Trending Now

GT Podcast – Episode 129 – The Port Authority of NY…

New Articles

5 Major Trends Transforming Semiconductor Manufacturing Equipment Market Outlook over 2021-2027

semiconductor manufacturing
Archives, Global Trade Daily, News

5 Major Trends Transforming Semiconductor Manufacturing Equipment Market Outlook over 2021-2027

Leave a comment

The expansion of the electronics industry, driven by the burgeoning demand for consumer electronics, the growing gaming industry, and increasing proclivity towards electric and hybrid vehicles, has created enormous lucrative opportunities for the semiconductor manufacturing equipment market. This can be attributed to the elevating demand for various semiconductor manufacturing tools for producing memory ICs, sensors, PMIC, microprocessors, system-on-chips, etc.

The industry landscape is being further enhanced by ongoing business expansion moves initiated by major semiconductor companies. A prominent example of such an initiative is the commencement of the construction of two new factories in the U.S. by the leading chipmaker Intel in 2021. These facilities will house the company’s highly advanced chipmaking technology.

According to the recent report by Global Market Insights, Inc., the semiconductor manufacturing equipment market size is projected to surpass USD 90 billion by 2027, in light of the following trends:

New product launches by key companies

Major companies operating in the industry are focusing on the development of innovative semiconductor manufacturing devices to effectively meet consumer demand and gain a competitive edge in the market. Quoting an instance, in 2020, Advantest Corporation launched two general-purpose hardware equipment, digital, and power supply modules to support the capabilities of the T2000 test platform. They are designed for use in the volume manufacturing of SoC chips, power management ICs, CMOS image sensors, and automotive sensors.

Heightened adoption of polishing & grinding equipment

Polishing & grinding processes are largely adopted for manufacturing MEMS sensors, integrated circuits (ICs), chipsets, optics, and compound semiconductors. The growing preference for miniaturized ICs in electronics requires frequent polishing & grinding for reducing subsurface damage and maintaining wafer flexibility. The rising demand for the process is encouraging the market players to focus on new product development which is positively influencing the business growth. To illustrate, in 2020, ACM Research, Inc. introduced the Ultra-Stress-Free Polishing tool for advanced semiconductor packaging and wafer processing. Reportedly, polishing & grinding equipment is projected to exhibit a robust CAGR of over 5.0% through 2027.

Mounting popularity of 2D technology

The growing popularity of 2D technology can be credited to the associated benefits such as robust built, less power consumption, and minimum cost of operations. It is being extensively used in the manufacturing of 2D-planar memory devices. Various companies and research institutes are forming strategic alliances to develop ICs based on 2D material. For instance, in 2021, TSMC partnered with the National Institute of Taiwan and MIT for developing 1nm chips using two-dimensional material. With increased adoption, 2D technology segment is expected to observe a lucrative CAGR of 6.0% through 2027.

Rising adoption of foundry supply chain process

Rising demand for power electronics and high-performance computing devices is prompting the foundry providers to improve their IC manufacturing through new technology nodes. Various companies are inclined on technical enhancements like application of laser-plasma as a light source in extreme ultraviolet printing devices to generate high-quality wavelengths. For instance, in 2021, Micron announced its plans of deploying extreme ultraviolet equipment in its manufacturing foundries. Considering these factors, the foundry supply chain process segment had captured over 25% share in 2020 and is expected to register a significant CAGR of over 6.0% through 2027.

Growing semiconductor-based projects in Europe

The increasing government initiatives and investments towards semiconductor-based projects in Europe are driving the expansion of the semiconductor manufacturing equipment industry in the region. To illustrate, in 2021, the European Union unveiled its plans of increasing the chip production capacity by 20% by 2030. The EU also declared investing USD 160 billion towards technological development involving semiconductor manufacturing and supply chain infrastructure. In addition, regional chipmakers are collaborating with diverse industry experts which, in turn, is favoring industrial growth. According to the report, the industry is anticipated to register a robust CAGR of 4.5% through 2027.

Briefly, the semiconductor manufacturing equipment market is gaining traction with the increasing investments in chip manufacturing facilities coupled with the emergence of technologically advanced solutions.

Source: Global Market Insights Inc.

semiconductor
Archives, Global Trade Daily, News

BIS Requests Comments from Information and Communications Technology (ICT) and Semiconductor Supply Chains on Supply Chain Vulnerabilities

Leave a comment

The Department of Commerce’s (“Commerce”) Bureau of Industry & Security (“BIS”) recently issued requests for comment on risks to the information communications and technology (“ICT”) and semiconductor supply chains. These comments are being requested as part of the U.S. government’s broader review of supply chain vulnerabilities.

