SAN JOSE, USA: SEMI announced the appointment of Allen Lu, Ph.D. as the president of SEMI China. Lu assumes responsibility for the association’s programs, products and services in China.
He will oversee relationships with SEMI members, government and academia in the region; support SEMI international programs; and serve SEMI members from all regions that have interests in China. Lu succeeds Rong-Ling Chen, who has served as acting president of SEMI China since April 2009 and who will continue to serve SEMI as an advisor to Lu.
Lu has 20 years of semiconductor industry experience with a background in technology, business and management. Prior to joining SEMI as regional president, Lu managed the Intel Technology Manufacturing and Engineering group’s China Fab Program, overseeing capital equipment supplier chain development for Intel’s first Asia fab in Dalian, China.
Prior to that, Lu started Intel’s Public Affairs organization in China managing government affairs, community relations, and education programs, and served as the Director of Intel China Public Affairs for four years.
Lu also worked in Intel’s California Technology and Manufacturing group for six years as a technologist and Group Leader. Preceding his work at Intel, Lu was senior process engineer and project leader for Applied Materials.
Lu began his semiconductor career as a research scientist at Northwestern University and North Carolina State University. Lu has a B.Sc. from the University of Science and Technology of China and a Ph.D. in solid state physics from the University of Virginia.
“We are extremely pleased to have Allen Lu join SEMI as the president of SEMI China,” said Stanley T. Myers, president and CEO of SEMI. "Allen has demonstrated leadership in both the IDM and equipment manufacturing aspects of the semiconductor industry, and he possesses business acumen with a strong background of working with government, academia, and other organizations on behalf of the industry."
"We are both fortunate and honored that R.L. Chen agreed to serve as acting president during the transitional period after the departure of Mark Ding," said Myers. "R.L. has had an illustrious career in the Chinese semiconductor industry and possesses great familiarity with SEMI members and operations in the region. He is a strong supporter of SEMI, and we offer our heartfelt thanks for his contributions.”
“I am deeply honored to join SEMI as the president of SEMI China,” said Lu. “China is an exciting business environment with continuing growth opportunities in its semiconductor, PV, and FPD industries.
“My broad experiences in several aspects of the semiconductor industry supply chain will help me as we grow the value that we provide to SEMI members here in China and around the world. I value the deep relationships that SEMI already has in China, and together we will achieve great things for the industry.”
Showing posts with label Chinese semiconductor industry. Show all posts
Showing posts with label Chinese semiconductor industry. Show all posts
Thursday, August 27, 2009
Tuesday, August 11, 2009
Report on China semiconductor industry 2010
NEW YORK, USA: Reportlinker.com has announced a new market research report in its catalogue -- China Semiconductor Industry, 2010.
The impact of China on the world’s semiconductor industry—both as a consumer and supplier—is massive. It demands to be analyzed so that companies can react strategically with speed and agility. This report gives a better understanding of China’s impact on the global semiconductor industry.
This report evaluates the current status of the semiconductor industry in China, assesses geographical and product category demand, reviews shifts in the semiconductor value chain, and analyzes three different IC production growth scenarios.
Semiconductors lie at the heart of ongoing advances across the electronics industry and play a central role in the digital revolution. Semiconductor companies are continuously creating smaller, faster, and more complex chips to meet the demand for rapidly-changing technology.
Driven by both the continued growth of silicon content in end-products and the number of products with silicon components, the semiconductor industry maintained phenomenal growth over the last five years, and growth is expected to continue indefinitely.
The worldwide semiconductor industry is significantly impacted by the strategic focus of individual territories and geographies. With its emerging dominance in electronics manufacturing, China is poised to play a significant role in the semiconductor industry.
China’s semiconductor consumption market grew by 23 percent in 2007 to reach $88 billion, accounting for just over one-third of the worldwide market. China’s share of worldwide semiconductor production was about 9 percent in 2007 and is expected to increase gradually.
The impact of China on the world’s semiconductor industry—both as a consumer and supplier—is massive. It demands to be analyzed so that companies can react strategically with speed and agility. This report gives a better understanding of China’s impact on the global semiconductor industry.
This report evaluates the current status of the semiconductor industry in China, assesses geographical and product category demand, reviews shifts in the semiconductor value chain, and analyzes three different IC production growth scenarios.
