SANTA CLARA, USA: Applied Materials, Inc. today announced that it has been awarded an integrated service contract by Fujitsu Microelectronics Ltd. to support its advanced 300mm semiconductor factory in Mie, Japan.
Under the program, Applied will service over 100 Applied chipmaking systems utilizing its innovative Applied Performance Service solution that scales service levels to match factory loading.
In addition, Applied will implement its Applied E3 advanced equipment and process control technology on Fujitsu Microelectronics Mie plant’s entire toolset to increase the efficiency, predictability and profitability of Fujitsu Microelectronics’ system-on-chip (SoC) manufacturing process.
“The SoC market requires a high degree of application-specific customization, resulting in a constantly changing product mix. Maintaining tight process control on every wafer is critical to profitability,” said Kiyoshi Watanabe, corporate vice president, Fujitsu Microelectronics Ltd.
“The Applied Performance Service Program paces service and price to actual utilization rates to provide us with committed uptime performance at a low, predictable cost that tracks factory loading.”
The uniquely flexible Applied Performance Service program can reduce maintenance costs by an average of 15 percent, making it a particularly powerful strategy for chipmakers producing SoC and other cost-sensitive logic devices, especially in times of rapidly changing demand.
Using proprietary fingerprinting algorithms, the Applied E3 solution further raises cost-efficiency by optimizing and tracking the process performance of every tool in the fab.
The E3 system’s fault detection and classification (FDC) technology provides rapid feedback on tool, wafer and lot performance to avoid unexpected excursions that impact productivity and cycle time, while run-to-run control (R2R) adjusts processing parameters in real time to enable more consistent output and higher device yields.
“Applied’s high-tech service approach is a perfect match for a sophisticated and agile fab such as Fujitsu Microelectronics’ Mie plant,” said Charlie Pappis, vice president and general manager of Applied Global Services. “By combining variable service with equipment and process automation, customers can reduce costs and take advantage of the unused potential of their existing assets. The growing momentum of our service business in Asia is a testament to Applied’s unique ability to provide innovative support solutions.”
Showing posts with label Applied Materials. Show all posts
Showing posts with label Applied Materials. Show all posts
Monday, September 28, 2009
Applied Materials begins shipments of world's largest, fastest, roll-to-roll vacuum coating systems
ALZENAU, GERMANY: Applied Materials Inc. has begun shipping multiple Applied Topmet 4450 systems, the world's largest and fastest, roll-to-roll thin film metal deposition machine, to a customer in Europe.
This latest model of Applied’s Topmet 4450 product line deposits ultra-thin aluminum films on 4.5m (15 feet) wide rolls of substrate material at a remarkable 20 meters per second (45 miles per hour) to provide a barrier against oxygen, moisture and ultra-violet radiation for flexible packaging applications.
New technology advances in the system produce state-of-the-art film quality while doubling the coated area output to drive down coated film production cost by more than 20 percent.
“We are excited about the growth potential of the roll-to-roll equipment business for flexible packaging as well as emerging applications such as flexible electronics, displays and solar,” said James Robson, vice president and general manager of Applied’s Glass and Web Product Group.
“The expanded Topmet 4450 system builds on 50 years of leadership in roll-to-roll machine design, with almost 600 systems installed worldwide, and also reflects Applied Materials’ extensive expertise in scaling up complex manufacturing equipment and processes.”
The new Topmet 4450 system is considerably faster than competing systems. It not only provides direct cost savings, but also enables higher material yield, simplified downstream processing, reduced labor requirements and a smaller factory footprint.
The system’s efficient use of power and raw materials, enabled by advanced high rate evaporation sources, closed-loop automatic layer control and high performance pumping systems, results in lower operating costs. In addition, an award winning real-time layer thickness monitoring system enables consistent coating uniformity while the novel uniform-tension roller design provides high speed, wrinkle-free material handling.
“We are proud to support our customers’ drive to lower production costs through our continuous system innovation,” said John Busch, head of Applied’s Web Coating Group.
“With this system, we boosted output, lowered operating expense and maintained quality – making the industry-leading thin film metallization systems even better. Applied will continue to earn its leadership position in vacuum coating production solutions with innovative products and superior customer support.”
This latest model of Applied’s Topmet 4450 product line deposits ultra-thin aluminum films on 4.5m (15 feet) wide rolls of substrate material at a remarkable 20 meters per second (45 miles per hour) to provide a barrier against oxygen, moisture and ultra-violet radiation for flexible packaging applications.
New technology advances in the system produce state-of-the-art film quality while doubling the coated area output to drive down coated film production cost by more than 20 percent.
“We are excited about the growth potential of the roll-to-roll equipment business for flexible packaging as well as emerging applications such as flexible electronics, displays and solar,” said James Robson, vice president and general manager of Applied’s Glass and Web Product Group.
“The expanded Topmet 4450 system builds on 50 years of leadership in roll-to-roll machine design, with almost 600 systems installed worldwide, and also reflects Applied Materials’ extensive expertise in scaling up complex manufacturing equipment and processes.”
The new Topmet 4450 system is considerably faster than competing systems. It not only provides direct cost savings, but also enables higher material yield, simplified downstream processing, reduced labor requirements and a smaller factory footprint.
The system’s efficient use of power and raw materials, enabled by advanced high rate evaporation sources, closed-loop automatic layer control and high performance pumping systems, results in lower operating costs. In addition, an award winning real-time layer thickness monitoring system enables consistent coating uniformity while the novel uniform-tension roller design provides high speed, wrinkle-free material handling.
“We are proud to support our customers’ drive to lower production costs through our continuous system innovation,” said John Busch, head of Applied’s Web Coating Group.
“With this system, we boosted output, lowered operating expense and maintained quality – making the industry-leading thin film metallization systems even better. Applied will continue to earn its leadership position in vacuum coating production solutions with innovative products and superior customer support.”
Tuesday, September 15, 2009
Mentor Graphics, Applied Materials deploy OASIS.MASK open data standard for higher efficiency mask manufacturing
WILSONVILLE & SANTA CLARA, USA: Mentor Graphics Corp. and Applied Materials Inc. announced an important milestone in the adoption of open data formats for mask manufacturing. The first volume production deployment of the new OASIS.MASK (SEMI standard P44) format was performed on Applied’s Aera2 advanced mask inspection systems using Mentor Graphics’ mask data preparation software technology.
The new format greatly simplifies the task of creating the complex, high fidelity photomasks that are vital to fabricating semiconductor devices at 32nm and below technology nodes.
OASIS.MASK (Open Artwork System Interchange Standard for Photomasks) is an open standard interchange format used to represent and express chip level physical and mask layout data.
The OASIS.MASK format reduces the size of mask data files by approximately one-half, eliminating the file transfer bottleneck between software tools and mask manufacturing equipment –- a key benefit with today’s near-terabyte file sizes. As an open interface, it enables the same data file to be used for pattern generation, metrology and inspection, simplifying mask manufacturing process flows by eliminating complex format conversion steps.
“We are working with Mentor Graphics, a leader in the adoption of OASIS standards, to improve efficiency up and down the mask-making value chain by encouraging the adoption of open standards,” said Tom St. Dennis, senior vice president and general manager of Applied’s Silicon Systems Group.
“By incorporating the OASIS.MASK format in our Aera2 systems, we can continue to provide the most competitive, high throughput, die-to-database inspection solutions for our most advanced customers.”
“Applied Materials’ decision to implement OASIS.MASK in their products shows the value of OASIS mask data format,” said Joseph Sawicki, vice president and general manager for the Design-to-Silicon division at Mentor Graphics.
“Mentor’s experience with OASIS goes back to the development of the original OASIS format (SEMI standard P39), so incorporating our technology into Aera2 was a logical extension of our product efforts. The use of OASIS.MASK for mask manufacturing is fully supported by the Calibre platform in the Calibre FRACTUREv, Calibre MDPverify, and Calibre MDPview products, which are all available today.”
Applied and Mentor will showcase their pioneering deployment of OASIS.MASK in a production environment at SPIE Photomask 2009, the mask-making industry’s premier technical symposium, to be held September 14-17 in Monterey, California.
The new format greatly simplifies the task of creating the complex, high fidelity photomasks that are vital to fabricating semiconductor devices at 32nm and below technology nodes.
OASIS.MASK (Open Artwork System Interchange Standard for Photomasks) is an open standard interchange format used to represent and express chip level physical and mask layout data.
The OASIS.MASK format reduces the size of mask data files by approximately one-half, eliminating the file transfer bottleneck between software tools and mask manufacturing equipment –- a key benefit with today’s near-terabyte file sizes. As an open interface, it enables the same data file to be used for pattern generation, metrology and inspection, simplifying mask manufacturing process flows by eliminating complex format conversion steps.
“We are working with Mentor Graphics, a leader in the adoption of OASIS standards, to improve efficiency up and down the mask-making value chain by encouraging the adoption of open standards,” said Tom St. Dennis, senior vice president and general manager of Applied’s Silicon Systems Group.
“By incorporating the OASIS.MASK format in our Aera2 systems, we can continue to provide the most competitive, high throughput, die-to-database inspection solutions for our most advanced customers.”
“Applied Materials’ decision to implement OASIS.MASK in their products shows the value of OASIS mask data format,” said Joseph Sawicki, vice president and general manager for the Design-to-Silicon division at Mentor Graphics.
“Mentor’s experience with OASIS goes back to the development of the original OASIS format (SEMI standard P39), so incorporating our technology into Aera2 was a logical extension of our product efforts. The use of OASIS.MASK for mask manufacturing is fully supported by the Calibre platform in the Calibre FRACTUREv, Calibre MDPverify, and Calibre MDPview products, which are all available today.”
Applied and Mentor will showcase their pioneering deployment of OASIS.MASK in a production environment at SPIE Photomask 2009, the mask-making industry’s premier technical symposium, to be held September 14-17 in Monterey, California.