ICT Supply Chain Request for Comment:

Executive Order 14017 (“EO 14017”) requires Commerce and the Department of Homeland Security (“DHS”) to issue a report on supply chains for critical sectors and subsectors of the ICT industrial base. The recent Federal Register notice, published on September 20, 2021, describes the ICT industrial basis as: (a) hardware that enables terrestrial distribution, broadcast/wireless transport, satellite support, data storage to include data center and cloud technologies, and end user devices including home devices such as routers, antennae, and receivers, and mobile devices; (b) critical software; and (c) services that have direct dependencies on one or more of the enabling hardware. BIS seeks comments on eleven (11) topics, which are described in further detail in the notice and which we summarize below:

-“Critical goods and materials,” as defined in EO 14017, Section 6(b);

-“Other essential goods and materials,” as defined in EO 14017, Section 6(d);

-Manufacturing, or other capabilities necessary to produce or supply “critical goods and materials” and “other essential goods and materials”;

-Supply chain disruption and compromise threats such as cyber, health, climate, environmental, geopolitical, forced-labor, and other risks;

-Resilience and capacity of domestic ICT supply chains to support domestic requirements as described in EO 14017, such as national, economic, and information security;

-Allies’ and partners’ actions on ICT supply chains;

-Primary causes of risks for any vulnerable aspects of the ICT supply chain;

-Prioritization of “critical goods and materials” and “other essential goods and materials” to identify options and policy recommendations;

-Specific policy recommendations for ensuring a resilient ICT supply chain;

-Executive, legislative, regulatory, and policy changes needed to strengthen domestic ICT supply chain manufacturing and prevent supply chain disruption and compromise; and

-Suggested improvements to the government-wide effort to strengthen supply chains.

Comments on the ICT supply chain are due by November 4, 2021.

Semiconductor Supply Chain Request for Comment:

On September 24, 2021, BIS published a Federal Register notice which requests comments from interested parties, especially domestic and foreign semiconductor designers, manufacturers, material/equipment suppliers, as well as intermediate and end-users. Any interested party may submit comments, however. The BIS notice includes a questionnaire for semiconductor designers, manufacturers, and microelectronic assemblers, and their suppliers and distributors, as well as a questionnaire for intermediate and end-users of semiconductor products or integrated circuits. The questions mainly cover the production process and focus on disruptions to the semiconductor and integrated circuit inventories of intermediate and end-users. Interested parties should note before filing comments at regulations.gov that BIS requires commenters fill out an Excel spreadsheet form posted on BIS’ website to be completed and filed along with the comments. Comments on the semiconductor supply chain (including a completed form) are due by November 8, 2021.

_________________________________________________________________

Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. She leads the firm’s International Trade & Supply Chain group.

Grant Leach is an Omaha-based partner with the law firm Husch Blackwell LLP focusing on international trade, export controls, trade sanctions and anti-corruption compliance.

Tony Busch is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

semiconductor
Archives, Global Trade Daily, News, Software

Semiconductor Memory Market to Have a Promising Future Ahead

Leave a comment

The semiconductor memory market will witness considerable expansion driven by the higher adoption of memory and storage components in moveable medical devices and healthcare equipment. These intelligent point-of-care devices include glucose, heart rate, continuous temperature, and pulse oximeter monitors and are used to store real-time diagnostic data, which can be later easily derived from the semiconductor memory. This information not only assists in analyzing the disease source but also renders early treatment and diagnosis of the targeted diseases.

On this note, it has been reported that the global semiconductor memory market size will reach over USD 180 billion in annual remuneration by 2027.

Below are the key trends likely to influence the industry expansion

Rising preference for MRAM semiconductor memories

Magneto-resistive Random-access Memory (MRAM) semiconductor memory industry is pegged to see a CAGR of nearly 15% in the analysis timeframe. This is mainly ascribing to the non-volatility, low power consumption, higher durability, faster read/write cycles, and enhanced data storage capacities for extended durations of the MRAM devices. This has pushed leading business participants to come up with MRAM chipsets for use in consumer electronics applications. To quote an instance, Samsung Electronics, in March 2019, launched the eMRAM, deployed with 28FDS process technology to offer higher performance and endurance in applications of embedded systems.

