SEMICONDUCTOR INDUSTRY

UPDATE

March 2018

McIlvaine Company

 

TABLE OF CONTENTS

 

Siltectra Expands HQ in Dresden

ClassOne Equipment Selected to Upgrade Major UK Fab

Samsung Breaks Ground on New Semiconductor Line

Samsung Building New 7nm Foundry Plant

ACM Research Announces Expansion of Manufacturing Facility

ASML to Expand Connecticut Manufacturing Facility

Air Products to Supply Samsung Electronics’ Second 3D V-NAND Fab

Samsung Begins Mass Production of Embedded Universal Flash Storage

Shenzhen MTC to Invest in LED Chip Production

CS Clean Solutions Updates Munich Refill Facility

TSMC Started Construction of Its 5nm ‘Fab 18’ In Taiwan

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Siltectra Expands HQ in Dresden

In a move that marks its shift to production, Siltectra has announced that it recently expanded its headquarters in Dresden’s Technologie Park Nord and added a state-of-the-art pilot production line to the larger 9,684 sq. ft. (900 square meter) facility.

At the heart of the pilot line is the company’s Cold Split laser-based wafer thinning technology, designed to cut costs for makers of devices based on advanced substrates like SiC, GaN, and sapphire, as well as silicon.

The new pilot line, which is already processing customers’ substrates, is a central piece of Siltectra’s growth strategy, says the company’s CEO, Harald Binder.

“With the industry steadily transitioning to advanced substrates to build devices like power electronics, there is soaring interest in new technologies that can improve performance and contain costs. We’re hearing daily from leading integrated device manufacturers (IDMs) who are eyeing advanced wafering technologies, in particular, to exact cost-reductions in their mass-production fabs.

This has generated high interest in our Cold Split technology. We’re very pleased now to have advanced capabilities to cater to these customers."

Siltectra’s CTO, Jan Richter, added: “The pilot line gives us the critical infrastructure to accelerate our path to production and expand R&D to hit aggressive milestones on our technology roadmap. Cold Split is already out-performing traditional grinding methods by thinning wafers to 100 microns and below in minutes, with virtually no material loss.

Now, we’re in final-phase testing of extended capabilities that exploit the technology’s maximum potential. Results so far are very exciting. We believe that the additional innovations have the potential to deliver substantial cost savings to manufacturers of SiC-based devices."

 

ClassOne Equipment Selected to Upgrade Major UK Fab

ClassOne Equipment, Atlanta-based provider of refurbished name-brand semiconductor processing equipment, has announced the sale of multiple systems to a major global components manufacturer as part of a significant upgrade to their UK fab. Semitool Batch Spray Solvent Tools and Tepla barrel etch processing equipment – all refurbished by ClassOne – will be installed at the customer facility in England.

“They selected ClassOne for two important reasons," said ClassOne CEO, Byron Exarcos. “First, our refurbished tools are providing “better-than-new" performance because the equipment is completely refurbished from the frame up, replacing all older-technology elements with current state-of-the-art parts – such as the advanced Windows 7 control systems. And secondly, ClassOne is able to provide this customer with a very strong local service and support infrastructure in the UK, which is essential to their operation."

"This is a milestone fab upgrade, and we’re proud to be playing an important role in it," said Exarcos. "Because we’ve built a strong relationship with this particular customer for nearly a decade. Now we're able to support their UK facility with a local team of senior product, process and field service engineers – and with the fast response times they're looking for."

Exarcos noted that ClassOne's UK support group has over 100 years of combined experience specifically on Semitool equipment and single-wafer systems. He cited this as an example of ClassOne’s ongoing initiative to provide “an unbeatable level of quality products and support" across Europe for single-wafer electroplating, batch spray tools, and other process equipment.

In addition to the refurbished systems sold by ClassOne Equipment, ClassOne also sells its own brand of new processing systems through a sister company, ClassOne Technology. These include new Solstice electrochemical plating systems and Trident spray solvent tools (SSTs) as well as new spin rinse dryers (SRDs). The stated goal of both ClassOne companies is to provide advanced processing solutions for a broad range of budget-conscious users, many of whom are in emerging technologies.

