SEMICONDUCTOR INDUSTRY
UPDATE
August 2016
McIlvaine Company
TABLE OF
CONTENTS
Toppan
Photomasks Approves New Advanced Production Capacity in China
GlobalWafers Co. says greater market share can be achieved in
the silicon-wafer market after the Taiwanese supplier to chipmakers agreed to
buy SunEdison Semiconductor Ltd. for $683 million including debt, adding new
customers and production facilities.
The two companies currently have a combined 17 percent market
share -- making it the world’s third largest silicon-wafer maker -- and 20
percent is within reach, Chairwoman and Chief Executive Officer Doris Hsu said
in an interview on Thursday. She expects the industry to grow 4 to 6 percent in
2017.
The deal for St. Peters, Missouri-based SunEdison
Semiconductor will add clients and capacity, and give GlobalWafers greater
access to South Korea and the European Union for silicon wafers used by
chipmakers. The Taiwanese company already counts Samsung Electronics Co., Taiwan
Semiconductor Manufacturing Co. and Toshiba Corp. among its customers, according
to data.
SunEdison Semiconductor investors will get $12 a share cash,
45 percent more than Wednesday’s closing price, according to a statement from
the companies. The deal has the backing of both boards and will be financed
through existing cash and bank financing.
“The price is more than acceptable,” Hsu said, adding that the
combination offers minimal overlap in customers, products and production
capacities. SunEdison also has silicon-on-insulator technology and epitaxial
wafer capability, in demand in China’s new 12-inch wafer facilities. Hsu said
the merged company could become China’s largest supplier to such wafer makers
“in the medium term.”
GlobalWafer’s sales are expected to grow every month for the
rest of year, the CEO said in the interview. One risk for orders from Japan is
if the Japanese yen rises to 80 or 90 per U.S. dollar, she said.
Toppan Photomasks, global supplier of photomasks, has
announced the approval of the next phase of investment for its recently expanded
factory in Shanghai, China operated under Toppan Photomasks Company Limited,
Shanghai (TPCS), a wholly-owned subsidiary. TPI's new US$80 million investment
in this factory further demonstrates Toppan's long-term commitment to its
customers in China's rapidly growing semiconductor industry. This comes after
the company's previous US$20 million investment in the expansion of TPCS
Shanghai II, which is now operational and ramping as the only available
commercial mask shop with a full range of technology product offerings in China.
"TPI's Shanghai factory provides our mainland China customers
a two-day cycle time advantage over other suppliers, thereby speeding their time
to market. Today's announcement builds upon that speed and cycle time advantage
while extending TPI's capability down to the 28-nm node for both photomask
production and wafer fab services support," said Mike Hadsell, chief executive
officer for TPI. "Our factory capability will be further extended down to the
14-nm node to meet the requirements of this quickly evolving market. In
addition, our facility has sufficient expansion space to support our customers'
growth over the next decade and beyond.
The recent expansion of the Shanghai facility, a Sub-Class 1
cleanroom located in a new manufacturing facility adjacent to the company's
existing operation, was constructed to allow for phased growth. The next phase
of technology focus will be on 65-nm to 14-nm logic and advanced memory (DRAM
and NAND) design features using industry standard equipment for proven
capability and reliable supply. Upon completion of the new project, 40 percent
of the cleanroom space will remain available for future expansion.
McIlvaine Company
Northfield, IL 60093-2743
Tel:
847-784-0012; Fax:
847-784-0061
E-mail:
editor@mcilvainecompany.com
Web site:
www.mcilvainecompany.com