Semiconductors lie at the heart of ongoing advances across the electronics industry and play a central role in the digital revolution. Semiconductor companies are continuously creating smaller, faster, and more complex chips to meet the demand for rapidly-changing technology.
Driven by both the continued growth of silicon content in end-products and the number of products with silicon components, the semiconductor industry maintained phenomenal growth over the last five years, and growth is expected to continue indefinitely.
The worldwide semiconductor industry is significantly impacted by the strategic focus of individual territories and geographies. With its emerging dominance in electronics manufacturing, China is poised to play a significant role in the semiconductor industry.
China’s semiconductor consumption market grew by 23 percent in 2007 to reach $88 billion, accounting for just over one-third of the worldwide market. China’s share of worldwide semiconductor production was about 9 percent in 2007 and is expected to increase gradually.
Friday, May 8, 2009
Global and China semiconductor industry report 2008-09
NEW YORK, USA: Reportlinker.com has added a new market research report is available in its catalogue, the Global & China Semiconductor Industry Report, 2008-2009.
According to China Semiconductor Industry Association, the integrated circuit industry scale was totaled at CNY 124.682 billion in 2008, a reduction of 0.4 percent of last year, which was the first time that a negative growth occurred in the recent 20 years.
Driven by the constant consumption upgrading and 2008 Beijing Olympic Games, the industry maintained a growth of 10.4 percent in the first half of 2008, 12.5 percent and 8.3 percent, respectively in the first quarter and second quarter. However, the growth rate sharply declined to 1.1 percent in the third quarter, and a negative growth of -20 percent in the fourth quarter, which was the biggest quarterly drop in the recent 20 years.
Considering the policy, China’s semiconductor industry is currently in the dilemma, giving preferential policies will lead the issue of trade protectionism by the countries rely on semiconductor products export such as the USA; if not, the Chinese companies will be more difficult to survive facing oversea competitors.
China is the largest IC market in the world, with a market scale at US $85 billion in 2008, but the market share of domestic suppliers was less than 7 percent. Although China is the global factory of electronics products, the orders and shipments are both controlled outside.
Considering the IC design, China has few of IC design houses like Solomon, Actions, Spreadtrum and Vimicro. The Solomon, derived from the LCD division of Motorola, relies on Motorola, lack of product innovations. Backed by the Realtek, the Actions is the world’s largest sound card manufacturer and has an outstanding performance in the digital audio field.
Spreadtrum recorded a reduction of 50 percent in the fourth quarter of 2008, far higher than Mediatek. Protected by the huge domestic demand for PC camera, Vimicro stays steady; however, caused by its high labor cost, the company recorded successively operational loss in the last four quarters.
IC design sector suffered the most with the transfer of international financial crisis to the real economy, especially those newly established companies due to the break of their capital chain, venture investors also draw back, and the A-turn investment dropped 82 percent during 2000-2007. According to GSA, there were 74 companies shut down since Oct 2008, and most of which were small companies.
Nevertheless, the wafer OEM maintains a high expansion in China. Since its establishment in the year of 2000, SMIC has built productions in Shanghai, Beijing, Tianjin, Chengdu, Wuhan and Guangzhou through M&A and trusteeship.
In addition, guided by Shanghai Government, the Huahong Group acquired Grace Semiconductor at the beginning of 2009, along with an extra investment of US $2.2 billion for a 12-inch wafer plant. However, the fact is that SMIC has been recording a loss since its establishment.
The cost structure of semiconductor manufacturing is roughly as following: machine depreciation 50 percent, materials 20 percent, water and power 5 percent, and labor 10 percent. For Chinese companies, only 15 percent of the cost can be controlled, while the part has been played to the full extent. Moreover, the unilateral understanding to scale has fettered their imaginations of strategy, which makes the semiconductor industry in the situation of unmerited scale.
In addition, the semiconductor industry is always protected by governments, dare not or unwilling to face with the market-oriented risk. The Chartered is a typical example.
There are two typical development routes regarding the wafer OEM, one is represented by the TSMC: focus on the technology and high-profit business; the other is represented by the UMC: huge investment on IC design houses for the purpose of production capacity enhancement, for example, the investment to MTK, Novatek and SIS are all proved successful.
