SEMICONDUCTOR INDUSTRY
UPDATE
March 2019
McIlvaine Company
Source Photonics Opens New Laser Fab and
Transceiver Assembly Facility in China
1366 Technologies and Hanwha Q CELLS
Partner on Manufacturing Process
Micron Manassas Cleanroom Expansion, Manassas, VA
Toshiba Memory and Western Digital Open New Facilities
in Japan
Amkor Opens New Semiconductor Package
Manufacturing and Test Plant
Linde to Launch Gas
Facilities in Tainan
More Investments in Semiconductor Fabs
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Source Photonics Opens New Laser Fab and
Transceiver Assembly Facility in China
Source Photonics Inc of West Hills, CA, USA (which provides optical connectivity
products for data centers, metro and access networks) has confirmed the opening
of its new fabrication facility in Jintan, China, to support its global growth,
enhancing what is reckoned to be an advantage in the optical communications
industry in which most manufacturers are fabless.
The new fab will double the firm’s capacity of indium phosphide (InP) lasers and
related components and will augment its existing fab in Hsinchu, Taiwan, which
has itself doubled its output over the past three years.
Constituting a total investment of over $50m, the new Jintan fab includes a
fully integrated laser chip production capability, high-precision TO operations,
and an R&D facility to support the firm’s global technology roadmap and regional
customers. Its chip capabilities include base wafer, regrowth and chip
processing, while its TO operations will support the requirements emerging for
high-speed PON and 5G markets.
This investment follows recent expansions at the facility in Hsinchu, Taiwan
(which has over 20 years of experience in laser production) including
significant expansion in metal-organic chemical vapor deposition (MOCVD) and
advanced coating technologies. The Taiwan facility also recently completed
expansions to support transceiver assembly in support of customers’ demands for
resiliency in their supply chains.
“These new investments support our integrated manufacturing approach, which is
critical to meeting the ever-growing needs of our customers,” says CEO Doug
Wright. “Managing the entire value chain from laser production through
transceiver assembly gives Source Photonics differentiated capability that
enhances speed to market, yields manufacturing innovations, and offers
flexibility our customers demand,” he adds.
The new facility includes R&D and reliability lab facilities and is fabricated
in accordance with the firm’s proprietary Source Management System (SMS), which
is built around Lean practices. Environmental controls include a zero-discharge
waste treatment capability that meets the highest standards in environmental
stewardship, the firm says.
1366 Technologies and Hanwha Q CELLS
Partner on Manufacturing Process
Silicon wafer manufacturer 1366 Technologies together with its strategic
partners, Hanwha Q CELLS Malaysia Sdn. Bhd. and parent company Hanwha Q CELLS
Co., Ltd. (together, “Hanwha Q CELLS”), formally announced their scaling plans
for the groundbreaking Direct Wafer® technology. The plans underscore
1366 Technologies and Hanwha Q CELLS’ shared commitment to realizing dramatic
Levelized Cost of Energy (LCOE) reductions for their customers and to advancing
the economic strength of the solar industry.
As a result of the ongoing collaboration between 1366 Technologies and Hanwha Q
CELLS, the world’s first production factory to feature the Direct Wafer
manufacturing process (the “Direct Wafer Factory”) is near completion.
The Direct Wafer Factory, located in Cyberjaya, Malaysia, is situated next to
Hanwha Q CELLS’ existing cell and module manufacturing facilities and will
produce Direct Wafer products to directly supply their cell and module
production lines. The Direct Wafer Factory is expected to ramp no later than Q3
2019 and – provided that the initial footprint meets key performance criteria
–has the potential to become the cornerstone for a multi-GW-scale production
facility.
“At the heart of Hanwha Q CELLS’ global leadership is the pursuit of innovation
and the exploration of new methods and technologies that can deliver the most
value to our customers,” said Ji Weon (Daniel) Jeong, CTO of Hanwha Q CELLS. He
continued that, “In line with this commitment to customer value, Direct Wafer
technology will innovate the manufacturing process and, as a result, the quality
of the products manufactured.”
