© SMIC Business | October 05, 2020
China's semiconductor industry to brace for impact as SMIC assesses export restrictions
On October 4, 2020, SMIC made formal announcements assessing the Commerce Department’s notification to SMIC's suppliers that they will be restricted from shipping certain U.S.-originated equipment, components, and raw materials to the Chinese foundry, according to TrendForce's latest investigations.
U.S.-based semiconductor equipment suppliers, including Applied Materials, Lam Research, and KLA, are expected to bear the brunt of the impact from the latest sanction against SMIC, while Netherlands-based ASML will be affected as well, since its machines contain U.S.-originated key components. By contrast, TrendForce’s preliminary analysis indicates that the export restrictions will likely have less of an impact on suppliers of silicon wafers and other raw chemical materials for semiconductors, since these suppliers are mostly Japanese and European companies. TrendForce estimates that Taiwanese foundries currently lead the foundry market by occupying a 65% market share, followed by Korea (16%), and China (6%). Occupying about 4% of the global foundry market share, SMIC is ranked first in China and fifth in the world, while being the only Chinese foundry that possesses a relatively clear roadmap for 14nm and more advanced process technologies. Given SMIC’s leadership position in the Chinese foundry industry, the latest sanction, which poses a significantly risk of cutting off SMIC’s upstream supply chain of semiconductor equipment and raw materials, will likely cause considerable damage to the foundry’s R&D of advanced process technologies and China’s efforts at semiconductor independence. In addition to facing restrictions in equipment supply, SMIC may also see its non-Chinese customers withdraw their orders Semiconductor equipment suppliers in China currently include Naura (cleaning, deposition, etching), AMEC (deposition, etching), SMEE (lithography, inspection), and CETGC (ion implantation and chemical-mechanical planarization (CMP)). Although Chinese manufactures are capable of – and have been – supplying the relevant equipment for these processes, it should be pointed out that SMEE is the only manufacturer that can provide lithography and inspection equipment for processes as advanced as the 90nm node. Chinese foundries including SMIC must still depend on U.S. equipment suppliers for processes below 90nm, specifically for 12-inch fab equipment. Within the next five to ten years, semiconductor equipment suppliers in China are highly unlikely to be able to provide semiconductor equipment covering all aspects of the manufacturing process. Assuming Chinese foundries can source from their domestic equipment suppliers for the 90nm or more mature processes, the export restrictions will primarily impact SMIC’s 12-inch fab expansion plans. Although the foundry is able to continue operating its existing 12-inch production lines in the short run, SMIC will find itself unable to purchase new semiconductor equipment and thus expand its production capacity in the future. In particular, the proposed sanctions may force SMIC to slow down their capacity expansion plans for mature processes (28nm and above) and R&D for advanced processes (14nm and below). Furthermore, SMIC’s non-Chinese clients may, in an attempt to mitigate risks, redirect their orders to non-Chinese foundries, such as GlobalFoundries, Taiwan-based foundries (TSMC, UMC, Vanguard and PSMC), as well as Korea-based Samsung. According to TrendForce’s research, Qualcomm and Broadcom are SMIC’s two largest foreign customers. They have been using the 0.18µm node deployed at the Chinese foundry’s 8-inch wafer fabs to manufacture their PMICs. On the other hand, they are now requesting Taiwan-based foundries to take on additional wafer input because of the recent events. Regarding the market for 8-inch wafer foundry, demand appears to be outstripping supply as the whole industry is reporting fully loaded capacity. Transferring orders and raising wafer input at non-Chinese foundries will probably exacerbate the undersupply situation and cause prices to keep rising well into 2021. It is worth pointing out that the NOR Flash chips that GigaDevice supplies to Apple for the AirPods are made using SMIC’s 65/55nm technology. Due to the latest sanctions, Apple might be compelled to reassign NOR Flash orders to Winbond and Macronix. TrendForce further believes that the impact of the sanctions against SMIC will be much greater compared with the adverse effects of the sanctions against JHICC or even Huawei. Although Chinese semiconductor equipment manufacturers have been refining their product offerings through frequent collaborations with domestic foundries in recent years, these manufacturers, unlike their foundry counterparts, still lag behind their dominant global competitors by a massive amount in terms of R&D progress. Therefore, in the absence of key semiconductor equipment from mainstream global suppliers, SMIC will suffer major roadblocks in the continued development of its advanced process technologies, portending the broader impact of U.S. sanctions on the overall Chinese semiconductor industry.
Zhenghai Group and Rohm set up SiC power module JV Zhenghai Group and Rohm have signed a joint venture agreement to establish a new company in the power module business.
ACM receives order from global semiconductor manufacturer ACM Research, a supplier of wafer processing solutions for semiconductor and advanced wafer-level packaging (WLP) applications, says it has received an evaluation tool order for its Ultra C SAPS frontside cleaning tool from a major global semiconductor manufacturer.
Sponsored content by TotechShortage of electronic components Worldwide there is a significant shortage of electronic components, especially SMT components. Since the COVID-19 outbreak people worldwide have been forced to work and communicate from home, and sales of PC’s, game consoles and other smart devices have picked-up big time. This has resulted in a very high demand and shortage of electronic components in other industries. The Long Term Storage of electronic components can be the solution for this problem in the future. But the requirements for long-term storage are increasing.
