SEMICONDUCTOR INDUSTRY

UPDATE

March 2021

McIlvaine Company

Table of Contents

SK Hynix's New M16 Plant Stands Ready

TSMC to Spend Big on 3nm Development

SUSS MicroTec Opens New Production Facility in Taiwan

ITRI and DuPont Inaugurate Semiconductor Materials Lab

DISCO's Completion of New Building at Nagano Works Chino Plant

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SK Hynix's New M16 Plant Stands Ready

SK Hynix has held a completion ceremony for its new fabrication plant M16 at headquarter located in Icheon, Gyeonggi-do, South Korea.

During the ceremony, SK Group Chairman Chey Tae-won said that it was a worrisome time when the company decided to build the M16 facility two years ago, as the overall semiconductor memory market was amid downturn back then. However, as the industry anticipates upcoming positive market conditions, it seems as if the company's decision was the right move. He concluded saying that M16 shall remain as a symbol, not only for the completion the company's broad plan, but also as the beginning of the Yongin Semiconductor Cluster, a press release reads.

Since the initiation of the M16 construction in November 2018, SK Hynix has invested a total of KRW 3.5 trillion (EUR 25.85 million). The construction project was completed in 25 months. M16, which will be a manufacturing site mainly for DRAM products, boasts a building area of 57'000 square meters, equivalent to the size of eight soccer fields. The plant is 336 meters long, 163 meters wide, and 105 meters high, which makes it the largest among the domestic and overseas production sites of the company.

Another special thing about the M16 site is the introduction of the extreme ultraviolet (EUV) lithography equipment, which is a first for SK Hynix. The company plans to produce 1a nm DRAM products from the second half of this year by utilizing the EUV equipment. Also, the company plans to increase the utilization of this equipment in the future.

“M16 is a complex manufacturing plant where cutting-edge infrastructures such as dedicated space for EUV equipment and advanced pollution reduction facilities are concentrated. It will become a production plant of a higher level that contributes to the ESG management as well as creating economic value,” says Seok-hee Lee, CEO at SK Hynix in the press release.

SK Hynix expects M16 to play a key role in carrying out the company’s “Financial Story”. In October 2020, SK Hynix announced its Financial Story representing its vision to enhance the company’s overall competitiveness in the semiconductor memory industry through DRAM and NAND Flash business segments.

 

TSMC to Spend Big On 3nm Development

TSMC has plans to allocated US$25-28 billion in capex for 2021, with over US$15 billion of the foundry house's record budget to be spent on advancing its 3nm process node. The foundry has disclosed that it is on track to move its 3nm process to risk production later this year, and start volume in second-half 2022. Meanwhile, Taiwan's PCB sector also registered record output in 2020 at over US$23.8 billion.

The output of Taiwan's PCB industry grew 5.6% on year to a record high of NT$667.2 billion (US$23.83 billion) in 2020, bolstered by pandemic-induced stay-at-home economy in most of the year as well as robust shipments for new iPhones and automotive...

 

SUSS MicroTec Opens New Production Facility in Taiwan

SUSS MicroTec, a provider of systems and process solutions for the semiconductor industry and related markets, is opening the doors of its new production facility in HsinChu, Taiwan. The company is responding to increased industry demand due to booming applications and megatrends such as 5G, IoT, AI and mobility.

With the new production site, the company will achieve even greater flexibility to be able to specifically meet the wishes of customers, such as accelerated lead, delivery and response times. The Asian customer base in particular will benefit from this added flexibility. In addition, even closer collaboration on current and future product generations can result from the proximity of application support and production to strategic key customers.

The premises are located in Hsinchu Science Park, one of the world's most important centers for semiconductor manufacturing as well as industrial and computer technology development. The facility covers an area of 4,800 square meters, of which 2,900 square meters consist of a cleanroom area, including storage. The primary activity will be production and delivery of the majority of SUSS ACS200 coaters/developers by a workforce of around 50.

The company has implemented a comprehensive recruitment and training program to staff the facility. This includes intensive training of the production team directly at the main production site in Germany. In addition, highly qualified specialists will be sent from the parent company to Taiwan to use their expertise to support the colleagues on site.

“The rapidly increasing expansion of broadband data networks, further reinforced by the intensive use of digital communications due to the global Covid-19 pandemic, is currently leading to strong growth in the semiconductor industry's demand for production equipment. We expect this trend to continue in the coming years. With this in mind, expansion of our production capacity with the new Taiwanese location is crucial,” says Franz Richter, CEO and Chairman of the Board of Management of SUSS MicroTec. “We will be able to give our Asian customers in particular better insight into completion of their products during regular production. This increased transparency is already finding wide acceptance and is being very well received by our customers.”

