Intel’s Gargini: Semi equipment makers overestimating cost of moving to 450-mm wafers
July 16, 2008 at 8:56 am | In Manufacturing | Leave a CommentTags: Manufacturing, semiconductor
The move to the 450-mm wafer size has garnered an increasing amount of interest in the semiconductor manufacturing industry as many suppliers have pushed back at making the shift, arguing that there is still much to be gained in terms of efficiency from the 300-mm wafer size, as well as high development costs.
By Ann Steffora Mutschler, Senior Editor — Electronic News, 6/13/2008
SAN FRANCISCO — During a Semiconductor Industry Association (SIA) roundtable on the future of Moore’s Law held here Thursday, Dr. Paolo Gargini, Intel fellow and director of technology strategy, said with regard to the continuing dialog on the move to the 450-mm wafer size, “From a technical point of view, this is not really very difficult, to be honest.”
“We’ve gone through several of these transitions and actually if you look at the situation nowadays, 90% of the steps are one wafer at a time, so the difficulty in the past was when you had to do diffusion on 100 wafers, and getting the wafers into the furnace was extremely complicated,” Gargini (pictured left) commented.
Indeed, this issue has garnered an increasing amount of interest in the semiconductor manufacturing industry as many suppliers have pushed back at making the shift, arguing that there is still much to be gained in terms of efficiency from the 300-mm wafer size. In January, industry analysts predicted the shift to 450-mm wafers would likely happen in 2025. However, in May, industry giants Intel, TSMC and Samsung said they had reached agreement that the industry needs to start working together to transition to the 450-mm wafer size, with the intention is to target 2012 to start a 450-mm pilot line.
Still, Gargini asserted, “If you have a chamber this big and make it bigger, and you put a bigger wafer in, you do some adjustments, but it is as simple as that. If you look also at the complexity of the equipment, it by in large relates – and I’m oversimplifying — to more steel and more massive structures, but it’s not extremely complicated from a technical point of view.
“It comes every eight, nine, 10 years and it is somewhat disruptive because everybody is used to doing two year improvement on equipment. So this appears like a destruction of this process, and you cannot do it by using a single supplier – you have to do it with the whole industry. In that case, it becomes more complicated. In fact, normally it takes four or five years of discussion. If I go back to 300-mm, we began discussing around 1993. By 1996 we got organized, by 1998 we had the right prototypes, and by 2001 it went into manufacturing. So we’ve already spent the down payment — the first two or three years of argument — which is always the same: The suppliers don’t want to do it, and we say that it’s good for you in the long run,” he continued.
Gargini noted that now as Intel and other industry players examine the complexity on each piece of fab equipment, much of the work that was done for the 300-mm wafer node can be utilized, citing fab automation as one example. “We already decided to reuse all the automation and the automation companies have not expressed too many concerns,” he said, and added that the public position and the private position of the equipment makers are not always the same. He said progress is actually being made.
In fact, last November, Tokyo-based Nikko Materials Co. Ltd. developed a 450-mm polycrystalline silicon wafer aimed at handling and mechanical testing, according to Gartner Dataquest
What is the cost comprised of?
“The early transitions were always stimulated by the suppliers because at that time, you used to have a wet bench, you make it a little bigger, you make the wafers a little bigger — it wasn’t very challenging. Only when we got to around the 6-inch wafer size did it become more complicated and at that point, Intel and IBM made an attempt to drive this convergence but it became clear that you can not drive in a vacuum. So 300-mm was a really good example of how to do this,” Gargini explained.
“The complexity came by doing two things at the same time: changing the technology node and changing the wafer size. By compounding this, then you multiply the complexity. But like what we experienced with the 300-mm generation, we established the process on 200-mm then we began – slower than the suppliers would have liked – the transition to 300-mm to make sure the processes were compatible,” he continued.
With costs estimated between less than $10 billion in a best case scenario to more than $1 trillion in a worst case scenario, according to Dan Hutcheson, president of VLSI Research, the topic is understandably a touchy one for many industry players.
