Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Monday, August 31, 2009

Intel selects WANdisco to support development between US and China

SANTA CLARA & SAN RAMON, USA: Intel and WANdisco, a leading provider of infrastructure software for replication, scalability and high availability, announced that Intel’s Consumer Electronics Group has selected WANdisco’s Subversion MultiSite to support over 1,000 developers located at sites in Shanghai, Oregon and Arizona.

Intel joins an ever growing list of globally distributed organizations that rely on WANdisco’s unique technology to overcome the problems of wide area network performance, reliability and availability.

Before implementing Subversion MultiSite, all three teams used one central Subversion server. But slow and unreliable networks between the US and China caused unacceptable delays throughout the entire development lifecycle. Developers and QA staff were forced to work long hours while they waited for the latest changes from other sites, in an effort to stay on schedule. New product releases were frequently delayed.

“With Subversion MultiSite, we’re 24 by 7 now,” said Jeremy Capps, IT Manager at Intel. “We went from over two hours of downtime each day to zero. Slow networks are no longer a problem for remote users and our build process is three to four times faster.”

Before selecting WANdisco, Intel conducted a thorough search for a solution that could solve the problem of network reliability and speed between China and the US. Part of this effort included a review of alternative Source Code Management Solutions and open source alternatives such as Svnsync.

“We searched for open source tools that might fill our need and tested them. We found that our build time was three to four times slower with these products, which were not even close to usable for our application. We had time-outs, false reports and so on. WANdisco is the only product available that fills this need,” continued Jeremy Capps.

After Intel implemented Subversion MultiSite, network performance and reliability were no longer issues. Now, the latest changes are always available everywhere and everything happens at local area network speed. Problems are caught and fixed when they occur, reducing QA and rework.

In addition, downtime for maintenance went from over two hours each day to zero because of Subversion MultiSite’s built-in hot backup, failover and automated recovery features. As a result, development cycle time and cost have been reduced by over 30 percent.

Capps continued, “Since implementing WANdisco we’ve seen some overjoyed developers in our remote locations.”

“We are extremely pleased that Intel has realized the savings in time and cost that WANdisco’s unique technology brings to the development lifecycle in a globally distributed organization,” said David Richards, President and CEO of WANdisco. “Intel’s experience is consistent with what we hear from our customers across the board.”

Tuesday, August 11, 2009

Altera opens 66th joint lab and training center in China

BEIJING, CHINA: Altera Corp. announced the opening of the new Peking University and Altera International Ltd Joint EDA/SOPC Lab at the Peking University School of Software and Microelectronics (Wuxi), Jiangsu Province, China.

This is the 66th Joint Lab and Training Center (JLTC) that Altera has established with major universities in China. As part of Altera's worldwide University Program, the JLTCs are equipped with the latest Altera Quartus II design software and a set of Altera DE2-70 development kits to aid professors in conducting hands-on training with students.

The university will use the lab for courses in digital logic circuits, HDL language, computer principles, principles of television, and modern digital system design featuring Altera's FPGA development environment. The lab will also be used to help design the electronics curriculum used for graduate and postgraduate studies.

"With the establishment of this joint lab and with the cooperation in teaching, project researching and training, we will be able to take full advantage of the Altera relationship with Peking University,” said Professor Xin Zhang, dean of the school of Software and Microelectronics at Peking University.

“This new lab boosts our universities enterprise cooperation to a new depth, which will enable us to make more contributions to the development of China SOPC."

In conjunction with the opening of the Peking University and Altera International Ltd Joint EDA/SOPC Lab, Altera has invited key professors from the other 65 JLTCs to attend the opening ceremony and participate in a three-day training on Altera products and technology.

"Through our University Program, we cultivate designers and support innovation around the world by working with professors and lecturers to help teach students about digital technology," said Stephen Brown, worldwide director of the University Program for Altera Corporation.

"Universities and students in China are very important for the future of the electronics industry, and we are proud to have a world-leading educational program in China. Altera invests heavily in universities and students worldwide, and has helped to create hundreds of university labs in a number of countries over the past few years."

Friday, August 7, 2009

China IC market forecast to reach $100 billion in 2013!

USA: China's IC market is expected to reach $100.1 billion in 2013 and represent over one-third (35 percent) of the worldwide IC market, up from only 14 in 2003 (Fig. 1) as discussed in detail in IC Insights' Mid-Year Update to The McClean Report.

In 2001, the Asia-Pacific IC market (which includes countries such as China, Taiwan, Singapore, Korea, etc.) first surpassed the Americas segment (which includes the US, Canada, Mexico, Central America, and South America) and became the leading IC-consuming market.

In 2008, the Asia-Pacific IC market was $111.2 billion, and, for the first time ever, was larger than the Americas, European, and Japanese IC markets combined!Source: IC Insights

The tremendous growth of the Asia-Pacific IC market over the past few years mirrors the trend toward increasing electronic system production in the Asia-Pacific region, especially in China. In general, regional IC market growth is typically closely matched to the growth of regional electronic system production.

With more of the world's electronic systems forecast to be produced in Asia-Pacific (non-Japan), and China in particular, IC Insights believes that Asia-Pacific IC market growth will continue to significantly outpace total IC market growth for at least the next five years.