Thursday, August 13, 2009
Semiconductor equipment market grew 12 percent in July
NEW TRIPOLI, USA: Applied Materials’ results clearly confirmed that the downturn in the semiconductor equipment market is over, although the overall market will drop 46 percent in 2008, according to the report “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network.
“July marked a huge ramp in semiconductor equipment purchases as leading foundries. About $755 million in semiconductor equipment was purchased in July, up 12 percent from $677 million in June 2009,” noted Dr. Robert Castellano, president of The Information Network. “We see growth continuing sequentially in August, increasing 14.6 percent and taking sales to $869 million.”
The chart below compares our leading indicators with semiconductor equipment sales on a monthly basis.
Source: The Information Network
“Our proprietary leading indicators determine inflection points in economic activity and which we utilize to show turning points in semiconductor equipment sales,” added Dr. Castellano, president of The Information Network.
“July marked a huge ramp in semiconductor equipment purchases as leading foundries. About $755 million in semiconductor equipment was purchased in July, up 12 percent from $677 million in June 2009,” noted Dr. Robert Castellano, president of The Information Network. “We see growth continuing sequentially in August, increasing 14.6 percent and taking sales to $869 million.”
The chart below compares our leading indicators with semiconductor equipment sales on a monthly basis.
Source: The Information Network“Our proprietary leading indicators determine inflection points in economic activity and which we utilize to show turning points in semiconductor equipment sales,” added Dr. Castellano, president of The Information Network.
Rapid recover ramp in semiconductor equipment market
NEW TRIPOLI, USA: Applied Materials’ results clearly confirmed that the downturn in the semiconductor equipment market is over, although the overall market will drop 46 percent in 2008, according to the report “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network.
To understand how fast the market has turned, Applied’s Silicon Systems Group (SSG) had net sales of $498 million, up 91.5 percent sequentially in the previous quarter ending July.
Applied’s fiscal quarter ends one month later than competitors, so a comparison with Applied’s recent quarter will indicate what happened in the month of July.
Close competitor in the vacuum space, Novellus, reported net sales increased 20.5 percent in the latest quarter ending June. KLA-Tencor, competitor and market leader in the metrology/inspection space, saw net sales decrease 6.3 percent sequentially.
ASM Lithography, not a direct competitor but the number two player in the semiconductor equipment market, reported net sales increased 50.5 percent sequentially in the latest quarter.
“To further understand if there is a huge ramp in July, which could impact the current quarter for equipment manufacturers, or whether Applied Materials is increasing shares, we need to look closer at overall market share data and increase granularity by looking at the individual sector shares, noted Dr. Robert Castellano, president of The Information Network.
Applied Materials led the world in equipment sales beginning in the early 1990s, and has essentially continued to outperform the industry average. The chart here shows how Applied has positioned itself in the market in 1979, 1989, 1999, and 2008.
Source: The Information Network
In 1999 Applied had more than double the revenues of its closest competitor -- Tokyo Electron. In 2008, the company was only 35 percent ahead of number 2 player ASML.
Applied competes in the semiconductor equipment market in nearly 20 sectors, significantly more than any other supplier. As a result, there is little overlap in individual sectors between Applied and the other top 10 market leaders.
For example, there is no competition with ASML whereas Applied competes with Tokyo Electron in the plasma etch, deposition, and clean sectors. It competes with KLA-Tencor in the metrology/inspection sectors, and Lam Research in the plasma etch sectors.
If we hone in on the sectors, we can better understand how Applied is faring and whether July was a rapid ramp in overall equipment sales or share gains.
Source: The Information Network
In 2001, Applied Materials held a 42 percent share of the overall equipment market, holding greater than a 50 percent share in seven of the 17 sectors. Year 2001 is an important year to look at since the overall semiconductor equipment market nosedived after a record breaking 2000, dropping 45 percent year-on-year.
The overall market continued to drop another 45 percent in 2002, but Applied’s revenue decreased only 16.6 percent sequentially. Applied’s overall share thus increased to 48 percent of the overall semiconductor equipment market, and the company held greater than a 50 percent share in nine of the 17 sectors it competed in.
Year 2008 started out to be a good year until the market collapse in Q4, and ended down 29 percent. Applied’s overall market share eroded to 38 percent of the overall equipment market, although it maintained a market share greater than 50 percent in seven of the 16 sectors it competes in (we have not included share date for the company’s gate or clean sectors).
What can be concluded from all this data? Although Applied’s feathers are a bit ruffled, it continues to be the market leader. It may have lost some share over the past decade and may be increasing it this year. But, the 91.5 percent sequential growth exhibited in the latest quarter clearly indicates a rapid ramp in the semiconductor equipment market.
To understand how fast the market has turned, Applied’s Silicon Systems Group (SSG) had net sales of $498 million, up 91.5 percent sequentially in the previous quarter ending July.
Applied’s fiscal quarter ends one month later than competitors, so a comparison with Applied’s recent quarter will indicate what happened in the month of July.
Close competitor in the vacuum space, Novellus, reported net sales increased 20.5 percent in the latest quarter ending June. KLA-Tencor, competitor and market leader in the metrology/inspection space, saw net sales decrease 6.3 percent sequentially.
ASM Lithography, not a direct competitor but the number two player in the semiconductor equipment market, reported net sales increased 50.5 percent sequentially in the latest quarter.
“To further understand if there is a huge ramp in July, which could impact the current quarter for equipment manufacturers, or whether Applied Materials is increasing shares, we need to look closer at overall market share data and increase granularity by looking at the individual sector shares, noted Dr. Robert Castellano, president of The Information Network.
Applied Materials led the world in equipment sales beginning in the early 1990s, and has essentially continued to outperform the industry average. The chart here shows how Applied has positioned itself in the market in 1979, 1989, 1999, and 2008.
Source: The Information NetworkIn 1999 Applied had more than double the revenues of its closest competitor -- Tokyo Electron. In 2008, the company was only 35 percent ahead of number 2 player ASML.
Applied competes in the semiconductor equipment market in nearly 20 sectors, significantly more than any other supplier. As a result, there is little overlap in individual sectors between Applied and the other top 10 market leaders.
For example, there is no competition with ASML whereas Applied competes with Tokyo Electron in the plasma etch, deposition, and clean sectors. It competes with KLA-Tencor in the metrology/inspection sectors, and Lam Research in the plasma etch sectors.
If we hone in on the sectors, we can better understand how Applied is faring and whether July was a rapid ramp in overall equipment sales or share gains.
Source: The Information NetworkIn 2001, Applied Materials held a 42 percent share of the overall equipment market, holding greater than a 50 percent share in seven of the 17 sectors. Year 2001 is an important year to look at since the overall semiconductor equipment market nosedived after a record breaking 2000, dropping 45 percent year-on-year.
The overall market continued to drop another 45 percent in 2002, but Applied’s revenue decreased only 16.6 percent sequentially. Applied’s overall share thus increased to 48 percent of the overall semiconductor equipment market, and the company held greater than a 50 percent share in nine of the 17 sectors it competed in.
Year 2008 started out to be a good year until the market collapse in Q4, and ended down 29 percent. Applied’s overall market share eroded to 38 percent of the overall equipment market, although it maintained a market share greater than 50 percent in seven of the 16 sectors it competes in (we have not included share date for the company’s gate or clean sectors).
What can be concluded from all this data? Although Applied’s feathers are a bit ruffled, it continues to be the market leader. It may have lost some share over the past decade and may be increasing it this year. But, the 91.5 percent sequential growth exhibited in the latest quarter clearly indicates a rapid ramp in the semiconductor equipment market.
Wednesday, August 12, 2009
Applied Materials improves operating performance
SANTA CLARA, USA: Applied Materials Inc. reported results for its third fiscal quarter ended July 26, 2009. Net sales were $1.13 billion, and the GAAP net loss was $55 million, or $0.04 per share. The company also reported a non-GAAP net loss for the period of $2 million, or breakeven per share.
“In a difficult environment, Applied improved its operating performance and generated significant cash flow while making substantial investments in new technologies for next-generation semiconductor chips, flat panel displays and solar panels,” said Mike Splinter, chairman and CEO.
New orders for the quarter totaled $1.07 billion. Regional distribution was: Southeast Asia and China 25 percent, Taiwan 24 percent, Japan 14 percent, North America 14 percent, Europe 12 percent, and Korea 11 percent.
Within the Silicon Systems Group (SSG), new order composition was: foundry 42 percent, DRAM 25 percent, logic and other 18 percent, and flash 15 percent. Backlog for the company as of the end of the quarter was $2.95 billion, down from $3.16 billion in the previous quarter.
“In a difficult environment, Applied improved its operating performance and generated significant cash flow while making substantial investments in new technologies for next-generation semiconductor chips, flat panel displays and solar panels,” said Mike Splinter, chairman and CEO.
New orders for the quarter totaled $1.07 billion. Regional distribution was: Southeast Asia and China 25 percent, Taiwan 24 percent, Japan 14 percent, North America 14 percent, Europe 12 percent, and Korea 11 percent.
Within the Silicon Systems Group (SSG), new order composition was: foundry 42 percent, DRAM 25 percent, logic and other 18 percent, and flash 15 percent. Backlog for the company as of the end of the quarter was $2.95 billion, down from $3.16 billion in the previous quarter.
Monday, July 13, 2009
Applied SmartMove wireless wafer management solution
SANTA CLARA, USA: Applied Materials Inc. today introduced its Applied SmartMove system, the semiconductor industry’s first comprehensive wafer management solution for non-automated 200mm and 300mm fabs.
The SmartMove system brings new efficiency to these fabs, seamlessly integrating with customers’ existing MES software to wirelessly track and direct the movement of wafer lots. With the SmartMove system, users can boost factory output by up to 10 percent, and typically realize a return on their investment in less than nine months.
