SEMICONDUCTOR INDUSTRY

UPDATE

 

May 2017

 

McIlvaine Company

 

TABLE OF CONTENTS

 

Micron to Establish its Site for DRAM in Taiwan

Versum Materials Breaks Ground for Research and Development Facility

QuantumClean and ChemTrace Open Sub-10nm Semicon Cleaning Center in Taiwan

Planned Compound Semiconductor Cluster in Wales

WIN Semiconductor Increases Wafer Manufacturing Capacity

 

 

 

Micron to Establish its Site for DRAM in Taiwan

 

Micron Technology, Inc., a developer of advanced semiconductor systems, announced that on March 14 it successfully won the auction for Cando Corporation assets, which will be utilized in establishing a back-end site for Micron Taiwan. Micron has now completed the title acquisition process for the new site.

 

The acquisition includes the cleanroom and tools that are adjacent to Micron’s existing Taichung fab, bringing the company’s fabrication and back-end together in one location. The new site will be focused on establishing a centralized back-end operation.

 

“This marks a significant step in our plan to create a center of excellence for leading-edge DRAM in Taiwan,” said Wayne Allan, VP, Global Manufacturing. “Bringing fabrication and back end together, all in one location, builds an efficient support structure for end-to-end manufacturing with quicker cycle times that benefit our business and customers.”

 

The new back-end site is expected to begin production in August, and the new integrated center of excellence is expected to bring greater operational cost efficiency that will benefit Micron’s DRAM business on a global scale. These cost efficiencies are part of the overall US$500 million of ongoing operational enhancement opportunities cited at the company’s 2017 analyst conference.

 

The strategic acquisition, with a winning bid of US$89.2 million, also highlights Micron’s goal to grow its presence in Taiwan – where it is the largest foreign employer and investor – from its current wafer manufacturing function to a broader center of expertise in the global memory industry. The back-end site will further enhance the company’s strong presence on the island, which already includes 300mm wafer fabrication facilities in Taichung and Taoyuan, as well as sales and technical support offices in Taipei.

 

The back-end operation will be led by site director Mike Liang, who joined Micron in November 2016 with more than 35 years of experience in the semiconductor industry. Having previously served in leadership roles at Ti-Acer, KYEC and Amkor Taiwan, Liang brings significant expertise in both front-end wafer fabrication and back-end assembly and test manufacturing.

 

Versum Materials Breaks Ground for Research and Development Facility

 

Versum Materials, Inc., a leading materials supplier to the semiconductor industry, announced that it has broken ground on a multimillion-dollar project at its chemical manufacturing site in Hometown, Pennsylvania. The groundbreaking ceremony took place April 20, 2017, and was attended by members of the community and local government.

 

The new facility will house a state-of-the-art research and development laboratory for new materials used in the manufacture of semiconductors. Scientists in the facility expect to synthesize and purify new molecules up to parts per trillion impurity levels using the latest technologies available in the industry. The researchers will be able to assess the applications for these new molecules and scale up the molecules to kilogram quantities for customer evaluation. These new organometallic compounds will be deposited on semiconductor wafers through various cutting edge technologies for semiconductor applications. Additionally, the new facility will have capabilities for small volume manufacturing and advanced analytical and quality assessment.

 

Approximately 30 employees, half of which hold advanced degrees in chemistry or chemical engineering, will be based in the new facility. The company expects construction to be completed by the end of the year.

 

This latest expansion is part of a $20 million investment that Versum has made over the past year at its Hometown campus. It recently increased production capacity and modified equipment configuration to reduce manufacturing bottlenecking. Versum’s Hometown manufacturing facility produces a variety of high purity specialty gases and chemicals for semiconductor manufacturers around the world, including Tungsten Hexafluoride, WF6. WF6 is used as a metallization source for the formation of tungsten plug interconnects between multiple layers in semiconductor devices. It is an important material in the production of both logic and memory (DRAM and NAND) devices.

 

“Our Hometown facility continues to play an important role in our company’s success. This investment will facilitate significant advancements in the semiconductor industry, which is something the local community can take pride in,” stated Jim Hart, a senior leader in Versum’s Global Technology team.