In 2009, China and Taiwan together are expected to represent about 75 percent of the IC market in the Asia-Pacific region. In 2013, IC Insights forecasts that the China and Taiwan IC market together will reach about $139 billion and represent almost 80 percent of the total Asia-Pacific IC market and almost half (48 percent) of the worldwide IC market!

In 2008, China's IC market increased 5 percent to $56.2 billion as compared to a 6 percent decline for the total worldwide IC market. Although China's IC market is forecast to decline by 8 percent in 2009, this performance would still be much better than the 17 percent drop expected for the total IC market.

Moreover, the Chinese IC market is forecast to have a 2008-2013 CAGR of 12 percent, double the 6 percent forecast for the worldwide IC market during this same time period.

Source: IC Insights

Monday, August 3, 2009

Global semiconductor sales rise 17 percent QoQ

SAN JOSE, USA: Worldwide sales of semiconductors for the second quarter of 2009 were $51.7 billion, a 17 percent increase from the first quarter when sales were $44.2 billion, the Semiconductor Industry Association (SIA) reported today.Source: SIA

Second-quarter sales declined by 20 percent from the $64.7 billion recorded in the like period of 2008. Worldwide sales in June were $17.2 billion, an increase of 3.7 percent from May when sales were $16.6 billion, but 20 percent lower than the $21.6 billion reported for June 2008.

Year-to-date sales of $95.9 billion were 25 percent below the first six months of 2008, when sales were $127.5 billion. All monthly sales numbers represent a three-month moving average of global semiconductor sales.

“The fourth-consecutive monthly increase in sales is one indicator the industry is returning to normal seasonal growth patterns,” said SIA President George Scalise.

Scalise said focused supply chain management by both producers and customers helped to moderate the impact of the global economic recession on the industry. “Inventories have been closely managed, encouraging us to believe that the sequential increase in quarterly sales represents a gradual recovery of demand.”

Scalise noted that industry analysts have recently become more optimistic in their forecasts for key demand drivers.

"Consensus estimates for unit sales of PCs are now in the range of minus 5 percent to flat compared to 2008, whereas earlier forecasts were projecting year-on-year unit declines of 9 to 12 percent. In cell phone handsets, analysts now believe the unit decline will be in the range of 7 to 9 percent compared to earlier forecasts of a decline of around 15 percent. PCs and cell phones account for nearly 60 percent of worldwide semiconductor consumption," said Scalise.

Economic stimulus programs in China, including incentives for purchasing consumer products and investment in 3G/TDSCDMA communications infrastructure, have helped drive semiconductor sales in the world’s largest chip market.

“The global macroeconomic environment remains the key factor in determining the timing and rate of recovery for the semiconductor industry,” Scalise concluded.

Friday, July 10, 2009

Mentor Graphics signs Ruihesoft as new distributor in China

WILSONVILLE, USA: Mentor Graphics Corp. announced signing Beijing Ruihesoft Co., Ltd., previously a reseller of Altium’s products, as a distributor of Mentor’s Printed Circuit Board (PCB) systems design products in China.

The product portfolio will include the PADS PCB design flow as well as the HyperLynx® family for high-speed signal interconnect simulation. This portfolio is tuned to the predominant needs of China’s electronics companies, developing leading-edge systems with powerful desktop design solutions.

“Electronic systems and semiconductor components are getting more and more complex,” stated Feng Quanyu, general manager of Beijing Ruihesoft. “Mentor Graphics provides the industry’s best, affordable, innovative technology for users of individual desktop tool solutions as well as for enterprises with more complex design processes and organizations.

"Ruihesoft and Mentor Graphics will work together to provide total solutions and service for electronic system design companies in China. At a June 9th PCB seminar in Beijing held together with Mentor Graphics, hundreds of users highlighted the growing need for more powerful design and analysis solutions that deliver fast, accurate and repetitive results.”

“We are pleased to have Ruihesoft as our partner in China,” says Rick Bosshardt, vice president of Mentor’s Geography and Distribution Channel. “Ruihesoft is providing us with a broader coverage, adding five additional major cities in northern and eastern China.

"Their experience as a former Altium reseller, the excellent training facilities, and the reputation for their outstanding support and serving their customers’ needs will allow us to expand very quickly into new market segments by offering the best available products to every PCB design engineer in China.”

Over the past year, Mentor Graphics has made significant enhancements and added industry-unique and innovative technologies to its PCB design flows:

* The PADS 9.0 release adds new levels of functionality, scalability and integration, enabling designers to leverage many of Mentor’s unique and innovative technologies for design, analysis, manufacturing and multi-disciplined collaboration.

* The HyperLynx 8.0 product expands the industry-leading signal integrity solution with easy-to-use and accurate power integrity analysis, as well as new functionality to analyze advanced interconnect methods like DDR2/3.

Photronics to close Shanghai facility

BROOKFIELD, USA: Photronics Inc., a leader in supplying innovative imaging technology solutions for the global electronics industry, announced that it is closing its IC photomask manufacturing facility in Shanghai, China. The closure is consistent with Photronics strategy to reduce costs and lower its operational breakeven point.

In connection with the announced closure, Photronics expects to record an after tax charge of approximately $10 million to $14 million in fiscal 2009. Approximately 90 percent of the total charges will be attributed to non-cash items.

