5G

On June 1st, 2018, Toshiba sold Toshiba Memory, Toshiba’s memory business, to an investment group led by Bain Capital. Toshiba Memory was then owned by a consortium of American, Japanese and Korean companies.After the long and tough negotiations, Toshiba Memory moved forward at full throttle, holding a groundbreaking ceremony for its new 3D NAND fab (100,000 WPM) in Kitakami in July and, in September, celebrating the opening of Fab 6 Phase 1 (50,000 WPM). To be sure, NAND memory is a key feature of Japan’s semiconductor industry. But the sector’s reach extends well beyond memory with its rich and versatile product portfolio nourished by active investment.Born in the early 1950s, Japan’s semiconductor industry today boasts more than 30 companies with fabs. Many feature 200mm and smaller wafer lines with legacy technologies, form factors that account for the bulk of the world’s semiconductors and are the oxygen of Japan’s chip industry. Clearly, the world is not built only with the state-of-art 7nm processed chips on the latest generation 300mm lines. Japanese chipmakers are flourishing.Automotive SemiconductorsRenesas Electronics remains a giant in microcontrollers (MCU) and system on chip (SoC) devices for automotive applications. According to IHS Markit, Renesas automotive semiconductor revenue in 2017 reached $3.6 billion while Inineon Technologies and NXP Semiconductors revenues were $3.4 billion and $3.7 billion, respectively. The three companies dominate the global automotive MCU global market. The company recently acquired Integrated Device Technology (IDT), a U.S. fabless company specializing in analog/mixed signal chips, to strengthen its automotive semiconductor portfolio. Renesas operates four volume production fabs, according to the latest World Fab Forecast from SEMI. Renesas’s microcontrollers for automotive applications (Source: Renesas Electronics) Power SemiconductorsWith power semiconductors the chips of choice for boosting the efficiency and performance of motors and batteries used in equipment, demand for the devices is rapidly growing, especially for automotive applications. Power semiconductor companies in Japan are legion and include Denso, Fuji Electric, Fujitsu Semiconductor, Hitachi, Kyocera, Mitsubishi Electric, New Japan Radio, Origin Electric, Phenitec Semiconductor, Renesas, Rohm, Sanken Electric, Sansha Electric Manufacturing, Seiko NPC, Shindengen Electric Manufacturing, Sumitomo Electric Device Innovations, Toshiba and Toyota Industries. The companies account for 26% of global power semiconductor capacity and will spend $317 million for construction and equipping in 2018.CMOS SensorsSony dominates the CMOS image sensors market with 42% share in 2016, according to Yole Développment. To meet growing demand for high-end CMOS image sensors, Sony has acquired several legacy 300mm wafer fabs and retooled them for CMOS sensor manufacturing. What’s more, Sony’s May announcement of its mid-term corporate strategy includes a 1 trillion Japanese yen investment in CMOS image sensors targeted to automotive applications by March 2021.Sony’s 7.42 effective megapixel stacked CMOS image sensor for automotive cameras (Source: Sony Corporation) MEMSMEMS is perhaps the most wide-ranging device market: Every application requires different capabilities and functions. The latest World Fab Forecast report lists 17 MEMS companies in Japan, though three makers of fast-growing RF MEMS, typically known as surface acoustic wave (SAW) or bulk acoustic wave (BAW) filters, are coming to the attention of semiconductor manufacturers. All are familiar passive electronic components suppliers – Murata Manufacturing, Taiyo Yuden and TDK – and all acquired legacy semiconductor fabs to manufacture RF MEMS.Their high-performance radio wave filters make mobile phones usable around the world. Research companies like Yole expect the introduction of 5G cellular mobile communication systems to fuel another wave of growth of the RF MEMS market. Murata Manufacturing’s SAW filters for smart phones (source Murata Manufacturing) Japanese Supply Chain Meets All Different NeedsJapan’s semiconductor supply chain provides one third of the world’s semiconductor manufacturing equipment and more than half of the industry’s materials. But Japanese suppliers also work with small and midsize makers of highly versatile chips critical to enabling the explosion of smart applications.Meet these versatile Japanese suppliers at SEMICON Japan to find solutions to your unique needs and help the world get smarter. Themed “Dreams Start Here,” SEMICON Japan 2018 reflects the promise of AI (artificial intelligence), Internet of Things (IoT) and Smart technologies. Featuring more than 750 exhibitors from around the world, the event is the gathering place to connect the people, technologies and business across the electronics manufacturing supply chain, from semiconductor manufacturing to autonomous cars, robotics and other smart applications. For more information about SEMICON Japan, visit www.semiconjapan.org.Yoichiro Ando is a marketing director at SEMI Japan.