“My opinion is that the compatibility between 300- and 450-mm will be even higher because everything now is down to a single wafer at a time that makes the scalability a much easier problem. Many people have memory of 10 years ago and that’s why this process happens only so often. You have to bridge 10 years of lack of dialog. … In my opinion, [the semiconductor equipment suppliers] are way overestimating the cost, Gargini concluded.
Lucas van Grinsven, director of corporate communications at Veldhoven, the Netherlands-based lithography leader ASML Holding NV, disagrees that the transition to the 450-mm wafer size is relatively easy. “I know quite a few people who would disagree,” he said in a one-on-one interview with Electronic News. “Officially, we haven’t made exact calculations … but it is a significant investment on behalf of the equipment makers. There is no doubt. I would disagree with Intel if they say it is a relatively simple transition because it is not. It’s a very complicated transition as was the transition from 200- to 300-mm.”
Further, he said, “Is it a demanding transition and one that will require a lot of attention from the equipment industry and ASML in particular? Yes. What is our position? If the market really says we want to move to 450-mm, we’ll move with them. So far, its not entirely clear what the position of the entire market is. … It will cost a lot of money. If the device makers are serious about this transition, they have to be committed to help fund the R&D that will have to be done.”
In terms of whether ASML thinks the 2012 pilot line date is feasible, van Grinsven did not say directly but commented, “We’ve got a lot of stuff on our plate at the moment, so we’re really busy already. We’ll have to see.”
Not to minimize the task, he concluded, “Obviously there is an efficiency gain to be had with the move from 300- to 450-mm and part of the industry discussion is about how much that gain will be. If you still have to expose every field, is that gain going to be 30% for lithography? Probably not. The gain will be elsewhere in the fab. Fundamentally, we believe the biggest gains are going to be had in the shrink, basically in continuing Moore’s Law. We’ve got an extended roadmap which will lead to much bigger efficiencies than 30% maximum for lithography.”
Entropic acquires RF Magic
July 10, 2008 at 10:40 am | In Uncategorized | Leave a CommentTags: semiconductor, Wireless
By Colleen Taylor, Contributing Editor — Electronic News, 4/10/2007
Digital entertainment chipset maker Entropic Communications Inc. today announced that it has signed a definitive agreement to acquire broadband RF SoC developer RF Magic Inc. Terms of the deal were not disclosed.
The newly merged entity formed by the two San Diego-based semiconductor companies will retain the Entropic Communications name. Patrick Henry, Entropic’s current president and CEO, will be the CEO of the merged company. Mark Foley, RF Magic’s current president and CEO, will become the president and COO of Entropic Communications once the deal closes.
“This merger brings together two independently successful companies in one of the fastest growing segments of the semiconductor market,” Henry said in a statement. “It’s a very natural and ideal fit for both of us. We are both focused on delivering multimedia content into and around the home and have developed two exceptionally talented teams with core competencies not only in chip design but also in systems level design.”
“With our combined domain expertise in satellite, telco and cable operator-based deployments, we are confident that we have the team in place to take advantage of the market opportunities, much more so than if we remained separate entities,” Foley added in the statement.
Some analysts say that digital media content delivery has emerged as a primary driver of the global consumer electronics industry and its associated semiconductor market. According to market research firm iSuppli Corp., the broadband video-on-demand market for media is set to reach nearly 4.5 billion units by 2010.
The digital media market has also garnered support from private equity. Entropic closed on a venture funding round worth $25 million.
Forecast Cut for Semiconductor Sales
July 7, 2008 at 1:42 pm | In Forecast | Leave a CommentTags: Forecast, semiconductor
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By REUTERS
Published: June 12, 2008
The Semiconductor Industry Association on Wednesday cut its forecast for growth in global sales of semiconductors in 2008, citing lower prices because of competition in the memory chip sector.
The trade group said it now expected 2008 chip sales to grow 4.3 percent, to $266.6 billion, down from a forecast of 7.7 percent in November.
In a midyear update to its annual forecast, the trade group said it also expected chip sales to show a compound annual growth rate of 6.1 percent through 2011.
The slower growth for 2008 is expected despite healthy demand for products like cellphones and personal computers, it said.