 

Samsung Breaks Ground on New Semiconductor Line

The US$6 billion investment at Samsung's production site in Hwaseong will enter operation in 2020

Samsung Electronics has announced that construction work has begun in Hwaseong, Korea, for a new EUV (extreme ultraviolet) semiconductor line. The new facility will produce semiconductors under 7-nanometers for use in next-generation mobiles and servers.

The US$6 billion investment, the company said, aims to maintain leadership in state-of-the-art semiconductor technology. The new facility is expected to be completed within the second half of 2019 and start production ramp-up in 2020.

Speaking at the groundbreaking ceremony, Kinam Kim, President & CEO of Device Solutions at Samsung Electronics, said: “With the addition of the new EUV line, Hwaseong will become the center of the company’s semiconductor cluster spanning Giheung, Hwaseong and Pyeongtaek in Korea.

“The line will play a pivotal role as Samsung seeks to maintain a competitive edge as an industry leader in the coming age of the Fourth Industrial Revolution.”

With this new EUV line, Samsung will be able to strengthen its leadership in single nanometer process technology by responding to market demand from various applications, including mobile, server, network, and HPC (high-performance computing) for which high performance and power efficiency are critical.

Samsung has decided to utilize cutting-edge EUV technology starting with its 7-nanometer (nm) LPP (Low Power Plus) process. This new line will be set up with EUV lithography equipment to overcome nano-level technology limitations.

The Korean technology company has continued to invest in EUV R&D to support its global customers for developing next-generation chips based on this leading-edge technology.

With memory chips in short supply, the South Korean semiconductor giant is set to invest approximately $27 billion USD in its DRAM and NAND business. The Pyeongtak memory production facility opened its gates in July 2017, with the current production line set to operate at 70 percent capacity as a result this year's scheduled investments. “The investment is aimed at better preparing for future market demand. Any details related to production will be determined after taking market situations into account,” Samsung commented in an email to Reuters.

News of the company's plans to expand its memory business comes after a strong 2017 which saw the company make a record $14 billion profit driven primarily by its component business. In addition to investments in the existing facility, a second Pyeongtak production facility is also being planned. Exact ground-breaking dates have not been announced, but mass production of chips in Pyeongtak's second production unit could be set for 2020.

In the meantime, DRAM and NAND flash memory prices are set to increase further during 2018 due to strong market demand, according to Gartner.

 

Samsung Building New 7nm Foundry Plant

Samsung’s semiconductor division is a veritable cash cow for the company which is why it has been pouring money into its manufacturing facilities to meet rising demand and further consolidate its position in the market. The company decided to invest in a new memory chip production line recently at its Pyeongtaek plant to better prepare for future demand.

Taiwan-based TSMC got a leg up on Samsung by focusing on the 7nm process earlier and Samsung now wants to catch up by building a new foundry plant equipped with advanced process technologies in Hwaseong, Gyeonggi Province, South Korea.

A South Korean news outlet has reported that Samsung is going to break ground this week for a new 7-nanometer foundry plant. It’s going to hold a ceremony with some 100 local residents in Hwaseong to mark the ground breaking. A Samsung official has said that this new plant is planned to be used largely for foundry production but it could be expanded further to produce other components.

The new 7nm foundry will be equipped with the latest Extreme Ultraviolet lithography equipment imported from the Netherlands. Samsung’s 7nm process will be superior to rivals like TSMC because it’s going to use EUV technology compared to the traditional optical process used by TSMC.

Samsung expects to start mass producing 7nm chips at this facility from next year.

ACM Research Announces Expansion of Manufacturing Facility

The single-wafer wet cleaning equipment maker prepares to build 18,000 sq. ft of cleanroom space for product assembly and testing at its site in Shanghai.

ACM Research, a wafer cleaning technology specialist, has announced plans to expand its manufacturing facility in Shanghai, China. The $1.5 million investment will create additional production capability that can support more than $250 million of revenue. The expansion is expected to be completed in the second quarter of 2018.

