Chip industry to add 38 new 300mm fabs by 2024

MILPITAS, Calif. — Nov. 3, 2020 — 300mm fab investments in 2020 will grow by 13% year-over-year (YoY) to eclipse the previous record high set in 2018 and log another banner year for the semiconductor industry in 2023, SEMI reported today in its 300mm Fab Outlook to 2024. The COVID-19 pandemic has sparked the 2020 surge in fab spending by accelerating digital transformations worldwide, and the increase is expected to stretch into 2021.

Powering the growth is rising demand for cloud services, servers, laptops, gaming and healthcare technology. Fast-evolving technologies such as 5G, Internet of Things (IoT), automotive, artificial intelligence (AI) and machine learning that continue to fuel demand for greater connectivity, large data centers and big data are also behind the increase.

“The COVID-19 pandemic is accelerating a digital transformation sweeping across nearly every industry imaginable to reshape the way we work and live,” said Ajit Manocha, SEMI president and CEO. “The projected record spending and 38 new fabs reinforce the role of semiconductors as the bedrock of leading-edge technologies that are driving this transformation and promise to help solve some of the world’s greatest challenges.”

Growth in semiconductor fab investments will continue in 2021 but at a slower rate of 4% YoY. Mirroring previous industry cycles, the report also predicts a mild slowdown in 2022 and another slight downturn in 2024 following a $70 billion record high in 2023. See figure 1.

Figure 1: 300mm fab equipment spending from 2013 to 2024

Adding 38 New 300mm Fabs

The SEMI 300mm Fab Outlook to 2024 shows the chip industry adding at least 38 new 300mm volume fabs from 2020 to 2024, a conservative projection that does not factor in low-probability or rumored fab projects. During the same period, per-month fab capacity will grow by about 1.8 million wafers to reach over 7 million. See figure 2.

Under a high-probability project forecast, the industry will add at least 38 new 300mm volume fabs from 2019 to 2024. Taiwan will add 11 volume fabs and China eight to account for half of the total. The chip industry will command 161 300mm volume fabs by 2024.

Figure 2: Total 300mm fab capacity and fab count for 2015, 2019 and 2024

Capacity and Spending Growth by Region

China will rapidly increase its global share of 300mm capacity, from 8% in 2015 to 20% in 2024, reaching 1.5 million 300mm wpm in the final year of the reporting period. While non-Chinese companies will account for a substantial portion of that growth, Chinese-owned organizations are accelerating their capacity investments. These companies will represent about 43% of China’s fab capacity in 2020, a proportion expected to reach 50% by 2022 and 60% by 2024.

Japan’s share of 300mm installed capacity continues to trend downward, from 19% in 2015 to 12% in 2024. The Americas’ share is also ticking lower, from 13% in 2015 to a projected 10% in 2024.

The biggest regional spenders will be Korea, with investments between US$15 billion and US$19 billion, followed by Taiwan, which will pour between US$14 billion and US$17 billion into 300mm fabs, and then China, with between US$11 billion and $13 billion in investments. 

Regions spending less will see the steepest increases in investments between 2020 to 2024.  Europe/Mideast will lead the pack with impressive 164% growth, followed by Southeast Asia at 59%, Americas at 35%, and Japan at 20%.

Spending Growth by Product Sector

Memory accounts for the bulk of the increase in 300mm fab spending. Actual and forecast investments show a steady rise in the upper single digits for each year from 2020 to 2023, with a stronger increase of 10% in store for 2024.

DRAM and 3D NAND contributions to 300mm fab spending will be uneven from 2020 to 2024. Investments for logic/MPU, however, will see steady improvement from 2021 to 2023. Power-related devices will be the standout sector in 300mm fab investments, with over 200% growth in 2021 and double-digit increases in 2022 and 2023.

Tracking 286 fabs and lines from 2013 to 2024, the 300mm Fab Outlook to 2024reflects 247 updates to 104 fabs, nine new fab and line listings, and two cancellations since the publication of the March 2020 report.

About SEMI

SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Association Partners, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.

Association Contacts

Michael Hall/SEMI
Phone: 1.408.943.7988
Email: [email protected]

Christian G. Dieseldorff/SEMI
Phone: 1.408.943.7940
Email: [email protected]

• Read more about 300mm Fab Spending to Boom Through 2023 With Two Record Highs, SEMI Reports

Silicon Wafer Shipments Slip in Third Quarter 2020 but Strong for Year

MILPITAS, Calif. — Nov. 2, 2020 — Worldwide silicon wafer area shipments contracted 0.5% to 3,135 million square inches in the third quarter of 2020 compared to the second quarter of the year but registered a 6.9% increase from the 2,932 million square inches shipped one year ago during the same quarter, according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.

