April semiconductor sales increase MoM

SAN JOSE, USA: Worldwide sales of semiconductors rose to $15.6 billion in April, an increase of 6.4 percent from March when sales were $14.7 billion, the Semiconductor Industry Association (SIA) reported today.

April sales were 25 percent lower than April 2008 when sales were $20.9 billion. All sales numbers represent a three-month moving average of global semiconductor sales.

“The better-than-expected 6.4 percent sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment,” said SIA President George Scalise.

“The PC market -– a major consumer of semiconductors – has been stronger than predicted earlier in the year. Consensus forecasts currently project that PC unit sales in 2009 will decline by about 6 percent compared to earlier forecasts of a decline in the range of 12 percent. Analysts are also more optimistic about cell phone unit sales, which are now projected to decline by around 7 percent compared to earlier forecasts of 15 percent. PCs and cell phones account for nearly 60 percent of all semiconductor consumption,” Scalise stated.

SIA noted that the worldwide automotive market, which accounts for about 7 percent of total semiconductor sales, remains weak. Corporate information technology spending has also lagged normal patterns as companies have lengthened replacement cycles.

The consumer electronics sector presents a mixed picture: analysts project increased unit sales of digital televisions and hand-held game players and lower unit sales of most other consumer electronics products.

“Visibility remains limited,” Scalise continued. “Two consecutive months of sequential sales growth may be an indication of a return to more normal seasonal sales patterns in some market sectors, albeit at lower sales levels than last year,” Scalise concluded.

Adura Systems adopts Freescale’s FlexRay automotive MCU

MENLO PARK, USA: Adura Systems Inc., the green, electric powertrain company that offers breakthroughs in electric range for medium and large vehicles, today announced its selection of Freescale Semiconductor’s FlexRay automotive microcontroller (MCU) technology for high-speed in-vehicle networking.

Freescale’s S12XF MCU with integrated FlexRay technology is being incorporated into Adura’s Modular, Electric Scalable Architecture (MESA) powertrain, which offers up to 100 miles of pure electric range in mass transportation buses.

“Developing 100 mile pure electric range powertrains requires very sophisticated electronics, software and a high-bandwidth communications and control layer,” said Marv Bush, CEO of Adura. “Adura selected FlexRay technology because it is one of the only automotive networking systems able to handle safety-critical communications and control. Also, FlexRay provides the communications layer upon which Adura’s network, DEFT-net (Deterministic, Extensible, Fault-Tolerant Network), is built. Adura’s DEFT-net provides accurate data delivery, distributed control, fault detection and tolerance, and on-the-fly reconfiguration.”

FlexRay technology is unique among vehicle communication systems in its determinism and high speed. This technology, combined with DEFT-net, allows Adura to shift traditional mechanical and electronic complexity into software which increases efficiency and lowers overall systems costs.

“Adura’s selection of Freescale’s S12XF MCU is another milestone for FlexRay technology as the communications standard is now being deployed in both conventional and ‘green’ vehicles,” said Ray Cornyn, director of automotive microcontrollers at Freescale. “By leveraging the exceptional performance of FlexRay technology, Adura is setting compelling new standards for electric and hybrid vehicles that are designed to significantly reduce global emissions.”

Sigma intros new thin client media processor

TAIPAI, TAIWAN, COMPUTEX TAIWAN 2009: Sigma Designs, a leader in digital media processing system-on-chip (SoC) solutions for consumer electronics, today announced the availability of its new SMP8652 media processor SoC.

The SMP8652 is designed to provide the optimal price/performance configuration for thin client applications, which include IPTV set-top boxes (STBs), digital media adapters (DMAs), and hybrid cable/IP thin clients. Product demonstrations are available Shangri-La's Far Eastern Plaza Hotel in suite # 3707 at Computex 2009 Show, Taipei, Taiwan from Tuesday, June 2 to Saturday, June 6.

Increasing demand for thin client solutions
As consumers increase their use of IP streaming for audio/video access, the importance of a thin client architecture becomes more necessary. Starting with IPTV, demand has been sweeping across the globe over the past three years, reaching a level of 16 million deployments in 2008 according to iSuppli.