 

A global leader in technology, quality, safety and reliability, Versum Materials is one of the world’s leading suppliers of next generation CMP slurries, ultra-thin dielectric and metal film precursors, formulated cleans and etching products, and delivery equipment that has revolutionized the semiconductor industry. Versum Materials has annual sales of approximately $1 billion, 1,900 employees and 10 major facilities in Asia and North America. It is headquartered in Tempe, Arizona. Prior to its separation on Oct. 1, 2016, Versum Materials had operated for more than three decades as a division of Air Products and Chemicals, Inc. (NYSE: APD).

 

QuantumClean and ChemTrace Open Sub-10nm Semicon Cleaning Center in Taiwan

 

QuantumClean and ChemTrace unveiled what it says is the world's most advanced semiconductor chamber parts cleaning, coating and analytical facility in Tainan, Taiwan.

 

QuantumClean specializes in sub-10nm outsourced process tool chamber parts cleaning and coating services, tool part life extension and process tool part optimization solutions to the semiconductor wafer fabrication, OEM and OPM industries.

The Tainan site offers customers the full spectrum of part cleaning and recoating capability for all fab processes and is Taiwan's only cleaning and coating service provider with an embedded microcontamination laboratory — ChemTrace — with 23 years of expertise in validating part cleanliness.

 

ChemTrace is an industry-leading semiconductor laboratory that provides clients with critical insight into their microcontamination issues. "Continued expansion of ChemTrace's global footprint with the recent opening of the state-of-the-art laboratory in Tainan allows regional semiconductor industry customers direct access to our advanced laboratories for rapid turnaround and expert analysis", said Surjany Russell, ChemTrace's Director of Sales.

 

"This plant is 'Smart, Lean, Clean and Green', a first of its kind in its industry...,” said Scott Nicholas President and CEO, Quantum Global Technologies.

 

"Lean modular layouts provide unprecedented segregation, capacity and throughput measured in hours not days. High-purity cleaning technologies yield Atomically Clean Surfaces exceeding requirements for sub-10nm fab processes. The facility is engineered to significantly reduce water, chemical and energy usage and waste discharges,” explained Dave Zuck, COO and CTO, Quantum Global Technologies.

 

Planned Compound Semiconductor Cluster in Wales

 

The project is expected to leverage up to £375 million of private sector investment and create 2,000 high value, high-tech jobs.

 

The Cardiff Capital Region (CCR) Regional Cabinet has agreed to invest £37.9 million to support the development of a compound semiconductor industry cluster in south east Wales.

 

The funding is being made from the Cardiff Capital Region City Deal’s Wider Investment Fund, and is the first such investment since the £1.2 billion program was formally signed by the leaders of the ten local authorities in the region on March 1.

 

The project is expected to leverage up to £375 million of private sector investment over the next five years, and the creation of up to 2,000 high value, high-tech jobs, with the potential for hundreds more in the wider supply chain and cluster development.

 

A state-of-the art facility will be constructed in the Cardiff Capital Region to house compound semiconductor applications development and high volume compound semiconductor manufacturing, greatly helping the establishment of the world’s first Compound Semiconductor Cluster in the region.

 

The facility will be owned by the ten councils and the space leased for compound semiconductor manufacturing and applications development. Discussions on the location of the site are on-going, but Newport is the likely location.

 

The deal seeks to position the region as the global leader in compound semiconductor enabled applications, which was initiated by an initial £12 million investment from the Welsh Government.

 

In 2016, Innovate UK – the UK Government’s innovation agency – announced it will invest £50million to establish a new Compound Semiconductor Catapult Centre of Excellence in Wales which will now locate in the CCR. This new Catapult will build on existing investment by Cardiff University, IQE plc, and Welsh Government.

 

The project has been subject to a detailed due diligence process to provide expert assurance to decision-makers that outputs are achievable and affordable. Importantly the project is not a grant or a loan – it is a commercial investment with ownership of the foundry remaining with the ten councils.

 

The proposal seeks to return the original investment plus interest over the life of the project.

 

Andrew Morgan, leader of Rhondda Cynon Taf County Borough Council, and chair of the CCR City Deal Regional Cabinet, said: “The objective of these commitments is to create a complete compound semiconductor eco-system in South Wales to take advantage of the growing prominence of compound semiconductor technologies.

