SEMICONDUCTOR INDUSTRY

UPDATE

 

July 2015

 

McIlvaine Company

 

TABLE OF CONTENTS

 

Air Products to Supply Industrial Gases to New Giga Fab Campus in Korea

TSMC, Samsung Start A9 Chip Mass Production

IQE and Cardiff University Establish Joint Venture

Plessey Wins UK Grant for GaN-on-Silicon Production

STMicroelectronics and French Institute Set Up Joint Research Laboratory

Powerchip to Build Fab in China

Indian Wafer Fabs in Limbo

IBM Plants Sale to GlobalFoundries

InVisage Opens Sensor Manufacturing Site in Taiwan

Exagan and Others to Produce High-efficiency Devices

 

 

 

Air Products to Supply Industrial Gases to New Giga Fab Campus in Korea

Air Products, a U.S. Fortune 500 company and a leading global industrial gases supplier, announced it has been awarded a major contract to supply industrial bulk gases and bulk specialty gas supply system for a new semiconductor fab in Pyeongtaek, Gyeonggi Province, South Korea.  

 

Air Products will build multiple ultra-high-purity nitrogen plants, hydrogen generators and a liquefier to support the facility.

 

"We are much honored to be selected to support this milestone project," said Kyo-Yung Kim, president of Air Products Korea. "Our investment in production capacity will further strengthen our industrial gas supply position to serve the expanding northern region.  It is also testimony to Air Products' commitment and ability to support the growth plans of our customers through safety, reliable supply, efficiency and excellent service."

 

A leading integrated gases supplier for the global electronics industry, Air Products has more than 40 years of experience in the safe and reliable delivery of gases to a variety of markets, including some of the world's biggest technology companies. Air Products is working with these industry leaders to develop the next generation of semiconductors and displays for tablets, computers and mobile devices. 

 

TSMC, Samsung Start A9 Chip Mass Production

TSMC and Samsung Foundry, which share orders for Apple's A9 application processors, have both started volume production of the chips, according to industry sources.

 

Just before production kicked off, Apple requested modifications to the mask patterns prompting both contract chipmakers to rework wafers, said the sources. Nevertheless, the event should not interrupt the new iPhone launch schedule, the sources noted.

 

TSMC, with its 16nm FinFET process technology, will enter mass production of the A9 chips starting the fourth quarter of 2015, the sources indicated.

 

TSMC will also manufacture fingerprint sensors and audio chips on a contract basis for the upcoming iPhone devices at its 12-inch fabs, the sources observed.

 

Previous reports suggested TSMC would use its 65nm fabrication process to supply fingerprint sensors for the next-generation iPhones expected in the fall of 2015. In addition, the foundry will reportedly manufacture iPhone chips for Cirrus Logic using 45/55nm process technologies.

 

TSMC has responded saying the company does not talk about customer engagements.

 

An estimated 80 million units of Apple's new iPhones will be shipped by the end of 2015, the sources said.

 

IQE and Cardiff University Establish Joint Venture

Cardiff University has signed a deal with semiconductor wafer company IQE to establish a center for compound semiconductor (CS) excellence in Wales. The partners have formed a new joint venture company with the power to turn the city into a global hub for CS research.

 

The venture - the first of its kind in the UK - will seek to develop a cluster of expertise in the development and commercialization of CS technologies.

 

Cardiff University Vice-Chancellor, Colin Riordan, said: "The University's mission is to be consistently among the top 100 universities in the world and the top 20 in the UK. Fundamental research is essential for sustaining academic growth, and for improving the health, wealth and well-being of society. Coupling IQE's infrastructure with Cardiff's existing strengths in expanding areas of semiconductor devices and materials will create cutting-edge opportunities that will put us ahead of our competitors."

 

Drew Nelson, chief executive of IQE, said: "This JV with Cardiff University is a key step in creating the World's first Compound Semiconductor Cluster, spanning the complete Technology Readiness Level (TRL) scale from basic research to full scale production. Our goal is to build this Cluster into one of Global significance and scale, leading to widespread economic benefits for the region, and providing a broad range of CS Technologies to support the rapid growth of the Key Enabling Technologies agendas, in Europe and throughout the rest of the World. IQE look forward to working closely with ICS and the JV to commercialize these exciting new technologies."