Likewise, digital media adapters which connect to televisions and provide access to PC and Internet-based media have been increasing in popularity due to the explosion in online content. Many cable providers are in the process of migrating to hybrid approaches with IP-based delivery, which result in a server-client architecture for distributing video throughout the home. Thin clients, which focus on user interaction and media access, form the common thread among these trends.

“Thin client architectures are becoming more commonplace today as the world accesses more and more media through IP streaming,” said Ken Lowe, vice president of strategic marketing at Sigma Designs. “Our new SMP8652 represents a price/performance optimized solution for thin clients, a market we have been serving for years as the clear leader in IPTV set-top boxes and digital media adapters.”

SMP8652: Right performance at right cost
Sigma’s SMP8652 media processor integrates a complete complement of next-generation capabilities for a single-chip SoC solution with powerful multimedia processing, robust content security system, multiple on-chip CPUs, and a full complement of system peripherals.

Its combination of on-chip processors and memory controllers provides the needed headroom for the next generation of client middleware and software stacks. At the same time, establishing a minimal memory footprint using a high-speed 32-bit data path enables implementations with small form factors, lower BOM (bill of materials) costs, and lower power dissipation.

Taking performance to the next level is accomplished by combining significant increases in CPU speed, memory bandwidth, and architectural efficiencies. To start with, the SMP8652 is a multi-core media processor that features a 500 MHz MIPS 24k main CPU that enables crisp user interaction and a wider range of application-based features which enhance “future-proofing” of the platform.

A second MIPS processor called the IPU manages interrupt operations and offloads burdensome system tasks, such as portions of the network stack to further optimize main CPU utilization. A third MIPS processor manages all system security functions including decryption and key generation.

The SMP8652 also features a new DDR-2 memory controller, which supports double-data-rate memories up to 667 Mbps as well as an improved arbitration engine to maximize the efficiency of accesses. Finally, the SMP8652 maintains software compatibility with the Sigma Multimedia Library to uniquely build on the proven performance and reliability of the earlier generation platforms.

From a media processing standpoint, the SMP8652 offers a full complement of advanced decoder engines with high definition video decoding, including of H.264 (MPEG-4 part 10), Windows Media® Video 9, VC-1, MPEG-2 and MPEG-4 (part 2), and the new AVS standard.

High-performance graphics acceleration, multi-standard audio decoding, advanced display processing capabilities, and HDMI output round out its multimedia core. Powerful content security is ensured through a dedicated secure processor, on-chip flash memory, and a range of digital rights management (DRM) engines for high-speed payload decryption. The SMP8652 features a full complement of system peripherals, including a dual Gigabit Ethernet controller, dual USB 2.0 controller, NAND flash controller, IR controller, and SATA controller, as well.

ODM manufacturers prepare for potential demand
Indicative of the high level of interest the SMP8652 has gained, several key original design manufacturers (ODM) are already gearing up for impending production ramps.

“Moving ahead, we intend to build an increasing portion of thin client products to tap into these new applications,” said Tim Kang, CTO of Alpha Networks Inc. “Towards this goal, we are using industry leading technologies, such as the new SMP8652 media processor from Sigma Designs to create a new line of powerful yet cost-effective products.”

“UTStarcom is focused on delivering innovative IP-based solutions to our customers, enabling them to provide next-generation services in their key markets,” said Baijun Zhao, Senior Vice President and General Manager, Multimedia Communication Business Unit (MCBU), UTStarcom. “We are excited to tap into the power and flexibility of Sigma’s SMP8652.”

The SMP8652 media processor will be sold through Sigma’s direct sales force. Samples of the SMP8652 are available immediately and production volumes will be available in July.

Semiconductor and PCB industry forecasts: BPA

SURREY, ENGLAND: BPA Consulting recently released its Semiconductor and PCB industry forecasts. Comparing the world PCB forecast with the semiconductor forecast in Fig. 1 it can be seen that, indeed, where the PCB trough falls to -20 percent, the semiconductor trough has fallen further to -25 percent.