Revenue from memory chips “declined by 34 percent even as unit shipments increased by more than 30 percent in the first four months of 2008 compared to the same period last year,” the president of the group, George M. Scalise, said in a statement.
The group said unit sales of PCs are on pace to grow 10 percent this year to about 300 million, while mobile phone unit shipments are expected to grow 12 percent to more than 1.3 billion.
Excluding memory products, semiconductor sales are expected to grow by 7.4 percent this year, buoyed by sales in markets like China and India.
Consumer electronics keep semi sales strong, despite slipping US consumer confidence,
July 1, 2008 at 11:14 am | In Forecast | Leave a CommentTags: Forecast, semiconductor
Consumer electronics keep semi sales strong, despite slipping US consumer confidence, SIA reports
The Semiconductor Industry Association reports that growing sales of consumer electronics in emerging markets have become a major factor driving semiconductor sales.
By Suzanne Deffree, Managing Editor, News — Electronic News, 6/30/2008The Semiconductor Industry Association (SIA) today reported solid growth in the worldwide sale of semiconductors, despite the continuously rocky economic environment here in the United States.
The industry group estimated sales of semiconductors at $21.8 billion in May, up 7.5% on the $20.3 billion reported for May 2007 and up 2.8% on the $21.2 billion reported for April. May is historically a relatively strong month for semiconductor sales.(See chart below for more sales details.)
Year-to-date sales of $103.4 billion were up by 5.3% from the $98.2 billion reported for the first five months of 2007, SIA data showed.
To be true, SIA said that total semiconductor sales excluding memory products would have been higher. According to SIA, sales were up by 12.3% year-on-year and by 2.5% sequentially without memory. Within the segment, SIA reported DRAM sales were up sequentially by 6.4% but declined by more than 20% from May 2007. Meanwhile, NAND flash sales grew by 1.4% sequentially and by 25.5% from May 2007. SIA in early June lowered its estimate for full-year growth from 7.7% to 4.3% on the memory market’s price erosion.
“Global sales of semiconductors grew at a healthy rate in May reflecting continued strong sales of consumer electronic products,” said SIA President George Scalise (pictured) in a statement. “Despite reports of declining consumer confidence in the US, both disposable income and consumer spending rose in May. It is likely that the distribution of tax rebate checks to millions of Americans was a factor in increased consumer spending.”
SIA isn’t banking semiconductor sales growth entirely on US spending, however. The group noted that growing sales of consumer electronic products in emerging markets, including China, Latin America, and India, have become a major factor driving semiconductor sales.
“Consumers account for more than half of all semiconductor sales worldwide. In the past, the US was the largest consumer market and the primary driver of demand. Today this country accounts for less than a quarter of total consumer demand,” Scalise said.
“Until recently, the US accounted for approximately 31% of PC unit sales. Today, with the growth of the consumer base in emerging markets, the US accounts for around 21% of PC unit sales. Five years ago, the US accounted for 21% of cell phone unit sales, and in 2008 that figure will be 13%. ”
According to Scalise, the shift in demand patterns has major implications for the semiconductor industry. “While we haven’t seen a slowdown in US consumer spending on electronic products, a slowdown in the US today would not have the same impact it had in the past,” he said. “The addition of more than 300 million consumers in other regions has created new opportunities for the worldwide microchip industry, and a more diversified market has helped to drive increased sales of semiconductors.”
Intel Spins Off Solar PV Company
July 1, 2008 at 11:10 am | In Uncategorized | Leave a CommentTags: New Techs, semiconductor
from : News – Clean Edge – The Clean-Tech Market Authority
Intel Spins Off Solar PV Company
June 17, 2008
Source: Clean Edge NewsTo spur new development and demand for renewable energy sources, Intel Corporation is spinning off key assets of a start-up business effort inside Intel’s New Business Initiatives group to form an independent company called SpectraWatt Inc. Intel Capital, Intel’s global investment organization, is leading a $50 million investment round in SpectraWatt and is joined by Cogentrix Energy, LLC, a wholly owned subsidiary of The Goldman Sachs Group, Inc., PCG Clean Energy and Technology Fund (“CETF”) and Solon AG. The transaction is expected to close in the second quarter of 2008.