Storage and memory chipmaker and SEMI China member Tsinghua Unigroup is gearing up to meet burgeoning product demand with huge investments in its manufacturing plants. But the high-tech enterprise under Tsinghua University is eyeing a much bigger prize – growth of the region’s semiconductor industry and the realization of its ambition to become a more prominent force on the global stage.Inspired by the national strategy, the Tsinghua Unigroup’s big spends include USD 24 billion in Wuhan (Yangtze Memory Technologies Co., Ltd.,) USD 30 billion in Chengdu, USD 30 billion in Nanjing and USD 100 billion in Chongqing, said Liu Hongyu, senior vice president of Tsinghua Unigroup, speaking at the SEMI China Equipment and Materials Committee meeting last month.Advanced packaging is another rich vein of opportunity the region is tapping for expansion, said Liu Hongjun, vice president of China Wafer Level CSP Co., Ltd., another SEMI China member attending the event, hosted by NAURA in Beijing. Hongjun sees strong growth for Fan-in, Fan-out, FCBGA, 2.5D and 3DIC, with Fan-out out front. Liang Sheng, administrative commission director at BDA, a business advisory firm supporting high-technology manufacturing in the E-Town economic development zone, pointed to 5G chips and smart, networked electric automobiles as drivers of the next growth phase of Beijing’s integrated circuit (IC) industry.Global tailwinds are lifting China’s semiconductor industry and the region’s hopes, with SEMI and major industry analysts raising their semiconductor industry growth projects for 2018 to between 9 percent and 16 percent. According to SEMI’s latest market report, global semiconductor industry manufacturing equipment revenue reached USD 17 billion in the first quarter of 2018, logging all-time highs after jumping 12 percent from the previous quarter and 30 percent year-over-year. Korea was the top-performing region at USD 6.26 billion, followed by China at USD 2.64 billion.Tighter integration with the rest of the global semiconductor industry is critical to the growth of China’s chip sector, and SEMI China is squarely focused on this assimilation, said SEMI China president Lung Chu. The spearhead of this effort is the SEMI Innovation Investment Platform (SIIP) China, established by SEMI China last year to help grow China’s pool of skilled workers, promote advanced technology, generate industry capital, and expand China’s semiconductor industry while developing stronger connections with chip sectors in other regions. To strengthen ties with other regions, SIIP China will stage a number of innovation and investment forums this year including Chinese Night at SEMICON West (July 10-12) and a SIIP China Forum in Silicon Valley (July 15). In August, representatives from the Korea chip industry will visit counterparts in China (August), and a China delegation will travel to Japan for meetings (October). SIIP China is also strengthening the region’s links with Germany and Israel as SEMI serves as a crucial bridge between China’s semiconductor sector and the global industry.At the invitation of Shanghai authorities and the Ministry of Commerce of the People’s Republic of China, SEMI China in November will join the China International Export Import Exposition in Shanghai, an event that will underscore China’s commitment to the openness and cooperation of its semiconductor industry with the international chip community. As part of the exposition, SEMI will work with the Ministry of Commerce and domestic chip manufacturers to begin development of a special integrated circuit (IC) zone. SEMI China members are welcome to participate.With workforce development no less vital to the future of China’s semiconductor industry, the Equipment Materials Committee offered potential solutions to the industry’s talent gap. Measures included targeting university students and engineers with industry lectures and courses in key cities, campus recruiting, talent training that members said they are willing to help SEMI coordinate and stage and, much like the push to better integrate China with the global semiconductor industry, mobilizing member resources around a campaign to polish the image of the industry to make it more attractive to students and young workers. Members of the SEMI China Equipment Material Committee gathered at NAURA in Beijing in June for a warm and lively discussion about global semiconductor industry cooperation and growing China’s semiconductor sector.Cherry Sun is a marketing manager at SEMI China.