Expanding industrial application scope

Demand for semiconductor memories in industrial applications accounted for around 10% of the overall market share in 2020. This is owing to the incessant requirement for semiconductor memory chipsets across numerous industrial components. The rise in the number of smart factories in South Korea, Germany, China, and the U.S. has bolstered the adoption of IIoT devices, robotics, and automation equipment. According to the Ministry of SMEs and Startups, the number of registered smart factories in Korea reached 19,799 in 2020. This penetration will add a positive edge to the intake of semiconductor memory solutions in the industrial sector.

Europe to emerge as a key producer

The semiconductor memory industry share in Europe is poised to expand at a 5% CAGR up to 2027 driven by the increased automotive production and the prominent presence of leading automotive OEMs in the region. The European Automobile Manufacturers’ Association estimated that Europe produced close to 15.8 million passenger vehicles in FY2019, accounting for nearly 21% of the total passenger vehicle production in the world.

Furthermore, semiconductor memories are widely integrated with in-vehicle communications, instrument clusters, navigation systems, telematics, among several other automotive electronics. This has paved the path for advanced automotive safety systems, including self-driving cars in the region.

Competitive business initiatives

Suppliers of different semiconductor memory types are working towards inorganic marketing strategies, like mergers and acquisitions to gain competitive advantages. For instance, SK Hynix, Inc., in October 2020, struck an acquisition deal with Intel Corporation to obtain its NAND memory and storage business for USD 9 billion. This acquisition is inclusive of Intel’s NAND component and wafer business as well as the Dalian NAND memory production facility from NAND SSD business Intel, which is in China.

Impact of COVID-19 crisis

The ongoing COVID-19 pandemic tremendously affected the growth of the semiconductor memory market particularly in the first two quarters of 2020 owing to the imposition of severe nationwide lockdowns by several governments. This made way for supply chain disruptions as well as international trade barriers with regard to raw materials and components. However, the emergence of the work-from-home policies supported the demand for semiconductor memories amidst the pandemic given the growing sales of consumer electronic devices, like tablets, laptops, and smartphones.

Rising advancements in medical science and equipment have given rise to multiple opportunities for semiconductor memory manufacturers in integrating AI and IoT technologies. There is also an escalating need for telematics, in-vehicle infotainment systems, instrument clusters, and ADAS solutions in advanced automotive and connected cars. The increasing developments in Flash memory, such as 3D NAND Flash drives to enhance the transmission speed while reducing latency will further complement the industry expansion.

supply chains
Archives, Global Trade Daily, International Trade

Biden Issues Executive Order to Review Critical Supply Chains

Leave a comment

President Biden issued an “Executive Order on America’s Supply Chains” (the “EO”) on February 24, 2021, ordering 100-day and 1-year reviews of certain critical supply chains.

The initial 100-day review aims to assess risks posed to the following critical supply chains:

-Semiconductor manufacturing and advanced packaging

-High-capacity batteries, including electric vehicle batteries

-Critical minerals, including rare earth elements

-Pharmaceuticals and active pharmaceutical ingredients

The EO also orders supply chain reviews of six (6) sectors with reports due within one year. The sectoral assessments will cover:

-Defense

-Public health and biological preparedness

-Information and communication technology

-Energy

-Transportation

-Agriculture

The EO leaves open the possibility that other industrial bases may be assessed as part of the one-year review and that digital networks, services, assets, and data (“digital products”), goods, services, and materials not otherwise described in the EO that span more than one sector may be assessed.

The EO directs that both the 100-day and 1-year reports shall review “critical goods and materials,” “other essential goods and materials,” manufacturing and production capabilities of such critical or essential goods and materials, supply chains’ resiliency, and all the major risks to the supply chains. The EO imagines the term “risks” broadly. Risks include physical threats such as climate and other natural events, as well as geopolitical dynamics. Risks also comprise digital products’ inclusion in supply chains and the possibility that such digital products could be exploited. Additionally, the EO directs that the risk of human-rights or forced-labor abuses along the supply chains be described.

The EO arrives as shortages or anticipated shortages of semiconductors are widely reported, especially in the automobile industry. A general policy goal of the Biden Administration is to increase domestic manufacturing capability and economic growth, particularly in communities of color and economically distressed areas. The EO could be the first step in a significant reimagining of how the U.S. incorporates civilian and defense supply chains into its national and economic security and foreign policy strategies. At this time, however, the Administration has only ordered reviews. Interested companies should anticipate and consult the relevant Secretaries’ 100-day and 1-year reports for forthcoming policy suggestions.