“The SmartMove system can be a game-changer for customers with mature fabs, delivering the key benefits of robotic handling systems at a fraction of the cost,” said Manfred Kerschbaum, senior vice president of Applied Global Services.
“This end-to-end, non-robotic wafer management system uniquely integrates world-class software, hardware and service into a single, low-risk solution. The SmartMove system is a great example of our commitment to helping customers unlock additional fab efficiency and maximize the value of their existing assets in a very short time.”
The SmartMove system integrates Applied’s production-proven Activity Manager workflow automation software with LotTrack technology from Intellion AG, an innovative radio frequency and ultrasound-based wafer carrier tracking system.
Using SmartMove technology, a customer’s MES is continuously updated with the exact location of every wafer carrier. This location-aware capability enables the MES to optimize operator efficiency by sending “attention needed” and “where next” data to display panels on each carrier, freeing operators from manual data entry, eliminating misplaced lots and reducing cycle time.
Rapid deployment of the SmartMove system at a customer site is assured by non-intrusive hardware and by pre-configured software that requires no MES code changes, eliminating the risk of a production failure during deployment.
Applied’s experienced factory automation engineers perform installation and testing, as well as provide on-going technical support. The Activity Manager application is built on Applied’s common automation software architecture, enabling the easy integration of additional software packages, such as the Applied Real-Time Dispatcher (RTD), for even greater operational efficiency.
The SmartMove system brings new efficiency to these fabs, seamlessly integrating with customers’ existing MES software to wirelessly track and direct the movement of wafer lots. With the SmartMove system, users can boost factory output by up to 10 percent, and typically realize a return on their investment in less than nine months.
“The SmartMove system can be a game-changer for customers with mature fabs, delivering the key benefits of robotic handling systems at a fraction of the cost,” said Manfred Kerschbaum, senior vice president of Applied Global Services.
“This end-to-end, non-robotic wafer management system uniquely integrates world-class software, hardware and service into a single, low-risk solution. The SmartMove system is a great example of our commitment to helping customers unlock additional fab efficiency and maximize the value of their existing assets in a very short time.”
The SmartMove system integrates Applied’s production-proven Activity Manager workflow automation software with LotTrack technology from Intellion AG, an innovative radio frequency and ultrasound-based wafer carrier tracking system.
Using SmartMove technology, a customer’s MES is continuously updated with the exact location of every wafer carrier. This location-aware capability enables the MES to optimize operator efficiency by sending “attention needed” and “where next” data to display panels on each carrier, freeing operators from manual data entry, eliminating misplaced lots and reducing cycle time.
Rapid deployment of the SmartMove system at a customer site is assured by non-intrusive hardware and by pre-configured software that requires no MES code changes, eliminating the risk of a production failure during deployment.
Applied’s experienced factory automation engineers perform installation and testing, as well as provide on-going technical support. The Activity Manager application is built on Applied’s common automation software architecture, enabling the easy integration of additional software packages, such as the Applied Real-Time Dispatcher (RTD), for even greater operational efficiency.
Applied Materials creates path for future technology innovators
SEMICON West 2009, SANTA CLARA, USA: Applied Materials Inc. will emphasize the urgency of preparing students for the high tech jobs of the future during SEMICON West, held in San Francisco this week.
The company will also discuss how a shortage of talent may affect the industry and America’s position as a global technology leader. Additionally, Applied Materials will underscore its strong commitment to the semiconductor industry by highlighting the Applied Materials Foundation Women in Science and Technology Scholarship Program designed to encourage participation by women in science and engineering.
Also being showcased are successful initiatives promoting math, science and semiconductor technology education that are helping develop future technology innovators.
“As a global leader in a fast-changing and competitive marketplace, Applied Materials is constantly innovating and commercializing products to stay ahead of future technology trends,” said Tom St. Dennis, senior vice president and general manager of Applied Materials’ Silicon Systems Group.
“We need the best and brightest talent—the challenge for our educational system is to produce the workforce with the skills and knowledge required by the industry. We believe women can be a source of that talent in greater numbers if they are encouraged early in their education.”
To promote engagement in the industry and raise awareness of technical advances, Applied Materials and the Applied Materials Foundation are supporting several workforce development programs around the world that build bridges between schools and business.
Women in Science and Technology Scholarship Program
To help realize the full potential of the workforce of tomorrow, the Applied Materials Foundation has launched the Women in Science and Technology Scholarship Program to encourage young women to excel in specific technical areas leading to careers in science and engineering.
Grants will be made to selected student organizations at United States-based universities that are committed to developing the next generation of women engineers.
SEMI Foundation’s High Tech U
Applied Materials and the Applied Materials Foundation are long-time supporters of SEMI Foundation’s High Tech U for students and SEMI High Tech U Teacher Edition programs.
In a fun, three-day interactive session, students learn semiconductor manufacturing concepts and microchip logic and get a chance to understand career choices available in math and science-based professions. Students also learn about the design and physics of solar cells.
The teacher program mirrors the student session, with an emphasis on ways educators can implement program activities into their lesson plans. A primary objective of the program is to help teachers learn about math and science-based careers in high tech fields so they can advise students about educational options and career pathways.
“Applied Materials and its Foundation have supported our industry and this program from the very beginning, and in less than a decade this program has helped reach several thousand students and teachers,” said Stan Myers, president and CEO of Semiconductor Equipment and Materials International (SEMI).
“The goal is to build interest and excitement in young people about math and science careers and help develop the skilled workforce of tomorrow working on next generation technologies.”
Since 2001, 90 High Tech U programs have been delivered reaching approximately 2,400 students directly. An additional 41,000 students have been reached through the 476 teachers who have participated in High Tech U Teacher programs.
Industry Initiatives for Science and Math Education
The goal of Industry Initiatives for Science and Math Education (IISME) is to provide teachers with professional development experiences to gain additional learning and understanding of high tech practices to incorporate into their course curricula to help better prepare a strong, highly skilled workforce in math, science and technological fields.
Applied Materials, a long and active supporter of IISME, has hosted 90 Teacher Fellows since 1994. This summer nine IISME Fellows will work at Applied Materials on a variety of projects and will attend SEMICON West to learn about the latest trends and technologies driving nanomanufacturing technology into the future.
The company will also discuss how a shortage of talent may affect the industry and America’s position as a global technology leader. Additionally, Applied Materials will underscore its strong commitment to the semiconductor industry by highlighting the Applied Materials Foundation Women in Science and Technology Scholarship Program designed to encourage participation by women in science and engineering.
Also being showcased are successful initiatives promoting math, science and semiconductor technology education that are helping develop future technology innovators.
“As a global leader in a fast-changing and competitive marketplace, Applied Materials is constantly innovating and commercializing products to stay ahead of future technology trends,” said Tom St. Dennis, senior vice president and general manager of Applied Materials’ Silicon Systems Group.
“We need the best and brightest talent—the challenge for our educational system is to produce the workforce with the skills and knowledge required by the industry. We believe women can be a source of that talent in greater numbers if they are encouraged early in their education.”
To promote engagement in the industry and raise awareness of technical advances, Applied Materials and the Applied Materials Foundation are supporting several workforce development programs around the world that build bridges between schools and business.
Women in Science and Technology Scholarship Program
To help realize the full potential of the workforce of tomorrow, the Applied Materials Foundation has launched the Women in Science and Technology Scholarship Program to encourage young women to excel in specific technical areas leading to careers in science and engineering.
Grants will be made to selected student organizations at United States-based universities that are committed to developing the next generation of women engineers.
SEMI Foundation’s High Tech U
Applied Materials and the Applied Materials Foundation are long-time supporters of SEMI Foundation’s High Tech U for students and SEMI High Tech U Teacher Edition programs.
In a fun, three-day interactive session, students learn semiconductor manufacturing concepts and microchip logic and get a chance to understand career choices available in math and science-based professions. Students also learn about the design and physics of solar cells.
The teacher program mirrors the student session, with an emphasis on ways educators can implement program activities into their lesson plans. A primary objective of the program is to help teachers learn about math and science-based careers in high tech fields so they can advise students about educational options and career pathways.
“Applied Materials and its Foundation have supported our industry and this program from the very beginning, and in less than a decade this program has helped reach several thousand students and teachers,” said Stan Myers, president and CEO of Semiconductor Equipment and Materials International (SEMI).
“The goal is to build interest and excitement in young people about math and science careers and help develop the skilled workforce of tomorrow working on next generation technologies.”
Since 2001, 90 High Tech U programs have been delivered reaching approximately 2,400 students directly. An additional 41,000 students have been reached through the 476 teachers who have participated in High Tech U Teacher programs.
Industry Initiatives for Science and Math Education
The goal of Industry Initiatives for Science and Math Education (IISME) is to provide teachers with professional development experiences to gain additional learning and understanding of high tech practices to incorporate into their course curricula to help better prepare a strong, highly skilled workforce in math, science and technological fields.
Applied Materials, a long and active supporter of IISME, has hosted 90 Teacher Fellows since 1994. This summer nine IISME Fellows will work at Applied Materials on a variety of projects and will attend SEMICON West to learn about the latest trends and technologies driving nanomanufacturing technology into the future.
Tuesday, July 7, 2009
Gary Fazzino joins Applied Materials as VP of Government Affairs
SANTA CLARA, USA: Applied Materials Inc. today announced that Gary Fazzino has joined as vice president, Government Affairs, responsible for Applied’s global government relations programs.
Fazzino joins Applied from the Hewlett-Packard Company where he served as vice president of government and public affairs and will be located at Applied’s Santa Clara, California headquarters.
“Energy and the environment are top policy priorities for governments around the world, and Applied Materials' technology — from semiconductors to displays to solar — will be an important part of the solution," said Mike Splinter, Chairman and CEO of Applied Materials.
"Expanding relationships and engaging in dialogue with government are important to the long-term success of Applied Materials, and Gary's proven ability to help shape public policy will be invaluable as we explore new markets and new lines of business.”