We can also see that this decline in growth started from a peak that was lower than the 2001 decline. At that time inventory levels were at an all time high in anticipation of orders for computers and networking infrastructure equipment that never came. You will remember the dotcom boom that did not materialise.

The circumstances are not the same this time around. As can be seen from the chart below we believe the contraction will not be as great as it was in 2001 (Although one can see from Fig. 1 it comes quite close!). Why? There are three major reasons:

* The growth rates did not reach the extraordinary high peak as those in 2001,
* The levels of inventory are not of the same magnitude.
* The slowdown has been seen over a longer period of time before demand went negative.

Fig. 1: Comparison of PCB and semiconductor growth 12/12Source: BPA Consulting

On the demand side, semiconductor manufacturers late in the first quarter reported minor improvements in order rates and capacity utilization rising above the 50 percent levels, the first quarter on quarter increase since the 2nd quarter of 2008. Typical utilization rates are 85 percent or above during a normal growth phase. (Eg., UMCs utilization rate for Q3 2008 was reported to be 85 percent.)

Responses to BPA’s quarterly survey* indicate that output from many Asian and European fabricators has declined by more than 40 percent in Q1 09. North America has been in slow decline for more than a year and its first quarter revenues have not been hit quite as badly.

High volume manufacturing has disappeared from North America and Europe, with the exception in the latter case for automotive PCBs which have still been made in mid-sized volumes in Germany. Indeed it is estimated that between 40 percent and 50 percent of the country’s output is in this sector, compared to an worldwide sector figure of approximately 4 percent of total PCB shipments.

Surplus inventory is now all but used up, with laminators in particular reporting a slight increase in demand. However this is coming from a level that is only half of what it was a year ago. The quarterly results indicate that there has been no significant overall increase in the order books for quarter 2 (where some companies have won, others have lost), and so Q2 is expected to remain dampened to the same level as Q1.

From such a low base, even with recovery in Q3 and Q4, it will be impossible for the industry to stage a full recovery in 2009 and only low growth is expected for 2010.

To further compound the fabricators misery, the competitive marketplace has put intense pressure on the prices, which have been forced down by 5-10 percent at a time when most fabricators were hoping to push prices up a bit to compensate for the higher raw materials costs experienced in 2008 as fuel prices surged.

This has resulted in BPA reducing its value forecast made in November 2008 for 2009 from just under -10 percent to around -16 percent for this year. A small percentage growth is predicted in 2010 as the trend line emerges past the 0 line by the end of the first half of 2010. By 2012, BPA’s forecast PCB demand will be back to 2007’s level of just over $49 billion.

*The PCB service includes a regular quarterly survey of the PCB Industry, and the supply industries worldwide.

TFT-LCD photomask market revenue jumps in 2008

NEW TRIPOLI, USA: LG Micron vaulted to the lead on the heals of LG Display’s growth, according to the report: The TFT-LCD Photomask Market, recently published by The Information Network.

LG Micron took the lead in the market with a 29.3 percent share, dethroning perennial leader Hoya in 2008. LG Micron supplies photomasks to LG Display, also part of the LG Group. Photronics’ market share for CY2008 increased to 18.5 percent from a 16.5 percent share the year earlier. It is interesting to note that Photronics is a US-based company and there is practically no LCD industry in the US.

Revenues for 2008 grew 16.4 percent while unit shipments increased 4.1 percent. The high growth is attributed to the higher prices of photomasks for 8th generation TFT-LCD plants.

“Driving the photomask market are a generation-shift to bigger glass plates and a design-rule cycle of panel technology that changes every 12 months,” notes Dr. Robert N. Castellano, President of The Information Network. “Right now, there seems to be a surplus of panels and excess production capacity for photomasks relative to demand. The downward pressure on prices should continue through this year.”

