Semiconductor Industry Weekly: Market Growth, Innovation, and Key Collaborations
Cosimo Spagnolo
R&D and Process Engineering | High-tech and Semiconductor technology | Six Sigma Green Belt
?? Welcome to the weekly edition of The Semiconductor Newsletter, where we highlight the most important developments in the semiconductor world.
?? In this issue, we cover significant developments in the industry, including major partnerships, R&D expansions, and market insights. Here’s a quick overview:
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1. Global Semiconductor Sales Surge 20.6% Year-to-Year in August 2024
Sales Reach Record Highs Amid Industry Growth
In August 2024, global semiconductor sales hit an impressive $53.1 billion, representing a 20.6% increase compared to $44.0 billion in August 2023, as reported by the Semiconductor Industry Association (SIA). This growth also marks a 3.5% rise from the July 2024 sales of $51.3 billion. Notably, this is the fifth consecutive month of growth, with a significant 43.9% increase in sales in the Americas. The Semiconductor Industry Association, backed by the World Semiconductor Trade Statistics (WSTS), attributes this robust expansion to the recovery and strong demand across key markets.
Regional Sales Growth and Market Insights
Regionally, the Americas saw a remarkable 43.9% year-on-year increase, while China grew by 19.2%, followed by Asia Pacific/All Other at 17.1%, and Japan with a 2.0% rise. Europe experienced a 9.0% decline in sales. On a month-to-month basis, all regions saw growth, with the Americas leading at 4.3%, Japan at 2.5%, and Europe at 2.4%. This trend of sustained growth highlights the semiconductor industry's resilience and increasing demand across various sectors, particularly high-performance computing and communication technologies.
2. Hurricane Helene Shakes Semiconductor Industry as Quartz Supply Disrupts
Severe Disruptions to High-Purity Quartz Production
The remnants of Hurricane Helene have severely impacted the town of Spruce Pine, North Carolina, home to the world's purest quartz supply, a critical material in semiconductor manufacturing. On September 26, Sibelco and The Quartz Corp, the town's two major quartz producers, were forced to halt operations due to flooding and widespread infrastructure damage. Over two feet of rain submerged local facilities, disrupting quartz mining and refining activities essential for silicon wafer production. Without these operations, the global semiconductor industry, valued at over $600 billion, faces potential shortages of high-purity quartz.
Global Semiconductor Supply Chain at Risk
Experts estimate a four-to-six-week delay before operations can resume, contingent upon infrastructure repairs to damaged roads and power lines. TECHCET CEO, Lita Shon-Roy, emphasized the severity of the situation, noting that Spruce Pine is the only supplier of high-purity quartz capable of meeting semiconductor industry demands. Any extended disruption could cripple the supply chain, particularly as semiconductor manufacturers require quartz crucibles with a shelf life of 300 to 400 hours. Although stockpiles may cushion immediate shortages, a delay of more than two months could lead to significant global production challenges.
3. Amkor and TSMC Expand Partnership for Advanced Packaging in Arizona
Strategic Collaboration to Boost U.S. Semiconductor Ecosystem
Amkor Technology, Inc. and 台积公司 have strengthened their partnership by signing a memorandum of understanding to collaborate on advanced packaging and testing capabilities in Arizona. This move is set to bolster the U.S. semiconductor ecosystem, aligning TSMC’s wafer fabrication facilities in Phoenix with Amkor's back-end processing in Peoria. The collaboration will focus on delivering advanced packaging solutions, such as TSMC's Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS?) technologies, which are critical to high-performance computing and artificial intelligence markets.
Boosting Innovation and Reducing Product Cycle Times
The proximity of TSMC’s front-end fabs and Amkor’s back-end packaging facilities is expected to streamline production processes and reduce overall product cycle times. Amkor CEO Giel Rutten emphasized the partnership’s role in enhancing technology integration, while TSMC’s Kevin Zhang highlighted the importance of geographic flexibility in semiconductor manufacturing. This expansion marks a significant step toward creating a resilient and innovative semiconductor ecosystem in the U.S. as demand for advanced packaging technologies continues to grow.
4. Rapidus Establishes Cutting-Edge Semiconductor R&D Facility in Japan
New Facility to Drive Chiplet Integration and Packaging Technologies
Rapidus Corporation has announced the establishment of Rapidus Chiplet Solutions (RCS), a state-of-the-art semiconductor research and development center in Chitose, Hokkaido, Japan. The new facility, located on Seiko Epson’s Chitose campus, spans 9,000m2 and will focus on developing mass production technologies for chiplet packages, a critical area for future semiconductor innovation. The R&D center will house pilot lines for FCBGA, Si interposer, RDL, and hybrid bonding processes, which are essential for advancing chiplet integration and backend processing.