“Applied has shown strong government policy leadership for many years, especially in the areas of clean, renewable energy and solar power,” said Fazzino. “I am pleased to join a company with Applied’s reputation and look forward to helping policy makers around the world understand the benefits of the technology Applied Materials provides and its contribution to improving the way people live.”
Fazzino was named Hewlett-Packard's vice president of government and public affairs in May 2000. He was responsible for shaping public policies and building relationships worldwide with government officials, community leaders, non-governmental organizations and business partners to advance HP’s interests.
Prior to this, Fazzino held a number of positions at HP, including Northwest Public Affairs manager, State Government Affairs manager and Director of Federal Public Policy in Washington, D.C.
Fazzino served as Mayor of Palo Alto from 1992-93 and again from 1999-2000. He was elected to the Palo Alto City Council five times. From 1996-1998, He served as the first president of the Technology Network, a national public policy and political organization.
Fazzino also served as chairman of the Santa Clara County Transportation Authority from 1992 to 1995. He currently serves on several boards, including the Information Technology Industry Council (ITI), the Coro Foundation, Junior Statesmen Foundation, San Jose Sports Authority, and the Eben Tisdale Fellowship Fund.
Fazzino holds a B.A. degree in Religious Studies from Stanford University, an M.A. degree in Public Policy from Occidental College, and an M.B.A. from the University of Washington.
Fazzino joins Applied from the Hewlett-Packard Company where he served as vice president of government and public affairs and will be located at Applied’s Santa Clara, California headquarters.
“Energy and the environment are top policy priorities for governments around the world, and Applied Materials' technology — from semiconductors to displays to solar — will be an important part of the solution," said Mike Splinter, Chairman and CEO of Applied Materials.
"Expanding relationships and engaging in dialogue with government are important to the long-term success of Applied Materials, and Gary's proven ability to help shape public policy will be invaluable as we explore new markets and new lines of business.”
“Applied has shown strong government policy leadership for many years, especially in the areas of clean, renewable energy and solar power,” said Fazzino. “I am pleased to join a company with Applied’s reputation and look forward to helping policy makers around the world understand the benefits of the technology Applied Materials provides and its contribution to improving the way people live.”
Fazzino was named Hewlett-Packard's vice president of government and public affairs in May 2000. He was responsible for shaping public policies and building relationships worldwide with government officials, community leaders, non-governmental organizations and business partners to advance HP’s interests.
Prior to this, Fazzino held a number of positions at HP, including Northwest Public Affairs manager, State Government Affairs manager and Director of Federal Public Policy in Washington, D.C.
Fazzino served as Mayor of Palo Alto from 1992-93 and again from 1999-2000. He was elected to the Palo Alto City Council five times. From 1996-1998, He served as the first president of the Technology Network, a national public policy and political organization.
Fazzino also served as chairman of the Santa Clara County Transportation Authority from 1992 to 1995. He currently serves on several boards, including the Information Technology Industry Council (ITI), the Coro Foundation, Junior Statesmen Foundation, San Jose Sports Authority, and the Eben Tisdale Fellowship Fund.
Fazzino holds a B.A. degree in Religious Studies from Stanford University, an M.A. degree in Public Policy from Occidental College, and an M.B.A. from the University of Washington.
Tuesday, June 30, 2009
IBM to provide application management services to Applied Materials
ARMONK, USA: IBM Corp. has signed a five-year strategic agreement to provide Applied Materials Inc., the global leader in nanomanufacturing technology solutions, with IT application development and maintenance services.
Under the agreement, IBM will be responsible for software application development, support and deployment. It will help centralize application support and increase efficiencies for Applied by providing a stable, flexible and scalable IT platform for its worldwide operations.
"As the leading provider of equipment to manufacture semiconductors, flat panel liquid crystal displays and solar photovoltaic cells, we depend on world-class operations within our enterprise," said Ron Kifer, Group Vice President and Chief Information Officer at Applied Materials.
"Information technology is a critical enabler of our business, and we selected IBM because it has the technical capabilities and portfolio of services to meet these needs worldwide."
IBM will provide Applied with an innovative service management framework that includes: application development, diagnostic and issue resolution support, database monitoring, security and controls monitoring, performance services, batch scheduling and data interface monitoring.
"In today's economy, our clients are looking for new ways to increase their IT efficiencies, and they are looking to service providers they can count on to help balance costs and system performance requirements," said Frank Kern, IBM Global Business Services. "With IBM's capabilities in application development and through its global delivery centers, we can help Applied Materials realize its business objectives."
Under the agreement, IBM will be responsible for software application development, support and deployment. It will help centralize application support and increase efficiencies for Applied by providing a stable, flexible and scalable IT platform for its worldwide operations.
"As the leading provider of equipment to manufacture semiconductors, flat panel liquid crystal displays and solar photovoltaic cells, we depend on world-class operations within our enterprise," said Ron Kifer, Group Vice President and Chief Information Officer at Applied Materials.
"Information technology is a critical enabler of our business, and we selected IBM because it has the technical capabilities and portfolio of services to meet these needs worldwide."
IBM will provide Applied with an innovative service management framework that includes: application development, diagnostic and issue resolution support, database monitoring, security and controls monitoring, performance services, batch scheduling and data interface monitoring.
"In today's economy, our clients are looking for new ways to increase their IT efficiencies, and they are looking to service providers they can count on to help balance costs and system performance requirements," said Frank Kern, IBM Global Business Services. "With IBM's capabilities in application development and through its global delivery centers, we can help Applied Materials realize its business objectives."
Tuesday, June 23, 2009
Applied Materials, Dainippon Screen revise Sokudo ownership structure
SANTA CLARA, USA: Applied Materials Inc. and Dainippon Screen Mfg. Co. Ltd. (Screen) today announced that they have signed an agreement to revise the ownership structure of their joint venture company, Sokudo Co. Ltd.
Under the agreement, Screen will own 81 percent of the coat/develop track system company and operate it as a subsidiary, and Applied Materials will retain a 19 percent interest, down from its original 48 percent interest. This new structure will more accurately reflect the ongoing contributions from both shareholders.
In response to the significantly weakened market for semiconductor equipment, Sokudo’s global sales and service operations will be streamlined to be more efficient in this business environment.
Applied Materials will continue to support Sokudo with key management, customer support, and product development as part of its commitment to both Screen and the companies’ shared customer base. Applied is also working closely with Sokudo and Screen at its Maydan Technology Center and expects this alliance to provide further opportunities for future collaboration.
Since the formation of the joint venture three years ago, Sokudo has built a solid position in the coat/develop track market based on its introduction of several significant products, beginning with the Sokudo RF3S system.
Most recently, using the combined strengths of Screen and Applied Materials, Sokudo introduced the breakthrough SOKUDO DUO system, which provides customers with the world’s first dual-track system for high productivity processing.
Under the agreement, Screen will own 81 percent of the coat/develop track system company and operate it as a subsidiary, and Applied Materials will retain a 19 percent interest, down from its original 48 percent interest. This new structure will more accurately reflect the ongoing contributions from both shareholders.
In response to the significantly weakened market for semiconductor equipment, Sokudo’s global sales and service operations will be streamlined to be more efficient in this business environment.
Applied Materials will continue to support Sokudo with key management, customer support, and product development as part of its commitment to both Screen and the companies’ shared customer base. Applied is also working closely with Sokudo and Screen at its Maydan Technology Center and expects this alliance to provide further opportunities for future collaboration.
Since the formation of the joint venture three years ago, Sokudo has built a solid position in the coat/develop track market based on its introduction of several significant products, beginning with the Sokudo RF3S system.
Most recently, using the combined strengths of Screen and Applied Materials, Sokudo introduced the breakthrough SOKUDO DUO system, which provides customers with the world’s first dual-track system for high productivity processing.
Axcelis, Applied Materials in strategic service agreement for Japan
BEVERLY & SANTA CLARA, USA: Axcelis Technologies Inc. and Applied Materials, Inc. have announced a strategic agreement making Applied the exclusive service provider for Axcelis semiconductor processing systems in Japan.
This program will enable Axcelis' customers to utilize Applied's extensive support infrastructure in Japan to optimize the performance and productivity of Axcelis process systems.
"We are pleased to join with Applied Materials, a company widely recognized for its outstanding service capabilities," said Mary Puma, chairman and CEO of Axcelis Technologies. "This agreement will allow Axcelis to assure the highest level of satisfaction for our present and future customers in Japan. It will also enable us to focus on our key strength -- delivering world-class manufacturing technology to the semiconductor industry."
"With expert service teams already in place in virtually every semiconductor fab, Applied is committed to providing Axcelis and its customers with the same world-class service that has gained us the respect and trust of semiconductor manufacturers worldwide," said Manfred Kerschbaum, senior vice president and general manager of Applied Global Services. "Our leading-edge service solutions can easily be expanded to non-Applied tools to simplify manufacturing operations, raise efficiency and reduce waste in the fab. We believe this program can serve as a model for the future: combining both companies' strengths for the benefit of our mutual customers."
Under the agreement, Applied will offer a comprehensive portfolio of service programs for Axcelis ion implantation, rapid thermal processing, curing and cleaning systems in Japan. Using a wide range of engineering and logistics technologies including Applied's ExpertConnect remote diagnostic capability, local and internationally located Applied certified engineers will provide preventive and corrective maintenance, spare parts management, parts cleaning and coating, and analytical services.
This program will enable Axcelis' customers to utilize Applied's extensive support infrastructure in Japan to optimize the performance and productivity of Axcelis process systems.
"We are pleased to join with Applied Materials, a company widely recognized for its outstanding service capabilities," said Mary Puma, chairman and CEO of Axcelis Technologies. "This agreement will allow Axcelis to assure the highest level of satisfaction for our present and future customers in Japan. It will also enable us to focus on our key strength -- delivering world-class manufacturing technology to the semiconductor industry."