Kyocera to build two new plants for ceramic components Kyocera Corporation says it will construct two additional production facilities at its Kokubu Plant Campus in Kagoshima, Japan. The new facilities will double the campus’ production capacity for fine ceramic components used in semiconductor manufacturing equipment, while securing space for other manufacturing as Kyocera’s business expands.
NA semi equipment industry posts September 2021 billings North America-based semiconductor equipment manufacturers posted USD 3.72 billion in billings worldwide in September 2021, according to SEMI.
GlobalWafer's merger with Siltronic hits a speed bump The completion of the of merger with GlobalWafers likely to be delayed due to protracted discussions with authorities on regulatory clearances, says Siltronic.
Mobix Labs opens design centre in Australia Mobix Labs, a connectivity solutions provider for wireless mmWave 5G and wired high bandwidth cable networks, has opened a new design center in Sydney, Australia.
Micron pledges $150 billion investment in manufacturing The US memory manufacturer has announced that it plans to invest more than USD 150 billion globally in in manufacturing and R&D over the next decade; all in order to address the 2030-era demand for memory.
Micron to expand with $7B DRAM plant in Japan The US semiconductor manufacturer is reportedly looking to build a new manufacturing facility at its production site in Hiroshima. The company is set to invest JPY 800 billion, or USD 7 billion, in the expansion.
Edwards officially opens new technology centre in Ireland Edwards, a supplier of vacuum and abatement services and solutions to the global semiconductor industry, Officially opened its new flagship Service Technology Centre (STC) in Blanchardstown, Dublin in mid September.
Sponsored content by AEMtec GmbHWafer Back-End Services at AEMtec - a closed loop for your success AEMtec offers their customers Back-End production stages from wafer to complex micro and optoelectronic module assembly, from one source.
Some time ago AEMtec expanded the Wafer Back-End Services by introducing the electroless Under Bumb Metallization (UBM) and the Solder Balling processes. Significantly shorter delivery times, less workload and lower interface losses were achieved. Time-consuming intermediate steps have been eliminated. Steps that are outsourced in the typical industrial process are offered inhouse at AEMtec. Reduction of total lead time from 18 weeks to 8 weeks with the full-service AEMtec solution means faster market access for the customer`s product.
Jenoptik acquires Berliner Glas Medical and SwissOptic Jenoptik strengthens its global photonics business via the acquisition of Berliner Glas Medical and SwissOptic.
PragmatIC Semiconductor raises $80 million in funding PragmatIC Semiconductor, a company dealing in flexible electronics, has secured USD 80 million of Series C funding. The company says it will use the funds to add to its capacity in the UK.
Taiyo Yuden expands MLCC production in Malaysia Japanese manufacturer Taiyo Yuden, will invest MYR 680 million (EUR 140 million) to expand its multilayer ceramic capacitors manufacturing facility in Kuching, Malaysia as the company is looking to increase its production capacity in the ASEAN region.
Hyundai Motor working on developing its own chips in-house The automotive industry has taken a hard hit from the current semiconductor shortage. One automaker that's had enough is South Korea's Hyundai Motor, who is now looking to develop its on semiconductor chips in order to cut reliance on others.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
Sivers Semi is gearing up for growth – acquires MixComm Swedish technology company, Sivers Semiconductors, is looking to take pole position 5G mmWave semiconductors, and the company is taking a major step with the acquisition of US-based mmWave challenger, MixComm Inc.
Keeping EMI from LED drivers under control Question: How can I reduce electromagnetic interference when using LED drivers in lighting design?
AT&S continues to invest – 700 new jobs to be created The Austrian electronics specialist says it will invest EUR 500 million in its Leoben location over the next few years. The investment will see the creation of 700 new jobs.
TSMC's looking to expand with new chip plant in Japan During an online earnings briefing, TSMC CEO C. C. Wei, announced the company's intention to build a specialty technology fab in Japan.
Bosch to set up R&D centre for automotive electronics in Ireland The German engineering and technology company has announced that it will establish an automotive R&D centre in Limerick, Ireland, creating over 30 new jobs over the course of the next two year.
RFMW and CML Microcircuits ink global distribution agreement RFMW and CML Microcircuits (USA) Inc. announces that the companies are expanding their business relationship. Their existing distribution agreement has now been widened to include global marketing and sales of the CML product portfolio.
New Yorker Electronics acquires Omni-Pro Franchised distributor of passive electronic components and discrete semiconductors, New Yorker Electronics, announces that it has acquired Omni Pro Electronics, Inc., an electronic component distributor, located in Addison, Texas.
Pepperl+Fuchs adds to its capacity with a new facility Pepperl+Fuchs has officially opened its new production site in Trutnov, Czech Republic. This marks the conclusion of a project which started in 2019 and will allow the company to strengthen its position as a producer of industrial sensors.
RISC-V player announces expansion of US operation Andes Technology USA Corp., the HQ of the North America operations of Taiwan-based Andes Technology Corporation, a supplier a RISC-V processor cores, is planning a major expansion of Its US operation.
NXP Semiconductors names new CFO NXP Semiconductors announces that the company names Bill Betz has been named NXP’s Executive Vice President and Chief Financial Officer, effective immediately.
GlobalWafers / Siltronic deal gets a green light from the US GlobalWafers has provided an update regarding its ts all-cash tender offer for the outstanding ordinary shares of Siltronic AG.
Samsung starts mass production of its 14nm EUV DDR5 DRAM Samsung Electronics says that it has begun mass producing its 14-nanometer DRAM, based on extreme ultraviolet (EUV) technology.Load more news