The company also estimates that 75 employees will be affected by the closure. Due to the ability to service customers from other Photronics' locations, the company expects minimal, if any revenue impact.

"While we remain extremely optimistic in our ability to continue growing our business within Asia, the integrated circuit mask market in China is not materializing as we had hoped" explained Constantine S. Macricostas, Photronics' chairman and CEO.

"Unfortunately China's photomask market remains relatively small and we do not foresee a viable path to profitability within an acceptable timeframe. To retain our cost competitiveness we must align our manufacturing capacity with end-market demand" concluded Macricostas.

After the closure, Photronics will have nine global manufacturing facilities with four located within Asia. The remaining Asian locations include Korea, Singapore, and two sites in Taiwan. Once completed, the xompany expects to realize annual savings ranging from $4 to $5 million.

Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of ICs, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components.

They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America.

Wednesday, July 8, 2009

MIPS, EE Solutions bring MIPS architecture to China and Taiwan semicon firms

SUNNYVALE, USA & HSINCHU CITY, TAIWAN: MIPS Technologies Inc., a leading provider of industry-standard processor architectures and cores for home entertainment, communications, networking and portable multimedia markets, and EE Solutions, a leading provider of ASIC and SoC design solutions, are teaming to provide semiconductor companies in China and Taiwan with easy access to MIPS' industry-standard technology.

EE Solutions licensed the synthesizable MIPS32 24KEc core as part of its digital IP portfolio and will work with MIPS to provide value-added solutions to joint customers.

EE Solutions has developed a hardened 24KEc core in TSMC 65nm process technology, resulting in proven expertise that it can leverage in engagements with customers. With MIPS' high-performance, low-power 24KEc core and design and turnkey services from EE Solutions, customers designing SoCs for multimedia devices such as set-top boxes, DTVs, and digital still cameras can get to market quickly at the lowest possible cost.

"We are pleased to work with MIPS Technologies, the leader in processor IP for many multimedia markets, to provide value to our joint customers across China and Taiwan. Together we can offer solutions that result in high-performance products with smaller die size-leading to reduced development costs. Customers can benefit from MIPS Technologies' industry leading technology and EE Solutions' proven record of providing customers with the ideal solutions to achieve their business objectives," said Jim Su, president, EE Solutions.

"Through this agreement with EE Solutions, a well-respected design services firm for the Greater China market, we are enabling companies across the region to get their differentiated products to market quickly," said Art Swift, vice president of marketing for MIPS Technologies. "EE Solutions' deep experience, engineering excellence and proven track record make them a trusted and important partner for MIPS. This agreement is yet another step in broadening access to the MIPS architecture in Greater China."

MIPS32 24KE family
The MIPS32 24KE core family leverages the high performance 24K microarchitecture while incorporating the MIPS DSP Application Specific Extension (ASE). These instructions provide signal processing performance of up to 3x over a range of embedded applications compared to RISC implementations without the DSP ASE. The 24KE family provides very efficient DSP capability while significantly reducing overall SoC die area, cost and power consumption.

The 24KEc core is a high-performance, low-power, core designed for custom system-on-silicon applications. The core is designed for semiconductor manufacturing companies, ASIC developers, and system OEMs who want to rapidly integrate their own custom logic and peripherals with a high-performance RISC processor.

Monday, July 6, 2009

Global and China MEMS industry report, 2008-2009

NEW YORK, USA: Reportlinker.com has announced a new market research report: Global and China MEMS Industry Report, 2008-2009.

MEMS, abbreviated for Micro Electro Mechanical Systems, is a semiconductor technology integrating mechanics and electronics, which got widely applied for auto airbag preliminarily, and then for all the other auto industries via MEMS sensor.

With further development of MEMS technology, as well as characteristics of application terminals such as lightness, thinness, shortness and smallness, the demand for small MEMS products with high performance shoots up, and fields like consumer electronics and medical care increasingly require large quantity MEMS products.

Apple iPhone series, beyond doubt, has promoted MEMS application in cell phone, and after iPhone, more and more MEMS cell phones will be in prevalence. MEMS in the components of portable devices consist of gyroscope, new-generation triaxial accelerometer, pressure sensor and module design.

Besides browsing web pages via touch, scrolling web pages via inclining cell phone, and displaying pictures by the change of cell phone direction and angle, it can also be step counter, guide interface, LBS positioning information service, HDD anti-collision protection from geocentric gravity, individual inertial navigation, intelligence interactive game etc.

The cell phones with in-built MEMS function also can be used to measure absolute atmosphere or as the sensing device. In addition, the cell phone MEMS sensor can judge the distance of cell phone to ear skin so that it can close display screen automatically, and the electricity source can be saved.

Impacted by global economic downturn in 2008, both global consumer electronics and automobile sale have dropped, which further continues in 2009. The two American auto giants are faced with bankruptcy, which has given a heavy blow to MEMS market application.

However, MEMS still has a bright prospect since the rising portion of MEMS application in single products in spite of a decline in consumer electronics shipment.

Moreover, the compulsory configuration regulations launched by the countries in Europe and America in auto ESC and TPMS fields have secured the steady supply of MEMS products.