Novatek is the second largest IC design house in Taiwan, as well as the global second largest TFT-LCD drive IC manufacturer. MTK is the top mobile phone vendor and the 7th largest IC design house in the world, as well as the largest IC design house in Taiwan.
It is not enough to just invest a huge capital and the semiconductor industry also requires more input in the basic science and technology especially in China.
According to China Semiconductor Industry Association, the integrated circuit industry scale was totaled at CNY 124.682 billion in 2008, a reduction of 0.4 percent of last year, which was the first time that a negative growth occurred in the recent 20 years.
Driven by the constant consumption upgrading and 2008 Beijing Olympic Games, the industry maintained a growth of 10.4 percent in the first half of 2008, 12.5 percent and 8.3 percent, respectively in the first quarter and second quarter. However, the growth rate sharply declined to 1.1 percent in the third quarter, and a negative growth of -20 percent in the fourth quarter, which was the biggest quarterly drop in the recent 20 years.
Considering the policy, China’s semiconductor industry is currently in the dilemma, giving preferential policies will lead the issue of trade protectionism by the countries rely on semiconductor products export such as the USA; if not, the Chinese companies will be more difficult to survive facing oversea competitors.
China is the largest IC market in the world, with a market scale at US $85 billion in 2008, but the market share of domestic suppliers was less than 7 percent. Although China is the global factory of electronics products, the orders and shipments are both controlled outside.
Considering the IC design, China has few of IC design houses like Solomon, Actions, Spreadtrum and Vimicro. The Solomon, derived from the LCD division of Motorola, relies on Motorola, lack of product innovations. Backed by the Realtek, the Actions is the world’s largest sound card manufacturer and has an outstanding performance in the digital audio field.
Spreadtrum recorded a reduction of 50 percent in the fourth quarter of 2008, far higher than Mediatek. Protected by the huge domestic demand for PC camera, Vimicro stays steady; however, caused by its high labor cost, the company recorded successively operational loss in the last four quarters.
IC design sector suffered the most with the transfer of international financial crisis to the real economy, especially those newly established companies due to the break of their capital chain, venture investors also draw back, and the A-turn investment dropped 82 percent during 2000-2007. According to GSA, there were 74 companies shut down since Oct 2008, and most of which were small companies.
Nevertheless, the wafer OEM maintains a high expansion in China. Since its establishment in the year of 2000, SMIC has built productions in Shanghai, Beijing, Tianjin, Chengdu, Wuhan and Guangzhou through M&A and trusteeship.
In addition, guided by Shanghai Government, the Huahong Group acquired Grace Semiconductor at the beginning of 2009, along with an extra investment of US $2.2 billion for a 12-inch wafer plant. However, the fact is that SMIC has been recording a loss since its establishment.
The cost structure of semiconductor manufacturing is roughly as following: machine depreciation 50 percent, materials 20 percent, water and power 5 percent, and labor 10 percent. For Chinese companies, only 15 percent of the cost can be controlled, while the part has been played to the full extent. Moreover, the unilateral understanding to scale has fettered their imaginations of strategy, which makes the semiconductor industry in the situation of unmerited scale.
In addition, the semiconductor industry is always protected by governments, dare not or unwilling to face with the market-oriented risk. The Chartered is a typical example.
There are two typical development routes regarding the wafer OEM, one is represented by the TSMC: focus on the technology and high-profit business; the other is represented by the UMC: huge investment on IC design houses for the purpose of production capacity enhancement, for example, the investment to MTK, Novatek and SIS are all proved successful.
Novatek is the second largest IC design house in Taiwan, as well as the global second largest TFT-LCD drive IC manufacturer. MTK is the top mobile phone vendor and the 7th largest IC design house in the world, as well as the largest IC design house in Taiwan.
It is not enough to just invest a huge capital and the semiconductor industry also requires more input in the basic science and technology especially in China.
Wednesday, April 22, 2009
Nearly 60pc of China chip manufacturing goes unused in Q1: iSuppli
EL SEGUNDO, USA: Once the world’s fastest-growing chip-manufacturing region, China hit an all-time low in the first quarter of 2009, with nearly 60 percent of the nation’s semiconductor manufacturing capacity unused, according to iSuppli Corp.