SpectraWatt will manufacture and supply photovoltaic cells to solar module makers. In addition to focusing on advanced solar cell technologies, SpectraWatt will concentrate development efforts on improvements in current manufacturing processes and capabilities to reduce the cost of photovoltaic energy generation. SpectraWatt expects to break ground on its manufacturing and advanced technology development facility in Oregon in the second half of 2008 with first product shipments expected by mid-2009.
“SpectraWatt is a great example of technology resulting from entrepreneurial efforts inside Intel,” said Arvind Sodhani, president of Intel Capital and Intel executive vice president. “This is an important investment for Intel Capital in the growing cleantech sector and we look forward to working with the company to support its expansion.”
Solar cells are the discrete components in a solar energy generation system responsible for converting sunlight to electricity. The end- user market segment for solar technology in 2007 was approximately $30 billion, a 50 percent increase from 2006, according to Photon Consulting. Solar industry growth of 30 to 40 percent annually is expected to continue in years to come as the economics of solar, which is currently approximately twice the cost of delivered retail electricity on a per kilowatt basis, begins to approach that of traditional electricity-generation technologies.
Intel has a long history of commitment to the environment and has applied technology innovation to drive energy-efficiencies within its own products and operations. The development of a small solar business within Intel is consistent with the philosophy to protect the environment as well as seek new business opportunities. Intel is on track to reduce its total worldwide greenhouse gas emissions by 30 percent from 2004 levels through 2010, and also recently introduced lead- and halogen-free microprocessors. Additionally, Intel currently tops the Environmental Protection Agency’s Green Power list as the largest purchaser of renewable energy credits.
“The formation of SpectraWatt is an important step forward in the renewable energy market,” said Andrew B. Wilson, SpectraWatt CEO and former general manager in the Intel New Business Initiatives group. “We are pleased to work with these companies in the goal of moving toward long-term national energy independence.”
“We are very proud to be part of this exciting new venture,” said Thomas Krupke, SOLON AG CEO. “With the experience and commitment of all companies involved, we are confident to reach our common goal — advancing solar technology to a new stage.”
Consumer electronics keep semi sales strong, despite slipping US consumer confidence,
July 1, 2008 at 11:07 am | In Forecast | Leave a CommentTags: Forecast, semiconductor
SIA reports – 6/30/2008 – Electronic News
Consumer electronics keep semi sales strong, despite slipping US consumer confidence, SIA reports. The Semiconductor Industry Association reports that growing sales of consumer electronics in emerging markets have become a major factor driving semiconductor sales.
By Suzanne Deffree, Managing Editor, News — Electronic News, 6/30/2008
The Semiconductor Industry Association (SIA) today reported solid growth in the worldwide sale of semiconductors, despite the continuously rocky economic environment here in the United States.
The industry group estimated sales of semiconductors at $21.8 billion in May, up 7.5% on the $20.3 billion reported for May 2007 and up 2.8% on the $21.2 billion reported for April. May is historically a relatively strong month for semiconductor sales.(See chart below for more sales details.)
Year-to-date sales of $103.4 billion were up by 5.3% from the $98.2 billion reported for the first five months of 2007, SIA data showed.
To be true, SIA said that total semiconductor sales excluding memory products would have been higher. According to SIA, sales were up by 12.3% year-on-year and by 2.5% sequentially without memory. Within the segment, SIA reported DRAM sales were up sequentially by 6.4% but declined by more than 20% from May 2007. Meanwhile, NAND flash sales grew by 1.4% sequentially and by 25.5% from May 2007. SIA in early June lowered its estimate for full-year growth from 7.7% to 4.3% on the memory market’s price erosion.
“Global sales of semiconductors grew at a healthy rate in May reflecting continued strong sales of consumer electronic products,” said SIA President George Scalise (pictured) in a statement. “Despite reports of declining consumer confidence in the US, both disposable income and consumer spending rose in May. It is likely that the distribution of tax rebate checks to millions of Americans was a factor in increased consumer spending.”