 

Welsh Government Minister for Economy and Science, Edwina Hart said: "This new company will help create commercial opportunities from the excellent compound semiconductor research work going on at Cardiff University. Together with the appointment through our Sêr Cymru program of Diana Huffaker, a world renowned expert in the field, Cardiff is now well placed to become a hub for Compound Semiconductor research and exploitation."

 

The deal will capitalize on two recent announcements that have strengthened Cardiff's position as a global center for CS research. In March, UK Government announced a £17.3m award to underpin the foundation - the first of its kind in the UK. And in May, Cardiff announced the appointment of Diana Huffaker as Chair in Advanced Engineering and Materials through the Welsh Government's £50m Sêr Cymru program. Huffaker, based at the University of California, Los Angeles (UCLA), will lead a new CS research laboratory at Cardiff University.

 

Plessey Wins UK Grant for GaN-on-Silicon Production

Plessey Semiconductors has announced that it will be leading a £1.3 million UK government funded project in conjunction with Aixtron and Bruker Nano Surfaces Division. This project will accelerate high volume manufacturing of Plessey's innovative LEDs created with GaN-on-Silicon technology at its Devon based manufacturing site.

 

The Advanced Manufacturing Supply Chain Initiative (AMSCI) is a funding competition designed to improve the global competitiveness of UK advanced manufacturing supply chains and encourage major new suppliers to locate in the UK.

 

In accordance with a press release issued on 26th March 2015 from the UK's department for Business, Innovation and Skills, twenty supply chain projects from across the country will benefit from a total of £67 million of government investment. There is £109 million being invested in the same projects by industry.

 

Keith Strickland, Plessey CTO, said: "This project supports the work we have ongoing with Aixtron and Bruker to further increase the yield of our GaN-on-Silicon process. These improvements are required as part of our move to 200mm (8-inch) silicon substrates. A 200mm (8-inch) wafer has almost twice the usable area of our existing 150mm (6-inch) wafers and therefore will almost double the number of LEDs produced for the same relative cost."

 

Plessey's MaGIC (Manufactured on GaN-on-Silicon I/C) High Brightness LED (HBLED) technology has won numerous awards for its innovation and ability to cut the cost of LED lighting by using standard silicon manufacturing techniques.

 

STMicroelectronics and French Institute Set Up Joint Research Laboratory

Building on years of close collaboration and numerous joint research programs, STMicroelectronics, and the French Institute of Materials, Microelectronics and Nanosciences in Provence (IM2NP – CNRS / Aix-Marseille University / University of Toulon / ISEN engineering school), member of the Carnot STAR (Science and Technology for Research Applications) Institute, have announced the official launch of a new joint research laboratory to develop the next generations of high-reliability, ultra-miniaturized electronic components.

 

The Radiation Effects and Electrical Reliability (REER) Joint Laboratory is a multi-site research establishment that will bring together teams from the IM2NP Institute, based in Marseille and Toulon, and specialist engineers from the ST facility in Crolles, near Grenoble.

 

The REER Joint Laboratory’s science program will focus on two main areas of research: the effect of radiation on digital nanometer-scale circuits and the electrical reliability of nanometer-scale CMOS (complementary metal-oxide semiconductor) technologies. These lines of research are crucially important for ST and its ability to produce integrated circuits with extremely high levels of reliability for a wide range of key sectors, such as the automotive sector, networks, medical, space and security.

 

For these types of applications, the intrinsic constraints of electronic components (electrical fields, mechanical stress, temperature, etc.) and some environmental constraints (especially particle radiation from natural or artificial sources) are becoming an increasingly critical issue for current and future generations of integrated circuits.

 

Consequently, they need to be accurately characterized, modeled and simulated in order to predict and mitigate their effects, which is one of the key objectives of the new joint research facility.

 

In addition, a host of challenges and hurdles need to be overcome in the development of future nanoelectronic technologies, and these must be better understood at all stages of the integration process. The joint laboratory’s research will range from the most fundamental aspects of phenomena at the atomic level to systems, materials, and the physics of devices and the design of robust circuits.