Demand for LCD panels was weak throughout the fourth quarter 2008 as panel manufacturers significantly curtailed output and overseas panel manufacturers reduced, postponed or cancelled plans for new manufacturing lines. These severe conditions continued during the first quarter 2009. Although plant utilization rates at panel manufacturers in Taiwan and South Korea recovered gradually demand has still not recovered completely.

The photomask industry also is experiencing sluggish demand for all photomasks, including photomasks for new lines, mass production and development, and intensified competition has resulted in significant unit price reductions.

Faced with these difficult circumstances, The Information Network is forecasting unit shipments to decrease 15.5 percent in 2009.

Applied redefines chip packaging productivity with charger PVD system

SANTA CLARA, USA: Applied Materials Inc. has introduced its Applied Charger UBM PVD system that defines a new standard in metal deposition productivity and reliability for chip packaging.

Specifically designed for under-bump metallization (UBM), redistribution layer and CMOS image sensor applications, the Charger system’s new linear architecture more than doubles the wafer output of competing systems to deliver the highest productivity available. In addition, proprietary Isani wafer treatment technology allows the Charger UBM system to process ten times more wafers between servicing to enable best-of-breed uptime performance and the lowest available per-wafer cost.

“Packaging facilities need a fast, dependable metallization workhorse to maximize wafer output and minimize the system redundancy burden imposed by slower, less reliable alternatives,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “By blending our proven PVD* process technology with packaging-specific innovations, we’ve created a highly productive, cost-efficient solution that is already churning out wafers in high volume production at multiple customers around the world.”

Key to the Charger platform’s high productivity is its streamlined modular architecture that easily expands from three to five processing stations to sequentially deposit multiple thin films while keeping the wafer in an ultra-clean, ultra-high vacuum environment.

Incoming wafers are conditioned using novel Isani wafer treatment technology that ensures a low-resistance, low-contaminant interface between the incoming device and the metal films to be deposited while also delivering excellent defect performance and greatly extended maintenance intervals. Applied’s superior PVD reactor technology can tailor the properties of each film layer for optimum device performance while the flexible architecture enables extendibility to emerging three-dimensional interconnect and packaging technologies.

The Charger UBM system builds on Applied’s two decades of leadership in PVD metallization technology. Applied’s PVD systems are used by virtually all advanced manufacturers around the globe for fabricating chips.

Applied extends copper PVD leadership to 22nm node

SANTA CLARA, USA: Applied Materials, Inc. launched its Applied Endura CuBS RFX PVD system, the only copper barrier/seed deposition technology qualified for 32 and 22nm production by logic and flash memory manufacturers.

Building on Applied’s 10-year leadership in this critical copper interconnect process, the Endura CuBS RFX system extends its proven, cost-effective PVD technology to provide exceptional step coverage and seed layer integrity –- at up to 40 percent lower cost per wafer than competing technologies.

“Future scaling of copper interconnects depends on finding a reliable, cost-effective way to deposit barrier and seed layers below 45nm,” said Steve Ghanayem, vice president and general manager of Applied Materials’ Metal Deposition and Front End Products Business Unit. “The Endura CuBS RFX PVD system enables customers to extend their existing process flows for another two device generations with robust, production-proven PVD technology, and avoid risk to their production lines that unproven and costly new integration schemes could present.”

Effective barrier and seed layer deposition is critical to assuring the speed and reliability of copper interconnects, since it prevents copper diffusion and provides a quality nucleation layer for subsequent bulk copper fill.

Key to the new Endura CuBS RFX system’s high performance is its new EnCoRe II RFX Cu seed process chamber. Employing a novel magnetron trajectory and a proprietary ion flux control system to enhance film coverage and morphology, the process delivers smooth, continuous seed layers for void-free copper gap fill and optimized device reliability.

Applied’s breakthrough Endura CuBS PVD system, launched in 1997, enabled a major leap forward in barrier/seed deposition capability by integrating the complete sequence on a single, high-vacuum platform. With almost 500 copper barrier/seed systems in use by the vast majority of copper chip manufacturers worldwide, Applied has demonstrated its ability to extend cost-effective PVD technology over multiple technology generations.