Semiconductor manufacturing capacity utilization in China fell to 43 percent in the first quarter, the lowest level since iSuppli began tracking the market in 2000, and a massive drop from a recent high of 92 percent in the second quarter of 2004. This rock-bottom utilization rate comes as a direct result of low demand spurred by the global economic downturn. However, the utilization plunge indicates that China’s long-nurtured goal of establishing a vibrant domestic semiconductor production industry is in serious jeopardy.
“During the last 10 years, the Chinese government has worked to develop a domestic economy that would provide the nation with economic independence,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli. “The establishment of a technologically strong Chinese semiconductor industry was considered an essential element of China’s long-term domestic economic and technological independence. Unfortunately for China, the plan collapsed as global sales dried up before demand generated from internal sources was able to grow to match demand generated from the rest of the world. Once viewed by China’s government as a pillar of growth, semiconductor manufacturing has turned out to be a financial burden.”
China’s investments in capacity and technology in the semiconductor sector have not provided the financial returns that were forecast for investors, Jelinek added. Adding to China’s dilemma is the overestimation of capacity, which was expected to be shuttered in other regions in favor of lower-cost, more efficient Chinese manufacturing.
“With the addition of the current global economic recession, China’s focus has shifted from establishing semiconductor manufacturing independence to restructuring its entire chip industry before it simply collapses.”
China's utilization is expected to rise moderately through the rest of the year, but will remain very low at 54 percent in the fourth quarter of 2009. Over the longer term, utilization will rebound to 84 and 85 percent in 2012 and 2013. However, when utilization recovers to these levels, China's semiconductor industry will look very different from how it has in the past, with the number of competitors in the industry likely to be dramatically reduced due to consolidation.
The figure presents iSuppli’s quarterly and annual estimate and forecast of semiconductor utilization in China.
Looking ahead
What will China’s semiconductor industry look like when utilization recovers?
“Since Chinese semiconductor manufacturers do not possess a technological differentiation from their competitors, they are at a disadvantage, since there is simply far too much of the same kind of capacity in the world chasing after the same opportunities,” Jelinek said.
“This will lead to mergers and consolidations. However, even if suppliers with similar technologies merge, will they create anything but larger companies with bigger cash-flow problems?”
At first glance, such a scenario is most likely what will happen. Nonetheless, there will be one ancillary effect that will significantly impact the landscape of companies in China: The bigger company will be viewed as the most likely survivor.
This perception will transform into reality as customers assure themselves of a strong supply source by aligning with the largest, most cost-effective semiconductor maker. In the end, the smaller company simply will be forced out because it is uncompetitive in technology and price.
No recovery until 2012
With iSuppli not forecasting a recovery for Chinese manufacturers until 2012, it is unlikely that weak companies can survive two years in the face of a negative cash flow.
iSuppli anticipates the first merger in China’s semiconductor industry will be finalized in the second quarter of 2009. This will signal that time is of the essence if a company or a group of companies is going to be able to weather the storm. iSuppli anticipates that by the second half of 2010, a smaller—yet stronger—semiconductor industry will emerge in China.
Semiconductor manufacturing capacity utilization in China fell to 43 percent in the first quarter, the lowest level since iSuppli began tracking the market in 2000, and a massive drop from a recent high of 92 percent in the second quarter of 2004. This rock-bottom utilization rate comes as a direct result of low demand spurred by the global economic downturn. However, the utilization plunge indicates that China’s long-nurtured goal of establishing a vibrant domestic semiconductor production industry is in serious jeopardy.
“During the last 10 years, the Chinese government has worked to develop a domestic economy that would provide the nation with economic independence,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli. “The establishment of a technologically strong Chinese semiconductor industry was considered an essential element of China’s long-term domestic economic and technological independence. Unfortunately for China, the plan collapsed as global sales dried up before demand generated from internal sources was able to grow to match demand generated from the rest of the world. Once viewed by China’s government as a pillar of growth, semiconductor manufacturing has turned out to be a financial burden.”
China’s investments in capacity and technology in the semiconductor sector have not provided the financial returns that were forecast for investors, Jelinek added. Adding to China’s dilemma is the overestimation of capacity, which was expected to be shuttered in other regions in favor of lower-cost, more efficient Chinese manufacturing.