 

Its work will be conducted in a globally competitive environment and will focus on the most advanced microelectronic technologies, such as the 28-nanometer technology node and beyond, in particular the FD-SOI (fully depleted silicon-on-insulator) industrial cluster developed by ST at its Crolles site. This key process technology is enabling ST to spearhead development of the most innovative world-class nanoelectronic circuits.

 

Recently opened, the joint laboratory is already involved in numerous collaborative programs and projects at the national, European and international level, in conjunction with the European CATRENE cluster, the ENIAC initiative and support programs led by the French General Directorate for Enterprises (DGE) and the French defense procurement agency (DGA). In the next five years, the lab will offer placements for a number of high-level doctoral students, mostly in the context of public-private partnership research supported by the French government’s CIFRE scheme (industrial agreement for training through research).

 

Its work will be conducted in a globally competitive environment and will focus on the most advanced microelectronic technologies, such as the 28-nanometer technology node and beyond, in particular the FD-SOI (fully depleted silicon-on-insulator) industrial cluster developed by ST at its Crolles site. This key process technology is enabling ST to spearhead development of the most innovative world-class nanoelectronic circuits.

 

Powerchip to Build Fab in China

Powerchip Technology Corp., previously a DRAM vendor, now foundry, is joining a trend towards supporting manufacturing in China. According to local reports, the company plans to invest alongside the Chinese authorities in Hefei City, Anhui province, in a joint venture to set up a 300mm wafer fab there.

 

The fab will operate as a foundry running 0.15µm, 0.11µm and 90nm manufacturing processes, for logic ICs, LCD driver chips, CIS image sensor chips, according to a CTimes report.

 

The support will come in the form of an investment with Hefei Construction Investment and Holding Co. Ltd to create the Hefei Jinghe wafer fab, the reports said. The total investment required is estimated at about $2.2 billion with the fab scheduled for completion in 2018-2019 and a manufacturing capacity of 40,000 wafer starts per month.

 

Hefei is a manufacturing center of BOE, a major Chinese LCD panel maker, and the building of a wafer fab there is being done to give the company a local source of supply.

 

Powerchip was one of a group of Taiwan DRAM makers that failed to remain competitive in DRAMs against leading manufacturers Samsung, SK Hynix and Micron. In 2011 the company announced it would stop selling DRAMs under its own brand to focus on the production of LCD drivers, CMOS image sensors, flash memory and power management ICs.

 

Investments by Taiwan companies, often investments in kind in terms of IP and know how, are increasing as the Chinese government has rolled out a long-term initiative to foster domestic production of components.

 

In October 2014 United Microelectronics Corp. (Hsinchu, Taiwan) announced a plan to invest in joint venture along with Xiamen Municipal People's Government and FuJian Electronics & Information Group focused on 300mm wafer foundry services. That joint venture, subsequently named as ChipLink Semiconductor Co. Ltd, is set to be based in Xiamen, and in October 2014 UMC said it was anticipating it would invest about $1.35 billion over the next five years.

 

Indian Wafer Fabs in Limbo

Two much-hyped wafer fabs that are supposedly to be constructed in India are now in a state of uncertainty, and perhaps Cricket Semiconductor will take the same route.

 

Tower Semi is in one consortium and STMicroelectronics in another, both apparently selected to build wafer fabs on the sub-continent. The plans are years old except that nothing seems to be moving as Indian governmental committees form and reform, policy documents are produced, and zoning and tax-exemption decisions are made.

 

Cricket was formed by former Texas Instruments executives with a plan for an analogue/power fab with a realistic price tag of just $1 billion. The name for the company demonstrates cultural alignment with a country whose population is fanatical about the game.

 

However, a similar stasis seems to have overtaken that project with a recent report throwing up uncertainty over where the fab will be located. According to reports, Cricket has been in talks with state government of Telangana to build and operate an analogue and power semiconductor wafer fab, quoting the state's minister of IT and communications KT Rama Rao.

 

It may be a report that only represents wishful thinking on behalf of the state of Telangana, but it still seems to typify a lack of commitment that potentially springs from one unanswered question that applies to all three fab projects: "Where is the money going to come from?"

 

It appears that in India fab building is a waiting game, and the wait will likely last until the Indian authorities at both state and national level acquire the political will to compete with China and offer cash rather than rebates.

