Online information source for semiconductor professionals

Are you uncertain about the 2010 IC industry recovery? It may help to consider these actual data points and current expectations that offer support for an increasingly positive outlook for the IC industry this year. The 10 points listed should provide the reader with some encouragement with regard to the IC industry and its suppliers in 2010. Is it clear skies and smooth sailing for the rest of the year? Not, quite. Some potential “pot holes” on the road to 2010 success include: a possible spike in oil prices to greater than US$100 barrel; a major terrorist attack that weakens consumer confidence and the economy along with it; and/or, another major shock to the financial system like a major collapse of a country’s economy. Read more >>

Guest blog by Tod Higinbotham, Executive Vice President, Process Solutions, ATMI

The recent economic downturn has taught us that semiconductor technology research and development must change if the industry is to prosper.  Circuit design, advanced materials, and innovative process and process flows compel our industry to rethink outdated R&D techniques as we search for a better way to realize the potential of today’s most advanced integrated circuit technology. Read more >>

In 4Q08, General Electric’s chief executive Jeff Immelt coined the term “reset economy.”  He used this phrase in an attempt to describe what he expected to be a very different world after the global economic crisis came to an end as compared to before the meltdown.  His belief was that businesses, governments, and consumers would operate very differently in the post-crisis economy and that GE needed to adjust to this new environment. Read more >>

On the surface (pun intended) there would seem to be of little interest or need to know more about the recent acquisition by Applied Materials of a small cap semiconductor equipment supplier, Semitool. The Montana-based wet processing specialist has been around for a long-time and perhaps because of where it is based, compared with many equipment suppliers clustered in Silicon Valley, it gets little attention in comparison. However, solar cell producers may well find that they get a knock on the cleanroom door soon from Applied, to discuss porous silicon processes and a wet processing tool called the ‘Raider.’ Read more >>

The impact of the latest semiconductor industry downturn goes further downstream than the red ink on the balance sheets. According to SEMI’s World Fab Forecast updated recently, 19 fabs closed in 2008 and as many as 31 facilities are expected to have closed by the end of 2009. Read more >>

When I recently highlighted the changes and dynamics at play in the foundry space, I never expected the recent TSMC/SMIC legal spat to result in the exit of SMIC founder Richard Chang and TSMC taking a significant 10% stake in the Chinese foundry. That coupled to the early exit of Hector Ruiz from GlobalFoundries and its ultimate parent, in the name of Abu Dhabi Sate declaring it would have a fab built in the country in the next four years, all points to the foundry fun and games continuing. Read more >>

It’s all looking good, according to iSuppli. The market research firm hailed the news that there isn’t any double booking going on at chip manufacturers and fabless companies that may dilute the strong quarterly earnings currently being posted in the industry. Global chip revenue amounted to US$58.3 billion in the third quarter, up 10.6% from US$52.8 billion in the second quarter, based on iSuppli’s preliminary forecast. Read more >>

The recovering semiconductor market has prompted MEMC to raise the issue of increasing silicon wafer prices in the new year. As the industry downturn pushed the wafer producer into lowering prices as overall fab utilization rates plummeted and older 200mm fabs started to close for good, business went into the red. MEMC has just reported an operating loss during the third quarter of US$66.7 million. Read more >>

It’s always interesting to observe foundries waffle-on about the cost of fabrication, the growth in fab-lite/fabless business strategies and therefore the obvious need for foundries to continue to grow and prosper as more of the industry turns to foundries over time. What we haven’t seen them explain in any detail or with any interest is that there is overcapacity at the foundries and wafer ASPs have been in decline for several years. Also we have seen the slowing of node migrations as the cost of design and masks prevents all but a small top 20 elite of companies to push down Moore’s Law as intended. Read more >>

Texas Instruments has bid US$172.5 million for the 300mm fab equipment up for sale at Qimonda’s Richmond, Virginia facility. Bankruptcy court documents don’t reveal much else, except that TI is a stalking horse bidder in this case, which I think means that TI and Qimonda doubt that higher bids will be received but if they do, Qimonda will have to pay (from where!) a break-up fee.

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