"With expert service teams already in place in virtually every semiconductor fab, Applied is committed to providing Axcelis and its customers with the same world-class service that has gained us the respect and trust of semiconductor manufacturers worldwide," said Manfred Kerschbaum, senior vice president and general manager of Applied Global Services. "Our leading-edge service solutions can easily be expanded to non-Applied tools to simplify manufacturing operations, raise efficiency and reduce waste in the fab. We believe this program can serve as a model for the future: combining both companies' strengths for the benefit of our mutual customers."
Under the agreement, Applied will offer a comprehensive portfolio of service programs for Axcelis ion implantation, rapid thermal processing, curing and cleaning systems in Japan. Using a wide range of engineering and logistics technologies including Applied's ExpertConnect remote diagnostic capability, local and internationally located Applied certified engineers will provide preventive and corrective maintenance, spare parts management, parts cleaning and coating, and analytical services.
Monday, June 1, 2009
Applied redefines chip packaging productivity with charger PVD system
SANTA CLARA, USA: Applied Materials Inc. has introduced its Applied Charger UBM PVD system that defines a new standard in metal deposition productivity and reliability for chip packaging.
Specifically designed for under-bump metallization (UBM), redistribution layer and CMOS image sensor applications, the Charger system’s new linear architecture more than doubles the wafer output of competing systems to deliver the highest productivity available. In addition, proprietary Isani wafer treatment technology allows the Charger UBM system to process ten times more wafers between servicing to enable best-of-breed uptime performance and the lowest available per-wafer cost.
“Packaging facilities need a fast, dependable metallization workhorse to maximize wafer output and minimize the system redundancy burden imposed by slower, less reliable alternatives,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “By blending our proven PVD* process technology with packaging-specific innovations, we’ve created a highly productive, cost-efficient solution that is already churning out wafers in high volume production at multiple customers around the world.”
Key to the Charger platform’s high productivity is its streamlined modular architecture that easily expands from three to five processing stations to sequentially deposit multiple thin films while keeping the wafer in an ultra-clean, ultra-high vacuum environment.
Incoming wafers are conditioned using novel Isani wafer treatment technology that ensures a low-resistance, low-contaminant interface between the incoming device and the metal films to be deposited while also delivering excellent defect performance and greatly extended maintenance intervals. Applied’s superior PVD reactor technology can tailor the properties of each film layer for optimum device performance while the flexible architecture enables extendibility to emerging three-dimensional interconnect and packaging technologies.
The Charger UBM system builds on Applied’s two decades of leadership in PVD metallization technology. Applied’s PVD systems are used by virtually all advanced manufacturers around the globe for fabricating chips.
Specifically designed for under-bump metallization (UBM), redistribution layer and CMOS image sensor applications, the Charger system’s new linear architecture more than doubles the wafer output of competing systems to deliver the highest productivity available. In addition, proprietary Isani wafer treatment technology allows the Charger UBM system to process ten times more wafers between servicing to enable best-of-breed uptime performance and the lowest available per-wafer cost.
“Packaging facilities need a fast, dependable metallization workhorse to maximize wafer output and minimize the system redundancy burden imposed by slower, less reliable alternatives,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “By blending our proven PVD* process technology with packaging-specific innovations, we’ve created a highly productive, cost-efficient solution that is already churning out wafers in high volume production at multiple customers around the world.”
Key to the Charger platform’s high productivity is its streamlined modular architecture that easily expands from three to five processing stations to sequentially deposit multiple thin films while keeping the wafer in an ultra-clean, ultra-high vacuum environment.
Incoming wafers are conditioned using novel Isani wafer treatment technology that ensures a low-resistance, low-contaminant interface between the incoming device and the metal films to be deposited while also delivering excellent defect performance and greatly extended maintenance intervals. Applied’s superior PVD reactor technology can tailor the properties of each film layer for optimum device performance while the flexible architecture enables extendibility to emerging three-dimensional interconnect and packaging technologies.
The Charger UBM system builds on Applied’s two decades of leadership in PVD metallization technology. Applied’s PVD systems are used by virtually all advanced manufacturers around the globe for fabricating chips.
Applied extends copper PVD leadership to 22nm node
SANTA CLARA, USA: Applied Materials, Inc. launched its Applied Endura CuBS RFX PVD system, the only copper barrier/seed deposition technology qualified for 32 and 22nm production by logic and flash memory manufacturers.
Building on Applied’s 10-year leadership in this critical copper interconnect process, the Endura CuBS RFX system extends its proven, cost-effective PVD technology to provide exceptional step coverage and seed layer integrity –- at up to 40 percent lower cost per wafer than competing technologies.
“Future scaling of copper interconnects depends on finding a reliable, cost-effective way to deposit barrier and seed layers below 45nm,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “The Endura CuBS RFX PVD system enables customers to extend their existing process flows for another two device generations with robust, production-proven PVD technology, and avoid risk to their production lines that unproven and costly new integration schemes could present.”
Effective barrier and seed layer deposition is critical to assuring the speed and reliability of copper interconnects, since it prevents copper diffusion and provides a quality nucleation layer for subsequent bulk copper fill.
Key to the new Endura CuBS RFX system’s high performance is its new EnCoRe II RFX Cu seed process chamber. Employing a novel magnetron trajectory and a proprietary ion flux control system to enhance film coverage and morphology, the process delivers smooth, continuous seed layers for void-free copper gap fill and optimized device reliability.
Applied’s breakthrough Endura CuBS PVD system, launched in 1997, enabled a major leap forward in barrier/seed deposition capability by integrating the complete sequence on a single, high-vacuum platform. With almost 500 copper barrier/seed systems in use by the vast majority of copper chip manufacturers worldwide, Applied has demonstrated its ability to extend cost-effective PVD technology over multiple technology generations.
Building on Applied’s 10-year leadership in this critical copper interconnect process, the Endura CuBS RFX system extends its proven, cost-effective PVD technology to provide exceptional step coverage and seed layer integrity –- at up to 40 percent lower cost per wafer than competing technologies.
“Future scaling of copper interconnects depends on finding a reliable, cost-effective way to deposit barrier and seed layers below 45nm,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “The Endura CuBS RFX PVD system enables customers to extend their existing process flows for another two device generations with robust, production-proven PVD technology, and avoid risk to their production lines that unproven and costly new integration schemes could present.”
Effective barrier and seed layer deposition is critical to assuring the speed and reliability of copper interconnects, since it prevents copper diffusion and provides a quality nucleation layer for subsequent bulk copper fill.
Key to the new Endura CuBS RFX system’s high performance is its new EnCoRe II RFX Cu seed process chamber. Employing a novel magnetron trajectory and a proprietary ion flux control system to enhance film coverage and morphology, the process delivers smooth, continuous seed layers for void-free copper gap fill and optimized device reliability.
Applied’s breakthrough Endura CuBS PVD system, launched in 1997, enabled a major leap forward in barrier/seed deposition capability by integrating the complete sequence on a single, high-vacuum platform. With almost 500 copper barrier/seed systems in use by the vast majority of copper chip manufacturers worldwide, Applied has demonstrated its ability to extend cost-effective PVD technology over multiple technology generations.
Sunday, August 3, 2008
Indian fab policy gets 12 proposals; solar dominates
Just about 10 odd days ago, I had blogged about building-integrated photovoltaics (BIPV)! I had also mentioned how solar/PV will be the next big story in India, with BIPV right up there at the very top!
Well, according to a published report on India Infoline, the Indian semiconductor and fab policy has attracted 12 major proposals, worth a whopping Rs. 93,000 crores!
A Press Information Bureau (PIB) release says that the Department of Information Technology (DIT), Government of India, has set up a panel of technical experts to evaluate the proposals.
The promoters will come up to the Appraisal Committee for sanction of subsidy under the scheme once they have reached the threshold limit of investment, as indicated in the guidelines of the Special Incentive Package Scheme.
A majority of these proposals -- ten (10) -- are for solar/PV. One proposal is for a semiconductor wafer -- from Reliance Industries worth Rs. 18,521 crores, and another for TFT LCD flat panels -- from Videocon Industries, worth Rs. 8,000 crores.
The 10 proposals for solar/PV are from: KSK Surya (Rs. 3,211 crores), Lanco Solar (Rs. 12,938 crores), PV Technologies India (Rs. 6,000 crores), Phoenix Solar India (Rs. 1,200 crores), Reliance Industries (Rs. 11,631 crores), Signet Solar Inc. (Rs. 9,672 crores), Solar Semiconductor (Rs. 11,821 crores), TF Solar Power (Rs. 2,348 crores), Tata BP Solar India (Rs. 1,692.80 crores), and Titan Energy System (Rs. 5,880.58 crores).
Does the Indian solar/PV story now start making some sense? It is very much in line to become the next big success story for India after the Indian telecom story!
Evidently, Reliance Industries is the major player in all of this, having proposed both a semicon wafer fab as well as a solar/PV fab. Lanco Solar, Solar Semiconductor, Signet Solar, Videocon, and PV Technologies are some of the other big players proposing to enter the Indian semiconductor/fab space.
Well, this is really great news for the Indian semiconductor industry! Further, it comes close on the heels of the announcement of the 3G spectrum policy and MNP policy by the government of India.
A few weeks ago, Dr. Madhusudan V. Atre, president, Applied Materials India, had mentioned that taking the solar/PV route was perhaps, a practical route for India to enter manufacturing. How true are those words!
Late June, I too had proposed, among others points, that Karnataka (and other Indian states) look at having some solar/PV fabs.
Dr. Pradip K. Dutta, Corporate Vice President & Managing Director, Synopsys (India) Pvt Ltd had also mentioned late June that it was too early to write off the Indian fab story. We now have the answer to that question of having fabs in India!