 

The existence of Cricket Semiconductor was first disclosed from the Indian Electronics & Semiconductor Association (IESA) in February 2015, which referenced the MoU signed with Madhya Pradesh. It also said that Madhya Pradesh had approved the Analogue Semiconductor Fabrication [FAB] Investment Policy, which covers support for any wafer fab investment in the state that exceeded $500 million.

 

The measures include free land for the building, reimbursement for the cost of building a factory shell and guaranteed water and electricity supplies at internationally competitive prices for 10 years.

 

Rama Rao, the state’s minister of IT & Communications, said Telangana was inviting companies from Taiwan and Korea to come to the state to help build up an ecosystem and is also training people and has set up a committee to rationalize taxes. "We are also offering tailor-made packages for large industries. We have to go out of the way to help companies get a competitive edge over China," the report quoted Rao.

 

IBM Plants Sale to GlobalFoundries

An agreement last October for IBM to sell its semiconductor manufacturing facilities in East Fishkill and Vermont to GlobalFoundries for $1.5 billion is expected to close on July 1, sources familiar with the negotiations said.

 

The closing would end months of required regulatory approvals and likely move thousands of employees from IBM onto the GlobalFoundries' payroll at IBM plants in East Fishkill, Dutchess County, and Essex Junction, near Burlington, Vt.

 

GlobalFoundries, which has an expanding chip plant in Malta, Saratoga County, announced last year that it would invest $10 billion over the next year in its facilities, mainly in New York. The Malta plant has 3,000 employees and another 3,000 construction workers, along with plans to add 600 staff employees by year's end.

 

New York has about 14,000 IBM employees, and half are in Dutchess County. IBM also has facilities in Endicott, Broome County, where it was founded, with about 700 workers.

 

There was no immediate comment from IBM and GlobalFoundries about the expected closing. In the past, the companies have said they anticipated the deal would close sometime this year.

 

Local and state officials, along with the companies themselves, have praised the sale as a way to preserve jobs and expand the companies' high-tech research and development in New York.

 

IBM, which is based in Armonk, Westchester County, is planning its own $3 billion investment in chip research — mainly at its research facility in Yorktown, Westchester County, and at the SUNY Polytechnic Institute's Colleges of Nanoscale Science and Engineering in Albany, where IBM is the major investor in a $4 billion research consortium.

 

"I think up and down the Hudson Valley, from Yorktown, through Fishkill, through Poughkeepsie, through Albany, up into Malta, this is great news for employment in New York state," IBM vice president John Kelly told reporters during a conference call when the deal was announced Oct. 20, 2014

 

The deal comes as IBM is rumored to be facing another round of job cuts across the nation. But so far the IBM jobs in New York have largely been saved from the company's downsizing, in large part because of contractual obligations between the state and the company.

 

In January, GlobalFoundries confirmed that the company has offered jobs to all the IBM workers that are part of the sale. It's been unclear how many offers went out.

 

Assemblyman Kieran Michael Lalor, R-East Fishkill, said the sale will be a positive step for local IBM workers, who have faced years of downsizing.

 

In February 2014, IBM and Gov. Andrew Cuomo reached a deal to maintain 3,100 high-tech jobs in the Hudson Valley and surrounding areas through 2016. The deal was part of IBM's expansion in Buffalo to create 500 jobs at a $55 million high-tech hub.

 

InVisage Opens Sensor Manufacturing Site in Taiwan

InVisage Technologies Inc., a startup that manufactures quantum-dot based light capture film for image sensors, is taking on the image sensor market by opening its first sensor manufacturing facility QFAB3 in Hsinchu Science Park, Taiwan. The company said QuantumFilm technology would be introduced later this year and that it is joining forces with TSMC for wafer manufacturing and with VisEra Technologies Co. Ltd for color filter deposition.

 

QuantumFilm is a light-sensitive layer of quantum dots that replaces the conventional silicon photodiode in digital camera sensors and provides improved dynamic range, greater performance in low light, and global shutter capabilities. InVisage claimed that QFAB3 has process geometries down to 5nm, although this is likely a measurement of film thickness.

 

InVisage raised $32.5 million in a funding round announced in December 2014. This took the amount raised by InVisage to more than $130 million. Investors in the round included China Oceanwide USA Holdings, as well as GGV Capital, Nokia Growth Partners, RockPort Capital, InterWest Partners, Intel Capital and OnPoint Technologies.