MEMS products are mostly customized, which has higher requirements on wafer fabs. Therefore, Scarcely wafer fabs in Mainland China have entered the field. However, at the end of Oct, 2008, SMIC announced to enter MEMS OEM, and in early 2009 the top visiting group of Founder Microelectronics INC visited many MEMS companies in Taiwan.

As it is said that Shanghai and Wuxi are planned to establish MEMS industrial parks, and China’s MEMS insiders are also seeking chances to share opportunities that MEMS industry has brought.

Tuesday, June 30, 2009

SMIC achieves silicon success with high performance 45nm process

SHANGHAI, CHINA: Semiconductor Manufacturing International Corp. announced the successful completion of its first 45-nanometer high performance (GP, generic process with high performance) yield lot.

SMIC's high-speed, high performance 45nm GP technology integrates a silicon germanium stress module into the design, allowing the device to run faster, making it ideal for a number of applications, including system-on-chip, graphics and network processors, telecommunications and wireless consumer products, and serves as a technology platform for the fast growing China market.

The 45nm GP technology bookends with SMIC's silicon success on its 45nm low power (LP) technology, which is suitable for mobile devices that put a premium on low power consumption. SMIC signed an agreement with International Business Machines (IBM) to license its low-power and high-performance bulk CMOS technologies in December 2007. The GP technology transfer was completed in March 2009.

"I'm delighted with the progress of SMIC's 45nm project team, which continues to meet rigorous deadlines, and we appreciate the excellent support from IBM throughout this progress," said Dr. Robert Tsu, SMIC's 45nm project leader and Associate Vice President of Logic Technology. "Integrating the silicon germanium process and achieving a well-yielded test chip from the very first yield lot is a significant technical accomplishment, and these accomplishments allow SMIC to provide a highly manufacturable technology to our customers."

SMIC's 45nm GP technology is supported by a proven design-in SPICE model and in-house design IP capability that enables customers to begin prototype product design and plan for early time-to-market. In June, SMIC announced the adoption of new SPICE model software for the design and verification of 45nm IP blocks, I/O circuitry, and standard cell characterization flows.

As the company's 65nm low-power technology development cycle comes to a successful close, with a recently completed IP portfolio, multiple customer product qualification, and a ramping up of production, efforts have focused on 45nm. The readiness of SMIC's 45nm LP and GP technologies for design-in allows customers to enter a premium-value market.

"We are very excited and encouraged by the completion of our first 45nm high performance yield lot, another important signpost in SMIC's strategic plan," said Dr. Richard Chang, SMIC's President and CEO.

"It verifies the IBM-licensed technology, validates our strategic decision to invest in advanced logic technologies, and enhances SMIC's position as the advanced logic technology leader in China. This 45nm GP process is a proven, robust, high yielding, and high performance technology that we anticipate can not only deliver better performance, reliability, and cost to our valued customers, but also help SMIC become even more competitive in China and worldwide."

Monday, June 22, 2009

Report on China's IC industry 2009

DUBLIN, IRELAND: Research and Markets has announced the addition of the "Research Report of Chinese Integrated Circuit Industry, 2009" report to its offering.

In 2008, China totally imported 135.538 billion units of the IC and the import amounts reached $129.26 nillion.

In recent years, the growth speed of Chinese integrated circuit industry has exceeded the growth speed of Chinese electronic information manufacturing industry and the global integrated circuit industry. However, there was a big difference in 2008, the growth speed of which was slower than the growth speed of the electronic information manufacturing industry and slightly faster than the growth speed of the global integrated circuit industry.

Facing the strikes from the international financial crisis, Chinese integrated circuit enterprises all tightened their capital flows and took different measures to reduce and stop the production and suspended the projects in process, leading to the slow-down of the yield increases in the integrated circuit industry. During the former eleven months of 2008, the yields of the IC were 39.43 billion units, up by 4.8 percent YoY and the growth speed down by 19 percent compared with 2007.

The Chinese IC industry is strongly characterized as export-oriented. However, the international financial crisis and the recession of the global economy make the global integrated circuit industry in slow growth speed suffer from heavy hits as well as the reduction in the orders from abroad and the shrank of the demands in the international market.

From the aspect of Chinese domestic market, the international competitiveness of Chinese integrated circuit products and foundry is greatly damaged because of the up-valuation of Chinese currency in 2008 and the increases of the costs for the raw materials and labor force.

Meanwhile, the new important application areas of the integrated circuit in domestic market is are hard to start and the newly developed chips are poorly applied in the market, resulting in the weak demand growth in the domestic and overseas market. In 2008, the sales revenues of the integrated circuit industry were only increased by 2.86 percent, 10 percentage points less over the previous year.

Due to the slowdown of demands for the IC, the costs of Chinese integrated circuit industry were operated high in the most time of 2008. In the latter half of 2008, the enterprises all cut down the prices in droves to promote their products, leading to the sharp reduction in the general profits of the IC industry.

In 2008, the profits of the IC industry totaled 3.841 billion Yuan, the negative growth for the first time and the negative growth rate reaching 43.54 percent.

In 2008, memory was still occupying the largest market share in Chinese IC industry, but the reduction in the prices of the NAND Flash and DRAM cut down the market shares of the memory.

