Fabtech - Editor's Blog

No double booking - yet!

Thu, 29 Oct 2009 14:15:46 GMT

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.

Is MEMC mad to want to raise silicon wafer prices?

Fri, 23 Oct 2009 16:07:40 GMT

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.

Foundry fun and games begin

Thu, 10 Sep 2009 18:17:35 GMT

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.

TI thinking big for analog production

Tue, 25 Aug 2009 12:08:48 GMT

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.

Aviza couldn’t do a Tegal but Tegal could be doing an Aviza?

Thu, 20 Aug 2009 16:08:41 GMT

Last week Aviza Technology sold the majority of its assets to Sumitomo Precision Products for not a lot of up-front cash and mostly in promissory notes that will take 18-months before maturity. After Chapter 11 protection and automatic de-listing, Aviza failed to do what Tegal had done years ago and shift market emphasis that resulted in survival on the NASDAQ.

Asyst taken apart, one robotic arm at a time

Thu, 30 Jul 2009 17:20:04 GMT

Although booth numbers were seriously down at SEMICON West this year, one company that was in attendance was surprisingly, Asyst Technologies. The company filed for Chapter 11 protection back in April and ever since I had picked up rumours concerning potential acquirers as well as more pessimistic tones of a complete collapse and fire sale, which would be happening in the not too distant future!

Taiwan’s memory merry-go-round

Thu, 23 Jul 2009 12:52:16 GMT

The consolidation in DRAM memory manufacturers is still looking a distant dream after many months and two quarters of this year already gone without any real developments. Taiwan government’s new quango, Taiwan Memory Co is being supported with a paltry NT$30 billion, just enough for office expenses while few memory players are wanting to actually play with TMC in the playground!

What people said about SEMICON West but I was too afraid to ask!

Mon, 20 Jul 2009 17:39:16 GMT

On the long-haul flight over to this year’s SEMICON West, I reminded myself not to be all doom and gloom and totally despondent on the expected tumbleweeds blowing through North and South Halls. Having been pre-warned by a number of equipment suppliers about the drastic reduction in the number of exhibitors and expected attendees, I would try and look at the positive aspects and see how it went!

Update: Every blog has its erroneous day thanks to AMD

Mon, 20 Jul 2009 14:16:53 GMT

It was a cold, dark day for AMD back in October 2007, when concerns over delays to its future 45nm ramp were raised in this blog and on other news sites. So desperate were AMD’s spin-doctors to keep the ‘myth’ of flawless execution in the public eye, that rather than contact myself over my findings, the spin-doctors thought it best to let another journalist/blogger over at CNET remind readers that I had actually made an ‘erroneous report.’

Reducing the cost and impact of innovation

Thu, 02 Jul 2009 11:04:11 GMT

Dr. Dirk Ortloff, is Co-founder and Chief Technology Officer at Process Relations GmbH. Here he discusses the advantages of investing in new technologies and methodologies during the economic downturn as a guest columnist.

Where’s the fab capacity needed in 2010?

Mon, 22 Jun 2009 13:37:25 GMT

As a direct follower of the move to 300mm fabs, the lack of new build in 2008 and that expected in 2009 looks set to cause a serious capacity constraint over the next two years as the industry recovers from one of the worst downturns in its history. In his May, 2009 monthly report, Malcolm Penn at Future Horizons believes the capacity shortage at 300mm fabs will impact the industry as soon as 2010. He claims that only 40,000 200mm wafer starts/week equivalent, minus any capacity closures, will come on stream next year, based on the incredibly low capital spending levels.

Goodbye Moore’s Law, hello Len’s Law

Thu, 18 Jun 2009 13:57:04 GMT

Much chatter and condemnation has gone Len Jelinek’s way since declaring the end of scaling for the majority of the industry when we reach the 18nm node in 2014. This is due to economics, not technical barriers - something that gets the 'Moore’s Law forever' folks all hot under the collar.

When demotion is a promotion

Mon, 15 Jun 2009 10:42:21 GMT

Last week's news that TSMC would enter the Solar and LED markets and not as a foundry supplier, coincided with Morris Chang taking back the reins of daily management of the company and Rick Tsai moving to run the new business venture. This was taken as a demotion for Tsai and a form of retribution for his actions to cut TSMC’s workforce as the foundry struggled with record low utilization rates. Apparently, there had been worker protests over the redundancies, which had impacted TSMC’s reputation.

ASM’s Levitor RTP technology rises from the ashes

Wed, 10 Jun 2009 16:17:12 GMT

One of the white elephants of modern semiconductor equipment design would have to be ASM’s Levitor RTP technology. After years of development and no customers, (one I can recall, though that could have been an eval-only deal), ASM pulled the plug on the development of the tool last year as it struggled to restructure its front-end fab equipment operations. ASM had hoped to off-load the unique but unwanted technology but that had proved too difficult, especially since the collapse in capital equipment sales and lack of access to capital.

It’s all up from here, according to IC Insights

Tue, 02 Jun 2009 10:53:42 GMT

In a rather excited email, Bill McClean at IC Insights has called a bottom to the current semiconductor cycle and without actually using the word, hailed the next up-cycle for an industry desperate for good rather than bad news.

Think quarterly, stupid

Tue, 14 Apr 2009 13:18:27 GMT

Turning all the doom and gloom forecasting on its head and things don’t look that bad, according to IC Insights. In particular, take a look at recovering sales at the largest foundry, TSMC and it's up from hereon in for the rest of year and possibly beyond.

Is this round of fundraising by Hynix and Micron a good thing?

Fri, 10 Apr 2009 17:59:33 GMT

Both Hynix and Micron are seeking to raise capital. Hynix got the green light from its former creditor banks to raise approximately US$519 million, while Micron is hoping to gain US$450 million by offering stock and convertible senior notes. Both companies have burnt through billions in the last few years while spending on new capacity and filling the hole in accounts as losses continued unabated.

Micron says Taiwan Memory Co deal didn’t make sense: Sour grapes or astute business decision?

Fri, 03 Apr 2009 13:16:49 GMT

Not surprisingly Steve Appleton, Micron’s Chairman and CEO had a few words to say during its timely earnings conference call last night over the decision by the Taiwanese Government to partner with Elpida on process technology IP, the yet to be established Taiwan Memory Co DRAM enterprise.

Taiwan Memory Co: madness or monumental?

Wed, 01 Apr 2009 10:58:59 GMT

Words uttered by someone in the Taiwan Government to someone asking a question on the ‘sidelines’ of some event not related to the subject at all has sparked a flurry of stories suggesting that Elpida has been selected to partner with the beleaguered DRAM industry on the island.

KLA-Tencor jobs cuts tell another story

Tue, 31 Mar 2009 09:24:27 GMT

Innovation, node migrations and yield improvement strategies once meant that KLA-Tencor could ride out the worst of an economic or semiconductor specific downturn better than most equipment suppliers, which were more dependent on production expansions to make sales.