wholly-owned subsidiary of Renesas Electronics, to Sony Semiconductor Corporation, a wholly-owned subsidiary of Sony.

Renesas Electronics has been promoting the realignment of Renesas Group's manufacturing sites in Japan in an effort to strengthen its financial base. As part of this process, Renesas Electronics is working to maintain and strengthen its high-quality technology in the areas where its strengths lie, such as flash MCUs (microcontrollers) and low-power operation technologies, while concentrating and consolidating its front-end facilities based on production efficiency and cost-to-performance ratio.

Sony is positioning the imaging business as one of its core electronics businesses. As part of this strategy, Sony has been exploring opportunities to increase its production capacity for image sensors, a key component used in mobile products such as smartphones and tablets, for which increasing demand is anticipated.

Based on the background above, Renesas Electronics and Sony signed the Asset Transfer Agreement, under which a semiconductor manufacturing facility and related equipment are expected to be transferred to SCK on March 31, 2014. This Asset Transfer is subject to the receipt of necessary regulatory approvals.

After the Asset Transfer, the system LSIs and others produced at the Tsuruoka Factory will be produced there for Renesas Electronics by SCK on a contract basis for a certain period of time as agreed by Renesas Electronics and Sony. After expiration of that period, Renesas Electronics will shift the production of the system LSIs to its Naka Factory or discontinue production, as Renesas Electronics previously announced to its customers.

Wacker Chemie Takes Control of Wafer JV with Samsung Electronics

German specialty chemicals maker Wacker Chemie will take control of a wafer joint venture it holds with South Korea's Samsung Electronics.

Wacker Chemie's Siltronic unit, which produces silicon wafers for the chip industry, will increase its stake in Siltronic Samsung Wafer Pte Ltd to 78 percent from 50 percent. Partner Samsung Electronics will hold the remaining stake and remain a customer of Siltronic, according to Wacker Chemie.

As part of the deal, Siltronic will invest a total of $205 million to participate in a capital increase and repay part of the joint venture's outstanding project loans, which stand at about $287 million.

"The transaction gives us majority ownership of one of the most modern, efficient, and profitable production sites for 300 mm wafers in Asia," says Wacker Chemie Chief Financial Officer Joachim Rauhut.

The joint venture, formed in 2006, comprises production facilities for wafer and silicon ingots in Singapore, and will be renamed as Siltronic Silicon Wafer Pte Ltd. Siltronic accounted for about 17 percent of Wacker Chemie's sales and 3 percent of its earnings before interest, tax, depreciation and amortization in the first nine months of 2013.

Wacker Chemie is also the world's second-largest maker of polysilicon, a key material needed to make solar cells.

Lattice Semiconductor Receives ISO 9000 Certification

Lattice Semiconductor Corp.’s facility in Manila, Philippines has received ISO 9001:2008 certification. The company is a provider of ultra-low-power programmable IC solutions for makers of smartphones, mobile handheld devices, small-cell networking equipment, industrial control, automotive infotainment, and more. The Manila site is focused on R&D, supplier operations, and design.

The ISO 9000 family of standards, developed and published by the International Organization for Standardization, specifically verify quality management system requirements.

“Lattice is committed to providing our customers and partners quality components that help bring innovative products to market, all while staying within size, power, cost, and schedule targets,” says Mike Orr, VP of Quality and Product Development of Lattice Semiconductor. “Lattice’s worldwide team proved instrumental in meeting the stringent ISO international standards, making the Manila location the company’s third to receive this certification.”

FAB Site Chosen in India

Prantij in Sabarkantha district has been picked as the location for setting up of a new semiconductor wafer fabrication (FAB) manufacturing facility in the state. Additional chief secretary of the state's industry department said that the facility is expected to attract more than Rs 22,000 crore investments in the region. Of this, Rs 6,000 crore will be invested by the central government.

"The Union government has selected 1,000 acre of land for setting up the manufacturing facility in Prantij, 15 km from Ahmedabad and project will begin soon," Sahu said, speaking on the sidelines of the launch of Gujarat Knowledge Application And Facilitation Centre by Confederation Of Indian Industries (CII) in partnership with the Gujarat government and Gujarat NRE Coke at CII building.

The Government of India had approved setting up of two semiconductor wafer fabrication (FAB) manufacturing facilities in the country in September last year. One of the units was proposed to be set up in Gujarat. These FAB facilities are expected to provide big boost to the electronics system design and manufacturing eco-system in the country.

Hindustan Semiconductor Manufacturing Corporation (HSMC) along with ST Microelectronics (France/Italy) and Silterra (Malaysia) will set up their units at the electronic park. The outlay of the proposed FAB is about Rs 25,250 crore for the FAB facility of 40,000 wafer starts per month of 300 mm size, using advanced CMOS technology. HSMC has been roped in as electric and IT partner for the project, while Siemens and Fairwood Consultant will be the design and architect partner.

The other unit will be set up by Jaiprakash Associates along with IBM (USA) and Tower Jazz (Israel) in Greater Noida. The outlay of the proposed FAB is about Rs 26,300 crore. The two FABs will create direct employment of about 22,000 and indirect employment of about one lakh.

Sahu also said that the new electronic and IT policy of the state government is being finalized.

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