With the influences of the fast growth in the personal computers, the proportion of the CPU and Micro peripheral was rising, but the ASSP and ASIC showed the slow growth because of the sharp decline in the yield growth rate in teleco products, as well as the decline in the proportion. Besides, the logic devices, analog devices, MCU and the CPU products kept stable.

In the past years, the fast growth of the computer, mobile phone, consumption electronic, automobile electronic industries supported the fast development of Chinese IC industry. However, from the third quarter of 2008, the economic depression caused unfavorable influences on the downstream industry as well as the reduction in the sales of the mobile phones, MP3 and MP4.

Since the latter half of 2008, the major business revenues of Chinese electronic information manufacturing industry was cut down month by month, the growth speed in October was down by 18.4 percentage points compared with that in the same period of 2007. From January to October 2008, the growth speed of the mobile phones, microcomputers and pocket computers was dropped by 18, 19.5 and 11.3 percentage points YoY, respectively, compared with the same period of 2007.

In 2008, China exported 48.48 billion units of the IC and the exports amounted to $24.32 billion, up by 19.1 percent and 3.3 percent, respectively, and the growth speed of the import volumes exceeding the export amounts by 15.8 percentage points, which means that Chinese IC enterprises take the price reduction measures so as to expand the exports and strengthen the competitiveness.

Similar to the variation trends of the imports, it is predicted that the exports of the integrated circuit will keep growth at slow speed in 2009 and the growth speed will go up after in 2010; meanwhile, the growth speed of the exports will be faster than the growth speed of the imports; the trade deficit in the Chinese IC industry will be narrowed down.

The IC industry is obviously characterized as scaled economy. The larger the enterprises scale, the less the unit production costs and the more helpful to strengthen the competitiveness. The scales of the international integrated circuit giants are expanding continuously.

However, Chinese IC enterprises are all in low yield capacity and small in the scale. Therefore, when numerous domestic manufacturers strive to enhance the technical level, they also formulate the yield capacity expansion plans, standardize the newly built production lines so as to enhance the yield capacity and expand the production scale.

Broadcom to intro GPON IAD semiconductors in China

IRVINE, USA: Broadcom Corp. will introduce a new family of Gigabit passive optical network (GPON) integrated access device (IAD) semiconductors to telecommunications providers and original equipment manufacturers (OEMs) in China this year.

The Broadcom BCM6800 family of GPON gateway processors are designed to enable more cost effective optical network terminals (ONTs) or optical network units (ONUs) used in conjunction with service provider networks.

As a result, service providers that deploy Broadcom's BCM6800 family of gateway processors will leverage increased bandwidth for such offerings as high quality triple play services, high definition (HD) video, gaming, wireless and voice over IP (VoIP) supporting Fiber-to-the-Home (FTTH) and Fiber-to-the-Node (FTTN) applications.

With unparalleled levels of integration and increased throughput performance, Broadcom's GPON products will offer Chinese telecommunications carriers high performance and feature-rich passive optical network (PON) capabilities that are built on years of Broadcom's experience in the Chinese broadband access market.

The GPON specification is based on the International Telecommunications Union (ITU) G.984 GPON recommendation that offers Chinese carriers a global standard for PON deployments, with economies of scale built on interoperability and driven by deployments around the world.

GPON further offers network timing that is compatible with existing TDM voice networks in carrier infrastructures that allows carriers to transition existing TDM traffic to a more cost effective network, resulting in a greater revenue return on legacy services with corresponding declines in operating costs.

"Broadcom is pleased to provide our Chinese customers with a reliable and cost effective, stable, long term source of GPON silicon," said Greg Fischer, Vice President & General Manager of Broadcom's Carrier Access line of business. "Our presence and commitment to the carrier market in China is well established with leadership in DSL, Ethernet and wireless LAN products. The global GPON standard provides next generation FTTH and FTTN opportunities for China and we look forward to extending our leading access technologies and investments in this area."

The Broadcom BCM6800 family of GPON solutions are comprised of Fiber-to-the-X (FTTX) products spanning Gigabit bridges through full IAD capabilities. When used with Broadcom's leading ADSL2+, VDSL2 and Gigabit Ethernet products, they comprise a complete FTTN or Fiber-to-the-Building (FTTB) portfolio for remote nodes and multi-dwelling units.

Broadcom will begin production of these GPON devices later this year and is actively supporting customer designs immediately.

Wednesday, June 10, 2009

Semicon equipment market to begin recovery by Oct. 2009

NEW TRIPOLI, USA: The semiconductor equipment market will begin its recovery by October 2009 based on proprietary leading indicators, according to the report: “The Global Market for Equipment and Materials for IC Manufacturing,” recently published by The Information Network.

“Our proprietary leading indicators, which determine inflection points in economic activity and which we utilize to show turning points in semiconductor equipment sales have turned positive, indicating that an upturn in equipment sales will begin by October ,” noted Dr. Robert N. Castellano, president of The Information Network. “We have been using these indicators since 2000 and they have proven to be highly quantitative metrics in every forecast we have given, and in nearly every given year we have not had to change our forecast midstream. We do not give forecasts in tenths of percentages only to change them two months later.”

We successfully predicted in our release of May 27 that Mainland China’s cross-straits investment in Taiwan will help the island country to survive the global crisis and at the same time help fix its own IC market. Taiwan has now reversed its stance and is considering allowing 300mm fabs in China. These actions will spur the equipment market in China, which has historically been utilizing refurbished 200mm equipment in its fabs.