"After a strong rebound in the first half of 2020, global silicon wafer shipments in the third quarter were flat to the previous quarter,” said Neil Weaver, chairman of SEMI SMG and vice president of Product Development and Applications Engineering at Shin Etsu Handotai America.

Silicon Area Shipment Trends - Semiconductor Applications Only

Source: SEMI (www.semi.org), November 2020

All data cited in this release includes polished silicon wafers such as virgin test wafers and epitaxial silicon wafers, as well as non-polished silicon wafers shipped to end users.

Silicon wafers are the fundamental building material for semiconductors, which, in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin, round disks are produced in various diameters – from one inch to 12 inches – and serve as the substrate material on which most semiconductor devices, or chips, are fabricated.

The SMG is a sub-committee of the SEMI Electronic Materials Group (EMG) and is open to SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi). The purpose of the SMG is to facilitate collective efforts on issues related to the silicon industry including the development of market information and statistics about the silicon industry and the semiconductor market.

For more information, please visit SEMI Worldwide Silicon Wafer Shipment Statistics.

About SEMI

SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Association Partners, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.

Association Contact

Michael Hall/SEMI
Phone: 1.408.943.7988
Email: [email protected]

• Read more about Silicon Wafer Shipments Slip in Third Quarter 2020 but Strong for Year

Essential Tool Offers Reliable Wafer Plating Results for R&D and Low Volume Production

Cranston, RI, USA – Technic’s SEMCON 1000 is not new to the market, but its evolution over the past decade has made it the essential tool for wafer deposition evaluation and application performance testing.

The SEMCON 1000 has been designed and developed specifically for research and low volume applications testing and production. The tool features a single plating cell along with a dragout rinse cell, to enable plating/electroforming of wafers or discrete parts when used with a customized holder. The SEMCON 1000 is capable of processing several different plating applications on a variety of substrates including Si, GaAs, InP, and more.

The SEMCON 1000 is modeled after Technic’s highly successful SEMCON 2000 series of manual wafer wet bench tools. The process cell and chassis are designed for easy and effective maintenance and process changeovers. The SEMCON 1000 is self-contained, constructed of white polypropylene with a clear PVC process cover designed to meet class 1000 cleanroom specifications. Plating cell components include a heating source, temperature control, low-level safety sensor, pump and filter, DC power supply, and a plating rack.

About Technic
Technic is a global, full-service provider, with a complete line of proprietary plating solutions and processes for wafer-level packaging as well as analytical services and support.

• Read more about Technic SEMCON 1000 Wafer Plating Tool

MILPITAS, Calif. — October 22, 2020 — North America-based manufacturers of semiconductor equipment posted $2.75 billion in billings worldwide in September 2020 (three-month average basis), according to the September Equipment Market Data Subscription (EMDS) Billings Report published today by SEMI. The billings figure is 3.6 percent higher than the final August 2020 level of $2.65 billion, and is 40.3 percent higher than the September 2019 billings level of $1.96 billion.

"September billings of North America-based semiconductor equipment manufacturers mark another month of growth,” said Ajit Manocha, SEMI president and CEO. “The semiconductor industry remains resilient despite challenges posed by the pandemic and geopolitical tensions.”

The SEMI Billings report uses three-month moving averages of worldwide billings for North American-based semiconductor equipment manufacturers. Billings figures are in millions of U.S. dollars.

Source: SEMI (www.semi.org), October 2020

SEMI publishes a monthly North American Billings report and issues the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report in collaboration with the Semiconductor Equipment Association of Japan (SEAJ). The WWSEMS report currently reports billings by 24 equipment segments and by seven end market regions. SEMI also has a long history of tracking semiconductor industry fab investments in detail on a company-by-company and fab-by-fab basis in its World Fab Forecast and SEMI FabView databases. These powerful tools provide access to spending forecasts, capacity ramp, technology transitions, and other information for over 1,000 fabs worldwide. For an overview of available SEMI market data, please visit www.semi.org/en/MarketInfo.

The data contained in this release were compiled by David Powell, Inc., an independent financial services firm, without audit, from data submitted directly by the participants. SEMI and David Powell, Inc. assume no responsibility for the accuracy of the underlying data.