The growth of China’s semiconductor industry outstripped sector expansion in many other regions in 2017 thanks in part to heavy government investments and supportive state policies. But China’s chip industry also struggled under the weight of overheated investment, inconsistent project quality, insufficient investment in research and development, a poor ability to innovate, and barriers to international cooperation. To overcome these headwinds to growth, China must identify global trends in the development of global semiconductor industry and better understand the forces it needs to mobilize to further expand its own semiconductor sector. AI and 5G fuel global semiconductor industry growthIn 2017, global semiconductor industry revenue reached a seven-year peak, expanding 22 percent to nearly USD 420 billion, and entered a new growth phase with artificial intelligence (AI), 5G and other new technologies leading the surge with greater market segmentation, diversification and decentralization. The emergence of smart automobiles, smart cities, smart medicine, AR/VR and other new markets headed the list of new applications. In the next three to five years, semiconductor industry growth is expected to remain stable, with no marked declines. In 2018, the growth rate is expected to fall to between 5 percent and 8 percent, with the expansion more comprehensive and balanced. The memory market, in particular, will find it hard to match its 2017 blistering growth rate. The market’s expected growth of 10 percent to 20 percent will be chiefly driven by DRAM and 3D NAND Flash. In 2019, NAND growth will continue but DRAM shipments could decline. Emphasis on both innovation and investment key to sustainable growth of Chinese IC Under the China government’s Guidelines to Promote National IC Industry Development, designed to provide key policy guidance and capital support for the development of China’s IC industry, the Chinese semiconductor industry is seeing particularly rapid growth that is expected to be a key contributor to continuing global industry expansion. In IC design, HiSilicon and Unigroup Spreadtrum RDA ranked among the top 10 in the world. In wafer fabrication, Chinese IC manufacturing accounted for 13 percent to 15 percent of global market capacity despite SMIC and Huahong Group lagging international competition in advanced processing. In packaging and testing – China’s strongest segment – JCET, NFME and Huatian Technology also ranked in the global top 10. The Guidelines to Promote National IC Industry Development has fueled a boom in capital investments. However, investments must go well beyond fab construction to add new capacity for China’s semiconductor industry to flourish. A strategy for sustainable, long-term chip industry growth must focus more on technology innovation while continuing heavy capital investments, though it takes time for innovation to lead to higher capacity demand and GPD growth and more jobs. Despite large investments by the 02 Special Project in semiconductor equipment and materials, China trails other regions of the world in advanced technologies. Global spending on semiconductor equipment reached a record-breaking USD 56 billion in 2017, with Korea a major driver. In 2017, Samsung alone invested USD 25 billion in semiconductor equipment, followed by TSMC (USD 10.8 billion), Intel (USD 11.5 billion), Hynix (USD 8.5 billion), Micron (USD 0.5 billion), SMIC (USD 2.3 billion) and YMTC (USD 2 billion). In 2018, Samsung’s equipment spending is expected to drop slightly, to USD 24 billion, while investments by Intel and TSMC will be remain roughly equal. China’s equipment spending will continue to grow in 2018, with SMIC and YMTC maintaining investment levels similar to last year’s and other China semiconductor manufacturers starting to ramp up investments. In 2018, China is expected to surpass Taiwan in equipment spending to claim the number two position after Korea. SIIP China dedicated to international connection and cooperation The huge investments in China’s semiconductor industry need to be supported by robust business strategies, greater international cooperation, deeper expertise in advanced technologies, and more skilled workers. China lags the global industry in all of these areas. The rapid rise of China’s semiconductor industry has raised concerns among many countries over China’s growing influence, with some, most notably the United States, going so far as to implement containment measures. Other regions including Japan, Korea and Taiwan followed suit. The continued growth of China’s semiconductor industry hinges on technological innovation enabled by international cooperation, as well as strong international communication to allay concerns and misunderstandings over the rising prominence of China’s chip sector. China must overcome these obstacles. One partial solution is for China to convince the rest of the world that its need a thriving semiconductor industry if only to meet enormous demand for electronics products within its own borders. As the largest international semiconductor industry association, SEMI enjoys a unique ability to strengthen the connection between China’s semiconductor sector and its international counterparts. SEMI is well-known for its vital support of the traditional semiconductor equipment and materials markets, but SEMI’s work also spans IC design, manufacturing, packaging and testing. What’s more, SEMI has expanded into innovative market vertical applications such as AI, smart manufacturing, smart transportation and smart automotive as it aims to bring together supply chains across these growth areas. For its part, SEMI China remains dedicated to improving communications and cooperation between the Chinese and global semiconductor industries. SEMI China will also continue to encourage deeper collaboration among individual enterprises and government institutions in the interest of industry growth while making full use of SEMI’s international, professional and localization platform to promote the development of China’s semiconductor industry. Last year, we established SEMI Innovation Investment Platform (SIIP) China to help grow China’s pool of skilled workers, promote advanced technology, generate industry capital, and expand China’s semiconductor industry while developing stronger connections with chip sectors in other regions. SIIP China is focused on the following: Promoting sustainable development of the Chinese semiconductor industry Establishing stronger connections to help take advantage of global technology and investment opportunities Providing a platform for open communications between the Chinese and global semiconductor industries Promoting greater coordination between China and its global partners Helping newly enterprises secure funds for expansion Encouraging greater cooperation with foreign semiconductor manufacturers in the interest of openness and mutual benefit will be the best way for China to overcome obstacles to the development of its semiconductor industry. Meanwhile, China will continue to strive to merge into the global semiconductor industry and become a key partner. SEMICON China has witnessed the development of Chinese semiconductor industry SEMICON China marked its 30th anniversary this year. Over the past three decades, China’s semiconductor industry has seen remarkable growth. This year’s SEMICON China was the largest ever. SEMICON China and FPD China 2018 numbered 3,628 booths, covered 74,000 square meters of exhibition space and attracted 1,116 exhibitors from 21 countries and regions and 91,252 professional attendees from 58 countries and regions. Most of China’s top device makers and global leading packaging houses, together with their equipment and materials suppliers, exhibited at SEMICON China and FPD China 2018, representing the global IC manufacturing ecosystem. The number of SEMICON China and FPD China 2018 visitors jumped 32.3 percent from last year, with representation by professionals from the design, manufacturing, assembly and test, equipment and materials sectors. Lung Chu is President of SEMI China.