“With the addition of the current global economic recession, China’s focus has shifted from establishing semiconductor manufacturing independence to restructuring its entire chip industry before it simply collapses.”
China's utilization is expected to rise moderately through the rest of the year, but will remain very low at 54 percent in the fourth quarter of 2009. Over the longer term, utilization will rebound to 84 and 85 percent in 2012 and 2013. However, when utilization recovers to these levels, China's semiconductor industry will look very different from how it has in the past, with the number of competitors in the industry likely to be dramatically reduced due to consolidation.
The figure presents iSuppli’s quarterly and annual estimate and forecast of semiconductor utilization in China.
Looking ahead
What will China’s semiconductor industry look like when utilization recovers?
“Since Chinese semiconductor manufacturers do not possess a technological differentiation from their competitors, they are at a disadvantage, since there is simply far too much of the same kind of capacity in the world chasing after the same opportunities,” Jelinek said.
“This will lead to mergers and consolidations. However, even if suppliers with similar technologies merge, will they create anything but larger companies with bigger cash-flow problems?”
At first glance, such a scenario is most likely what will happen. Nonetheless, there will be one ancillary effect that will significantly impact the landscape of companies in China: The bigger company will be viewed as the most likely survivor.
This perception will transform into reality as customers assure themselves of a strong supply source by aligning with the largest, most cost-effective semiconductor maker. In the end, the smaller company simply will be forced out because it is uncompetitive in technology and price.
No recovery until 2012
With iSuppli not forecasting a recovery for Chinese manufacturers until 2012, it is unlikely that weak companies can survive two years in the face of a negative cash flow.
iSuppli anticipates the first merger in China’s semiconductor industry will be finalized in the second quarter of 2009. This will signal that time is of the essence if a company or a group of companies is going to be able to weather the storm. iSuppli anticipates that by the second half of 2010, a smaller—yet stronger—semiconductor industry will emerge in China.
Nearly 60pc of China chip manufacturing goes unused in Q1: iSuppli
EL SEGUNDO, USA: Once the world’s fastest-growing chip-manufacturing region, China hit an all-time low in the first quarter of 2009, with nearly 60 percent of the nation’s semiconductor manufacturing capacity unused, according to iSuppli Corp.
Semiconductor manufacturing capacity utilization in China fell to 43 percent in the first quarter, the lowest level since iSuppli began tracking the market in 2000, and a massive drop from a recent high of 92 percent in the second quarter of 2004. This rock-bottom utilization rate comes as a direct result of low demand spurred by the global economic downturn. However, the utilization plunge indicates that China’s long-nurtured goal of establishing a vibrant domestic semiconductor production industry is in serious jeopardy.
“During the last 10 years, the Chinese government has worked to develop a domestic economy that would provide the nation with economic independence,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli. “The establishment of a technologically strong Chinese semiconductor industry was considered an essential element of China’s long-term domestic economic and technological independence. Unfortunately for China, the plan collapsed as global sales dried up before demand generated from internal sources was able to grow to match demand generated from the rest of the world. Once viewed by China’s government as a pillar of growth, semiconductor manufacturing has turned out to be a financial burden.”
China’s investments in capacity and technology in the semiconductor sector have not provided the financial returns that were forecast for investors, Jelinek added. Adding to China’s dilemma is the overestimation of capacity, which was expected to be shuttered in other regions in favor of lower-cost, more efficient Chinese manufacturing.
“With the addition of the current global economic recession, China’s focus has shifted from establishing semiconductor manufacturing independence to restructuring its entire chip industry before it simply collapses.”
China's utilization is expected to rise moderately through the rest of the year, but will remain very low at 54 percent in the fourth quarter of 2009. Over the longer term, utilization will rebound to 84 and 85 percent in 2012 and 2013. However, when utilization recovers to these levels, China's semiconductor industry will look very different from how it has in the past, with the number of competitors in the industry likely to be dramatically reduced due to consolidation.
The figure presents iSuppli’s quarterly and annual estimate and forecast of semiconductor utilization in China.
Looking ahead
What will China’s semiconductor industry look like when utilization recovers?