The manufacturing facility in Shanghai currently has a total of 36,000 sq. ft, with 8000 sq. ft of Class 10,000 cleanroom space for product assembly and testing, plus 800 sq. ft of Class 1 cleanroom space for product demonstration purposes.

ACM’s president and CEO, Dr. David Wang, said: “We anticipate rapid growth in demand for our industry-leading Smart Megasonix cleaning technologies and with this project are preparing to meet our customers’ needs for on-time delivery of high quality tools.”

“This expansion in China puts our production in close proximity to a significant amount of new FAB construction across Asia, enabling us to deliver tools to customers more quickly and with less transportation cost and risk.”

“Our China-based engineering teams can also better serve customer needs during design, installation and acceptance testing. This investment further establishes ACM as a global leader in our segment of semiconductor manufacturing equipment.”

Headquartered in California, US, ACM Research operates facilities in China and Korea.

 

ASML to Expand Connecticut Manufacturing Facility

ASML, global manufacturer of chip-making equipment, is planning to substantially grow its operations in Wilton, Connecticut through an expansion project that will see the creation of up to 524 new jobs added to its current workforce in the town of 1,222 employees.

The company intends to expand its Wilton operations to include the construction of a parking garage, expansion of its manufacturing and engineering operations, and substantial interior renovations as part of a potentially $100 million project.

ASML invents, develops, manufactures, and services advanced technology for high-tech lithography, metrology and software solutions. These are used by all the world’s top chipmakers to create chips that power a wide array of electronic, communications, and information technology products.

“We are thrilled that ASML – a world leader in semiconductor manufacturing – has decided to significantly expand their manufacturing and R&D operations right here in Connecticut," Governor Malloy said. “These newly created, high-paying jobs are exactly the kind of opportunities that our economic development efforts have helped generate. Additionally, our work in expanding STEM skills at all levels of education will allow ASML and all of our advanced manufacturers to find the talent they need to ensure their continued success and growth here in the state."

“ASML Wilton has a long local history. For the past 30 years, we continually invested in our state-of-the-art manufacturing facility and highly educated workforce, which has been critical to our ongoing success and growth," Bill Amalfitano, General Manager of ASML Wilton, said. “We now enter our next phase of development and remain committed to realizing our vision in Connecticut. The co-location of design engineering, procurement, and manufacturing creates an inspiring environment, as well as generates strong job growth."

The State of Connecticut and ASML have signed a letter of intent, and upon completion of a definitive agreement, the state, through the Department of Economic and Community Development (DECD) will provide up to $14 million in grants through Governor Malloy’s First Five Plus Program to support the expansion project. The total amount of funding the company will be eligible to receive is based on the creation of up to 524 new jobs within specific timeframes over the next eight years. The company is also eligible to utilize up to $6 million in potential tax credits. In return, pursuant to the definitive agreement, ASML will agree to retain 1,222 jobs and create up to 524 new jobs.

“The First Five Plus Program continues to be an invaluable tool for supporting large-scale expansions of key state employers," DECD Commissioner Catherine Smith said. “We are delighted that ASML made the business decision to invest in our state and we look forward to supporting their workforce growth over the next several years."

Signed into law in 2011, the First Five Plus program supports large-scale economic development projects to encourage job creation, new capital investment, and business expansion or relocation. In January, DECD released an analysis of the flagship economic development program that showed the first fifteen participating companies had created about 4,600 jobs and were well on their way to the top level job creation of 5,874 new jobs. The companies are investing over $1.7 billion within Connecticut – over five times the amount of assistance the state has provided through grants and loans.

 

Air Products to Supply Samsung Electronics’ Second 3D V-NAND Fab

Air Products announced it has been awarded the industrial gases supply for Samsung Electronics’ second semiconductor fab in Xi’an, Shaanxi Province, western China.