About SEMI

SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Technology Communities, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.

Association Contact

Michael Hall/SEMI
Phone: 1.408.943.7988
Email: [email protected]

Notes

Next SEMI Billings report is November 19, 2020 at 3:00pm Pacific.

For information on SEAJ Billings Express Report, visit www.seaj.or.jp.

• Read more about North American Semiconductor Equipment Industry Posts September 2020 Billings

Butterfly Network wins Ultrasonic Transducers Product Showdown with medical imaging product focused on democratizing healthcare

MILPITAS, Calif. – October 21, 2020 – Butterfly Network, a company out to democratize healthcare by making medical imaging universally accessible and affordable, has won the Ultrasonic Transducers Product Showdown at MEMS and Sensors Executive Congress (MSEC 2020), held last week for the first time in virtual format. Butterfly iQ, the winning product, is a connected, easy-to-use handheld whole-body ultrasound system that the company says is 10 times less expensive than traditional ultrasound medical imaging systems. The award was based on a poll of MSEC attendees.

“MSEC 2020 underscored cutting-edge innovation that promises to help tackle shared challenges,” said Tim Brosnihan, executive director for SEMI-MSIG. “In the midst of an international pandemic, the product finalists, emerging leaders and MSIG Hall of Fame inductees recognized at MSEC 2020 all reflect forward-looking MEMS and sensors solutions that take aim at overcoming problems confronting societies around the world.”

TDK-Chirp Microsystems and Ultrasense Systems were the other Ultrasonic Transducers Product Showdown finalists. TDK-Chirp Microsystems was recognized for its wearable that uses  ultrasonic sensing to determine whether people are safely separated in the workplace and public places. Ultrasense Systems ranked among MSEC 2020 innovation elites for its TouchPoint technology, which can provide virtually any surface with touch controls, regardless of thickness or material.

The debut of the Emerging Leaders Award – recognizing three fast-rising innovators under the age of 40 – and the announcement of three new inductees to the MEMS and Sensors Industry Group (MSIG) Hall of Fame also highlighted MSEC 2020.

Emerging Leaders Award Honorees

Simon Chaput, founder and president of Boréas Technologies
Jean-Michel Chouinard, group manager at Teledyne DALSA
Houri Johari, senior director of MEMS technology development at TDK InvenSense

MSIG Hall of Fame Inductees

Evgeni Gousev, senior director at Qualcomm Technologies
Allyson Hartzell, principal architect for Quality and Reliability at Philips
Karen Lightman, executive director for Metro 21 at Carnegie Mellon University

Presented annually by SEMI at MSEC, the awards recognize innovative new products and industry leaders that have made a significant impact in the MEMS and sensors industry.

MSEC 2021 will take place October 11-13, 2021, at Coronado Island Marriott Resort & Spa in Coronado, California. For more information on MSEC 2021 and other SEMI-MSIG events and programs, please follow @MEMSgroup on Twitter, visit MSIG at SEMI and, subscribe to SEMI’s weekly newsletter SEMI Global Update.

About SEMI
SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Technology Communities, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.

Association contact
Scott Stevens, Cardinal Communications for SEMI Americas
Phone: 1.512.288.4050
Email: [email protected]

• Read more about MSEC 2020 Recognizes Products, Leaders Taking Aim at Solving Global Challenges

ESPOO, Finland, 19th October 2020 – The Chairman of the Board and founder of Picosun Group, Mr. Kustaa Poutiainen, has been awarded as Finland’s Entrepreneur of the Year 2020. Mr. Poutiainen received the National Entrepreneur Award in the annual meeting of the Federation of Finnish Enterprises in Jyväskylä on 17th October. The award is given every year to four Finnish entrepreneurs as a recognition of exceptional entrepreneurship.

Picosun provides ALD (Atomic Layer Deposition) thin film coating solutions to global microelectronics and other industries. ALD was invented in Finland in 1974 by Picosun Board Member Dr. Tuomo Suntola, who in 2018 received the Millennium Technology Prize in recognition of his invention. ALD is a mature, key enabling technology in today’s semiconductor manufacturing, realizing the development of modern microelectronics according to the Moore’s Law. ALD is expanding rapidly to other fields of industry as well, and it is expected to bring a fundamental disruption especially to healthcare technologies, where Picosun’s PicoMEDICAL™ solutions have already enabled several new innovations.