“Since Chinese semiconductor manufacturers do not possess a technological differentiation from their competitors, they are at a disadvantage, since there is simply far too much of the same kind of capacity in the world chasing after the same opportunities,” Jelinek said.
“This will lead to mergers and consolidations. However, even if suppliers with similar technologies merge, will they create anything but larger companies with bigger cash-flow problems?”
At first glance, such a scenario is most likely what will happen. Nonetheless, there will be one ancillary effect that will significantly impact the landscape of companies in China: The bigger company will be viewed as the most likely survivor.
This perception will transform into reality as customers assure themselves of a strong supply source by aligning with the largest, most cost-effective semiconductor maker. In the end, the smaller company simply will be forced out because it is uncompetitive in technology and price.
No recovery until 2012
With iSuppli not forecasting a recovery for Chinese manufacturers until 2012, it is unlikely that weak companies can survive two years in the face of a negative cash flow.
iSuppli anticipates the first merger in China’s semiconductor industry will be finalized in the second quarter of 2009. This will signal that time is of the essence if a company or a group of companies is going to be able to weather the storm. iSuppli anticipates that by the second half of 2010, a smaller—yet stronger—semiconductor industry will emerge in China.
Semiconductor manufacturing capacity utilization in China fell to 43 percent in the first quarter, the lowest level since iSuppli began tracking the market in 2000, and a massive drop from a recent high of 92 percent in the second quarter of 2004. This rock-bottom utilization rate comes as a direct result of low demand spurred by the global economic downturn. However, the utilization plunge indicates that China’s long-nurtured goal of establishing a vibrant domestic semiconductor production industry is in serious jeopardy.
“During the last 10 years, the Chinese government has worked to develop a domestic economy that would provide the nation with economic independence,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli. “The establishment of a technologically strong Chinese semiconductor industry was considered an essential element of China’s long-term domestic economic and technological independence. Unfortunately for China, the plan collapsed as global sales dried up before demand generated from internal sources was able to grow to match demand generated from the rest of the world. Once viewed by China’s government as a pillar of growth, semiconductor manufacturing has turned out to be a financial burden.”
China’s investments in capacity and technology in the semiconductor sector have not provided the financial returns that were forecast for investors, Jelinek added. Adding to China’s dilemma is the overestimation of capacity, which was expected to be shuttered in other regions in favor of lower-cost, more efficient Chinese manufacturing.
“With the addition of the current global economic recession, China’s focus has shifted from establishing semiconductor manufacturing independence to restructuring its entire chip industry before it simply collapses.”
China's utilization is expected to rise moderately through the rest of the year, but will remain very low at 54 percent in the fourth quarter of 2009. Over the longer term, utilization will rebound to 84 and 85 percent in 2012 and 2013. However, when utilization recovers to these levels, China's semiconductor industry will look very different from how it has in the past, with the number of competitors in the industry likely to be dramatically reduced due to consolidation.
The figure presents iSuppli’s quarterly and annual estimate and forecast of semiconductor utilization in China.
Looking ahead
What will China’s semiconductor industry look like when utilization recovers?
“Since Chinese semiconductor manufacturers do not possess a technological differentiation from their competitors, they are at a disadvantage, since there is simply far too much of the same kind of capacity in the world chasing after the same opportunities,” Jelinek said.
“This will lead to mergers and consolidations. However, even if suppliers with similar technologies merge, will they create anything but larger companies with bigger cash-flow problems?”
At first glance, such a scenario is most likely what will happen. Nonetheless, there will be one ancillary effect that will significantly impact the landscape of companies in China: The bigger company will be viewed as the most likely survivor.
This perception will transform into reality as customers assure themselves of a strong supply source by aligning with the largest, most cost-effective semiconductor maker. In the end, the smaller company simply will be forced out because it is uncompetitive in technology and price.
No recovery until 2012
With iSuppli not forecasting a recovery for Chinese manufacturers until 2012, it is unlikely that weak companies can survive two years in the face of a negative cash flow.
iSuppli anticipates the first merger in China’s semiconductor industry will be finalized in the second quarter of 2009. This will signal that time is of the essence if a company or a group of companies is going to be able to weather the storm. iSuppli anticipates that by the second half of 2010, a smaller—yet stronger—semiconductor industry will emerge in China.
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