© alexandr malyshev dreamstime.com Components | April 01, 2013
42% of Semi Capital spending in 2013 from 2 companies
Intel and Samsung represent top. Combined Japanese and European outlays expected to be less than 10% of total semiconductor industry capital expenditures this year.
IC Insights’Update to The 2013 McClean Report lists the forecasted 2013 top-25 semiconductor capital spenders with a preview of the top-10 spenders. There are five companies that are expected to spend at least $3.0 billion in 2013, the same as in 2012 and 2011. Although the top-10 capital spenders cut their outlays by 5% in 2012, the non-top-10 spenders cut their capital spending by 27% last year, illustrating how “top-heavy” the semiconductor capital spending environment has become. For 2013, the top-10 capital spenders are forecast to increase their spending by 5% as compared to 2012, which would be 13 points better than the results expected from the non-top-10 companies (-8%). IC Insights believes that, in the long run, the “other” companies are likely to continue to increase their spending at a slower rate, or decrease their spending at a higher rate, as compared to the top 10 companies as they implement the fabless or “fab-lite” business models for their IC production. In IC Insights’ opinion, IC manufacturers that are currently spending less than $1.0 billion a year on capital outlays will find it just about impossible to manufacture using leading-edge digital processing technology. Companies that are in significant trouble in this regard include Taiwanese IC suppliers Nanya, Powerchip, and ProMOS. These three companies combined spent only $276 million in 2012, which is less than 10% of the cost of one new leading-edge IC fab. Some of the most “eye-catching” numbers with regards to the capital spending outlays are the massive amounts of spending expected by Samsung and Intel over the 2010-2013 timeperiod. Over this four-year period, Samsung is forecast to spend $46.9 billion, with about 60% of this amount targeting memory production. Intel is forecast to be second to Samsung in total outlays over this timeperiod with an expected $40.0 billion in capital expenditures. These huge levels of spending are enough for each company to construct and equip ten or eleven $4.0 billion leading-edge 300mm wafer fabs. Notably, the combined spending by Samsung and Intel represented 40% of the world’s semiconductor capital outlays in 2012, with this percentage expected to rise to 42% of total capital spending in 2013. Capital Spending by Nationality In 2013, only the North American suppliers, which are expected to represent 37% of worldwide spending (up eight points from eight years earlier), and the South Korean semiconductor companies, which are forecast to represent 26% of capital outlays (up 13 points in share from 2005), are expected to hold a larger share of spending in 2013 than they did in 2005. Since adopting the fab-lite business model, the three major European IC producers are now forecast to represent only about 2% of the spending total in 2013 after representing 8% of worldwide semiconductor capital spending in 2005. In comparing the forecast for 2013 with the actual results in 2005, declines in capital spending marketshare are expected by the Japanese (15 points), European (six points), and “other” companies (one point). The sharp loss of share by the Japanese and European companies is primarily due to the movement of many of these producers to the fab-lite manufacturing model. The Taiwanese companies’ flat share is due to a mixture of the second-tier Taiwanese DRAM producers Nanya, Powerchip, and ProMOS keeping their capital expenditures to the bare minimum this year while the Taiwanese foundries TSMC and UMC strive to be aggressive. The “other” segment includes companies from India, Singapore, China, etc., as well as the major contract assembly and test houses (i.e., OSAT suppliers). Although there have been periodic spikes in the “other” spending over the years, IC Insights believes that in the long-term, the “other” category will represent a flat to slowly shrinking share of total semiconductor industry capital spending.
JEOL Ltd. acquires Integrated Dynamic Electron Solutions JEOL Ltd. , manufacturer of semiconductor equipment and other industrial instruments and equipment, announced the acquisition of Integrated Dynamic Electron Solutions Inc. (IDES), an entrepreneurial venture specializing in technologies related to transmission electron microscopy (TEM).
NEXT receives major order for Indian government program NEXT Biometrics has received an order for UIDAI and STQC certified fingerprint biometric readers in India with a value of USD 750,000.