“Objective, concrete evidence comes from the positive activity in our proprietary leading indicators in the US. Both our long and short indicators turned up in late 2008, pointing to a business recovery cycle and giving visibility that the days of the recession are numbered,” added Dr. Castellano.

As the recession eases, companies and consumers will unleash pent-up demand and make the electronic purchases driving the semiconductor market, which has already turned positive.

Sunday, May 31, 2009

Siltrontech is China and Taiwan distributor for SiliconBlue FPGAs

SANTA CLARA, USA: SiliconBlue Technologies, the leading supplier of ultra-low power, single-chip SRAM FPGAs, recently announced that Siltrontech Electronics Corp. has been selected as a distributor for mainland China and Taiwan.

Established in 1992, Siltrontech will provide sales and technical support for SiliconBlue’s ultra-low power, single-chip iCE65 mobileFPGAs targeted at the rapidly-growing consumer handheld market.

"Siltrontech’s experience selling and supporting products for the mobile communications market is a great benefit to SiliconBlue as we expand our sales force in mainland China and Taiwan," said Kapil Shankar, CEO of SiliconBlue. "We are delighted to have a world class distributor selling and supporting our ultra-low power FPGAs in such an important market."

"SiliconBlue offers the most innovative FPGAs perfectly suited to our customer’s requirements," said Tony Chou, President at Siltrontech. "The iCE65 FPGA is an excellent addition to our product line, and provides an exciting new alternative to consumer hand-held designers who need the benefits of ultra-low power, single-chip, low-cost, constrained space and fast time-to-market for applications such as mobile phones, MIDs, eBooks, netbooks and digital picture frames."

iCE65 family of FPGAs
iCE65 ultra-low power FPGAs are the premier programmable logic solution for consumer, battery-based applications such as smart phones, eBooks/ePaper, netbooks, digital picture frames, mobile internet devices, portable media players, handheld POS, medical instruments, digital still cameras and flash camcorders.

These applications have an extremely short development and product life cycle; therefore, by combining the reprogramming flexibility benefit of FPGAs with the low cost, low power and single-chip benefits of ASICs, iCE65 FPGAs offer the “best of both worlds” solution for handheld consumer system designers.

Friday, May 29, 2009

Investment in Taiwan will help fix Mainland China's broken IC industry

NEW TRIPOLI, USA: Mainland China’s cross-straits investment in Taiwan will help the island country to survive the global crisis and at the same time help fix its own IC market, according to the report “Mainland China’s Semiconductor and Equipment Markets,” recently published by The Information Network.

“China’s chip industry is broken, a combination of the recession and too little money being spent by the government. Only $7 billion was spent on fabs in the past five years, enough to build only two 300mm fabs,” says Dr. Robert Castellano, President of The Information Network. “Investments by China into Taiwan will not only enable the country to endure its deepest recession, which was down 10.24% last quarter, but will catalyze a change in the Taiwanese government’s attitude toward semiconductor technology transfer.”

For years, rigid regulations controlled technology and monetary outflows from Taiwanese chip makers to China. Several factors played a role, such as concerns about China stealing and copying IP, fear that the technology would strengthen China’s military capabilities, and loss of jobs.

“Macroeconomic forces have changed the landscape. Taiwan needs money, and although the government may be reticent to give up its advanced technology, China’s massive economic stimulus package to Taiwan will serve to lessen regulations,” added Dr. Castellano. “This move will strengthen China’s semiconductor companies, minimizing the need to import the vast number of chips it currently does to manufacture consumer electronic products.”

China's IC industry is expanding rapidly. In 2008 Mainland China produced 42.5 billion ICs, which accounted for 24.3 percent of domestic demand as a result of massive building programs and the weak economy. In comparison, Mainland China produced only 20.9 percent five years ago.However, in 2008, consumption of ICs in Mainland China is outpaced production in domestically made ICs. Consumption grew 6.8 percent to 174.7 billion chips while production decreased 0.4 percent to 42.5 billion chips.

These issues are resulting in consolidation as the mainly foundry-based Chinese industry (SMIC, Grace, HeJian, ASMC, and CR Micro) competes with TSMC, UMC, and other entrenched Asian foundries. Hua Hong NEC Electronics will soon acquire Grace Semiconductor.

Things are also changing internally in China. As much as $25 billion is earmarked over the next five years to prop up the industry, including $5 billion for the joint venture between Elpida and Suzhou Venture Group and $5 billion for Sino-chip.

“Areas propelling the Chinese IC industry are part of the government stimulus program such as projects to supply subsidized electronic goods to rural areas of China. The construction of 3G networks, the expansion of mobile TV operations are big areas of opportunity,” added Dr. Castellano. “The Chinese government has realized internal stimulus was not enough without the advanced technology needed from Taiwan to make these programs successful.”

Wednesday, May 27, 2009

ST-Ericsson, China Mobile to bring TD-SCDMA to mass market

GENEVA, SWITZERLAND: China Mobile has selected ST-Ericsson’s company in China, T3G, as a major technology partner for the development of its high-end and low-cost handsets, based on the 3G standard TD-SCDMA. ST-Ericsson will also support four of its customers to commercialize their mobile phones during 2009-2010.