SIA isn’t banking semiconductor sales growth entirely on US spending, however. The group noted that growing sales of consumer electronic products in emerging markets, including China, Latin America, and India, have become a major factor driving semiconductor sales.
“Consumers account for more than half of all semiconductor sales worldwide. In the past, the US was the largest consumer market and the primary driver of demand. Today this country accounts for less than a quarter of total consumer demand,” Scalise said.
“Until recently, the US accounted for approximately 31% of PC unit sales. Today, with the growth of the consumer base in emerging markets, the US accounts for around 21% of PC unit sales. Five years ago, the US accounted for 21% of cell phone unit sales, and in 2008 that figure will be 13%. ”
According to Scalise, the shift in demand patterns has major implications for the semiconductor industry. “While we haven’t seen a slowdown in US consumer spending on electronic products, a slowdown in the US today would not have the same impact it had in the past,” he said. “The addition of more than 300 million consumers in other regions has created new opportunities for the worldwide microchip industry, and a more diversified market has helped to drive increased sales of semiconductors.”
Intel Spins Off Solar PV Company
July 1, 2008 at 11:02 am | In Uncategorized | Leave a CommentTags: New Techs, semiconductor
from : News – Clean Edge – The Clean-Tech Market Authority
Intel Spins Off Solar PV Company
June 17, 2008
Source: Clean Edge NewsTo spur new development and demand for renewable energy sources, Intel Corporation is spinning off key assets of a start-up business effort inside Intel’s New Business Initiatives group to form an independent company called SpectraWatt Inc. Intel Capital, Intel’s global investment organization, is leading a $50 million investment round in SpectraWatt and is joined by Cogentrix Energy, LLC, a wholly owned subsidiary of The Goldman Sachs Group, Inc., PCG Clean Energy and Technology Fund (“CETF”) and Solon AG. The transaction is expected to close in the second quarter of 2008.
SpectraWatt will manufacture and supply photovoltaic cells to solar module makers. In addition to focusing on advanced solar cell technologies, SpectraWatt will concentrate development efforts on improvements in current manufacturing processes and capabilities to reduce the cost of photovoltaic energy generation. SpectraWatt expects to break ground on its manufacturing and advanced technology development facility in Oregon in the second half of 2008 with first product shipments expected by mid-2009.
“SpectraWatt is a great example of technology resulting from entrepreneurial efforts inside Intel,” said Arvind Sodhani, president of Intel Capital and Intel executive vice president. “This is an important investment for Intel Capital in the growing cleantech sector and we look forward to working with the company to support its expansion.”
Solar cells are the discrete components in a solar energy generation system responsible for converting sunlight to electricity. The end- user market segment for solar technology in 2007 was approximately $30 billion, a 50 percent increase from 2006, according to Photon Consulting. Solar industry growth of 30 to 40 percent annually is expected to continue in years to come as the economics of solar, which is currently approximately twice the cost of delivered retail electricity on a per kilowatt basis, begins to approach that of traditional electricity-generation technologies.
Intel has a long history of commitment to the environment and has applied technology innovation to drive energy-efficiencies within its own products and operations. The development of a small solar business within Intel is consistent with the philosophy to protect the environment as well as seek new business opportunities. Intel is on track to reduce its total worldwide greenhouse gas emissions by 30 percent from 2004 levels through 2010, and also recently introduced lead- and halogen-free microprocessors. Additionally, Intel currently tops the Environmental Protection Agency’s Green Power list as the largest purchaser of renewable energy credits.
“The formation of SpectraWatt is an important step forward in the renewable energy market,” said Andrew B. Wilson, SpectraWatt CEO and former general manager in the Intel New Business Initiatives group. “We are pleased to work with these companies in the goal of moving toward long-term national energy independence.”
“We are very proud to be part of this exciting new venture,” said Thomas Krupke, SOLON AG CEO. “With the experience and commitment of all companies involved, we are confident to reach our common goal — advancing solar technology to a new stage.”
