Though everyone can put a number on how much the semiconductor industry is down, even Intel Corp, www.intel.com the world’s largest chipmaker, and cannot predict exactly when the industry will revive.
Last week the Semiconductor Industry Association www.sia-online.org reported that worldwide sales of semiconductors were $14.5 billion in February, a decline of 30.4% compared to February 2008 sales of $20.3 billion. And in a month on month comparison, sales declined 7.6% from January when sales were at $15.3 billion, SIA said.
“Demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers,” SIA president George Scalise said in the report.
This week the WSTS (World Semiconductor Trade Statistics) organization www.wsts.org reported that the global market for semiconductors stood at $13.47 billion in February 2009, down 27.2% from the $18.5 billion reported in February of 2008 in a somewhat higher number comparison. The WSTS numbers are based on actual results, and may hint at a slight improvement in the industry.
This week when asked to predict semiconductor recovery, Intel’s Chairman Craig Barrett responded that stimulus packages currently being rolled out by governments around the world would start seeing responses in six to 18 months, according to a Reuters’ report.
“So you pick your time that you want to recovery to occur in that six to 18-month period, and your guess is as good as anyone’s,” Barrett said while visiting Beijing.
Wednesday, April 8, 2009
Reverse Outsourcing
Did you notice the lack of attendees at APEX this year? For an editor, this gives us lots of time to interview, conduct panels, talk to leaders in the industry, and grant awards for innovative new products and services. For those involved in shipping large pieces of equipment and flying sales staff to Las Vegas, the experience takes on a whole new atmosphere. Although crowds were thin on the show floor (Denny McGuirk, president of IPC, estimated 20% to 25% down in registrations), those seeking an education filled up the technical sessions. Education makes employees more valuable to any company.
No one doubts that business in the U.S. has limped through a weak period. And in electronics, recent news revealed IBM’s Project Match, which offers laid-off U.S. and Canadian workers the chance to apply for jobs at the company located in India and other areas of low-cost labor around the globe. IBM would help with visas and moving costs, but the salaries would be the same as those within these low-wage areas.
Who would jump at moving somewhere else globally to earn less? Most of us drag our feet at moving between States for increased income. Let’s face it, this is a flat year globally for most EMS providers and OEMs already. Most industry analysts project negative growth, if any. And survival can spur life changes; that is certain.
Employees working at IBM in the U.S. must have known about the Wall Street Journal’s story last month announcing that IBM planned to lay off 5,000 U.S. employees with many of the jobs being transferred to India. Foreign workers account for 71% of IBM’s nearly 400,000 employees at present, WSJ said.
If it’s a global economic change, then we already know about that. The question is, are we improving the lives of individuals by taking them away from their families and homes only to pay them a lower wage? What would be the difference if foreign workers came to places where wages were higher, but families were distant? The problem with outsourcing employees is that all good business decisions are often poor choices for people. As people, do we raise the middle class if we lower incomes? Do we strengthen families by separating them?
As I write this, an invitation to teach English as a second language in a distant country sits on my desk. It doesn't pay well, but it may be an adventure...
No one doubts that business in the U.S. has limped through a weak period. And in electronics, recent news revealed IBM’s Project Match, which offers laid-off U.S. and Canadian workers the chance to apply for jobs at the company located in India and other areas of low-cost labor around the globe. IBM would help with visas and moving costs, but the salaries would be the same as those within these low-wage areas.
Who would jump at moving somewhere else globally to earn less? Most of us drag our feet at moving between States for increased income. Let’s face it, this is a flat year globally for most EMS providers and OEMs already. Most industry analysts project negative growth, if any. And survival can spur life changes; that is certain.
Employees working at IBM in the U.S. must have known about the Wall Street Journal’s story last month announcing that IBM planned to lay off 5,000 U.S. employees with many of the jobs being transferred to India. Foreign workers account for 71% of IBM’s nearly 400,000 employees at present, WSJ said.
If it’s a global economic change, then we already know about that. The question is, are we improving the lives of individuals by taking them away from their families and homes only to pay them a lower wage? What would be the difference if foreign workers came to places where wages were higher, but families were distant? The problem with outsourcing employees is that all good business decisions are often poor choices for people. As people, do we raise the middle class if we lower incomes? Do we strengthen families by separating them?
As I write this, an invitation to teach English as a second language in a distant country sits on my desk. It doesn't pay well, but it may be an adventure...
Saturday, February 7, 2009
GT Solar reflects on US government support of solar industry
And then there’s solar power. GT Solar of Merrimack, NH, my home town had to cut down a few jobs when orders slowed their delivery dates. They haven’t had anyone cut their order yet, just slow it down. 