Under the agreement, ST-Ericsson, the 50/50 joint venture between Ericsson and STMicroelectronics, will develop a new low-cost platform to support its customers to offer affordable TD-SCDMA devices to the China consumers.

ST-Ericsson will also support customers to develop high-end mobile phones, based on existing and new platforms such as the T7210, which will allow consumers to enjoy high-speed broadband and multimedia services.

“Although ST-Ericsson is a recent joint venture, our subsidiary T3G has been actively developing platforms for the mobile standard for more than six years, achieving an impressive record of world firsts in bringing innovation to China,” said Alain Dutheil, President and CEO of ST-Ericsson. “Our dedicated local R&D team, as well as our strong commitment to continuous innovation and close cooperation with customers, will enable China Mobile to offer a broad range of handsets for the mass market as well as for the high-end segment.”

ST-Ericsson’s T7210 mobile platform supports TD-SCDMA dual-band in 2010-2025MHz/1880-1920MHz frequencies, and has successfully completed handovers of voice and high-speed data services in order to operate optimally in Chinese dual-band network environments.

Tuesday, May 19, 2009

Hynix to establish back-end JV in Wuxi

SEOUL, KOREA: Hynix Semiconductor Inc. announced that the company will establish a back-end joint venture in China with Wuxi Industrial Development Group Co. Ltd.

Hynix will sell its owned ‘Back-End’(‘back-end’) equipment in Korea and China to the established joint venture as part of its efforts to boost financial efficiency and secure $300 million.

By establishing a back-end joint venture, the portion of outsourcing of backend manufacturing will be extended up to 50 percent from the current of 30 percent. From this, Hynix will more focus on the core business of ‘Front-End’ (‘front-end’) manufacturing and extend R&D investment to the fullest.

Hynix had established the Joint Venture, Hynix-Numonyx Semiconductor Ltd. (‘HNSL’), with ST Microelectronics(Numonyx V.A. since 2008) in 2005 and HNSL has operated two fabrication facilities on the site. With the new back-end facility in China, Hynix will have both front-end and back-end facilities integrated in the area.

By implementing the integrated manufacturing system, Hynix will achieve reduction in both production and delivering costs. In this regard, the company will also be able to strengthen its dominant position in Chinese market.

Many of DRAM manufacturers have separately managed back-end business in abroad in order to strengthen effectiveness of their investment and manufacturing.

Sunday, May 17, 2009

Himfr on China's IC market trends

BEIJING, CHINA: Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites, recently reported on China's IC market trends.

In recent years, with the slow development of the global IC market, China's IC market has failed to beat issues surrounding the transfer of production capacity, the industry downturn and weakening demand, etc., resulting in a year-on-year decrease.

In 2008, with the afore-mentioned factors as well as the impact of financial crisis, the market witnessed a below 10 percent growth for the first time, the full year only achieved sales of RMB597 billion, an increase year-on-year of only 6.2 percent; seeing China's IC market growth rate on a downward spiral for five consecutive years.

The impact of the financial crisis in 2008, at the end of the third quarter, has also has serious effects on the semiconductor industry. By the cyclical development of industry factors, it is expected that the global semiconductor market in 2009 will experience a first-time decline.

Under the influence of the downturn in the global industry, China's IC market will also slow down. It can be said that in 2009, China's IC industry will be facing an unprecedented difficult year.

On the one hand, weak domestic and foreign markets will lead to sluggish domestic exports, while on the other hand, the lack of new projects to drive production, despite the RMB exchange rate bringing advantages to the industry, will not be not enough to offset the adverse effects of the market.

Based on this, Himfr.com's consultant expects that the pace of development of China's IC market in 2009 will be maintained at about 3 percent.

In the long term, if the global economy in 2010 is stable along with development, the semiconductor industry is expected to rebound. The Chinese market, Himfr.com's consultant forecasts, will continue to expand; its growth rate will gradually be smooth, and will be closer to the global semiconductor market development pace. Finally, these two market growth rates will remain basically the same.

Tuesday, May 12, 2009

1H May NAND Flash contract price rose 0-12pc

TAIPEI, TAIWAN: The average NAND Flash contract price of 1H May, 2009, rose between 0 to 12 percent. In 1H May, following previous NAND Flash suppliers' allocation policy in April, upstream suppliers provided system makers as their priority and reduced allocation to memory card makers.

NAND Flash contract price slightly rose in 1H May due to China’s “Home Electronics down to the country side” policy, and restocking demand of 3G handset upgrade and copycat cell phone market, according to DRAMeXchange.

Due to as low as one-month visibility in NAND Flash market and sustained price surge over the past four months, most clients are more conservative in purchasing and keep observing current price trend. However, as NAND Flash suppliers will adjust 2Q09 output pace, DRAMeXchange expects the contract price to roughly stabilize in the short-term.

After mid April, both upstream and downstream NAND Flash suppliers and makers announced their 1Q09 earnings releases. Most upstream suppliers have still suffered from financial losses although the situation slightly improved when compared with 4Q08.

On the other hand, downstream handset and DSC makers also faced the worst shipment results both in QoQ and YoY. Looking into the previous shipment patterns, the number in 2Q will usually increase while compared with 1Q.

