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The Week in Review: Dec. 6, 2013

Worldwide sales of semiconductors reached $27.06 billion for the month of October 2013, a 7.2 percent increase from the same month last year when sales were $25.24 billion, according to preliminary results by Gartner, Inc. The top 25 semiconductor vendors’ combined revenue increased 6.2 percent, a significantly better performance than the rest of the market, whose revenue growth was 2.9 percent. This was, in part, due to the concentration of memory vendors, which saw significant growth in the top ranking.

Soitec, a manufacturer semiconductor materials for the electronics and energy industries, this week announced it has reached high-volume manufacturing of its new Enhanced Signal Integrity (eSI) substrates. Soitec’s eSI products, based on Smart Cut technology, are the first “trap-rich” type of material in full production. These substrates, on which devices are manufactured, have a significant impact on the final devices’ performance. Soitec’s eSI substrates are designed by introducing an innovative material (a trap-rich layer) between the high-resistivity handle wafer and the buried oxide. This layer limits the parasitic surface conduction present in standard high-resistivity silicon-on-insulator (HR-SOI) substrates, boosting the performance of RF devices. Because this layer is built into the substrate, it reduces the number of process steps and relaxes design rules, leading to a lower cost process and possibly a smaller die area per function.

SEMI projects that worldwide sales of new semiconductor manufacturing equipment will contract 13.3 percent to $32.0 billion in 2013, according to the SEMI Year-end Forecast, released this week at the annual SEMICON Japan exposition.  In 2014, all regions except Rest of World are expected to have strong positive growth, resulting in a global increase of 23.2 percent in sales. 2015 sales are expected to continue to grow — increasing 2.4 percent with Japan, Europe, Korea, China, and Rest of World regions registering positive growth.

Micron Technology, Inc. announced that the company has named Rajan Rajgopal, vice president of Quality. Rajgopal will be responsible for overseeing all aspects of Micron’s quality systems including manufacturing, customer program management and product ramps. He brings more than 25 years of experience to Micron and most recently served as the vice president of Global Quality and Customer Enablement for GLOBALFOUNDRIES in Singapore.

SEMI’s World Fab Forecast report, published in November, predicts that fab equipment spending will decline about -9 percent (to US$32.5 billion) in 2013 (including new, used and in-house manufactured equipment).  Setting aside the used 300mm equipment GlobalFoundries acquired from Promos at the beginning of 2013 (NT$20-30 billion), fab equipment spending sinks further, to -11 percent in 2013.  The previous World Fab Forecast in August predicted an annual decline of just -1 percent (-3 percent without the used Promos 300mm equipment).

Worldwide sales of semiconductors reached $27.06 billion for the month of October 2013, a 7.2 percent increase from the same month last year when sales were $25.24 billion, and 0.8 percent higher than last month’s total, according to The Semiconductor Industry Association (SIA). “With eight straight months of growth and a new monthly sales record in October, the global semiconductor industry is on track to exceed $300 billion in annual sales for the first time ever in 2013,” said Brian Toohey, president and CEO, Semiconductor Industry Association. “The industry is projected to maintain solid growth for the remainder of 2013 and into 2014, led largely by the Americas, which has remained well ahead of last year’s pace. Congress and the Administration can help maintain and strengthen growth by resolving fiscal uncertainty and investing in scientific research.”

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