 

“This requires the development and integration of a compound semiconductor supply chain in South Wales, with the economic and social benefits that will bring. This is the first tangible demonstration of this City Deal in action – sending a very clear message of a commitment to actions not words.”

 

Peter Fox, leader of Monmouthshire County Council (the Council leading the project) and Anthony Hunt, leader of Torfaen County Borough Council, who co-leads on CCR City Deal’s business and innovation portfolio, said: “The benefits of clusters are well understood, with Silicon Valley in the US being a prime example. Indeed, there are semiconductor clusters across Europe, namely around Eindhoven, Dresden, Leuven and Grenoble. However, these are based on silicon technologies, hence this is a unique opportunity for Wales to establish the world’s first compound semiconductor cluster and establish ourselves at the forefront of compound semiconductor technology globally.”

 

Drew Nelson, CEO of IQE PLC said: “We are very impressed to see that council leaders have the vision to make investments like this. IQE already has a very strong presence here, and is looking to invest in creating significant additional production capacity to support the CS cluster over the next 5 years. Our investment will see the next stage of our growth firmly rooted in CCR. If this is an example of the bold leadership that the ten Councils are going to take in the future, then we may truly see South East Wales flourish as a global high tech region.”

 

First Minister Carwyn Jones welcomed the deal, saying: “I am delighted our £12m investment has kick-started the creation of the world’s first compound semiconductor industry cluster in Newport. This major investment puts Wales at the cutting edge of this exciting technology, which has the ability to change the way we live. As well as boosting Wales’ global reputation as a leader in this field, the new site in Newport will form part of Wales’ growing hi-tech sector, which is expected to create more than 2,000 well paid, highly skilled jobs.

 

“Today’s announcement is great news for Wales – and the first of many new exciting projects set to make a real difference to the economy of South East Wales and, ultimately, to people’s lives.”

 

Colin Riordan, vice chancellor of Cardiff University said: “Compound semiconductors are at the heart of our everyday lives, and are found in everything from phones and tablets to satellite communications and laser technologies. The University has invested millions of pounds in partnership with IQE, and today’s announcement is excellent news for innovation, industry and enterprise in south Wales and beyond.

 

“It offers a real opportunity to build Europe's first compound semiconductor applications cluster and create a world-class powerhouse to commercialize next generation technologies."

 

Kevin Crofton, chairman of the Compound Semiconductor Applications Catapult, said: “We are delighted to be associated with such a bold venture. It is not often that the opportunity presents to be in at the start of something with international credentials; we very much feel that about this project.”

 

There is detailed work still to conclude but it is hoped that construction work can start in the early summer 2017.

 

WIN Semiconductor Increases Wafer Manufacturing Capacity

 

WIN Semiconductors Corp, the world’s largest pure-play compound semiconductor foundry, has completed phase 2 expansion at its newest wafer fab, Fab C. This operation is now fitted with cleanrooms, efficient process lines and advanced equipment for GaAs MMIC production, epitaxial growth of compound semiconductors, as well as fabrication and test of optical devices. Continued build-out of the new manufacturing facility further validates the pure-play foundry model in the compound semiconductor industry.

 

Serving customers in mobile PA, WiFi, wireless infrastructure and optical markets, WIN Semiconductors provides a broad portfolio of Hetero-junction Bipolar Transistor (HBT), Pseudomorphic High Electron Mobility Transistor (pHEMT), integrated BiHEMT technology solutions and optical devices. WIN Semiconductors’ manufacturing services can support most any application from 50MHz to 150GHz and through light-wave.

 

“In response to increasing demand across all market segments, we continue to add manufacturing capacity at our third wafer fab located in Guishan, Toayuan City, Taiwan. Known as Fab C, the facility now supports mass production of a wide range of compound semiconductor technologies. When fully built out, the 706,000 sq. ft. facility will more than double our capacity,” said Kyle Chen, Senior Vice President and Chief Operating Officer of WIN Semiconductors.

 

 

McIlvaine Company

Northfield, IL 60093-2743

Tel:  847-784-0012; Fax:  847-784-0061

E-mail:  editor@mcilvainecompany.com

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