DRAMeXchange expects NAND Flash suppliers to continue to adjust their output growth rate and stabilize NAND Flash price to improve their profitability with gradually recovering downstream demand.

Fig. 1: Mainstream 16Gb MLC NAND Flash Contract Pricing Trend, Jan. to May, 2009

Monday, May 11, 2009

Intel continues to expand pirate (Shan Zhai) netbook market share

TAIPEI, TAIWAN: Since the Chinese pirate (Shan Zhai) netbook trend is inevitable to stop and in order to prevent VIA from gaining market share, Intel clarified its stance of supporting the pirate NB at the beginning of the year.

Intel provides Atom CPU to the Chinese vendors, such as Unicomp, and Jwele, and helps them with reference board designing. The purpose of these actions is enabling the Intel alliance to compete with the VIA Global Mobility Bazaar Alliance. DRAMeXchange says.

DRAMeXchane states that from April, since there were no worries about component supply and design, the pirate NB Intel parts adopting rate surged up in spite of the 10 USD premium of Atom CPU over the VIA C7. The performance advantages attracked the vendors to adopt Intel CPU. As far as the April pirate netbook shipment is concerned, the Intel market share had already reached 75 percent.

Chinese pirate NB is at the early stage of its product life cycle and attracting all kinds of market participants. This resulted in grey import Intel Atom CPU flowing all over the place, and interfering the normal CPU price. Therefore, the actual story about the recent sayings that Intel will stop providing Atom to pirate netbooks is just one way of controlling the supply and bringing it back on track again.

Currently, the monthly CPU shipment supplied to Chinese pirate netbooks through Synnex and WPI reaches 200K per month. Intel is also providing extra support to BYD and Top Star in order to help them entering the netbook ODM business, according to DRAMeXchange.

The popularity of pirate netbooks in the Chinese market has caused component shortage, and currently the components can only fulfill 50-70 percent of demand. The shortage situation is expected to be eased in June. The April shipment was about 300K and expected to double in Q3 or Q409. Optimistically, the 2009 annual pirate netbook is expected to reach 4 million units.

Even with conservative estimation, the shipment of 2.5 million units will be easily fulfilled.

Thursday, April 30, 2009

UMC to acquire He Jian foundry in China

TAIPEI, TAIWAN: United Microelectronics Corp. recently convened its 19th session, 10th term of its Board of Directors meeting. During the meeting, its board approved to propose the acquisition by UMC of the holding company of He Jian Technology (Suzhou) Co. Ltd. for resolution at the annual shareholders meeting.

Established in late 2001 as a semiconductor foundry business, He Jian operates an 8-inch fab in Suzhou, China with a monthly capacity of 41,000 wafers, He Jian has made significant inroads into the China market and has established strong relationships with local companies across the semiconductor supply chain. He Jian was profitable from 2005 to 2007 and its operating performance and financial condition remain promising.

UMC's core business has been in semiconductor foundry for many years. In order to facilitate UMC's global business reach beyond its current markets, to help expedite business growth, to increase profitability, to enhance shareholder value and to increase UMC's business competitiveness, UMC believes that a production base in China is key.

During the past six months, the global semiconductor market suffered in the significant financial crisis that led to a worldwide economic downturn. The net value and market value of many semiconductor companies were negatively impacted. Conversely, China's market was relatively strong during this period, attracting many customers that preferred the option of local production.

UMC viewed these circumstances as an opportunity to invigorate itself towards long-term growth. After considering the required manpower, capital and time required to build a new fab, which would exceed one year, UMC proposed the Acquisition. In addition to realizing the value of the 15 percent ownership interest in the indirect holding company of He Jian held in trust for UMC and promoting its shareholders' interest, UMC could acquire a fully built, fully staffed and fully operational production base at an attractive price.
UMC further anticipates that, by focusing on customer satisfaction, the strong foundation established by He Jian in China will lead to further gains in market share. For He Jian, as an independently operated semiconductor foundry company, the Acquisition is expected to accelerate market penetration and increase profitability as a result of being incorporated into UMC's world-class operations.

Under the terms of the definitive agreement governing the Acquisition, holders of shares of the holding company that indirectly own He Jian, but excluding the 15% ownership interest held in trust for UMC, are entitled to receive an aggregate consideration of approximately US$285 million. These holders may elect to receive payment in the form of cash or an equivalent value of UMC common stock or American Depositary Shares ("ADS"). The basis of the number of shares to be delivered will be calculated by using the arithmetic average closing value of UMC's common shares and ADSs during the 6-month period prior to, but excluding, April 29, 2009, the date of the Board of Directors' meeting.

Consummation of the Acquisition is subject to approvals from governmental authorities, the passage of appropriate resolutions of the shareholders of UMC and the holding company of He Jian and certain other customary conditions.

After the consummation of the Acquisition, UMC plans to integrate resources, reduce operating costs, and expand business scale, as well as to rapidly shorten the time required for establishing a production base in China. With China's current market still growing and the eventual overall semiconductor industry recovery, UMC expects to expand the potential to grow its long-term revenue and earnings. The expanded international presence of UMC will also enhance its global competitiveness in the rapidly developing semiconductor industry.

Nomura International (Hong Kong) Ltd, Taipei Branch, is the sole financial advisor to UMC on the acquisition.