What’s needed to grow the renewable energy market in the U.S.? The serious downturn in the economy and the high price of oil has caused many in both the private sector and government to take a renewed looks at solar according to Fred Kocher, government relations specialist at GT Solar. Three states are leading the way when it comes to the use of solar energy: California, New Jersey, and New Mexico. As more states and consumers and electric utilities embrace solar energy, it will become a more significant part of the energy mix in the US as it is in Germany and Japan,” said Kocher. “We are encouraged by the DOE Grant Program created in section 1721 of H.R. 598 of The American Economic Recovery and Reinvestment Plan being considered by Congress,” However, there are two changes necessary to ensure that solar receives the same treatment as other renewable energy sources under this program, and to ensure that solar projects can commence. One, solar projects should be eligible for the grant program if construction has commenced by December 31, 2010. And two, the ITC for solar projects should be temporarily increased to 45% during 2009 and 2010.”
Energy independence, that’s what we all need. And that’s the electronics industry round up from the top of my desk to you. --G
What’s needed to grow the renewable energy market in the U.S.? The serious downturn in the economy and the high price of oil has caused many in both the private sector and government to take a renewed looks at solar according to Fred Kocher, government relations specialist at GT Solar. Three states are leading the way when it comes to the use of solar energy: California, New Jersey, and New Mexico. As more states and consumers and electric utilities embrace solar energy, it will become a more significant part of the energy mix in the US as it is in Germany and Japan,” said Kocher. “We are encouraged by the DOE Grant Program created in section 1721 of H.R. 598 of The American Economic Recovery and Reinvestment Plan being considered by Congress,” However, there are two changes necessary to ensure that solar receives the same treatment as other renewable energy sources under this program, and to ensure that solar projects can commence. One, solar projects should be eligible for the grant program if construction has commenced by December 31, 2010. And two, the ITC for solar projects should be temporarily increased to 45% during 2009 and 2010.”
Energy independence, that’s what we all need. And that’s the electronics industry round up from the top of my desk to you. --G
Friday, February 6, 2009
European Commission nods support to STMicroelectronics’ R&D
After much deliberation, the European Commission decided to allow France to grant financial support of 457 million euros to the Nano2012 R&D program in Crolles, France. Nano2012 aims at developing the next-generation process technology for many semiconductor applications. They have yet to pick a site and break ground, but they have lots of fellow collaborators like CETA-Leti, and the money is beginning to roll.
3D TSV packaging news from Alchimer
Now for some packaging news that’s even inspiring. At SEMICON West 2009, Alchimer, a Massy, France company, will launch their third product: AquiVia, a process used for wet deposition of the insulation and barrier layers inside high-aspect ratio TSVs. AquiVia eliminates dry process techniques from TSV metallization.
Using AquiVia, conformal, uniform insulation and barrier layers can be produced inside a TSV with aspect ratios at 10:1. Combined with Alchimer's eG ViaCoat product, which creates conformal copper seed layers, the same tool can be used for the deposition of insulation, barrier, and seed layers. “This latest breakthrough is predicted to eliminate all dry processing techniques from TSV metallization, cutting the cost of ownership of the via stack metallization by more than 70%,” said Steve Lerner, president and CEO. This is the same product, eG ViaCoat, that won the Best of the West award at SEMICON last year. Look out!
Using AquiVia, conformal, uniform insulation and barrier layers can be produced inside a TSV with aspect ratios at 10:1. Combined with Alchimer's eG ViaCoat product, which creates conformal copper seed layers, the same tool can be used for the deposition of insulation, barrier, and seed layers. “This latest breakthrough is predicted to eliminate all dry processing techniques from TSV metallization, cutting the cost of ownership of the via stack metallization by more than 70%,” said Steve Lerner, president and CEO. This is the same product, eG ViaCoat, that won the Best of the West award at SEMICON last year. Look out!
Thursday, February 5, 2009
PCBs from equipment to materials to flex circuits
Then the Board side chimes in. Aqueous Technologies acquired Austin American Technology’s MicroJet family of conveyorized inline defluxing systems – a smart move to increase their capability
Henkel appointed Luc Godefroid as the company’s global sales director for its semiconductor group. Everyone wishes him well as a key member of their team since 2001.
The IPC announced their statistical results. Rigid PCB shipments are down 14.2 % and bookings are down 24.5 % in December 2008 from December 2007. Year to date, rigid PCB shipments are up 0.9 % and bookings are down 5.5 %. Compared to the previous month, rigid PCB shipments decreased 0.9 % and rigid bookings decreased 4.6 %. The book-to-bill ratio for the North American rigid PCB industry in December 2008 fell to 0.89.
Even flexible circuit shipments in December 2008 are down 17.1 %, but bookings are up 23.8 % compared to December 2007. The North American flexible circuit book-to-bill ratio in December 2008 jumped to 1.08.