Also this year, 1366 Technologies, in response to the rapid wafer price decline,
made a strategic decision to accelerate the development of “3D Wafers” – thin
wafers with thick borders – and is continuously producing 3D Wafer products in
its Bedford, MA demonstration facility. While standard wafers grown from the
melt are compelling on their own, the invention of a wafer that is thinner than
the standard 180 microns in certain controlled regions, but retains strong and
robust edges to be used in conventional, or nearly conventional, photovoltaic
applications has significant implications for the industry. It provides
manufacturers with a solution to reduce silicon usage without compromising
existing standards or quality and makes it possible to realize industry
advancements in cell architecture or module features.
Most importantly, the 3D Wafer capabilities of the Direct Wafer process will
further reduce silicon utilization to less than 1.5g/W to create a cost position
unattainable with conventional ingot-based production technologies.
“This past year has been filled with extraordinary accomplishments. We have
moved rapidly to fill the void in a wafer manufacturing industry that leaves
little room for innovation and ignores the strategic potential of the solar
cell’s most expensive component,” said Frank van Mierlo, CEO, 1366 Technologies.
“We are thrilled to take this next step with Hanwha Q CELLS. It is a major
milestone in a partnership already recognized for its numerous achievements.”
ABOUT 1366 TECHNOLOGIES:
1366 Technologies is consistently recognized as one of the world’s most
innovative companies in energy. Its Direct Wafer® technology replaces
a decades-old solar manufacturing process to make a superior class of silicon
wafers, the building blocks of solar panels. These wafers deliver high
performance and an unbeatable cost advantage to cell and module manufacturers
seeking innovations that yield a significant reduction in levelized cost of
energy (LCOE) and will help them win in the age of terawatt solar. 1366
Technologies is headquartered in Bedford, MA.
Micron Manassas Cleanroom Expansion, Manassas, VA
Cost: The expansion represents $3 billion in capital investment by 2030.
Size: 200,000 sq. ft.
Micron will invest $3 billion by 2030 to further develop memory and storage
semiconductor solutions at its operation in Manassas, VA, creating approximately
1,100 new jobs over the next decade. Micron’s expansion is set to be among the
largest manufacturing investments in the history of Virginia, solidifying Micron
as one of the Commonwealth’s largest exporters. These investments are
contemplated in Micron’s long-term model to invest capital expenditure in the
low thirties as a percent of revenue.
The expansion will position the Manassas site — located about 40 miles west of
Washington, D.C. — to support Micron’s leadership in the rapidly growing market
for high quality, high reliability memory products.
The initial cleanroom expansion is expected to be completed in the fall of 2019
with production ramp in the first half of 2020. This expansion will add less
than 5 percent to Micron’s global cleanroom space footprint and will primarily
support enablement of DRAM and NAND technology transitions as well as modest
capacity increase at the site, in-line with growing customer demand for Micron’s
long-lifecycle products.
As part of this expansion, Micron will also establish a global research
development center in Manassas for the development of memory and storage
solutions focused mainly on the automotive, industrial, and networking markets.
The research and development center will include laboratories, test equipment,
and a staff of approximately 100 engineers.
Completion date: Fall 2019
Toshiba Memory and Western Digital Open New
Facilities in Japan
New data center facilities in Japan have launched in Japan with the intent to
meet relentless demand.
Toshiba Memory Corporation and Western Digital Corporation celebrated the launch
of a new semiconductor fabrication facility (Fab 6) and the Memory R&D Centre at
Yokkaichi operations in Mie Prefecture, Japan.
“We are excited about opportunities to expand the market for our latest
generation of 3D flash memory,” says Toshiba Memory president and CEO Dr. Yasuo
Naruke.
“Fab 6 and Memory R&D Centre enable us to maintain our position as a leading
player in the 3D flash memory market. We are confident that our joint venture
with Western Digital will allow us to continue producing leading edge memories
at Yokkaichi.”
Construction of Fab 6, a dedicated 3D flash memory fabrication facility, began
way back in February 2017. During this process both companies have implemented
new cutting-edge manufacturing equipment for key production processes like
deposition and etching.