All of this should also excite those investors looking to enter India. The huge interest and subsequent proposals for solar/PV can also lead to India having some of its own solar farms as well!
The India Semiconductor Association should be congratulated for having made this happen. It is soon going to a year since the Indian government had announced the semiconductor policy. Now, with these mega proposals in place, maybe, we will see more investors in the Indian semicon and solar/PV fab spaces.
Top 10 Indian semicon companies review
Another interesting thought! Last year, around this time, I had prepared a list of the Top 10 Indian semiconductor companies. This particular blog has been among the most accessed.
Perhaps, a review is in order! Besides, several Indian players are beginning to make a mark, like Cosmic Circuits, SemIndia, etc. The list of August 2007 mostly had Indian design services companies. This feature of Indian design services companies dominating a top 10 list will probably continue for some more time, till all of these proposals bear fruit into concrete, productive fabs.
I am sure, with those mega investments coming into the Indian semicon wafer IC fab and solar/PV fabs, most of the companies would soon figure in any top 10 list!\
Surely, 2009 should be quite exciting as all of this means a very positive future and outlook for the Indian semiconductor industry.
Well, according to a published report on India Infoline, the Indian semiconductor and fab policy has attracted 12 major proposals, worth a whopping Rs. 93,000 crores!
A Press Information Bureau (PIB) release says that the Department of Information Technology (DIT), Government of India, has set up a panel of technical experts to evaluate the proposals.
The promoters will come up to the Appraisal Committee for sanction of subsidy under the scheme once they have reached the threshold limit of investment, as indicated in the guidelines of the Special Incentive Package Scheme.
A majority of these proposals -- ten (10) -- are for solar/PV. One proposal is for a semiconductor wafer -- from Reliance Industries worth Rs. 18,521 crores, and another for TFT LCD flat panels -- from Videocon Industries, worth Rs. 8,000 crores.
The 10 proposals for solar/PV are from: KSK Surya (Rs. 3,211 crores), Lanco Solar (Rs. 12,938 crores), PV Technologies India (Rs. 6,000 crores), Phoenix Solar India (Rs. 1,200 crores), Reliance Industries (Rs. 11,631 crores), Signet Solar Inc. (Rs. 9,672 crores), Solar Semiconductor (Rs. 11,821 crores), TF Solar Power (Rs. 2,348 crores), Tata BP Solar India (Rs. 1,692.80 crores), and Titan Energy System (Rs. 5,880.58 crores).
Does the Indian solar/PV story now start making some sense? It is very much in line to become the next big success story for India after the Indian telecom story!
Evidently, Reliance Industries is the major player in all of this, having proposed both a semicon wafer fab as well as a solar/PV fab. Lanco Solar, Solar Semiconductor, Signet Solar, Videocon, and PV Technologies are some of the other big players proposing to enter the Indian semiconductor/fab space.
Well, this is really great news for the Indian semiconductor industry! Further, it comes close on the heels of the announcement of the 3G spectrum policy and MNP policy by the government of India.
A few weeks ago, Dr. Madhusudan V. Atre, president, Applied Materials India, had mentioned that taking the solar/PV route was perhaps, a practical route for India to enter manufacturing. How true are those words!
Late June, I too had proposed, among others points, that Karnataka (and other Indian states) look at having some solar/PV fabs.
Dr. Pradip K. Dutta, Corporate Vice President & Managing Director, Synopsys (India) Pvt Ltd had also mentioned late June that it was too early to write off the Indian fab story. We now have the answer to that question of having fabs in India!
All of this should also excite those investors looking to enter India. The huge interest and subsequent proposals for solar/PV can also lead to India having some of its own solar farms as well!
The India Semiconductor Association should be congratulated for having made this happen. It is soon going to a year since the Indian government had announced the semiconductor policy. Now, with these mega proposals in place, maybe, we will see more investors in the Indian semicon and solar/PV fab spaces.
Top 10 Indian semicon companies review
Another interesting thought! Last year, around this time, I had prepared a list of the Top 10 Indian semiconductor companies. This particular blog has been among the most accessed.
Perhaps, a review is in order! Besides, several Indian players are beginning to make a mark, like Cosmic Circuits, SemIndia, etc. The list of August 2007 mostly had Indian design services companies. This feature of Indian design services companies dominating a top 10 list will probably continue for some more time, till all of these proposals bear fruit into concrete, productive fabs.
I am sure, with those mega investments coming into the Indian semicon wafer IC fab and solar/PV fabs, most of the companies would soon figure in any top 10 list!\
Surely, 2009 should be quite exciting as all of this means a very positive future and outlook for the Indian semiconductor industry.
Wednesday, July 23, 2008
Get ready for building integrated photovoltaics (BIPV)
Building integrated photovoltaics or BIPV! Hey folks, prepare yourself to hear more about this term and the technology for quite some time to come! Solar/PV will be the next big story in India, and BIPV should be right up there at the top!
While BIPV is not yet talked about a lot in India, though, it may surprise many that there has been a deployment in India, I am sure that BIPV will be doing the rounds very soon.
There's another interesting angle to the BIPV, rather, solar story. Can EDA play a role here? I will examine this angle some time later.
First, what is BIPV? According to PV Resources, BIPV is merely photovoltaic systems integrated with an object's building phase. They are built/constructed along with an object, or planned together with the object. Yet, they could be built later on.
The following BIPV systems are said to be recognized:
* Facade or roof systems added after the building was built.
* Facade integrated photovoltaic systems built along with an object.
* Roof-integrated photovoltaic systems built along with an object.
* "Shadow-Voltaic" - PV systems also used as shadowing systems, built along with an object or added later.
If there are more, kindly share the information with me!
Now, to India. Just recently, Dr. Madhu Atre, president, Applied Materials India, referred to the use of BIPV during a discussion. He said that for energy-efficient glass, you could save on AC costs, etc., by using building integrated photovoltaics (BIPV). I hope we take serious note of what Dr. Atre said!
Didn't they say green IT was the most used and abused term? We really love talking so much about green IT. Well, here's an outstanding example, and actually, an example very few have really bothered to look at, so far, at least.
Staying with India, very few know that SunTechnics India, a brand of Conergy Group, a leading supplier of solar system integration, completed the design and installation of India's first green housing project facilitated with building-integrated solar power.
The 58 kilowatt project was developed in partnership with the West Bengal Renewable Energy Development Agency (WBREDA) as an initiative in solar architecture for the Rabi Rashmi Abasan eco-friendly housing complex at New Town Kolkata, of all places! Power will be fed into the public grid and facilitate electricity needs for 25 residential buildings and a community center.
If anyone has any doubts about the scope and power of solar or BIPV, take a look at Nanomarkets' report, which predicts that the market for BIPV will reach over $4.0 billion in revenues by 2013 and surpass $8 billion in 2015.
Late last month, I had written about certain steps Karnataka and the other states could adopt as part of a semicon policy.
Do include BIPV in your plans!
Actually, BIPV is very much part of the Indian semicon policy as well. West Bengal is probably the first state to have successfully implemented BIPV in a project. Congratulations are due!
While BIPV is not yet talked about a lot in India, though, it may surprise many that there has been a deployment in India, I am sure that BIPV will be doing the rounds very soon.
There's another interesting angle to the BIPV, rather, solar story. Can EDA play a role here? I will examine this angle some time later.
First, what is BIPV? According to PV Resources, BIPV is merely photovoltaic systems integrated with an object's building phase. They are built/constructed along with an object, or planned together with the object. Yet, they could be built later on.
The following BIPV systems are said to be recognized:
* Facade or roof systems added after the building was built.
* Facade integrated photovoltaic systems built along with an object.
* Roof-integrated photovoltaic systems built along with an object.
* "Shadow-Voltaic" - PV systems also used as shadowing systems, built along with an object or added later.
If there are more, kindly share the information with me!
Now, to India. Just recently, Dr. Madhu Atre, president, Applied Materials India, referred to the use of BIPV during a discussion. He said that for energy-efficient glass, you could save on AC costs, etc., by using building integrated photovoltaics (BIPV). I hope we take serious note of what Dr. Atre said!
Didn't they say green IT was the most used and abused term? We really love talking so much about green IT. Well, here's an outstanding example, and actually, an example very few have really bothered to look at, so far, at least.
Staying with India, very few know that SunTechnics India, a brand of Conergy Group, a leading supplier of solar system integration, completed the design and installation of India's first green housing project facilitated with building-integrated solar power.
The 58 kilowatt project was developed in partnership with the West Bengal Renewable Energy Development Agency (WBREDA) as an initiative in solar architecture for the Rabi Rashmi Abasan eco-friendly housing complex at New Town Kolkata, of all places! Power will be fed into the public grid and facilitate electricity needs for 25 residential buildings and a community center.
If anyone has any doubts about the scope and power of solar or BIPV, take a look at Nanomarkets' report, which predicts that the market for BIPV will reach over $4.0 billion in revenues by 2013 and surpass $8 billion in 2015.
Late last month, I had written about certain steps Karnataka and the other states could adopt as part of a semicon policy.
Do include BIPV in your plans!
Actually, BIPV is very much part of the Indian semicon policy as well. West Bengal is probably the first state to have successfully implemented BIPV in a project. Congratulations are due!
Tuesday, July 15, 2008
Practical to take solar/PV route: Dr. Atre, Applied
Solar/PV is perhaps, a practical route for India to enter manufacturing, contends Dr. Madhusudan V. Atre, president, Applied Materials India. Alternatively, another way to enter this field could be by having solar farms.According to Dr. Atre, India has a strong potential for manufacturing. The Indian scenario has the talent pool and an emerging middle class, along with the presence of system design and chip design companies. Only a fab seems to be the missing piece from this ecosystem!
Benefits of a fab include: fuels economic productivity, contributes to GDP and adds to national growth, creates jobs, helps set up the other expertise necessary for an ecosystem, and closes the loop between market, design, manufacture, test, customer.