And they must feel that it’s a good bet, because the IPC just created a new tradeshow, the IPC International Conference on Flexible Circuits on April 21 – 23 in Minneapolis. Flexible circuit technology has risen from a niche interconnection solution to a mainstream technology that is increasingly becoming the interconnection method of choice in product design. From fine lines to multilayer to high density, flexible circuits offer an array of choices with a growing number of benefits. Joe Fjelstad, the man who wrote the book on flex circuits, will present his keynote, Flexible Circuit Technology – New Applications, Challenges, and Solutions for the 21st Century.”
--G
Henkel appointed Luc Godefroid as the company’s global sales director for its semiconductor group. Everyone wishes him well as a key member of their team since 2001.
The IPC announced their statistical results. Rigid PCB shipments are down 14.2 % and bookings are down 24.5 % in December 2008 from December 2007. Year to date, rigid PCB shipments are up 0.9 % and bookings are down 5.5 %. Compared to the previous month, rigid PCB shipments decreased 0.9 % and rigid bookings decreased 4.6 %. The book-to-bill ratio for the North American rigid PCB industry in December 2008 fell to 0.89.
Even flexible circuit shipments in December 2008 are down 17.1 %, but bookings are up 23.8 % compared to December 2007. The North American flexible circuit book-to-bill ratio in December 2008 jumped to 1.08.
And they must feel that it’s a good bet, because the IPC just created a new tradeshow, the IPC International Conference on Flexible Circuits on April 21 – 23 in Minneapolis. Flexible circuit technology has risen from a niche interconnection solution to a mainstream technology that is increasingly becoming the interconnection method of choice in product design. From fine lines to multilayer to high density, flexible circuits offer an array of choices with a growing number of benefits. Joe Fjelstad, the man who wrote the book on flex circuits, will present his keynote, Flexible Circuit Technology – New Applications, Challenges, and Solutions for the 21st Century.”
--G
Wednesday, February 4, 2009
The Big Guys: Intel, Freescale and everyone else
It has been a busy couple of weeks at my desk collecting things in the electronics industry. Let’s review what everyone is talking about.
First, let’s get the negatives out of the way, starting with the big companies. Intel announced one of its worst Q4s ever on January 15. The very next week Intel announced that with would cut 6000 jobs by closing three assembly test facilities, halting production at its 200-mm fab in Hillsboro, OR and at its wafer production operation in Santa Clara. But wait, that’s not all. This same company that produces 76% of worldwide market for microprocessors is still in court battles with Advanced Micro Devices. AMD submitted a first complaint to the Commission in October of 2000 alleging that that “certain marketing arrangements in respect of ACER, Dell, Hewlett Packard, IBM and NEC, and certain of Intel’s pricing practices infringed Article 82 EC.” The Commission preliminarily stated that Intel had implemented an anti-competitive strategy to exclude AMD from or limit its access to the market for 86 microprocessors.
More bad news for those who listened in to Freescale’s Q4 results. Sales are down 33% as compared to Q3 results in 2008 and down 39% as compared to the same period last year. Sales were $940 million said Alan Campbell, in a Scottish brogue. Rich Beyer, chairman and CEO said, “We remain focused on further reducing our break-even point while ensuring we execute on our strategic growth initiatives and leverage our market leadership positions.” Did I mention that they’re still unloading the handsets from the Motorola connections, but now they’re willing to sell it piecemeal? More to come.
First, let’s get the negatives out of the way, starting with the big companies. Intel announced one of its worst Q4s ever on January 15. The very next week Intel announced that with would cut 6000 jobs by closing three assembly test facilities, halting production at its 200-mm fab in Hillsboro, OR and at its wafer production operation in Santa Clara. But wait, that’s not all. This same company that produces 76% of worldwide market for microprocessors is still in court battles with Advanced Micro Devices. AMD submitted a first complaint to the Commission in October of 2000 alleging that that “certain marketing arrangements in respect of ACER, Dell, Hewlett Packard, IBM and NEC, and certain of Intel’s pricing practices infringed Article 82 EC.” The Commission preliminarily stated that Intel had implemented an anti-competitive strategy to exclude AMD from or limit its access to the market for 86 microprocessors.
More bad news for those who listened in to Freescale’s Q4 results. Sales are down 33% as compared to Q3 results in 2008 and down 39% as compared to the same period last year. Sales were $940 million said Alan Campbell, in a Scottish brogue. Rich Beyer, chairman and CEO said, “We remain focused on further reducing our break-even point while ensuring we execute on our strategic growth initiatives and leverage our market leadership positions.” Did I mention that they’re still unloading the handsets from the Motorola connections, but now they’re willing to sell it piecemeal? More to come.
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