SEMICONDUCTOR INDUSTRY
UPDATE
July 2016
McIlvaine Company
TABLE OF
CONTENTS
GLOBALFOUNDRIES Checks Out New York
Japan Semi's Iwate and Oita Operations Focusing on IC
Production
Toshiba and Western Digital Open Fab 2 Semiconductor
Fabrication Facility in Japan
The UAE's Consul General to New York, Majid Al Suwaidi,
conducted a visit to Upstate New York last week, during which he met with the
senior leadership of GLOBALFOUNDRIES in Malta, New York.
GLOBALFOUNDIRES is owned by Abu Dhabi's Mubadala and with 250
customers worldwide, is the world's first full-service semiconductor foundry
with a truly global manufacturing and technology footprint.
With 3,000 employees based in Malta, GLOBALFOUNDRIES has had a
significant and positive impact on the economy of upstate New York in recent
years.
During his visit, Consul General Al Suwaidi met with several
members of the senior executive team at GLOBALFOUNDRIES including Dr. Tom
Caulfied, General Manager and Senior Vice President. Dr. Caulfield provided a
comprehensive briefing on the business and cutting-edge facility. The Consul
General also received a tour of Fab 8's cleanroom where state of the art
semi-conductors are manufactured onsite.
"As the UAE's new Consul General to New York, I am excited to
have met with the GLOBALFOUNDRIES leadership to learn more about their business,
and to see first-hand their impressive operation in Malta," said Consul General
Al Suwaidi. "This company has made a substantial investment and impact on the
economy of New York State, creating thousands of good paying, high-skilled
jobs."
GLOBALFNDRIES is currently considered among the largest
semiconductor manufacturing facilities, performing the most advanced research,
development, and manufacturing of semiconductors in the world. The FAB-8 site
represents approximately US15 billion in private and public investment in
Saratoga County.
Since 2009, the project has supported more than approximately
15,000 indirect jobs in the economy based on research by the Semiconductor
Industry Association. In addition, the project has required more than 10 million
man hours of work, creating more than 20,000 new construction jobs and thousands
of additional construction-related jobs since 2009. The facility spans 293 acres
with another 154-acre expansion planned.
Consul General Al Suwaidi also met with officials from the
State University of New York's Poly Center for Nanoscale Science and Engineering
(CNSE). CNSE serves as one of the US's biggest centers devoted to the design and
development of nanotechnology, working closely with GLOBALFOUNDRIES. The company
also works closely with CNSE to source talent and to work on joint training and
educational initiatives.
Japan Semiconductor Corp. aims to raise its analogue and mixed
signal IC game by devoting a large amount of its production to chip
manufacturing. Japan Semi is a wholly-owned subsidiary of Toshiba Corp. that
came into being on April 1, 2016 and owns wafer fabs at Iwate and Oita and
employs 2,030 people.
The company has manufacturing capabilities in mixed-signal
ICs, MCUs, ASIC, linear sensor and discrete semiconductors. It can also build
through-silicon-vias and apply color filter coatings. The capability extends
from 0.6-micron down to 130nm in CMOS and high-voltage 48V and 100V processes
are also available. Oita has a 6-inch and an 8-inch wafer fab while Iwate has an
8-inch wafer.
In a Toshiba Group presentation prepared for investors and
analysts the company said that in the 2018 financial year the company was aiming
for 30% of revenue to come from foundry business.
It expects that automotive-grade quality and "world-leading"
analogue technology will enable this. However, there is speculation that the
naming of the company is indicative that Toshiba is looking to dispose of the
company.
Yasuo Naruke, CEO of the parent Toshiba Storage and Electronic
Devices Solutions Co., told analysts and investors in a meeting that analog
foundry business is what he has in mind for Japan Semiconductor and with regard
to the possibility of an initial public offering of shares in Japan
Semiconductor Naruke said in translation: "We do not like to reject any
possibility."
Toshiba Corporation and Western Digital Corporation celebrated
the opening of the New Fab 2 semiconductor fabrication facility located in
Yokkaichi, Mie Prefecture, Japan.
Expanded use of flash memory in smartphones, SSDs, and other
applications is driving continued growth of the global flash memory market. The
New Fab 2 facility will support the conversion of the companies’ 2D NAND
capacity to 3D flash memory, allowing realization of solutions offering higher
densities and better device performance.
Construction of New Fab 2 began in September 2014. Following
partial completion of the facility in October 2015, Toshiba and SanDisk
(acquired in May 2016 by Western Digital Technologies Inc., a wholly owned
subsidiary of Western Digital Corporation) worked together to implement
leading-edge manufacturing capabilities for mass production of 3D flash memory,
and first-phase production started in March of this year. The parties intend to
further invest to expand production capacity over time, depending on market
conditions.
In addition, Yokkaichi operations will leverage the site-wide
integrated production system, which employs big data processing to analyze over
1.6 billion data points each day, to further improve manufacturing efficiency
and the quality of 3D flash memory.
The parties are committed to working together to enhance the
value they offer to customers and to continue innovation as market leaders.
Satoshi Tsunakawa, President and CEO of Toshiba Corporation,
said, “Advanced technologies underline our commitment to respond to continued
demand as an innovator in flash memory. We are enhancing manufacturing
efficiency and the quality of our world-class facility. Building on that, we
also plan investments of as much as 860 billion yen by FY2018, in line with
market situation. Our commitment is firm, and we are confident that our joint
venture with Western Digital will produce cost competitive next generation
memories at Yokkaichi.”
Steve Milligan, Chief Executive Officer of Western Digital,
said, “As a leader in non-volatile memory products and solutions, we are excited
to be entering the 3D NAND era with our partner Toshiba. The New Fab 2 enables
us to begin the conversion of our existing 2D NAND capacity to 3D NAND and
continues our long-standing presence in Yokkaichi, Mie Prefecture, and Japan.”
McIlvaine Company
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