SEMICONDUCTOR INDUSTRY
UPDATE
TABLE OF
CONTENTS
Cleanroom Constructor UIS Seeing Orders Swell
Samsung Electronics Invests More than the Intel-TSMC Combined
Modernization of Massachusetts Institute of Technology
Lincoln Laboratory
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Cleanroom Constructor UIS Seeing Orders Swell
Taiwan-based cleanroom maker United Information Systems (UIS) has seen its
backlog of orders reach NT$17.67 billion (US$588.92 million), according to a
report by Taiwan's Central News Agency (CNA).
The ramp-up of orders will buoy UIS' revenues for 2018 with EPS expected to
surpass NT$8, the report quoted market watchers as saying. Among the orders
received so far, about NT$7.06 billion worth of orders were placed for fab
construction projects in Taiwan while NT$8.37 billion worth of orders were for
those in China, the report indicated.
UIS is reportedly among the beneficiaries of new fab projects of Taiwan
Semiconductor Manufacturing Company (TSMC), Micron Technology and Winbond
Electronics which will be implemented in Taiwan. In China, the cleanroom
constructor is involved in the ongoing construction of new LCD fabs in Xianyang
and Chengdu, according to the report.
UIS has also landed NT$2.24 billion worth of orders for a large-scale
semiconductor project in Singapore, the report noted.
UIS' revenues for the first three quarters of 2017 decreased 13.5% from a year
earlier to NT$9.92 billion, while net profits fell 14.7% on year to NT$971
million. EPS for the nine-month period came to NT$4.08.
Samsung Electronics Invests More than the Intel-TSMC
Combined
Samsung Electronics’ investments in semiconductor facilities this year are
larger than that of the world’s largest system semiconductor producer and the
world’s biggest foundry chipmaker TSMC combined. As Samsung Electronics has made
the largest facility investment ever in its history, there is growing concern
over an oversupply of memory chips. Market watchers say Samsung is changing its
strategy that focuses mainly on profitability to that expands a memory market
share through the so-called “chicken game.”
Samsung Electronics’ investments in its semiconductor facilities will reach
US$26 billion (28.81 trillion won) this year. This is more than twice the figure
of US$11.3 billion (12.52 trillion won) last year. During the 2017 Q3 conference
call, Samsung Electronics announced to inject 29.5 trillion won (US$26.62
billion) into the semiconductor sector alone this year. IC Insights forecasts
that the total amount of facility investments in the semiconductor industry will
come to US$90.8 billion (100.61 trillion won) this year, up 35 percent from last
year. Samsung is expected to account for 28.6 percent of the total.
Samsung will inject US$14 billion (15.51 trillion won) in 3D NAND flash, US$7
billion (7.76 trillion won) in DRAM and US$5 billion (5.54 trillion won) in
foundry and others this year. The company is expected to make the investment to
increase the production capacity at its new Pyeongtaek plant in the 3D NAND
flash sector, upgrade the process node and prevent a wafer input loss in the
DRAM sector, and expand 10-nm production in the foundry sector.
IC Insights said, “Samsung’s large-scale investment will cause the oversupply of
3D NAND flash chips. It can also instigate the investment of its competitors
such as SK Hynix, Toshiba, Micron and Intel.” It means that Samsung’s move can
either increase the total investment or lose a market share.
Samsung’s huge investments will deflate the hopes of Chinese firms that seek to
push into the NAND flash and DRAM memory markets, according to the market
research firm. It said, “Considering Samsung’s investments this year, Chinese
memory chip start-ups will not be able to compete with Samsung on the same basis
unless they establish a joint venture with existing memory chip makers.”
IC Insights focused on more the 3D NAND flash sector. However, Taiwan-based
market research company TrendForce said there are concerns over the excessive
supply in the DRAM market as well citing ET News’ report on Samsung Electronics’
expanding DRAM supply on October 30.