Earlier this month Fab 6 produced its first offering with the facility now mass
producing 96-layer 3D flash memory.
Dr Naruke is confident demand for 3D flash memory will continue to grow in the
years ahead across enterprise servers, data centers, and smartphones. The
company will be making further investments in the industry in line with market
trends.
Earlier this year the Memory R&D Centre began operations directly adjacent to
Fab 6, with the goal to explore and promote advances in 3D flash memory
development.
“We are pleased to be opening Fab 6 and the Memory R&D Centre with our valued
partner Toshiba Memory. For nearly two decades, the successful collaboration
between our companies has fostered growth and innovation of NAND flash
technology,” says Western Digital CEO Steve Milligan.
“We are ramping production of 96-layer 3D NAND to address the full range of end
market opportunities from consumer and mobile applications to cloud data
centers. Fab 6 is a cutting-edge facility that will enable us to further our
technology and cost leadership position in the industry.”
The two companies assert their partnership will continue with the intent to
cultivate the memory business by actively developing initiatives aimed at
strengthening competitiveness, advancing joint development of 3D flash memory,
and making capital investments according to market trends.
Amkor Opens New Semiconductor
Package Manufacturing and Test Plant
Amkor Technology announced on September 10th the opening of its new
manufacturing and test plant at Longtan Science Park in Taiwan.
“Demand for Amkor’s advanced assembly and test services in Taiwan continues to
increase. The opening of our fourth factory in Taiwan will allow us to keep pace
with that demand,” said Steve Kelley, Amkor’s president and CEO. “Our new
Longtan facility will focus on wafer probe and die processing, complementing the
wafer-level and other advanced packaging capabilities of our other three
factories.”
The new facility is Amkor’s first manufacturing plant in Longtan Science Park,
which is well known for incubating Taiwanese high-tech businesses, including
those in the semiconductor industry. The Science Park has strict environmental
protection standards and only companies that are in full compliance are
permitted. Amkor is also seeking ISO 15408 Common Site Criteria certification
for the Longtan plant to ensure rigorous security protection during the
manufacturing process.
“I am pleased to announce the opening of our new factory in Longtan, which
enters its production phase this month,” said YongChul Park, Amkor’s executive
vice president, Worldwide Manufacturing. “This expansion signifies Amkor’s
ongoing commitment to invest globally and showcases our ability to leverage
resources internationally.”
Linde to Launch Gas
Facilities in Tainan
Chip production is likely to see an annual rise of 8 to 12 percent this year,
requiring more of the gases used in their manufacture, the company said
Linde AG, the world’s largest supplier of industrial gases, plans to launch new
gas separation facilities and gas distribution systems in Tainan next year to
meet rising demand as semiconductor clients churn out more advanced chips from
new fabs.
The new gas facilities primarily aim to supply gases to local memory chip makers
and foundries, which operate cutting-edge fabs at the Southern Taiwan Science
Park in Tainan. The science park is less than 10km from Tree Valley Park, where
Linde’s new facilities are.
“We do see [customer] demand continuing to grow, so we also expand accordingly,”
Jason Chow (周祖菴),
head of Linde’s local venture, Linde LienHwa Industrial Gases Co (聯華林德),
told the Taipei Times on the sidelines of the annual SEMI Taiwan trade show in
Taipei.
“The latest and biggest investment is in Tainan’s Tree Valley Park, where we are
building a big air separation village [facilities] and a distribution system [to
deliver gas] through underground networks,” Chow said.
The facilities are to be completed next year, he said.
Chow declined to disclose the financial details of the investment in Tree Valley
Park, saying Linde LienHwa has a strong commitment to continuing its investment
in Taiwan to cater to customer demand.
The Linde Group has invested a combined US$1 billion in Taiwan and China over
the past few years.
Linde LienHwa, a joint venture between the Munich-based group and Taiwan’s Lien
Hwa Industrial Corp (聯華實業),
operates four plants and an electronics research and development center at the
Central Taiwan Science Park in Taichung, with about 1,600 employees in total.
The company supplies bulk gases, such as oxygen, to facilitate the operations of
fabs, as well as special gases used in most chip manufacturing processes.