SEMI REPORTS FIRST QUARTER 2008 WORLDWIDE SEMICONDUCTOR EQUIPMENT FIGURES; BILLINGS US$10.56 BILLION
June 30, 2008 at 2:14 pm | In Forecast, Manufacturing | Leave a CommentTags: Equipment, Forecast, Manufacturing, semiconductor
SAN JOSE, Calif. – June 16 2008 – SEMI today reported that worldwide semiconductor manufacturing equipment billings reached $10.56 billion in the first quarter of 2008. The billings figure is seven percent greater than the fourth quarter of 2007 and two percent less than the same quarter a year ago. The data is gathered in cooperation with the Semiconductor Equipment Association of Japan (SEAJ) from more than 150 global equipment companies that provide data on a monthly basis.
SEMI also reported worldwide semiconductor equipment bookings of US$8.08 billion in the first quarter of 2008. The figure is 23 percent less than the same quarter a year ago, and 11 percent less than the bookings figure for the fourth quarter of 2007.
“While bookings have weakened in the first quarter, overall industry billings remain at levels higher than the end of last year,” said Stanley T. Myers, president and CEO of SEMI. “Some regions, specifically North America, Korea, and China, posted strong quarter-over-quarter growth in spite of the conservative capital environment.”
The quarterly billings data by region in millions of U.S. dollars, year-over-year and quarter-over-quarter growth rates by region are as follows:
Source: SEMI/SEAJ June 2008
Note: Figures may not add due to rounding.
The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports: the monthly SEMI Book-to-Bill Report, which offers an early perspective of the trends in the equipment market; the monthly Worldwide Semiconductor Equipment Market Statistics (SEMS), a detailed report of semiconductor equipment bookings and billings for seven regions and over 22 market segments; and the SEMI Semiconductor Equipment Consensus Forecast, which provides an outlook for the semiconductor equipment market. For more information or to subscribe, please contact SEMI customer service at 1.877.746.7788 (toll free in the U.S.) or 1.408.943.6901 (International Callers).
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.
ASSOCIATION CONTACTS:
Scott Smith/SEMI
Ph: 408.943.7957
E-mail: ssmith@semi.org
Dan Tracy/SEMI
Ph: 408.943.7987
E-mail: dtracy@semi.org
North American semi equipment bookings decline 37% y/y
June 20, 2008 at 12:21 pm | In Forecast, Uncategorized | Leave a CommentTags: Forecast, semiconductor
North American semi equipment bookings decline 37% y/y, SEMI reports – 6/20/2008 – Electronic News
North American semi equipment bookings decline 37% y/y, SEMI reports
The industry produced a book-to-bill ratio of 0.79, which means that $79 worth of orders was received for every $100 of product billed for the month.
By Ann Steffora Mutschler, Senior Editor — Electronic News, 6/20/2008Continuing its downward slide and approaching levels observed in 2005, which was the last time the semiconductor industry reported a year-over-year decline, North America-based manufacturers of semiconductor manufacturing equipment posted $1.03 billion in orders in May on a three-month average basis, resulting in a book-to-bill ratio of 0.79, according to industry association Semiconductor Equipment and Materials International (SEMI) late Thursday.
A book-to-bill ratio of 0.79 means that $79 worth of orders was received for every $100 of product billed for the month, SEMI reminded.
The three-month average of worldwide bookings in May dropped approximately 5% from the final April level of $1.09 billion, and approximately 37% less than $1.64 billion in orders posted in May 2007, SEMI pointed out.
In terms of billings, the three-month average in May was $1.31 billion, which is about 2% less than the final April level of $1.34 billion, and about 21% less than the May 2007 billings level of $1.67 billion.
On a worldwide basis in Q1, although bookings for semiconductor manufacturing equipment weakened, overall industry billings remained at levels higher than the end of last year, SEMI said this week.
Still, “Bookings are approaching levels observed in 2005, which was the last time the semiconductor industry reported a year-over-year decline. The data does not indicate a change in this trend over the next quarter,” commented Stanley T. Myers, president and CEO of SEMI, in a statement.
The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.
How do they make Silicon Wafers and Computer Chips?
May 1, 2008 at 4:08 pm | In Manufacturing | Leave a CommentTags: Animation, Manufacturing, semiconductor
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