__________________________________________________________

Tony Busch is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. She leads the firm’s International Trade & Supply Chain group.

Camron Greer is an Assistant Trade Analyst in Husch Blackwell LLP’s Washington D.C. office.

Semiconductor Manufacturing
Archives, Global Logistics, Global Trade Daily, News

Semiconductor Manufacturing Equipment Market is Projected to Reach USD 80 billion by 2026

Leave a comment

According to a recent study from market research firm Global Market Insights, The adoption of technologies like AI and IoT in fabrication will significantly impact the semiconductor manufacturing equipment market forecast. Software companies are keen on implementing advanced solutions to cater to the rising demands of compact chipsets and growing production.

For instance, TCS in May 2020, developed an AI and cloud-based solution to detect errors in wafers besides improving the production and quality of semiconductors. Constant use of advanced chipsets in automotive and consumer electronics to offer advanced infrastructure and technical expertise have bolstered growth opportunities in OSAT companies. Reportedly, the global semiconductor manufacturing equipment market could reach an annual valuation of over USD 80 billion by 2026.

Based on dimensions, the semiconductor manufacturing equipment market, from the 2D segment, is believed to register a CAGR of 6% up to 2026 owing to its lower initial cost of architecture. The 2.5D technological framework is mainly deployed across high-performance computing devices as it offers high chip functionality. It is additionally used in front-end equipment and graphene electronics to attain cost efficiency in production.

Foundries brought in more than 25% of the annual revenues in 2019, pegged to rise at a CAGR of 4% over the coming years. A surge in the demand for power electronics and cryptocurrency has urged foundry suppliers to upgrade their IC production with newer nodes. For instance, Apple received a 5nm chipset from TSMC to integrate the A14 SoC into iPhone12, in April 2020. The continuous decline in the node size has elevated the requirements for new semiconductor manufacturing equipment in foundries.

The ongoing COVID-19 pandemic has affected the production activities of semiconductor components and chips among facilities and fabrication plants, hampering the semiconductor manufacturing equipment market outlook slightly. There is a lot of complexity associated with patterns in the chipsets as they require high accuracy in transferring data to chips and ICs. Undetected electrostatic discharge damages and particle contamination in the chips will lead to higher investments.

Various business strategies are being developed by major brands to enhance silicon wafer production. STMicroelectronics acquired Norstel AB, a Sweden-based Silicon Carbide wafer manufacturer, to boost the supply of wafers for diode and MOSFET used in industrial and automotive sectors.

In the lithography process in the front-end segment, various technical advancements will increase the need for semiconductor manufacturing devices in the next few years. For instance, EV Group launched the next generation lithography process “MLE” (Maskless Exposure) equipment for high-density PCB, MEMS, and biomedical applications.

The wafer manufacturing equipment segment recorded over 15% of the global market in 2019. It is likely to garner a CAGR of 5% in the next few years due to the growing consumption of silicon wafers. There is a higher requirement for wafer manufacturing equipment in fab facilities. As per the Semiconductor Equipment and Materials International (SEMI), global shipments for silicon wafers incremented by nearly 2.7% in terms of square inches in the first quarter of 2020 compared to the last quarter.

North America’s semiconductor manufacturing equipment market crossed over 10% of the global share in 2019. The government-imposed restrictions on the export of semiconductor chipsets from China and external chipmakers due to the ongoing trade war between the U.S. and China, influencing higher manufacturing in the North America region. Consistent technological developments in the telecom sector and augmented need for portable and smart electronic devices have resulted in increased investments in the semiconductor industries.

The Semiconductor Industry Association (SIA) invested more than USD 10 billion to expedite the production of semiconductors together with driving R&D initiatives in chip technology. Semiconductor manufacturing equipment companies are incorporating business strategies and planning product launches to deliver advanced products.

Key Companies covered in semiconductor manufacturing equipment market are ADVANTEST CORPORATION, Applied Materials, Inc, ASML, Cohu, Inc, EV Group (EVG), Hitachi High-Tech Corporation, KLA Corporation, LAM RESEARCH CORPORATION, Modutek Corporation, Nordson Corporation, Onto Innovation, Plasma-Therm, SCREEN Semiconductor Solutions Co., Ltd, Tokyo Electron Limited, Veeco Instruments Inc.

Source: https://www.gminsights.com/pressrelease/semiconductor-manufacturing-equipment-market