The Xi’an fabrication line, within the Xi’an High-tech Zone (XHTZ), represents one of Samsung’s largest overseas investments and one of the most advanced fabs in China. It produces three-dimensional (3D) vertical NAND (V-NAND) flash memory chips for a wide range of applications, including embedded NAND storage, solid state drives, mobile devices, and other consumer electronics products.

Air Products has been supporting this project since 2014 from a large site housing two large air separation units (ASUs), a hydrogen plant and a bulk specialty gas delivery system. Under the new award, Air Products will expand its site by building several large ASUs, hydrogen and compressed dry air plants, and a bulk specialty gas supply yard to supply ultra-high purity nitrogen, oxygen, argon, hydrogen and compressed dry air to the new fab, which is scheduled to be operational in 2019.

“Samsung is a strategic and longstanding customer for Air Products. It is our honor to have their continued confidence and again be selected to support their business growth and this important project in western China,” said Kyo-Yung Kim, president of Air Products Korea, who also oversees the company’s electronics investment in the XHTZ. “We have been supplying the project with proven safety, reliability and operational excellence. This latest investment further reinforces our global leading position and commitment to serving our valued customer, as well as the broader semiconductor and electronics industries.”

Continuing to build its strong relationship with Samsung Electronics, Air Products also recently announced the next phases of expansion to build two more nitrogen plants serving the customer’s giga fab in Pyeongtaek City, Gyeonggi Province, South Korea.

A leading integrated gases supplier, Air Products has been serving the global electronics industry for more than 40 years, supplying industrial gases safely and reliably to most of the world’s largest 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.

 

Samsung Begins Mass Production of Embedded Universal Flash Storage

Samsung Electronics Co., Ltd. announced that it has begun mass production of a 256-gigabyte (GB) embedded Universal Flash Storage (eUFS) solution with advanced features based on automotive specifications from the JEDEC UFS 3.0 standard, for the first time in the industry.

Following the memory breakthrough of the automotive industry’s first 128GB eUFS in September 2017, Samsung’s automotive 256GB eUFS is now being shipped to automotive manufacturers preparing the market for Advanced Driver Assistance Systems (ADAS), next-generation infotainment systems and new-age dashboards in luxury vehicles.

As thermal management is crucial for automotive memory applications, Samsung’s 256GB eUFS extends the temperature range to between -40°C and 105°C for both operational and power-saving modes. Warranties for conventional embedded multimedia card (eMMC) 5.1 solutions generally cover -25°C to 85°C for vehicles in operation and -40°C to 85°C when in idle or power-saving mode.

“With the new temperature threshold for automobile warranties, major automotive manufacturers can now design-in memory that’s even well suited for extreme environments and know they will be getting highly reliable performance,” said Kyoung Hwan Han, vice president of NAND marketing at Samsung Electronics. “Starting with high-end vehicles, we expect to expand our business portfolio across the entire automotive market, while accelerating growth in the premium memory segment.”

Samsung’s 256GB eUFS not only can easily endure the new temperature specification, despite the heat-sensitive nature of memory storage, but also through its temperature notification feature, a sensor will notify the host application processor (AP) when the device temperature exceeds 105°C or any pre-set level. The AP would then regulate its clock speed to lower the temperature to an acceptable level.

Sequential reads for the 256GB eUFS can reach 850 megabytes per second (MB/s), which is at the high end of the current JEDEC UFS 2.1 standard, and random read operations come in at 45,000 IOPS. In addition, a data refresh feature speeds up processing and enables greater system reliability by relocating older data to other less-used cells.

The temperature notification, developed by Samsung, and data refresh features are included in UFS specification, version 3.0, which was announced last month by JEDEC, a global semiconductor standards organization.

Samsung plans to bolster its technology partnerships with global automakers and component providers, and continue expanding its eUFS line-up with an aim to lead the premium memory market.

 

Shenzhen MTC to Invest in LED Chip Production

China-based LED packaging service provider Shenzhen MTC will have its subsidiary Jiangxi MTC Semiconductor purchase 100 MOCVD sets from Advanced Micro-Fabrication Equipment (AMEC), according to industry sources.