Indian fab scenario
Commenting on the Indian scenario, Dr. Atre, says: "For PV, about $200-500mn is needed for a fab. If we can enter into manufacturing via the solar/PV route, the scale of investment required would be much less [than the investment needed for a wafer IC fab]. This can be practical route to enter manufacturing in India, and less complexity is involved, as compared to an IC fab." Another way of entering manufacturing is by having solar farms.
Applied's external face in India involves: Take leadership role in industry bodies; work with the government on various semiconductor and manufacturing policies; look for potential investments in start-ups; work with the academia on collaborative research in nanomanufacturing; be sponsors in key conferences; drive corporate social responsibility programs; and help enable semiconductor and solar manufacturing in India.
Touching on some emerging areas of interest, Dr. Atre highlights that packaging is very important in semiconductors. "We may look at some company in packaging R&D. We have invested a bit in Tessolve," he says. "We would also like to see the success of the nanotech lab in IIT-Mumbai, and see how it can help India." On a global scale, he notes that Applied would be setting up two-three SunFab lines with Masdar in Abu Dhabi, UAE.
Applied Materials in India
Headquartered in Bangalore, Applied has been present in the country for over five years. It has approximately 1,500 employees and associates. A liaison office was originally set up in May 2002. Applied Materials India Pvt Ltd (AMIPL) was set up in July 2003, and operations started in November 2003 with cost + model. It consolidated all Applied operations in Bangalore into ITPL (~92,000sqft). It also merged Brooks Chennai (~100RFTs) into Applied India operations. Applied currently has R&D centers in Bangalore and Chennai.
Next, Applied established site operations in Delhi (~5000 sqft) to support Moser Baer. Its key partners are Satyam, Wipro and TCS, on various aspects of engineering and software services. In Delhi, Applied has 25-30 people to support Moser Baer, where it has the first SunFab line up and running.
In Mumbai, it has set up a nanomanufacturing lab with IIT-Mumbai. "We have put in equipment worth $7-8 million there, and do R&D projects," adds Dr. Atre. The nano lab at IIT-Mumbai was inaugurated in November 2007 by Mike Splinter, president and CEO, Applied Materials.
Applied is also involved in the potential upgrade of SCL. "We are working with some other companies on how we can upgrade SCL. We are more at the backend to set up some capabilities," he says.
Applied Ventures makes investment in emerging technologies and companies. It has funded a couple of companies in the semi start-up stage. Applied Ventures looks at global investments.
Moser Baer is Applied's first customer in India. It has a 35-40MW assembly line. This is the first time that 5+m2 solar panels will be coming out. The panel will now have to be taken up to the production ramp. Dr. Atre adds that Europe was much advanced in solar/PV. Germany, especially, was far advanced in the implementation aspect, as well as Italy and Spain.
Nanomanufacturing simplified
Nannomanufacturing, as per Wikipedia, is "the near-term industrial-scale manufacture of nanotechnology-based objects, with emphasis on low cost and reliability." To manufacture at this level requires a lot of expertise, skills, etc., says Dr. Atre. Cost is definitely an important driver, and so is reliability, he adds. According to him, nanomanufacturing technology combines the two core strengths of Applied: nano + manufacturing.
Applied's vision has been to apply nanomanufacturing technology to improve the way people live. Its mission: To lead the Nanomanufacturing technology revolution with innovations that transform markets, create opportunities, and offer a cleaner, brighter future to people around the world.
Applied Materials is a global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for fabrication of: semiconductor chips, flat panel displays (using TFTs), solar photovoltaic cells and modules (in crystalline and thin film vectors), flexible electronics, and energy efficient glass (BIPV). The last three categories fall under EE or the Environment and Energy Division.
Dr. Atre says: "We have the SunFab line for solar/PV. In flexible electronics, as an example, you can have solar cells wrapped around an object." As for energy-efficient glass, you can save on AC costs, etc., by using building integrated photovoltaics.
Core capabilities
Applied's core capabilities include: commercialize sophisticated systems and thin-film engineering, besides a global culture. "Our technological strengths include semiconductors, solar/PV cells and FPDs. We have nanomanufacturing technology as the common theme." Touching on the loss per watt, he says it is currently around $14, which needs to come down to at least $2 or one-fourth.
Applied makes systems used to produce virtually every new microchip in the world, taking care of thermal, etching, inspection, PVD, CVD and CMP. For LCD flat panel display systems, Applied offers a variety of systems, such as PECVD systems, e-beam array testers, PVD systems and color filter sputtering systems.
The processing panels can be up to 2.2x2.5 meters. For solar manufacturing, Applied offers crystalline silicon, flexible PV and thin-film line, or the Applied SunFab lines. For architectural glass and flexible electronics, it offers both glass and Web coating systems.
"We have three key businesses, silicon systems, displays and energy and environmental solutions," said Dr. Atre. These are supported by Applied Global Services.
Applied's goals for 2010 include: Expanded revenue streams, to become a $13-15 billion company; increased operating efficiency, with margins >25 percent, and increased cash flow, about >20 percent of revenue.
Saturday, May 31, 2008
ASPs stabilizing, fab spend lower than expected
Future Horizons recently released the May WSTS results on the global semiconductor industry, which indicate that the chip market is slowly starting to buzz again. With the 'hum back among the chips', it was important for me to quiz Malcolm Penn, chairman and CEO, Future Horizons, in the UK, to find out why this was happening!
Now then, why is the chip market exactly humming? What has actually happened? Well, nothing specific! It is merely an overall step-by-step general improvement in everything, helped along by the normal seasonal improvement in business in the second half of the year!
So many forecasters and firms have their own forecasts. What happens now if some of these forecasts are cut or revised? Will that affect the market overall market? The answer is simple -- a forecast is simply just that -- a forecast -- not fact!
Penn says, "The market will judge whether the other forecasters' analyses of the market were right, as it wll indeed judge whether we are right too!"
Earlier, I had written about Future Horizons forecasting 12 percent growth in 2008 for the global semiconductor industry. Keep an eye on that one!
Further, have the ASPs stabilized, as those are indeed a dodgy lot? Penn feels, "We believe yes, although, there will still be the normal month-on-month variations and wobbles."
Now, where does all of this leave the DRAM and NAND markets? According to the forecast, prices have already stopped falling as fast as they were this time last year.
However, they do fall and will fall; this is what they do! The question is: by how much? In other words, is the current fall above or below the long-term trend line? This will be analyzed in the long run as well.
Finally, what's happening with the semicon equipment capex? Again, it is continuing to fall! "Right now we are in the middle of an underinvestment period, which means a capacity shortfall in 12 month's time," notes Penn.
No 'fab' times for fab spends
Is the fab spend going to see any change then? Well, unfortunately, no luck there! At least, not yet. Penn adds that fab spend is lower than expected at the beginning of the year.
He says: "The call then was for a 10 percent reduction, and this is now getting to be closer to 20 percent. In fact, Mike Splinter of Applied Materials is quoted as saying that he thinks that fab spend will end up 30 percent down."
It is good to see that the global semiconductor industry is starting to hum a little bit more than what it was doing last month. Sincerely hope that the rest of the year pans out well!
Now then, why is the chip market exactly humming? What has actually happened? Well, nothing specific! It is merely an overall step-by-step general improvement in everything, helped along by the normal seasonal improvement in business in the second half of the year!
So many forecasters and firms have their own forecasts. What happens now if some of these forecasts are cut or revised? Will that affect the market overall market? The answer is simple -- a forecast is simply just that -- a forecast -- not fact!
Penn says, "The market will judge whether the other forecasters' analyses of the market were right, as it wll indeed judge whether we are right too!"
Earlier, I had written about Future Horizons forecasting 12 percent growth in 2008 for the global semiconductor industry. Keep an eye on that one!
Further, have the ASPs stabilized, as those are indeed a dodgy lot? Penn feels, "We believe yes, although, there will still be the normal month-on-month variations and wobbles."
Now, where does all of this leave the DRAM and NAND markets? According to the forecast, prices have already stopped falling as fast as they were this time last year.
However, they do fall and will fall; this is what they do! The question is: by how much? In other words, is the current fall above or below the long-term trend line? This will be analyzed in the long run as well.
Finally, what's happening with the semicon equipment capex? Again, it is continuing to fall! "Right now we are in the middle of an underinvestment period, which means a capacity shortfall in 12 month's time," notes Penn.
No 'fab' times for fab spends
Is the fab spend going to see any change then? Well, unfortunately, no luck there! At least, not yet. Penn adds that fab spend is lower than expected at the beginning of the year.
He says: "The call then was for a 10 percent reduction, and this is now getting to be closer to 20 percent. In fact, Mike Splinter of Applied Materials is quoted as saying that he thinks that fab spend will end up 30 percent down."
It is good to see that the global semiconductor industry is starting to hum a little bit more than what it was doing last month. Sincerely hope that the rest of the year pans out well!
Friday, December 21, 2007
Top 10 global semiconductor trends for 2008
It is really difficult to stick your neck out and predict. That's what makes the analyst's jobs so difficult. Things happen and pass you by so quickly. For instance, as an example, who would have thought that Samsung would face a substantial blackout that would halt six chip production lines in a complex operated by the world's largest flash memory producer?
Plans for the fab in India are now well under way. There have been questions like, do we need fabs? The year 2008 is the year of presidential elections and the Summer Olympics. Will we really see a recession in 2008? Here are some of the trends that are visible for 2008. Would love to hear from you.
1. Semiconductor firms may have to face a recession year in an election year
Yes, strange as it may sound, this just might happen! Concerns about consumer spending, caused by higher oil prices, mortgage crisis in the US and fears of a possible recession have made analysts more cautious, albeit optimistic. Analysts are wary of an impending recession in semiconductors during 2008. That, it should fall in the year of the US presidential elections makes it all the more intriguing. The nervousness is already showing in the slowing down of some markets.