 

Product wafers are manufactured by TSMC and then transferred to InVisage's facility for QuantumFilm deposition. The deposition itself is performed by a single, custom tool that combines spin-coating and CVD deposition technologies into one machine for the first time.

 

The main advantage of QuantumFilm is higher photonic efficiency for turning light into electron motion than silicon. This means greater dynamic range and the ability for fast and global shuttering. The material is customizable to allow for dynamic adjustment of sensitivity and resolution, and can be optimized for better performance at wavelengths ranging from visible to infrared.

 

"We chose to establish our high-volume manufacturing in Taiwan because of the vitality of the semiconductor ecosystem here, and in particular because of our partnership with TSMC," said InVisage's CEO, Jess Lee. The manufacturing facility is designed to support image sensors for a range of products, from mobile phones to high-end cameras as well as for drones and other IoT devices that require high performance cameras.

 

Exagan and Others to Produce High-efficiency Devices

The investors include leading French venture funds with a record of identifying and fostering promising, fast-growth, early-stage technology companies:

 

 

 

 

 

 

Following Exagan’s recent announcement of an agreement with X-FAB to produce devices on 200mm wafers, the financing will help support its mission of becoming Europe’s primary supplier of GaN-based power switches for the solar, automotive, IT electronics and other markets. That mission includes its strategic partnership with CEA-Leti, which is developing applications with some of its industrial partners based on Exagan’s G-FETTM 650 V platform and its unprecedented power-switching performance with extremely low conduction losses.

 

Exagan, based in Grenoble with a branch office in Toulouse, was spun off by Leti and Soitec in 2014 and licenses materials and technology from both organizations.

 

Power integration is key to meeting the growing demand for less expensive and more efficient electrical converters that silicon power devices cannot meet. The material properties of GaN devices, meanwhile, offer promising power-integration and efficiency gains that deliver higher power density and switching speed at the device level.

 

“This significant first round of financing validates our efforts over the past five years with Leti and Soitec to commercialize GaN-on-silicon technology and supports our commitment to provide customers with qualified GaN devices in large volumes,” said Frédéric Dupont, Exagan CEO and co-founder. “We are focused on offering our customers reliable, high-performance devices that are developed with industrial partners already sourcing technologies or products for the targeted markets.”

 

Vincent Deltrieu, a partner at Innovacom, said: “Exagan has developed a G-FETTM product platform that offers major competitive advantages for electrical-converter makers serving the power-electronics industry. By leveraging the platform’s efficiency and power-saving features, Exagan is well positioned to establish itself as a key technology provider in this high-growth market that has the potential to exceed 1 billion euros in the coming years.”
Stéphane Simoncini, investment director at CM-CIC Innovation, said: “Frédéric and Exagan COO and co-founder Fabrice Letertre are the ideal team to accomplish Exagan’s business and technology goals. With their technical and business vision, they are opening a huge market segment in power electronics, between silicon and silicon carbide.”

 

Jean-Michel Petit, managing director of IRDInov, said: “Based on our experience with the automotive and aerospace industries, we are convinced of the potential markets for GaN power electronic devices. This is all the more reason to further develop its presence in Toulouse, which has a concentration of competencies in power-electronics applications and many potential future clients.”

 

Soitec CEO Paul Boudre said: “Soitec is obviously excited about this successful round of financing for Exagan. Their GAN-on-silicon technology, which leverages our own materials expertise, opens very interesting opportunities in promising markets such as electronics, automotive and energy. Exagan is well positioned to drive innovation in power switching technology, due to its location in Grenoble among the strong mix of innovative companies and technology-integration clusters.”

 

Soitec and CEA Investissement also provided financial support to Exagan prior to the first round of venture-fund backing.

 

Leti CEO Marie Semeria said Leti has invested many years in developing GaN technologies because it believes they will drive innovation in the power-electronics industry and accelerate development of sustainable-energy technologies.

 

“We are very excited about the prospects for Exagan, a European source of new GaN power switches for our key industrial partners in the fields of transportation and energy, as well as broader markets,” she said. “Through our partnership with Exagan, Leti will accelerate its investment in this area to further develop our leading expertise in GaN technology and related systems and applications.”

 

 

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