Consolidation changing the foundry landscape

USA: Change is on the horizon. Advanced Technology Investment Company LLC (ATIC) and Chartered Semiconductor Manufacturing (Chartered) have entered into a definitive agreement whereby ATIC will acquire Chartered. What does this mean?

Semico does not think that TSMC will be ‘dethroned’ as the leading foundry but it does mean that the number two spot is definitely up for grabs. Semico’s data indicates that by 2011, the combined GlobalFoundries/Chartered company will out pace UMC in terms of advanced capacity available for production.Source: Semico Research

2009 semicon capex: Are we headed for a shortage?

PHOENIX, USA: In 2009, capital spending is down 35 percent from 2008. Semico expects spending to rebound significantly in 2010 as projects that have been on hold get the green light.

A beneficiary of this increased spending will be the 200mm used equipment market, which will see higher demand coming from this recovery.

“We’re halfway through the third quarter, and we’ve already seen increased capex projections from a number of companies,” stated Adrienne Downey, Director of Technology Research. “Despite this turnaround, we think it may not be enough to prevent spot shortages in 2010.”

Semico Research has just released a new report titled, 2009 Semiconductor Capex: Are We Headed for a Shortage? This timely report addresses the consequences of the severe cutbacks in capital spending seen over the past year and a half in the semiconductor industry. Economic conditions are improving, but will manufacturers be able to keep up when demand peaks?

At twenty pages long, this report contains 10 tables and seven figures. This study includes market shares for 2007-2008, capital spending trends for 2008-2010, top 20 semiconductor vendors’ capex, top foundries’ capex, a look at new fabs that are being built, and what is needed as wafer demand recovers.

Semico’s executive briefs provides in-depth, quick guide to 30 key electronic markets

USA: The naysayers and skeptics believe it will take two years, maybe more, to return to 2007 electronic and semiconductor sales levels and that growth will never reach high double digit rates again. Semico believes otherwise!

Jim Feldhan, president of Semico Research does see a change in consumer buying patterns. The new consumer is a “value consumer”. We may no longer be buying bigger homes, but instead, opting for goods that improve our lifestyle, such as a smartphone or a netbook.

Semico’s new report, “The Executive Briefs”, validate this conclusion. At Semico, we track more than forty end use markets in Consumer, Computing, Wired and Wireless Communication, as well as the automotive and industrial applications. The Executive Briefs covers 33 of the markets. Semico believes there are applications within these market segments that will enjoy double digit growth in the years ahead.

Netbooks have recently made a “splash” in the computing arena. Consumers seeking more portable, lower power, lower cost options for internet connectivity, emailing, and social networking have jumped all over these smaller form factor computing devices.

In 2009, netbook shipments will reach an estimated 12.5 million units. By 2013, Tony Massimini, Semico Chief Technology Officer, projects netbook shipments to reach 59.5 million units. Revenue during this timeframe will see a 27.4 percent CAGR increase.

Memory and Micro Logic chips within a netbook, account for over 67 percent of total netbook semiconductor content. Regionally, China and Asia Pacific will dominate netbook production by 2013, with over $15 billion in revenue production.

All this demand also translates into manufacturing capacity needs. Worldwide production at the 65nm process technology node will increase from a projected 1.9 million wafers in 2010 to 6.5 million wafers in 2013.

Netbooks are only one of a number of end applications within the computing end use market. As a whole, the computing segment will grow 12.4 percent, or over $200 million, between 2009 and 2013.

For those charged with analyzing data and the consequential decision making for semiconductor companies up and down the supply chain, wouldn’t you want to find out where the growth will be in the future rather than dwelling on ‘the good ‘ole days?

The aforementioned data is only a small sampling of what’s included in Semico’s latest installment of its Executive Briefs.

Within each of these markets are a total of 30 end-applications, which are tracked by the Semico Map Model database. All of this data has been organized into one cohesive report. The Executive Briefs provide in-depth, semiconductor rich, detail for the years 2008-2013 and include up to 40 tables and figures with expert analysis and explanation.

Semico releases two reports on ASIC design starts

PHOENIX, USA: Semico Research Corp. has just released two reports that provide both an historical analysis and forecasts the future of ASIC design starts.

The current global economic slowdown is having an adverse impact on design starts for ASICs. The slowing of design start activity began at the end of 2008 and is continuing through 2009. Semico believes design activity will recover back to more historical norms in 2010.

The “ASIC Design Starts: Changes in Industry Dynamics” report provides an in-depth perspective by showing a comparison between design starts for SoCs and all other types of ASICs.

This report also examines the continuing increase in SoC design costs. ASIC design starts data show changes in design for each device type including analog, mixed signal, gate array, PLD, FPGA, performance SoC, value SoC and structured ASIC.

The design starts data is further segmented by: product type, process geometry, gate count and geographic region. This report contains a wealth of data in 55 tables and 58 figures/graphs.

The “ASIC Design Starts: By Key Applications Revisited II” report segments the data by 66 of the key end applications that drive the design starts market within the computing, communications, consumer, transportation and industrial segments. Within each end application, the data is further segmented by: Analog, Mixed Signal, Performance and Value SoC, PLD, FPGA, Gate Array and Structured ASIC. This report contains an enormous amount of data in 134 tables and 69 figures/graphs.



Both reports complement each other. For each segment, they include design starts and the ASIC unit volumes associated with those design starts. While they use the same worldwide design starts information, each report analyzes the data from a different perspective.

Netbook PCs: A platform battleground!

USA: Netbooks are a new emerging category of Personal Computers. It has also become a new emerging battleground. There are two battles shaping up. The first is among the chip vendors –- x86 vs. ARM. The second battle is the operating system – Microsoft vs. Linux.

In its latest report, “Netbook PCs: A New Platform Battleground”, Semico Research examines the usage models, market dynamics and key players for this emerging market. What are “smartbooks?” What are the market and technology trends? What has been the impact of netbooks on the MPU market? Learn more about the competition among both chip vendors and operating systems for netbooks, such as Windows and Android.

There have been several efforts over the years for a low-cost and compact mobile PC. The introduction of the Intel Atom microprocessor in 2008 spurred the growth of netbooks, reaching 12.5 million units in 2008.

The success of Atom-based netbooks has spurred interest in competing designs. Via Technologies has been shipping its 80x86 compatible Nano. Several companies have ARM-based designs that hit the market or are expected to launch in 2009. The processor vendors for these netbooks include Nvidia, Texas Instruments, Freescale, and Qualcomm.

The netbook PC market is opening up new opportunities for chip vendors other than Intel.