TrendForce said, “Samsung is trying to boost the production of DRAM chips in
order to raise the barrier to market entry. This is to prevent further price
increases.” Samsung Electronics has decided to convert some space of 16 lines in
Hwaseong into DRAM production lines and produce DRAM chips on the second floor
of the new Pyeongtaek plant. Merrill Lynch also said in its report published
earlier this month that Samsung Electronics’ monthly DRAM production capacity
will increase more than 20 percent in the next two years.
There is consensus in the industry that the memory boom will last until the
first half of next year and droop from the second half. The general opinion is
that it face difficulties in 2019. Samsung Securities and KB Investment &
Securities have recently downgraded their investment opinions on SK Hynix from
“buy” to “neutral.”
However, Kim Young-woo, a senior analyst at SK Securities, said, “The Taiwanese
market research firm forecasted that there would be an oversupply earlier this
year as well but the forecast is wrong when it comes to results. There will be
no excessive supply because the amount of production will not dramatically
increase even with larger investments than past as DRAM and 3D NAND flash chips
have a higher level of process difficulty. In addition, there is a greater
demand for memory chips in cloud infrastructure. Samsung cannot afford to boost
the output while reducing its profits.”
Modernization of Massachusetts Institute of
Technology Lincoln Laboratory
The New England District, U.S. Army Corps of Engineers (USACE), selected a
CH2M-led joint venture with Burns & McDonnell (BMcD) to design an advanced
Compound Semiconductor Laboratory – Microelectronics Integration Facility at the
Massachusetts Institute of Technology Lincoln Laboratory, a federally funded
research and development center located on Hanscom Air Force Base in Bedford,
Massachusetts. The CH2M team was competitively selected for the project-specific
Architect-Engineering contract in accordance with the Brooks Act.
Funded by the Air Force Civil Engineer Center (AFCEC), the new laboratory will
be fitted for developing advanced technologies that are applied to problems of
national security.
Currently spread across several buildings, including some 1950s-era facilities,
MIT Lincoln Laboratory is confronting the limitations of an infrastructure that
is aging and not structurally designed for modern research. "This modernization
will consolidate the aging facility into an energy-efficient building, with
state-of-the-art features," said CH2M Senior Vice President and Department of
Defense Portfolio Lead Tim Byers.
MIT Lincoln Laboratory provides systems architecture, long-term technology
development, prototyping and system demonstration in diverse mission areas such
as:
Air, missile and maritime defense.
Homeland protection and air traffic control.
Communications systems.
Cyber security.
Space control.
Intelligence, surveillance and reconnaissance systems.
"The CH2M – BMcD JV team will provide design and construction-phase services to
support the Laboratory's ability to meet changing mission needs over the next 30
years," said Byers.
Ranked No. 1 in semiconductor design, No. 2 in manufacturing and No. 4 in
government offices by Engineering News-Record, CH2M has spent the last three
decades pioneering and leading design of high-tech facilities in the
semiconductor and related microelectronics industries. The firm has designed
more than 5 million square feet of Class 10 clean rooms and 250 semiconductor
research and manufacturing projects worldwide. CH2M has served the USACE for
approximately 50 years and the Air Force for 30 years.
Burns & McDonnell has designed more than 250 new and renovated research,
manufacturing, chemical, medical, and pharmaceutical laboratories. Ranked
in the Top 50 Design Firms and No. 7 in government offices by Engineering
News-Record, the company has worked with the AFCEC and USACE for more than 20
years.
About CH2M
CH2M leads the professional services industry delivering sustainable solutions
benefiting societal, environmental and economic outcomes with the development of
infrastructure and industry. In this way, CH2Mers make a positive difference
providing consulting, design, engineering and management services for clients
needing world-class solutions in environmental; industrial and advanced
facilities; transportation; and water markets, from iconic infrastructure to
global programs like the Olympic Games.
Ranked among the World's Most Ethical Companies and top firms in environmental
consulting and program management, CH2M in 2016 became the first professional
services firm honored with the World Environment Center Gold Medal Award for
efforts advancing sustainable development.
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