“Even if we had great premises to start manufacturing ALD equipment, not everyone believed in us in the beginning. Our personnel did and showed what they are capable of. It has taken us to a path of excellent growth,” says Poutiainen.

Picosun’s first customers, when the company entered the ALD business in 2004, were universities and research institutes. Now, the world’s leading electronics manufacturers and other companies turn to Picosun when they need the most advanced thin film coating technology to stay spearheading their own industries. Even in the middle of the global pandemic, Picosun’s turnover is expected to grow 50%, which is remarkably higher than the market’s average of 15%.

“Since day one, our vision was to be the best in the world. We have already achieved this with our R&D ALD tools, and now we are heading further. We invest a significant amount of our turnover in development of our ALD solutions and our personnel so that we can always exceed the expectations of our customers. It is an honor to receive the National Entrepreneurship Award of Finland, and it is an honor to be a part in steering Picosun towards the future, which looks very bright indeed,” continues Poutiainen.

“The whole Picosun team wants to congratulate our Chairman, Kustaa Poutiainen, on this prestigious award. We are very proud of his significant contributions and role in enabling the international breakthrough of Finnish originated ALD technology. I am sure that the entire global ALD community appreciates his efforts and joins our congratulations,” summarizes Mr. Jussi Rautee, CEO of Picosun Group.

More information:
Mr. Jussi Rautee
CEO, Picosun Group
Tel: +358 50 345 4457
Email: [email protected]
Web: www.picosun.com

• Read more about Picosun’s success brings Chairman of the Board Kustaa Poutiainen the National Entrepreneur Award of Finland 2020

• Total income for the third quarter was EUR 3.0 million (2019: EUR 3.1 million)
• Cash position maintained at a good level
• Book-to-bill ratio was above one for the third quarter

Deventer, 15th October 2020 – RoodMicrotec N.V., a leading independent company for semiconductors supply and quality services, today releases its trading update for the third quarter of 2020. The total income for the quarter was EUR 3.0 million, which is in line with the total income for the third quarter of 2019. COVID-19 is still impacting the business of RoodMicrotec, but the short-term demand from our customers is back to the level of last year. The leading indicator, the book-to-bill ratio, was above one for the third quarter after a drop in the second quarter. For the first 9 months of 2020, the total book-to-bill ratio is above one.

“We are continuing our tight control of operational expenses and are pleased to see that the cash position at the end of the third quarter is maintained at a good level," says Martin Sallenhag, CEO of RoodMicrotec. “These measures along with the level of total income have generated a quarter with break-even net result which is very encouraging.”

RoodMicrotec is maintaining a very tight control of the personnel expenses through short-time work when appropriate and possible, as well as a temporary salary waiver of the management. All operational expenses are reviewed in detail and only absolutely necessary costs for delivering our high-quality services to the customers are approved. There is still sufficient capacity within the operational departments, so no additional capital investments are necessary.

Outlook:
At this stage, it is still not possible to forecast either the duration of the COVID-19 disruption or the impact of the currently increasing number of new COVID-19 infections in Europe. If there are no further lock-downs, RoodMicrotec expects to generate a total income in the range of EUR 3.2 million to EUR 3.6 million in the fourth quarter of 2020, thus offsetting the temporary drop in total income compared to 2019. The second-half of the year is then expected to generate a positive net result.
 
About RoodMicrotec
RoodMicrotec is a leading independent company for semiconductor supply and quality services. With 50 years of experience in the semiconductor and electronics industry, RoodMicrotec is well-established as a highly valued partner for many companies worldwide. The company provides full-turnkey ASIC services for complex microchips that are customized to handle specific applications for individual customers. In cooperation with strong partners, RoodMicrotec manages the entire development and production flow of ASICs in the target volume, ranging from low quantities up to multiple millions per year. The turnkey solution includes project management, wafer test, assembly, final test, qualification, failure analysis and logistics. All services comply with the industrial and quality requirements of the high reliability, aerospace, automotive, healthcare and industrial sectors. RoodMicrotec’s headquarter is located in Deventer, Netherlands, with operational units in Nördlingen and Stuttgart, Germany.

For more information visit https://www.roodmicrotec.com

Further information
Martin Sallenhag - CEO, Arvid Ladega - CFO
Telephone: +31 570 745623 Email: [email protected] Web: www.roodmicrotec.com

This press release is published in English and German. In case of conflict between these versions, the English version shall prevail.

• Read more about Trading Update: RoodMicrotec announces total income for the third quarter of 2020