Jiangxi MTC is constructing a plant with total floor space of 3,012,800 sq. ft. (280,000 square meters). The construction will be completed in first-quarter 2018 and MOCVD sets from the China-based supplier will be installed in the following quarter, the sources said.

Monthly production capacity of over 400,000 4-inch LED epitaxial wafers will be operational in fourth-quarter 2018, the sources noted. Shenzhen MTC plans to invest a total of CNY4.65 billion (US$732 million) in the subsidiary's LED chip production, including subsequent capacity expansion, over 12 years. The chips will be mainly for in-house use.

Along with increased packaging for backlighting and lighting, Shenzhen MTC's demand for LED chips has been increasing, prompting it to build in-house chip production capacity, the sources explained.

Viewing that Sanan Optoelectronics and HC SemiTek, the two largest China-based LED epitaxial wafer and chip makers, will see new capacities come online in 2018, Shenzhen MTC's move may worsen the LED chip oversupply, the sources indicated.

 

CS Clean Solutions Updates Munich Refill Facility

CS Clean Solutions AG has announced a new facility for the refurbishment and service of waste gas treatment columns. It opened the modernized facility at its Ismaning (Munich, Germany) headquarters follows successful completion of a 12-month trial phase.

Unused process gases and hazardous by-products from plasma etch, CVD and similar semiconductor processes must be removed efficiently and safely from exhaust lines to ensure safety of personnel and compliance with regulatory emission standards. For over 30 years, users of the Cleansorb range of dry scrubber products in Germany, Austria and Switzerland have enjoyed a comprehensive maintenance package comprising a take-back and disposal service for the spent absorber material. Similar customer support is available in other countries through the CS Clean Solutions network of local service centers.

Expansion of the service center at the Munich facility was necessary to increase throughput and keep pace with the steady growth in semiconductor research and processing in recent years, particularly in the III-V sector. The modernized facility has been re-built from scratch in a dedicated building which is equipped to the highest standards of operator safety and materials handling.

The Cleansorb waste gas abatement system removes hazardous process gases by chemical conversion to stable solids at ambient temperature (chemisorption). No external heating, waste water, or other facilities are required for operation. Hence, the Cleansorb system is fully passive, and is permanently on standby, even in the event of a power- or other facilities failure.

 

TSMC Started Construction of Its 5nm ‘Fab 18’ In Taiwan

At the Southern Taiwan Science Park near Tainan City, the groundbreaking ceremony for TSMC’s next major 12-inch gigafab was held. TSMC chairman Dr. Morris Chang led the event, gold shovel in hand, marking a milestone in the firm’s 30-year history. The Fab 18, Phase 1 facility will be TSMC’s fourth 12-inch gigafab in Taiwan, and the first to produce 5nm chips.

Following the groundbreaking ceremony contractors will move in to construct Phase 1. It is hoped that manufacturing equipment will be installed in Q3 2019 with volume production in early 2020. Phase 2 will also enter volume production that year. However, Phase 3, with its construction scheduled to start in Q3 2019, won’t hit volume production until 2021. TSMC says that once up and running, the triple phase Fab 18’s output will exceed a million 12-inch wafers per year. It will support at least 4,000 “high quality jobs”. Interestingly, the cleanroom area of Fab 18 will be approximately the same size as 25 football fields. Fab 18’s total floor area is about six times larger than the cleanroom area.

The investment in Fab 18 will be over NT$500 billion (approx. £12 billion). Already TSMC has spent NT$200 billion (£4.8 billion) on 5nm technology R&D, which it has been working on since at least 2015.

TSMC plans to locate its first 3-nanometer production facilities in Southern Taiwan Science Park too. Back in October 2016 we heard that over 300 personnel were already dedicated to 3nm R&D. With all these ambitious plans in place, the current TSMC chairman, Morris Chang, plans to retire in June, aged 86.

McIlvaine Company

Northfield, IL 60093-2743

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

E-mail:  editor@mcilvainecompany.com

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