The new location has begun operation, and the first machines will be delivered to customers this year.

 

ITRI And DuPont Inaugurate Semiconductor Materials Lab

Taiwanese lab will combine ITRI’s semiconductor-related technical strength and DuPont’s expertise in materials.

Industrial Technology Research Institute (ITRI) and DuPont Electronics & Imaging have celebrated the opening of a new semiconductor materials laboratory in Hsinchu, Taiwan.

DuPont established the laboratory to stay close to the semiconductor industry in Taiwan. DuPont will conduct, in collaboration with ITRI, semiconductor material research, development and enhancement, and accelerate pilot testing and commercial viability to support DuPont's customers as they pursue the next generation of semiconductors in Taiwan.

The evolution of 5G and Artificial Intelligence (AI) has spurred development of key technologies for the next generation of semiconductors, including materials to support heterogeneous integration, advanced manufacturing processes, and high-end packaging. Taiwan plays a leading role in the semiconductor industry and has an integrated semiconductor supply chain.

Chih-I Wu, VP and general director of ITRI's Electronic and Optoelectronic System Research Laboratories, stressed that ITRI has long invested in semiconductor research and development and has a solid foundation in the fields of electronics and optoelectronics, advanced packaging processes, chemistry and materials. With the support from AI on Chip Program of Department of Industrial Technology (DoIT), Ministry of Economic Affairs (MOEA), ITRI will expand investment in advanced equipment and technology, heterogeneous integrated packaging experiment platforms and diversified design, manufacturing processes and prototype production services.

“Bringing together ITRI's semiconductor-related technical strength and DuPont's expertise in materials, this laboratory in ITRI's vicinity will enable closer exchanges between the two organizations to bring more innovative solutions and meet the immediate needs of Taiwan's semiconductor and IC substrate industries,” he said.

“DuPont has been conducting business in Taiwan for more than 50 years and has grown alongside Taiwan's industrial development, especially in the electronics industry. Our investment in semiconductor technology and manufacturing centers in Taiwan serves as our hub in Asia Pacific to promote advanced semiconductor technologies globally,” said Dennis Chen, DuPont Taiwan president. “Over the years, we have made efforts in strengthening technological breakthroughs, terminal applications and supporting the strategic technology roadmap in Taiwan. The inauguration of this laboratory marks another important milestone as we continue to enhance innovation and R&D capabilities in Taiwan.”

Added Rob Kavanagh, global business director, DuPont Advanced Packaging Technologies: "DuPont is committed to the development of advanced materials in support of the increasingly complex packaging technologies. We have seen positive outcomes from our past collaboration with ITRI and look forward to further leveraging each other's competencies and experience for our customers and Taiwan's semiconductor industry.”

 

DISCO's Completion Of New Building At Nagano Works Chino Plant

DISCO Corporation, a semiconductor manufacturing equipment manufacturer has completed construction of a new seismically isolated building (Building B) at Nagano Works Chino Plant (Chino City, Nagano). With completion, the total floor area of the Nagano Works Chino Plant, including the existing building, is approximately 7.5 times greater. This expansion enables further enhancement of the product supply system for future demand in semiconductors and electronic components.

Due to widespread use of high-performance smartphones and increase in base stations and data centers accompanying the start of 5G service, demand for semiconductors and electronic components, including memory, sensors, and condensers, is increasing worldwide. As a result, need is also rising for DISCO's precision processing equipment* and precision processing tools** (blades/wheels) among device manufacturers, semiconductor manufacturing subcontractors, and electronic component manufacturers. Demand is expected to expand mid-to-long term as well, with future technologies such as IoT, AI, self-driving technology, and telemedicine as drivers of growth. Therefore, DISCO needed to further enhance its product supply system.

Production floors in the existing building (Building A) are operating at almost full capacity. With the construction of Building B, the total floor area of the entire Nagano Works Chino Plant is 7.5 times greater than before. This expansion enables flexibility in adapting to further increase in demand. In addition, construction of another new building (total floor area: approximately 67,800 m˛) is in progress at Hiroshima Works Kuwabata Plant (Kure City, Hiroshima) and will be completed in August 2021.

Currently, production of major products is conducted mainly at Hiroshima Works Kure Plant and Kuwabata Plant. However, the distance between the factories is approx. 10 km, which is a concern should disaster affect a wide area. Therefore, diversification of risk is a major topic. After operation starts in Building B at Nagano Works Chino Plant, the variety of items that Nagano Works can produce will increase, and DISCO will work toward establishing a system that can achieve production and shipment of the same products from both Hiroshima and Nagano Works. This production system will then enable the achievement of a stable production supply in the event of an emergency.

McIlvaine Company

Northfield, IL 60093-2743

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