Strategic Collaborations to Accelerate Advanced Semiconductor Technologies
Rapidus has partnered with IBM and several global research institutions to accelerate the development of chiplet and 2.5D/3D packaging technologies for the 2nm generation. With support from Japan's Ministry of Economy, Trade, and Industry, Rapidus aims to establish core technologies that will drive semiconductor advancements in packaging automation and integration. The installation of manufacturing equipment is slated for April 2025, with R&D activities commencing in April 2026, further positioning Japan as a leader in cutting-edge semiconductor research.
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5. Samsung Unveils AI-Driven Vision at Developer Conference 2024
Samsung Showcases Future AI Innovations for All Devices
At the Samsung Developer Conference 2024 (SDC24), held in San Jose, California, 三星电子 outlined its vision for integrating artificial intelligence across all its devices. Celebrating the 10th anniversary of the conference, Samsung introduced its "AI for All" strategy, which aims to bring AI-enhanced, personalized experiences to a broad range of devices, from mobile phones to home appliances. Jong-Hee (JH) Han, Vice Chairman and CEO of Samsung, highlighted the company’s plan to use AI to provide customized experiences by recognizing users and their preferences across connected devices.
AI-Powered Advancements in User Experience and Security
Samsung also announced AI-driven innovations in its One UI platform, extending AI functionalities beyond flagship devices to the entire Galaxy ecosystem. With new features integrated into appliances and mobile devices, the company aims to enhance user interaction through voice commands and AI interoperability. Samsung's commitment to responsible AI development was emphasized, with three core principles—fairness, transparency, and accountability—guiding their security efforts. This comprehensive approach underscores Samsung’s drive to lead the future of AI across consumer electronics.
6. ZEISS Opens Advanced Semiconductor Applications Laboratory in Dresden
New Facility to Address Semiconductor Failure Analysis and Innovation
ZEISS Microscopy has launched its newest semiconductor applications laboratory in Dresden, Germany, a key European hub for semiconductor research and innovation. The laboratory is equipped with ZEISS' Crossbeam focused ion beam-scanning electron microscope (FIB-SEM) and will specialize in physical failure analysis, materials development, and process yield improvement. This state-of-the-art facility will support the semiconductor industry in tackling nanoscale analysis challenges, especially in advanced logic, memory, MEMS, and packaging.
Strategic Global Collaboration to Push the Limits of Semiconductor Research
The Dresden facility is ZEISS' third major investment in semiconductor applications, complementing innovation hubs in Taiwan and Korea. The three labs will work in close collaboration to develop cutting-edge solutions for global customers, focusing on improving automation in microscopy workflows and advanced techniques for pathfinding. With the growing need for precision in microelectronics, ZEISS’ Dresden laboratory will be pivotal in accelerating the semiconductor industry’s ability to diagnose and resolve complex technical issues, driving future innovation.
7. Cerebras Systems Files for IPO to Expand AI Supercomputing Reach
Cerebras Prepares for Public Offering Amid Growing AI Demand
Cerebras Systems , a leader in AI supercomputing, has filed for an initial public offering (IPO) of its Class A common stock. The IPO aims to expand the company's growth as it develops advanced AI processing systems capable of handling unprecedented computational workloads. Although the number of shares and price range have not yet been determined, Cerebras plans to list on the Nasdaq Global Market under the ticker symbol "CBRS." With Citigroup and Barclays leading the book-running management, this IPO represents a major step in Cerebras’ strategy to capture a larger share of the AI hardware market.
AI Supercomputing Solutions for Large-Scale Processing
Cerebras has been at the forefront of AI hardware innovation, developing the industry’s largest processor, the Wafer Scale Engine, which is designed to accelerate deep learning and artificial intelligence workloads. The IPO will enable the company to raise capital for scaling production and expanding its customer base across industries. As AI continues to drive demand for high-performance computing solutions, Cerebras’ IPO positions it to lead in delivering transformative AI infrastructure to meet growing market needs.
8. Fujifilm Invests 20 Billion Yen to Expand Semiconductor Materials Business
Strategic Expansion to Meet Rising Semiconductor Demand
FUJIFILM Corporation has announced an investment of 20 billion yen to expand its semiconductor materials business in Japan. The capital will be used to strengthen development, production, and quality evaluation capabilities at its Shizuoka and Oita facilities. This investment comes as demand for high-performance semiconductors continues to rise, driven by emerging technologies such as 5G/6G, autonomous driving, AI, and the metaverse. FUJIFILM’s semiconductor materials, including photoresists and CMP slurries, are critical for both wafer processing and post-processing in semiconductor manufacturing.
Enhancing Production Capacity and Innovation in Advanced Materials
At the Shizuoka site, FUJIFILM will invest 13 billion yen to build a new facility focused on advanced photoresists, including those for extreme ultraviolet (EUV) lithography. In Oita, 7 billion yen will be allocated to increase production capacity by 40% for post-CMP cleaners, essential materials used in semiconductor surface processing. The expansion is set to enhance Fujifilm's ability to provide stable, high-quality materials that meet the demands of both leading-edge and legacy semiconductor processes. The new facilities are expected to be operational by 2026, positioning FUJIFILM as a key player in the global semiconductor supply chain.
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