Cadence completes acquisition of AWR from NI Cadence Design Systems, Inc. has completed the acquisition of AWR Corporation from National Instruments Corporation.
Fiat Chrysler and Foxconn plans EV joint venture A new competitor in the industry for electric vehicles are in the making.
Collins Aerospace inks multimillion-dollar space contract Collins Aerospace Systems has signed a contract with Lockheed Martin to provide critical subsystems to support production of NASA’s Orion spacecraft fleet for Artemis missions III through VIII.
Imagination Technologies expands with new European design centre Imagination Technologies has opened a new design centre in Timisoara, Romania. The centre will focus on IP designed for artificial intelligence (AI) and computer vision.
AKI Electronic becomes Schurter Electronics As part of the further integration into the Schurter Group, AKI Electronic spol. s r.o. changes its name to SCHURTER Electronics spol. s r.o.
From Bosch to Silicon Mobility - Kallenbach takes the helm Automotive semiconductor company, Silicon Mobility, has appointed former Robert Bosch GmbH executive Rainer Kallenbach as CEO of the company as of January 6, 2020. The current CEO Bruno Paucard will remain with the company as COO and on the Board of Directors.
NEXT Biometrics reorganises - reduces headcount NEXT Biometrics says it is executing a program to optimise the organisation and cost base with its strategic priorities and market opportunities; which also translates to layoffs
LPKF delivers laser system to semiconductor industry customer In December, LPKF delivered – for the first time – a highly automated version of its LIDE system for integration into a semiconductor fab to an unnamed semiconductor manufacturers.
ROHM company SiCrystal & STMicro ink wafer supply deal ROHM and STMicroelectronics have signed a multi-year silicon carbide (SiC) wafers supply agreement with SiCrystal, a ROHM group company having a top share of SiC wafers in Europe.
Cadence expands collaboration with Broadcom Cadence Design Systems says it has expanded its collaboration with Broadcom Inc. for the creation of semiconductor solutions targeting next-generation networking, broadband, enterprise storage, wireless and industrial applications.
Marvell expands R&D footprint in India Marvell has announced the addition of its new facility in Bangalore, part of Marvell India Private Limited, the company’s second largest research and development (R&D) effort spanning three sites – Bangalore, Pune and Hyderabad.
imec spin-off raises €4,5 million in funding MICLEDI Microdisplays, the latest spin-off of imec, has raised EUR 4,5 million seed capital from imec.xpand, with participation of PMV and FIDIMEC.
Synopsys to acquire certain IP assets of INVECAS The acquisition broadens the company’s IP portfolio and adds a team of experienced R&D engineers to the company’s development department.
Fire at Kioxia's Yokkaichi NAND fab A fire broke out at Kioxia’s Yokkaichi plant – a joint venture facility owned by Kioxia and Western Digital – in Japan on January 7.
New Hella electronics JV starts production in China The joint venture HELLA BHAP Electronics has started production. The company was founded in 2018 by HELLA and BHAP, one of the largest automotive suppliers in China.
European backing for Prodrive's growth plans The European Investment Bank is providing a EUR 50 million loan to Dutch technology company Prodrive Technologies.
Murata acquires 3DHaptics company Murata Manufacturing and MIRAISENS, which offers haptic solutions technology using 3DHaptics technology, have signed an agreement for MIRAISENS to become a wholly-owned subsidiary of Murata Manufacturing.
Diodes updates on Lite-On acquisition Since the initial announcement of the acquisition back in August, 2019, all customary closing conditions have been met, including approval by the Lite-On shareholders. In conjunction, Diodes has been working through the final process of securing the required regulatory approvals in both Taiwan and China.
Grant helps Diodes to grow in Greenock Semiconductor manufacturer Diodes Incorporated has received a GBP 13.7 million funding package from Scottish Enterprise towards a GBP 47 million project enabling its future growth in Greenock, Scotland.
Murata starts construction on new production building Okayama Murata Manufacturing Co., Ltd. (Setouchi, Okayama Prefecture), started construction on a new production building in December 2019.Load more news