2. DRAM market looks weak in 2008
Will DRAM prices rebound? Remains to be seen, although DRAMeXchange says that Taiwanese suppliers are likely to have their output to trim by 10-25 percent during February (Chinese New Year) as they usually plan for an average of 3-7 days of annual facility maintenance during this period. DRAMeXchange regards this as a possible catalyst for a price rebound in near term. Analysts haven't helped either, with some saying DRAM will be on the slow side or even negative in H1-08.
3. NAND market will remain hot
You can bet, it will! Analysts remain upbeat for a positive NAND market in 2008. The reason being – new applications such as wireless USB, increase in cell phones memory capacities, higher content in portable media players, etc. We hope it is not a flash in the pan. There are rumors of another iPhone along the way!
4. Power will remain major issue
This isn't going to change anytime soon! Power awareness is crucial for portable applications. It determines battery lifetime, and there's an increased amount of computation involved as well. Power awareness is extremely crucial for high-performance applications. It determines cooling and energy costs. Many chip designs today are power limited and still require maximum performance.
5. EDA has to catch up
And fast! Analysts at a recent webcast hosted by Semiconductor International elaborated how the EDA industry was in a position of lag in the market. The DFM issue is increasingly becoming more complex. There is said to be a move to restrict the design rules that is in place now for 45nm. We are likely to see major changes in 32nm. That will have an impact on the EDA tools.
6. Need to solve the embedded dilemma
It is said that in 2007, the cost of designing or developing the embedded software for an SoC actually passed the cost of designing the SoC itself! We seem to be in the middle of a software crisis that is going to hit the entire electronics industry in the next five to six years.
7. Consolidation in the fab space
Some of the other older IDMs and fabs are said to be actually shutting down and going over to the foundries and process wafers for less than what they can do on their own. In this respect, we are seeing a lot of consolidation within the fab space. The mid-level players are consolidating. The customer base is clearly narrowing. The field is narrowing in 65nm and 45nm, and as we get to below 45nm, the field is going to get much, much narrower.
8. Capital equipment guys will continue to move to other markets
The best example, you can think of, is Applied Materials, which is into innovative equipment, service and software products for fabrication of chips, flat panel displays, solar photovoltaic cells, flexible electronics and energy efficient glass. Even the smaller guys are moving into LEDs or MEMS markets. That tells us what these companies are thinking about the semiconductors market.
9. Spend on capital equipment to drop
Gartner is expecting the long overdue capital spending correction in DRAM market to push the capital equipment market into contraction. Another slow year from foundry, along with concerns of US economic recession, adding to the downside. However, NAND spend should ramp up.
10. Mini fabs in developing countries
India has announced fab plans. There have also been talks of mega fabs and mini fabs elsewhere. There are going to be different types of fabs! With globalization, lot of countries may decide they want to have a fab. The market's going to change.
However, bear in mind that the outlook on new fab starts appears weaker, as many companies have cut back on spending to wait for the market to improve. After a forecasted 8 percent YoY increase in fab construction spending in 2007, levels are likely to be flat in 2008.
Plans for the fab in India are now well under way. There have been questions like, do we need fabs? The year 2008 is the year of presidential elections and the Summer Olympics. Will we really see a recession in 2008? Here are some of the trends that are visible for 2008. Would love to hear from you.
1. Semiconductor firms may have to face a recession year in an election year
Yes, strange as it may sound, this just might happen! Concerns about consumer spending, caused by higher oil prices, mortgage crisis in the US and fears of a possible recession have made analysts more cautious, albeit optimistic. Analysts are wary of an impending recession in semiconductors during 2008. That, it should fall in the year of the US presidential elections makes it all the more intriguing. The nervousness is already showing in the slowing down of some markets.
2. DRAM market looks weak in 2008
Will DRAM prices rebound? Remains to be seen, although DRAMeXchange says that Taiwanese suppliers are likely to have their output to trim by 10-25 percent during February (Chinese New Year) as they usually plan for an average of 3-7 days of annual facility maintenance during this period. DRAMeXchange regards this as a possible catalyst for a price rebound in near term. Analysts haven't helped either, with some saying DRAM will be on the slow side or even negative in H1-08.
3. NAND market will remain hot
You can bet, it will! Analysts remain upbeat for a positive NAND market in 2008. The reason being – new applications such as wireless USB, increase in cell phones memory capacities, higher content in portable media players, etc. We hope it is not a flash in the pan. There are rumors of another iPhone along the way!
4. Power will remain major issue
This isn't going to change anytime soon! Power awareness is crucial for portable applications. It determines battery lifetime, and there's an increased amount of computation involved as well. Power awareness is extremely crucial for high-performance applications. It determines cooling and energy costs. Many chip designs today are power limited and still require maximum performance.
5. EDA has to catch up
And fast! Analysts at a recent webcast hosted by Semiconductor International elaborated how the EDA industry was in a position of lag in the market. The DFM issue is increasingly becoming more complex. There is said to be a move to restrict the design rules that is in place now for 45nm. We are likely to see major changes in 32nm. That will have an impact on the EDA tools.
6. Need to solve the embedded dilemma
It is said that in 2007, the cost of designing or developing the embedded software for an SoC actually passed the cost of designing the SoC itself! We seem to be in the middle of a software crisis that is going to hit the entire electronics industry in the next five to six years.
Analysts are wary of an impending recession in semiconductors during 2008
7. Consolidation in the fab space
Some of the other older IDMs and fabs are said to be actually shutting down and going over to the foundries and process wafers for less than what they can do on their own. In this respect, we are seeing a lot of consolidation within the fab space. The mid-level players are consolidating. The customer base is clearly narrowing. The field is narrowing in 65nm and 45nm, and as we get to below 45nm, the field is going to get much, much narrower.
8. Capital equipment guys will continue to move to other markets
The best example, you can think of, is Applied Materials, which is into innovative equipment, service and software products for fabrication of chips, flat panel displays, solar photovoltaic cells, flexible electronics and energy efficient glass. Even the smaller guys are moving into LEDs or MEMS markets. That tells us what these companies are thinking about the semiconductors market.
9. Spend on capital equipment to drop
Gartner is expecting the long overdue capital spending correction in DRAM market to push the capital equipment market into contraction. Another slow year from foundry, along with concerns of US economic recession, adding to the downside. However, NAND spend should ramp up.
10. Mini fabs in developing countries
India has announced fab plans. There have also been talks of mega fabs and mini fabs elsewhere. There are going to be different types of fabs! With globalization, lot of countries may decide they want to have a fab. The market's going to change.
However, bear in mind that the outlook on new fab starts appears weaker, as many companies have cut back on spending to wait for the market to improve. After a forecasted 8 percent YoY increase in fab construction spending in 2007, levels are likely to be flat in 2008.
Friday, November 2, 2007
Applied Materials CEO on semicon sustainability and energy management
"The Indian semiconductor policy is really ground breaking. Hopefully, it will build great business." These comments from Michael R. Splinter, president and CEO, Applied Materials, were enough to indicate how much the Indian semiconductor policy, announced recently by the government of India, has caught the attention of global semicon majors.Mike Splinter was delivering his lecture at the Thought Leader Series organized by the India Semiconductor Association (ISA), where he also highlighted the needs of sustainability and energy management from a global perspective.
According to him, some things never changed in the semiconductor industry, such as: technical innovation being the most viable lever for productivity, end of optical lithography being imminent, no imminent change in fab economics ($/die), growth in complexities of products and applications.
"Through all of these times, the Moore's Law has persisted. The complexity of products have increased," he added. Another thing that hadn't changed was the growing need for sustainable practices.
Citing statistics, he said that the semiconductor industry was growing 5 percent this year, while the semiconductor equipment industry was growing at 3-5 percent during 2007. "Memory continues to grow very rapidly. NAND flash is a killer app," Splinter noted.
India, according to him, has a major role to play in the semiconductor domain. India's strengths lie in world class IC design and R&D capability, growing market for consumer electronics (CE), and an increasing need to address both global and industry challenges -- in terms of sustainability and energy use.
Challenge of sustainability
Touching on the growing importance of sustainability, Splinter cited The Economist, which reported that $70bn had been spent globally in clean tech research and funding. Further, the IPCC reported that the evidence of human caused global warming was equivocal.
While economic growth was driving demand and the BRIC (Brazil, Russia, India and China) countries were accelerating it, there was also an increasing use of chips in consumer electronics products. This translated into an increasing use of energy. "All of these factors, together, make sustainability even more challenging," added Splinter.
Splinter gave an example of LCD TVs, which are likely to grow 65 percent this year. Now, 90 percent of the power in LCD TVs goes into the backlight. If new technologies could be developed, those would certainly assist in saving more power. Another example was that of servers, laptops and TVs together accounting for 8 percent of global power consumption. That's a lot of power, if the global power is estimated at 5TW or so. It needs to be reduced as well.
So what is the waste and energy impact of consumer electronics? For starters, there are increasing energy consumption and recycling challenges. Next, manufacturing requires a lot of water, energy and materials. Another impact is the waste management within the manufacturing value chain. Splinter said, "The environmental impact can be reduced by clean tech products and sustainable manufacturing."
Need for energy efficient chips
Energy definitely needs to grow faster than the global economy. There is also a need to think about the environment and waste management. There is a need to increase the energy efficiency in chips, instead of solely focusing on performance.
Splinter said the time had come to take major steps, such as producing energy efficient chips. Applied Materials itself will be working on reducing the energy consumption in all of its practices. The semiconductor equipment maker will also be adopting clean energy in all of its facilities. The time has come for all to work together on energy use, Splinter added.
On solar, he noted that it had not yet managed to achieve scale. However, Germany had strongly pushed it, providing manufacturing incentives. "The scales are now starting to happen in Europe, especially, Germany," he added. "There is pretty good motivation and incentive to deploy solar here, in India, as well."
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