Linde LienHwa has built a strong customer base in Taiwan, including almost all
listed chipmakers. It also helps manage on-site gas and chemical-related
facilities and in-fab piping systems for clients.
As most new semiconductor investments have been in the Asia-Pacific region, the
company is “shifting a lot of investment and resources to Asia, [especially to]
Taiwan and China,” said Anish Tolia, Head of Global Marketing, Linde
Electronics.
“Asia overall is very important to Linde. Taiwan is the biggest region for us”
by revenue, Tolia said.
Linde operates several plants in Wuhan, Shanghai and other cities in China,
which ranks as one of the top three markets for the group in Asia.
Overall, industrial gases are a growing market, thanks to increasing diversity
of applications for semiconductors and the increasing intensity of processing
and memory requirements for applications like artificial intelligence and
augmented reality, Linde said in an e-mail to the Taipei Times.
Excluding memory chips, the world semiconductor industry is to grow at an annual
pace of between 5 and 10 percent this year by revenue, Linde said.
More important for material and gas producers like Linde is that the number of
chips produced is forecast to increase by 8 to 12 percent year-on-year this
year, the company said.
The amount of chips is directly proportional to the materials and gases required
to make them, it added.
Beyond that, new technologies consume more materials and more gases than
previous generations, as semiconductor manufacturing process technologies become
more complicated and more layers are added to make a chip, Tolia said.
More Investments in Semiconductor Fabs
Global fab construction investment shows continuing strength, with 19 new fab
projects expected to begin construction in 2019 and 2020, based on the latest
data published in SEMI’s World Fab Forecast.
Fab investment is just one indicator of how growing demand in areas such as
high-performance computing, data storage, artificial intelligence (AI), cloud
computing, and automotive are driving the fourth consecutive year of spending
growth in the semiconductor industry. Below are a few highlights* from
September’s SEMI FabView:
Micron plans to invest $3 billion by 2030 in Manassas, Virginia – These
investments, driven by strong demand for automotive applications, are
contemplated in Micron’s long-term model. The production ramp is anticipated to
be in the first half of 2020.
SK Hynix to build new DRAM fab in Icheon (Gyeonggi Province), Korea – The
construction, to be completed by the end of 2020, will adopt 1znm node (probably
EUV). Total investment is estimated to exceed $13 billion.
Nanya Technology doubles 2018 capex plan – The increase is for additional DRAM
capacity and more 20nm DRAM conversion (from 30nm).
200mm and below: Not leading edge, but continues to draw investment
Vanguard changes fab investment strategy – Vanguard will focus on 200 mm and has
scrapped its plan for 300mm expansion.
Murata to invest into 150mm expansion – Murata announced a 5 billion Yen
investment (US$44.6 million) in a new fab extension in Vantaa, Finland.
Texas Instruments is looking to invest $3.2 billion in new fab construction in
2019 – Texas Instruments is eyeing Richardson, Texas and also considering sites
outside Texas.
Bosch 300mm fab in Dresden, Germany – Bosch held a groundbreaking ceremony on
April 24. Equipment installation is expected in 2H19.
Microchip completes acquisition of Microsemi – Microchip closed its $8.45
billion acquisition of Microsemi on May 29. Microsemi has five fabs in the U.S.
with a wide range of semiconductor products and system solutions.
New fabs in China keep on coming
Shanghai Jita Semiconductor/Huada Semiconductor – Shanghai Jita Semiconductor, a
subsidiary of Huada Semiconductor and China Electronics Corporation (CEC),
announced plans earlier this month to build both 200 mm and 300 mm semiconductor
fabs for analog and power semiconductors in Shanghai. The combined fab
investment will total $5.18 billion.
Hamamatsu Photonics building 200 mm fab – Hamamatsu announced that it is
building a new facility Investment of 2.8 billion Yen (US$25 million) to boost
opto semiconductor capacity. Production is anticipated to start in late 2019. By
Christian G. Dieseldorff and Eugenia Liu.
McIlvaine Company
Northfield, IL 60093-2743
Tel:
847-784-0012; Fax:
847-784-0061
E-mail:
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